Understanding Bills of Material (BOM) in Sales Documents: Key Scenarios, Configurations, and Examples - Part 2

In continuation of the previous discussion, this article focuses on two specific scenarios in SAP Sales and Distribution (SD) that demonstrate the system's adaptability in handling composite products and bundles.

These scenarios

1. Pricing at the Header Level with Inventory Tracked at the Subitem Level (CPFH)
2. Pricing at the Subitem Level with Inventory Tracked at the Header Level (DISH)

Key Scenario 3: Unassembled Product with pricing at Header Level (Item Category Group - CPFH)

• Processing Method: You want to track inventory (COGS accounting) at the sub-item level. However pricing and billing relevance would be applicable at the header level.
• Business Example: A manufacturing company sells an Industrial Machine Assembly Kit used in factories, consisting of several key components: a Motor, Control Unit, and Gearbox. The kit is priced as a single product but delivered and managed as individual components for installation and inventory tracking at the factory level.

Key Configuration:

Main Item

• Item Category Group: CPFH
• Item Category: CPHD (At header level) - Pricing at the Header level
• Schedule Line Category: CE (Non Inventory Managed)
• Billing Relevant: Main Item
• Inventory Control & Delivery: Not Applicable

Sub Item

• Item Category Group: NORM
• Item Category: CBLI (At Item level)
• Schedule Line Category: CP (Inventory Managed Applicable)
• Billing Relevant: Not Applicable
• Inventory Control & Delivery: Inventory Managed at Sub item level

Let us understand how the configuration & testing performed in the system

Step 1: Maintain BOM and Material Master

a. Maintain BOM

b. Ensure to BOM usage maintain as - 5

For material master ensure to maintain the item category Group -CPFH for the main header item SDBOMCPFHHD, however for the sub-item keep it as NORM

Step 2: Create Sales Order - BOM line item would explode automatically

Notice the item category & Schedule line Category for the main Item - CPHD (Pricing at the header ) and CE (Non inventory Managed)

Item category and schedule line category of sub-item - CBLI (without billing) & CP (Inventory Applicable)

Step 3 : Perform Delivery using "Create Outbound Delivery" app and perform the goods issue.

Notice the PGI and movement type - 601 posted only for the sub line item.

Step 4 : Perform the Billing document against delivery

If you notice the pricing is applicable only for the header line item not for sub-item level.

Key Scenario 4: Assembled Product (Sales as a Kit) - Pricing at Sub-Item level (Item Category Group - DISH)

• Processing Method: You want to track inventory (COGS accounting) at Main Item however Billing & pricing would be applicable at sub-item level.
• Business Example: An office supplies company offers a Corporate Starter Kit targeted at new offices. The kit includes Printer Paper, Ink Cartridges, and Desk Organizers. It is sold as a single logistical unit for simplicity, but each component is priced individually to provide customers with a transparent breakdown of costs.

Key Configuration:

Main Item

• Item Category Group: DISH
• Item Category: FPHD (At header level)
• Schedule Line Category: CP (Inventory Managed)
• Billing Relevant: Not Applicable
• Inventory Control & Delivery: Applicable

Sub Item

• Item Category Group: NORM
• Item Category: FNLA (At Item level)
• Schedule Line Category: CE (Non Inventory Managed)
• Billing Relevant: Applicable
• Inventory Control & Delivery: Not Applicable

Let us understand how the configuration & testing performed in the system

Step 1: Maintain BOM and Material Master

a. Maintain BOM

b. Ensure to BOM usage maintain as - 5

For material master ensure to maintain the item category Group - DISH for the main header item , however for the sub-item keep it as NORM

Material - SDBOMDISHHD

Material at sub-item level - SDBOMDISHIT01

Step 2: Create Sales Order - BOM line item would explode automatically

Notice the item category & Schedule line Category for the main & sub item

Step 3 : Perform Delivery using "Create Outbound Delivery" app and perform the goods issue.

Notice the PGI and movement type - 601 posted only for the main items.

Step 4 : Perform the Billing document against delivery

If you notice the pricing is applicable only for the sub line item not at the header item

Final Summary