From the course: Learning SAP Production Planning

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Create a bill of materials: CS01

Create a bill of materials: CS01 - SAP ERP Tutorial

From the course: Learning SAP Production Planning

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Create a bill of materials: CS01

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- [Instructor] An integral master data element to production planning is the bill of materials, often referred to as the BOM. The bill of materials is the list of every component and the quantity of those components necessary to produce a good. If we were looking at a recipe to cook something, the bill of materials would be equivalent to the ingredients list of the recipe. The bill of materials is used in SAP for material requirements planning. It helps the system make proposals for ordering the right components for production. Once a finished good is produced, the BOM is also used by the system to measure consumption. Finally, the bill of materials holds key information for product costing to help determine how much it costs to produce each good. Let's create a bill of materials in the system now using transaction code CS01, and pressing Enter. We're going to create the BOM for our pack of pencils, which is a finished…

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