Bill of Material and Production Order in SAP B1 Cost:

The Bill of Materials concept in SAP Business One can be explained with an example.

In order to manufacture an engraved wooden door, we need two items: A plain wooden door, and a handle. In addition, we need to engrave a decoration pattern. To do this, we need two resources: a lathe machine and a machine operator employee.

These items and resources combine the decorative wooden door bill of materials. In real-life production, bills of materials often have several levels. In our example, the wooden door component can also have its own bill of materials. Note that the finished products are also defined as items master data in the system.

A Production Order is a command to produce a production item. A Bill of Material is copied into the Production Order document (manually or in an automatic process). Then, the needed quantity of the finished good is entered, along with the required due date of production and other relevant data.

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