Welcome to the SAP Business One Tutorial for Beginners, the Production and Manufacturing functionality.
The production module in SAP Business One is useful for companies that do assembly, sell items in bundles or manufacture a finished product or good. A bill of material, you identify a top level item, also called finished material or parent, and its components that also called child items. With the production order, you bring everything together to produce the parent from its components
There are four (4) types of Bills of Materials
· Sales: This BOM is used in sales documents. The parent item must be a sales item only. For example, if you sell a gift package that contains multiple products, this could be set up as a sales bill of materials. The parent item will be the package name, and the children will be the inventory items inside the package. Once you selected the parent in a sales document, all its children appear as sub-items. You can update the quantities of
the parent or the children; however, you cannot delete children or add new sub-items to the package in the sales document. The gross profit, for sales BOM is calculated for
the child items only.
· Assembly: This BOM is similar to the sales BOM with one difference - the child items do not appear in the sales document, but only the parent item. When you add the document, the inventory level of the child items is updated. The base price for the gross profit calculation is taken from the sum of base prices of the child items and is displayed in the parent item’s row.
· Template: This BOM has no restrictions. Both the parent and the children can be any type of items. It can be used in sales and purchasing documents. Once you select the parent item, all its children appear. You can delete, add or duplicate rows and make any modification as necessary.
· Production: This BOM is used in the production order document. The parent item is the finished goods, and the children are the components. labor can be added either as a Labor type item or a resource as explained later
Resources
The resource master data represents resources used in production such as an employee’s labor hours, machine capacity or any other means that are needed during production .When defining resource master data, a key piece of information is the capacity. The capacity shows me the availability of my resource by date. For example, how many hours of labor do I have available on a certain day? When I create a production order and enter a due date, SAP Business One knows the available capacity for the
day.
Production Order
The production order document records the finished material to be produced, its components and their issue
method.
Take the following steps to enter a production order:
1. Select the production order type and the parent item.
2. Enter the quantity of the parent item.
3. Enter the production order due date which represents the production completion date.
4. Optionally you can assign a sales order to the production order.
5. Components appear based on the BOM setup. You can add/delete components, modify the base quantities,
warehouse and issue method.
6. Add the production order.
Once the production process begins, open the production order and change its status to Released. You need to issue any manual components. Right-click on the mouse to bring up the context menu and choose Issue
Components. You can filter by routing stage, items and resources as well as warehouse. At the end of the process, you report completion of production. This will receive the finished item into stock and calculate the cost of producing the item. Use the context menu to choose Report Completion.