Is a BOM always necessary?

Question

Hey Guru's
Is it necessary to have a BOM when you use ETO? What happens if you don't?
If you don't use a BOM in ETO then how do you know what to take out of the inventory?
Is there a difference on how SAP uses the BOM in MTO, ETO, Disc. manu, rep. manu and Process industries?
If it is not necessary to use the BOM, what is then used, and what is the significance of that?
Sincerely
Nina

Answer 1

Hi Nina,
I thought this mighht be useful to you.
It was compiled from a lot of helpful people from here and other sites.
Please let us kno wwhen we can be of any assistance.
What is the difference between MD04 and MD05?
MD04 Transaction shows the actual Stock/Requirement situation while MD05 shows the situation at the time of the last MRP run. That date is also displayed on the screen.
Validation of Accounting Document Type in MIRO
Check in User Exit EXIT_SAPLMR1M_004 (Enhancement LMR1M001).
Source of Supply Determination during PR Creation
Check in User Exit EXIT_SAPLMEQR_001 which is called in the ME_SEARCH_SOURCE_OF_SUPPLY. For further details, check in Question 6 of OSS Note 457110.
Source of Supply Determination during PR Creation
Check in User Exit EXIT_SAPLMEQR_001 which is called in the ME_SEARCH_SOURCE_OF_SUPPLY. For further details, check in Question 6 of OSS Note 457110.
Source List Maintenance without Info Record
To avoid the maintenance of source list maintenance without info record, make sure the Message Number 06 341 shall be set as 'E'.
Services PO on hold
It is not possible for SAP to hold the Services PO. For further details, check in OSS Note 380296.
Pricing condition maintenance in Outline Agreement
If you would avoid any change in the pricing conditions of the outline agreement during maintainance in Transaction ME31K, then make sure the Activity Code '3' shall be set for Authorization Object V_KONH_VKS.
PR Document Type Determination when converting planned order
It is of the SAP standard functionality that only 'NB' Document Type is assigned to the PR during conversion of planned order into purchase requisition. For further details, check in OSS Note 46919.
PR Document Type Determination during MRP run
The Document Type determination for the PR is made during MRP run using the MRP Group via Transaction OPPZ.
PR Deletion while PO is active
To avoid the deletion of purchase requistion line items while the PO document (with reference to this PR line item) is active, make sure the Message Number 06 152 shall be set as 'E' via Transaction OME0. For further details, check in OSS Note 521174.
PR Creation with reference to Scheduling Agreement
PR can be created with reference to another PR and can't be created referring to a PO or Scheduling Agreement. PO & Scheduling are created and controlled by Purchasing Organizations. PR can be created by end-users. Yet, requisition will be generated referring to Scheduling agreement when MRP is run. In this case, source list must be maintained for that item-vendor combination & the MRP shall be properly set. Selection Parameter '2'.
PO Price Default from PR Price
Follow the OSS Note 393367 describing how to use the EFB settings to control the PR price coming into PO.
1. First, use Transaction Code OMET to set up the new function authorization for Buyer;
2. Tick on the 'Order Price Adoption' field.
3. Select the 'Maintain Users' to insert EFB into Parameter view.
PO Price Default from Material Master
If we wish to have the Price Determination to use the cost price from the Material Master as we create the Purchase Order, then create the new Condition Type (which could be based on the standard Base Condition PB00). This Condition Type must not have any Access Sequence assigned to it and must have the Condition Category 'G'. The Calculation Schema must have this new Condition Type as the first Condition Type (replacing PB00). For further information, check in OSS Note 496720.
PO Document Type Determination in ME59
The OSS Note 114213 details the determination of PO Document Type during automatic creation of purchase order from purchase requisition.
Planned Delivery Costs maintenance in the PO
If the planned delivery costs need to be assigned to material valuation, you just enter them under conditions for the specific material. However, if you need to assign the costs for defined account, you need to create an item line for the delivery costs and buy them as text for defined account assignment. Depending on acct. assignment specified for the item, you then fill in the needed accounts in item details, tab account assignments.
Multiple Functional Tips and Hints
0001 - FI/CO IMG - Configuration Menus
The following IMG Configuration Menus work on all versions up to 4.7 Enterprise:
ORK1 - Profit Center Accounting
ORKA - Internal Orders
ORKE - Profitability Analysis
ORK0 - General Controlling
ORKS - Cost Center Accounting
ORFB - FI
ORKL - Reconciliation Ledger
ORFA - Asset Management
These Tcode will open IMG/Configuration related menus.
MRP Area Set Up Configuration
The MRP Area is purposely used if we would like to control the material requirement planning at the lower level than the default plant level. Subject to the Type of MRP Area (which is defined in Transaction OMIZ), the MRP Area will correspond to the whole plant or the storage location or to a subcontractor. If the MRP Area Type is selected as at the Storage location level, then you will assign the storage location to the MRP Area in the storage location field. As far as the MRP Area configuration is concerned, there have been three main Transactions you should use:
1. Activate MRP for MRP Areas (Transaction OM01)
2. Define MRP Areas (Transaction OMIZ) and
3. Define Scope of Planning for Total Planning (Transaction OM0E).
MPN Missing in RFQ, Contract or Scheduling Agreement
The MPN functionality is the same for both types of transactions with the exception that in the Enjoy transactions you have fields Manufacturer part number and Manufacturer. The only way to have a preferred MPN number when creating a document is only having a relationship one-to-one. This is just possible in the purchasing view of the internal material or just have one MPN material assigned to an Internal material. For further details, check in OSS Note 663302.
Mass Maintenance via MEMASSPO Transaction
Function Module ME_LIMIT_FIELDS_PO contains all non-changeable fields for the mass change of the Purchase Order. In addition, the following item fields can not be changed with existing items –
1) Material Number (EKPO-EMATN)
2) Material Description (EKPO-TXZ01)
3) Purchase Order Quantity (EKPO-MENGE)
4) Order Unit (EKPO-MEINS)
5) Net Price (EKPO-NETPR)
6) Purchase Order Price Unit (EKPO-BPRME)
7) Plant (EKPO-WERKS).
For further details, check in OSS Note 501853.
Mass maintenance of Purchasing Info Record
Use either Transaction LSMW or Program RM06IBI0.
Mass maintenance of MRP Area
Go to Program RMMDDIBE. Both 'Material Number' and 'Plant' number range should be entered. Go to 'Set/Reset Deletion Indicator' tab page and enter the proper entry in the 'MRP Area' and the radio button to set deletion flag.
Invoicing Plant Configuration Set-up
The invoicing plan enables you to schedule the desired dates for the creation of invoices relating to the planned procurement of materials or services independently of the actual receipt of the goods or actual performance of the services. It lists the dates on which you wish to create and then pay the invoices.
You have the system create the invoices automatically on the basis of the data in the purchase order, thereby triggering payment of the vendor. It is also possible to enter the invoice for an invoicing plan manually.
There are two kinds of invoicing plan: Periodic Invoicing Plans and Partial Invoicing Plans. Both types are available as of SAP R/3 4.0A.
To be able to work with invoicing plans, the following conditions must be satisfied:
1) Maintaining the settings in Customizing for purchasing (for example, invoicing plan type, date categories, date descriptions, and date sequence proposals). The path is IMG ---> Material Management ---> Purchasing ---> Purchase Order ---> Invoicing Plan ...
2) The Purchase Order item must have an account assignment
3) The 'AutoEvalGRSetmtDel.' indicator must be flagged in the Vendor master record for automatic settlement utilization.
4) The Framework Order (document type FO) must be used. This document type requires that a validity period be entered in the PO header. This specification is adopted in the invoicing plan, provided that this has been predefined in Customizing for the relevant invoicing plan type.
5) The LIV must be used.
How to set the PR field mandatory when creating PO
Use Transaction Code OMET Create a new entry, give it a name and tick :-
1) Ref. to PReq;
2) Ref. to P.O.
3) Ref. to quotation.
Next, you've got to associate via SU01 and click Parameters, insert a new parameter id EFB to the authorization code. Type in Parameters value you want e.g. XX You have to assign the control for ALL the SAP buyers via the SAP users id.
How to block the unused storage location?
1)     Restrict the users from posting any material document by maintaining authorization check at storage location level. Use path in SPRO - Materials management -> Inventory Management & Physical inventory -> Authorization Management -> Authorization check at storage location.
2) If you are using external procurement, go to the MRP2 View of the material master and maintain the field 'Storage loc. for EP'. This will default the storage location to the planned order or PR and then on to the PO. Upon the receipt the material will be received to the correct storage location. You also need to move existing stock from the old location to the new location by material transfer 311, remove the bin location and mark the old storage location for deletion.
3) Use Transaction Code MM06 to set a deletion flag for material at storage location level. This shall be done for all materials that have this storage location that can be found by checking the table MARD with SE16. As well the message M7 127 from warning to error message (transaction OMCQ) must be changed.
Goods Receipt up to current date for Scheduling Agreements
The implementation of OSS Note 741385 will enable the posting of GR for Scheduling Agreement Delivery Schedule with delivery date in the future.
Goods Receipt for Scheduling Agreement Delivery Schedule
The OSS Note 741385 details how to enable the posting of GR for Scheduling Agreement Delivery Schedule with delivery date in the future.
External Delivery Note for Goods Inbound Delivery Document
The OSS Note 520534 details the possibility of external delivery note in the Inbound Delivery Document.
Difference between VAX and VAY
The account grouping VAY is used for account determination for the offsetting entry for inventory posting (Account Key GBB) if the posting is assigned to the cost account-related object (cost center, order, project, profitability segment etc…). Otherwise, the account determination is carried out with account grouping VAX. This procedure was chosen since the posting with a cost account-related account assignment is only possible to the G/L account which is a cost element. For further details, check in OSS Note 77764.
Difference between MB5B and MCBC
The MB5B is the Transaction Code for Material Valuation Analysis at the Plant level whereas the MCBC is the Material Valuation Analysis at the Storage Location Level. In case of Standard Valuation, the MCBC (or MC.9) does not reflect the valuation in the Material Master Data Records.
Determination of GR/IR Clearing Account
Check in Enhancement LMR1M002 which includes User Exit EXIT_SAPLKONT_011. This User Exit is called by the F. Module MR_ACCOUNT_ASSIGNMENT. The disadvantage of this User Exit is that the program will determine the GR/IR Clearing Account based on this program (which is referring to the Purchase Order Data) and therefore, we have to assure the same GR/IR Clearing Account is to be posted during Goods Receipt and Invoice Receipt posting. For further details check in OSS Note 301477 and 165692.
BOM explosion for Subcontract Scheduling Agreement
The explosion of the BOM is subject to the calculation of the requirement dates. The details of such calculation logic is seen in OSS Note 196684.
Automatic Source of Supply Determination for services without service master record
Set out below are necessary steps to be done/set up in the system -
1) Maintain the purchasing master data record (contract) for material group;
2) Go to IMG -
External Services Management -
Source Determination and Default Values -
for Purchasing Organization where the 'Material Group at Item Level' indicator checkbox shall be activated.
Once the PR is created for your service item, using Transaction ME57 will enable you to make the automatic default of source of supply into the PR line item.
Auto Source of Supply Determination in ME56 Transaction
Check in Program RM06BZ10.
Account Posting Differences - GR before IR and vice versa
1)     With GR before IR: The GR is done at PO price and the invoice will check the price and revaluate the materials if necessary. In this particular case, we may get postings for the revaluation of existing stock and/or postings for the price difference in case (part of) the stock is no longer there. Furthermore, GR will hit the cost object on the PO item (ie. cost center, order number or stock) and posts $ to the GR/IR clearing account for the plant used on the item; whereas
2) With IR before GR: the GR is done at IR price. In this case, we don't have these differences except in case of subsequent debit/credit postings. IR hits the GR/IR clearing account and posts $ to the Vendor account. If there is a difference in the amount in the GR and the invoice amount, the difference will post back to the cost objective.
Account Posting Difference when GR before IR and vice versa
1. With GR before IR: The GR is done at PO price and the invoice will check the price and revaluate the materials if necessary. In this particular case, we may get postings for the revaluation of existing stock and/or postings for the price difference in case (part of) the stock is no longer there. Furthermore, GR will hit the cost object on the PO item (ie. cost center, order number or stock) and posts $ to the GR/IR clearing account for the plant used on the item; whereas
2. With IR before GR: the GR is done at IR price. In this case, we don't have these differences except in case of subsequent debit/credit postings. IR hits the GR/IR clearing account and posts $ to the Vendor account. If there is a difference in the amount in the GR and the invoice amount, the difference will post back to the cost objective.