How to Implement Production in Default SAP Business one

# About me:-

I have total 10 to 11 months of experience in SAP Business one.

I am gaining lots of knowledge from SAP forum,

I want to say “Thank you very much..” by hearts to all experts peoples who always encourage new comers in SAP.

here i tried to write a small blog on Production module.

# Purpose of this Blog :-

In this blog i am going to elaborate default production process in SAP Business one

# Contents of this Blog are :-

1) What is Bill of Material (BOM).

2) What is Component Item(Child Item).

3) What is Finish Item(Parent Item).

4) How to set Bill Of Material.

5) How to start production

•       Types of Production Order
  • Standard
  • Special
  • Dis assembly

6) How to complete production

• Issue Methods.
  • Manual
  • Back-flush
• Types of Status
  • Planned
  • Released
  • Closed

7) How to Disassemble a production order.

8) What is Multiple BOM & How to set Multiple BOM.

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1) What is BOM (Bill Of Material):-

•     In simple language,BOM is a list of raw material which is required to produce a finish good.

2) Component Item (Child Item):-

•   Component item are item which are use to produce finished item.
•   Component item are physical items.

            Example:-

            Component Item->Bat,Ball,Bells,Stumps,Leg pads,Helmet,hand gloves & shoe are components to produce

            finished  goods i.e Cricket kit.

3) Finish Item (Parent Item):-

•   In a Production process a component items are turn into finished items.

            Example:-

            Finished good->Cricket Kit set.

4) How to set BOM (Bill Of Material).

          1) Choose finish item (with quantity) from list of Header level field Product No.

                Example:-

                            select Cricket kit(for 1 set) item in header level of BOM.

          2) Choose component items (required quantity to complete FG) in row level

              Example:-

                                    ITEMS                QTY      UOM

                                ————————————————

                                    Bat                          1      Nos

                                    Ball                        1      Nos

                                    Bells                      4      Nos

                                    Stumps                  6      Nos

                                    Leg pads                2      Nos

                                    Helmet                  1      Nos

                                    Hand gloves          2      Nos

                                    Shoe                      1      Set

    3)  After adding details of Bill of Material (BOM) click on Add Button in bottom of form.

          Now BMO will add to database.

5) How to start production.

    NOTE:-

                a) TO START A PRODUCTION ORDER WE MUST HAVE TO SET BOM FOR PARENT ITEM I.E FINISHED

                    GOODS.

                b) COMPONENT ITEMS ISSUE METHODS MUST BE MANUAL FOR ISSUE ANY RAW MATERIAL FOR

                    PRODUCTION .

                    (TO SET ISSUE METHOD CHOOSE ITEM MASTER DATA OF ITEM)

  1)  Create Production Order:-

            1.1) Select Finish good (Product No.) from list.Default BOM set for that item will display in

                    production order row level.& Fill Planned Quantity i.e. production quantity of that item.

           

            1.2) Select Type of Production Order.

                    Their are 3 types of Production Order

                      i>  Standard

                      ii> Special

                      iii>Dis-assembly

          i) Standard:-

• If all Component items are include in production order process as per BOM set then Type of Production

                          should be Standard.

• Default BOM automatically display for production order
  • Example:-

                                    For One set of Cricket kit, BOM is as below,

                                  Item No.                  Quantity

                                  —————————————

                                  Bat                              1

                                  Ball                            1

                                  Stumps                      6

                                  Bells                          4

                                  Leg Pads                  2

                                  Helmet                      1

                                  Hand Gloves              2

                                  Shoe                          2

          ii) Special :-

• If Component items in Production order process are not as BOM set then Type of Production Should be Special.
• In In Special production order we have choose component items manually.

• Example:- 

                                    If few customer ordered Cricket kit set with Bat,Ball,Bells & Stumps only.

                                    In this case BOM will change & Production order will be special.

                        Default BOM:-                |    Special BOM (AS PER CUSTOMER REQUIREMENTS)

                      ————————————————————————————————————-                     

                        Item No.      Quantity      |    Item No.      Quantity

                      ———————————|————————————————————————–

                        Bat                    1          |      Bat                  1

                        Ball                   1           |     Ball                  1

                        Stumps            6           |     Stumps            6

                        Bells                 4           |     Bells                4

                        Leg Pads          2          |

                        Helmet              1          |

                        Hand Gloves     2          |

                        Shoe                   2        |

  iii) Dis-assembly :-

• This option is available for Disassemble a production order which is not closed yet.
• Disassemble option can be use when we want to sale a separate parts of Finished Goods
  • Example
    • Disassemble a Set of Cricket kit in to child items & sold it. 
    • If the customer is return back the “Cricket Kit” because of some damage in BAT.

                            In that case you can use this type for return back the component items into stock.

                            then do Inventory transfer to scrap warehouse of damage items and good items to Component warehouse

2)  Enter Planned Quantity i.e Production Quantity of item.

      Values of planned quantity in row level will change according to value of planned quantity in title level.

        It is done on the basis of base quantity values set in BOM for that item.

3)  After filling details of Production Order click on Add Button in bottom of form.

      now production order will add to database.

6) How to complete production.

          CONCEPT OF ISSUE METHODS :-

            i) Manual:-

• When Issue method of item is Manual then only you can Issue Raw material for production i.e Issue For Production step will done.

                                Production Steps are,

                                  a) Production order

                                  b) Issue for Production

                                  c) Receipt from Production

                                  d) Close.

          ii) Back-flush:-

• You can not Issue Raw material for items who have Back-flush issue method.
• When Issue method of Item is Back-flush then Issue for production step will skip

                      Production Steps are,

                        a) Production Order

                        b) Receipt from Production.

                        c) Close.

Their is simple  5 steps to complete production,

  i)  Create & Add Production Order

  ii) Change Planned status to Released status.

  iii) Issue for Production

  iv) Receipt from Production.

  v) Change Released status to Closed status.

i)  Create & Add Production Order.

• Create production order as explain in above i.e. in 5th Point.
• After successfully creating & adding production order document, initial status of  production order is Planned.

ii) Change Planned status of production order to Released status & Update production order.

• Their is 3 type of status in Production Order
  • Planned
  • Released
  • Closed.
    • Planned  :-
      • After adding production order its initial status is Planned status.
    • Released :-
      • After changing planned status of production order to Released then only we can do next steps of production
    • Closed :-
      • After changing production status Released to Closed.Production order can not be change.

iii) Issue for Production order.

          Note :- Component items Issue Method must be Manual.

                       To setup Issue Method as a Manual open Item master data of that Item.

• In this step production order actually released on shop floor for production.
• We can do Issue for production only when production order is i released state.
• issue a material for released status production order.
• Steps in Issue for Production is as below,
  
  •   Right click on production order select “Issue components” option from list

•   If Required change Quantity in “Issue for Production Order”
•   Click Add Button at bottom of Issue for Production form

•   After  adding Issue for production production order will look like,

iv) Receipt from Production.

•   After completing a production process production order come in this step.
•   Complete Quantity & Rejected Quantity of Finished good is enter in this step.

  ->Right click on production order select “Report Completion” option from list

  ->Enter Complete & Reject Quantity of finished good.

  ->Click Add Button at bottom of Receipt from Production form.

• After  adding Receipt from production production order will look like,

V) Close Production Order:-

• Change Released Status of production order to Closed Status.
• Once production order close then we can not change production order again.
• Update Production Order by clicking Update button.

7) How to Disassemble a production order.

              Note:-Production order can be disassemble only when it is in open status.

              There is few steps to Disassemble Production Order.

•   Create Duplicate Production Order of production Order which you want to Disassemble Press Ctrl+D.
•   Change type of Duplicate production order (Standard) to Disassemble & update Production Order. 
•   Change status of Duplicate production order(Planned) to Released & update Production Order.
• 
•   Open Issue for production
•   Click & select Disassemble order.

                     

•   Add Issue for Production order.

                   

•   Open Receipt from production
•   Click & select Return Component.

                   

•   Select Items to be return from given list & click “OK”.

                   

•   Add Receipt from Production order.
•   Now Check Stock of all item which we select in Receipt from Production->Return Component.

                    It will increase by quantity we return.

•   Change Released Status of production order to Closed Status & Update.

                   

8) What is Multiple BOM & How to set Multiple BOM.

• Multiple Bill of Material:-
  • It is BOM which contain another BOM,

  • Example:-In Cricket kit their is 2 BOM.

    Cricket kit contain

                Bat, Ball, Bells,Stumps,Helmet,Hand gloves,leg Pads & Shoe set.

    

  • Shoe kit contain:-

    Shoe,Laces & Socks

    

• How to set Multiple Bill of Material:-
  • In Multiple BOM 1st set BOM for Semi finish goods & then for Finish goods.

• Example:-

•         BOM For Shoe (Semifinished Goods)                        BOM For Cricket kit (Finished Goods)

          ————————————————                         ————————————————

          Item       Quantity    UOM                                             Item          Quantity         UOM

          Shoe         2             Nos                                              Bat                     1           Nos

          Lays         2              Nos                                              Ball                    1           Nos

                Sox           2              Nos                                             Stumps             6           Nos

                                                                                                     Bells                 4            Nos

                                                                                                     Helmet              1            Nos

                                                                                                     Hand Gloves     2            Nos

                                                                                                     Leg Pads          2            Nos

                                                                                                     Shoe                 1            Set

              

• Do the production process as above for Semi finished goods first then do the production process for Finished goods.

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          Any Question or suggestions for me please post below,