Purpose of this BLOG:
Provide a comprehensive overview on the different feature and functions of pre delivered Bills of material in SAP S/4HANA Cloud including links to more detailed docu materials.
1. Bill of materials variants
In SAP S/4HANA Cloud we provide content for 4 Bill of material variants which can be used out of the box when scope item 31Q is activated.
1.1 Overview
Variant ERLA
Pricing and logistics execution on main item level of the Bill of material.
Variant LUMF
Pricing and logistics execution on sub item level of the Bill of material
Variant CPFH
Pricing on main item and logistics execution on sub item level of the Bill of material.
Variant DISH
Logistics execution on main item and pricing on sub item level of the Bill of material.
The following slides show the differences and capabilities of the different variants:
At SAP the term Bill of material is commonly used.
Typically the item category group as defined in the material master does determine the variant of the Bill of material and therefore the characteristics of the main item and the subitems.
In this example you sell a bike. The bike is in stock and has a defined price. The subitems of the Bill of material are only used as 'Information' in order to specify the components of the bike in detail.
In this example you sell a tool set. The individual tools in the set are priced individually and stock relevant. The main item does only serve as a 'bracket' to sell the single individual items together.
In this example you sell a Computer. The single items are in stock, but sold together for 1 defined price which is maintained for the main item of the Bill of material.
In this example you sell a dental display. Here the separate items on the display have their individual prices. The display itself is the material in stock.
ERLA & LUMF are straight forward use cases where the dimensions Cost, Price, Profitability relevance is either on the main OR on the subitem. This means in the:
- ERLA case the main item does behave like a regular TAN (sell from stock item) with regards to Cost, Price & Profitability relevance. The subitems have only informative character.
- LUMF case the subitem does behave like a regular TAN (sell from stock item) with regards to Cost, Price & Profitability relevance. The main item does serve only as a bracket.
CPFH & DISH were introduced in release 2105 (CPFH) and 2208 (DISH). In the following sections these variants will be explained more in detail.
1.2. CPFH - Pricing on main item and logistics execution on sub item level of the sales kit.
In CPFH the pricing is done on main item level. However- as the inventory management in this variant is done on subitem level, there is no cost condition record determined on the main item.
The cost condition record is determined on sub item level.
As we have now cost and revenue not within the same item- but split across multiple items- from a profitability point of view ( profit margin) we have to bring the cost and revenue back together on one common level. As the profitability analysis is done in Financials based on the profitability segment of a single item- for CPFH the profitability segments of the subitems are derived from the main item and therefore all items are accounted on the main item of the Bill of material. This means from a profitability point of view cost and revenues are consolidated on the main item of the Bill of material.
please see the example below.
Limitations for variant CPFH:
- Scenarios with 3rd party items, bought in items and service materials are not supported.
- Customer Consignment processes is not enabled for the CPFH scenario.
- Subitems must have the same delivering plant as main item.
- Intercompany feature of process is not supported at the moment, as the intercompany pricing is not fully supported by CPFH variant.
- Milestone based sales billing is not supported in the ‘Sales Order Management’ Fiori app. (planned 2308)
- When creating a sales order, the item category field in main Bill of material item is greyed out after pressing “Enter”. In case of ‘Free of Charge’ and ‘Milestone Billing’ the item category has to be changed before pressing “Enter” when an main item was created.
- In Advanced Returns Management, the Free of Charge Replacement Product process is not supported. Best practise workaround : use Free of charge order to trigger a free of charge delivery manually.
- Lean Returns process (sales order type CBRE) is not supported.
- Variant Configuration is not supported for the Bill of material main and subitem levels.
- Intrastat reporting will be done on main Bill of material item level. The item categories for subitems should be excluded from Intrastat Reporting. Please check scope item BDT for more details.
- Trade compliance checks are not supported.
- EPPM ( Enterprise Portfolio and Project Management ) is not supported at this point in time.
- There is no specific sales analytics reporting available. Please consider the following blog: How to analyze profit margin for Bill of materials
1.3.DISH - Logistics execution on main item and pricing on sub item level of the Bill of material.
In DISH the inventory management is done on main item level. However- as the pricing in this variant is done on subitem level, there is no cost condition record determined on the sub item.
The cost condition record is determined on main item level.
As we have now cost and revenue not within the same item- but split across multiple items- from a profitability point of view ( profit margin) we have to bring the cost and revenue back together on one common level. As the profitability analysis is done in Financials based on the profitability segment of a single item- for DISH the profitability segments of the subitems are derived from the main item and therefore all items are accounted on the main item of the Bill of Material. This means from a profitability point of view cost and revenues are consolidated on the main item of the Bill of Material.
IMPORTANT to know:
DISH behaves with regards to the profitability segment determination and cost and revenue consolidation like CPFH. In both variants the main item is used for the margin analysis.
please see the example below.
Limitations for variant DISH:
- Scenarios with 3rd party items, bought in items and service materials are not supported.
- Customer Consignment processes are not enabled for the DISH scenario.
- Intercompany feature of process is not supported at the moment, as the intercompany pricing is not fully supported by DISH variant.
- Milestone based sales billing is not supported
- When creating a sales order, the item category field in the Bill of material main item is greyed out after pressing “Enter”. In case of ‘Free of Charge’ the item category has to be changed before pressing “Enter” when an main item was created.
- In Advanced Returns Management, the Free of Charge Replacement Product process is not supported. Best practise workaround : use Free of charge order to trigger a free of charge delivery manually.
- Lean Returns process (sales order type CBRE) is not supported.
- Variant Configuration is not supported for the BOM main and subitem levels.
- Intrastat reporting will be done on main BOM item level. The item categories for subitems should be excluded from Intrastat Reporting. Please check scope item BDT for more details.
- Trade compliance checks are not supported.
- EPPM ( Enterprise Portfolio and Project Management ) is not supported at this point in time.
- There is no specific sales analytics reporting available. Please consider the following blog: How to analyze profit margin for Bill of materials
1.4 Frequently asked questions
Question #1:
When will intercompany sales billing be supported? How is the intercompany price determined?
Answer:
Intercompany sales billing is in our current backlog. As of today no planned date is available. The planned solution foresees that the intercompany sales price is determined on main BOM item and therefore the Bill of material main item is billed in the intercompany sales invoice similar to the external sales invoice.
Question #2:
We would also require a Bill of Material variant DISH where the logistics is on the main item and the price on subitem – but cost and revenue is distributed to the subitems
Answer:
Currently such variant is not available and not planned in the S/4 Hana Cloud
Question #3:
We sell a product within a Bill of Material and also separately as a single product. How can I filter out the subitems from my sales reporting as I do not want to see the quantities from the Bill of material subitem within the reporting of the single products.
Answer:
Check Blog:
How to analyze profit margin for Bill of materials
Question #4:
I cannot find sample master data for the Bill of Material variant CPFH & DISH. Sample master data for LUMF & ERLA are available.
Answer:
It was decided not to deliver sample data any more for new processes. Customers have to create sample data themselves. Check the 31Q scope item test script for details.
Question #5:
Is Enterprise Portfolio and Project Management ( EPPM ) supported for Bill of materials?
Answer:
It is already supported for Bill of materials of type ERLA & LUMF. It is planned for CPFH & DISH in a future release.
1.5 further links & assets
Scope item 31Q (sales kits)
Scope item 31Q
Official documentation:
Link to official documentation
please make sure to choose the current release for the newest version.
Blog on how to handle sales analytics:
How to analyze profit margin for Bill of materials
Bill of materials in customer returns (scope item 5CX)
Scope item 5CX
Blog: Bill of materials in customer returns
- SAP Managed Tags:
1 Comment
