A bill of materials (BOM) must be created and configured correctly in SAP for a product group to be ordered as a single item and have its components automatically added to a sales order. The BOM item's category determines if pricing is at the header or component level. It can be configured for either single-level or multi-level explosion in sales documents. The appropriate item categories must also be assigned and pricing conditions maintained for the BOM to function properly in sales order processing.

1. Explain BOM relevant in SD?
We need to maintain Material master records for the BOM Item and for the components also.
The item category group of the BOM items is ‘ERLA/LUMF’ and the item category is ‘NORM’.
Creating BOM item:
Logistics
Sales and distribution
Master data
Products
Bills of material
Bill of material
Material BOM
CS01 create
Specify the data for the following fields.
Material: Specify the material for which components are to be maintained.
Plant: Specify the plant of BOM item.
BOM usage: Specify the application in which BOM is maintained (5 for SD).
Alternative BOM: Specifies the sequence of a BOM within a group of BOMs.
(L = stock item N = Non-stock item)
In the overview screen specify the components which makes the main item and the corresponding
quantities and save it.
Note: During sales document processing if we enter the BOM item the system automatically determines
corresponding components.
I. For the BOM to be exploded in the sales document the following customizing setting is required.
A) If the item category group is ERLA the item category of the BOM is TAQ, in the definition of which we
have to specify the value A (Explode single level BOM) in the structure scope.
B) If the item category group is LUMF the item category of the BOM item is TAP in the definition of
which we have to specify the value A in the field structure scope.
II. If the item category group is LUMF the system shows price for the components but not for the BOM
item. For this the following customizing setting is required.
A) The item category of the BOM item is TAP which is not relevant for pricing, so the BOM item is not
Priced.
B) The item category of the components is TAN which is relevant for pricing, so the components are
priced.
III. If the item category group is ERLA the system shows price for the BOM item but not for components.
For this following customizing setting is required.
A) The item category of BOM item is TAQ, which is relevant for pricing, so the BOM is priced.
B) The item category of components is TAE which is not relevant for pricing, so the components are not
priced.
While creating sales document to get the list of alternative BOMs in the definition item category of

2. BOM item we have to check the field “Manual Alternative”
ITEM CATEGORY DETERMINATION FOR BOM ITEM
SD type ITCaGr Usg HLItCa DftItCa
OR ERLA TAQ
OR NORM TAQ TAE
OR LUMF TAP
OR NORM TAP TAN
OR NORM TAN
OR NORM TAE TAE
OR NORM TAN TAE
NOTE: A – Explode single level BOM item
B – Explode multi level BOM item
CS01 – Transaction code for creating BOM Item
Statistical value ‘x’ or ‘y’
Make TAP relevant for pricing but values for statistical only.
Product Group and Sales BOM
My client clubs together certain products with quantities in something they call Product Group. The
customer calls in and orders for the product group and automatically gets in all the associated
materials.
Do we need a Sales Order BOM to handle this?
Yes, you have to Confugure the Sales BOM. But the confugaration of Sales BOM depends upon certain
conditions like:
If you want to create the product group and price it at header level or
If you want to assemble the products and depending upon the assemblies you want to price .
For eg. if the customer asks for a certain combinationa of Material A, B and C respectively,
then you create a Material Master record Material D with item category group as LUMF.
While the Materials A, B and C are created with standared item category groups NORM only.
Then create a sales BOM using Tcode CS01 and enter the following details:
Material : Material D
Plant : Plant in which you created the material.
BOM Usage : 5 (Sales and Distribution)
then give the Materials A, B, and C and give their respective quantities.

3. Before you have to create pricing condition records for Materials A, B, and C.
Then configure the item categories ( T - code : VOV4).
When processing the sales order, just give the Material D and the system will pick up the corresponding
assemblies for that material and populate in the order.
The item category for the header item will be TAP
and the item cateory for the items will be TAN,
In this cas the Material D is called as the higher level Item , and all the assemblies are called as the
subitems.
Here the subitems are relevant for pricing and delivery where as the header item is not relevant for neither
pricing nor delivery. It just acts as a text item.
This type of configaration of BOM is known as pricing at item level. This is used when you dont know
what quantities of assemblies the customer is going to order and if the price of the assembly keeps varies.
There is another way of configaring BOM which is pricing at header level.
The difference is that the Material Master D has to be confugured using the item category group ERLA.
Creation of BOM is same.
But you need to maitain the pricing condition record for the header item.
The item categories in this case would be
Header item : TAQ
Sub item TAE;
Where the header item is relevant for pricing and delivery. and subitems are not relevant for neither the
pricing nor the delivery.
Depending upon your requirement you configure accordingly,