What is group BOM in SAP PP-BD - Basic Data?

SAP Term: group BOM

• Component: PP-BD

• Component Name: Basic Data

• Description: A bill of material that is not assigned to a plant. A group BOM is valid across the entire company. Special features of group BOMS: A plant check is not carried out for the materials in a group BOM. A group BOM is not exploded in material requirements planning and in the production order. Group bills of material are mainly created in the design phase and then later assigned to one or more plants for production.

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• Key Concepts: 
  Group BOM is a component of the Production Planning (PP) module in SAP. It is used to define a group of materials that are used together in a production process. The group BOM is used to define the components of a product, such as the parts, materials, and labor required to produce it. The group BOM also defines the quantity of each component that is needed for the production process. 
  
  How to use it: 
  Group BOMs are created in the PP-BD Basic Data module. This module allows users to create and maintain group BOMs for their products. The user can define the components of the product, as well as the quantity of each component that is needed for production. The user can also assign a cost to each component, which will be used to calculate the total cost of production. 
  
  Tips & Tricks: 
  When creating a group BOM, it is important to ensure that all components are accurately defined and that the quantities are correct. This will help ensure that the production process runs smoothly and efficiently. Additionally, it is important to keep track of any changes made to the group BOM, as this can affect the cost of production. 
  
  Related Information: 
  Group BOMs are closely related to material requirements planning (MRP). MRP is used to calculate the quantity of materials needed for production based on the components defined in the group BOM. Additionally, group BOMs can be linked to other modules in SAP, such as Sales and Distribution (SD) and Quality Management (QM). This allows users to track and manage their products more effectively.