What is planning BOM in SAP PP-PEO - Production Engineering and Operations?

SAP Term: planning BOM

• Component: PP-PEO

• Component Name: Production Engineering and Operations

• Description: A version-controlled or date-effective BOM that is used for production planning. It is used to create planned orders. This BOM cannot be used to create production orders. Planning BOMS can be used to determine the long lead-time components that are required to make a product. Once the components are defined in the planning BOM and the planning BOM is included in a production version, MRP can use the planning BOM to determine the dependent requirements and trigger the procurement or production of components. This enables the production planning process to be carried out in parallel when production engineering specifies the production process in a shop floor BOM and routing version.

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• Key Concepts: 
  Planning BOM is a component of the Production Engineering and Operations (PP-PEO) module in SAP. It is used to define the structure of a product, including the components and sub-components that make up the product. It also defines the quantity of each component that is required to produce the product. 
  
  How to use it: 
  Planning BOMs are created in the SAP system and can be used to plan production orders, material requirements, and cost estimates. They can also be used to track changes in product structure over time. The Planning BOM can be linked to other components of the PP-PEO module, such as material requirements planning (MRP) and production orders. 
  
  Tips & Tricks: 
  When creating a Planning BOM, it is important to ensure that all components are accurately listed and that the quantities are correct. This will help ensure that production orders are created correctly and that material requirements are accurately calculated. 
  
  Related Information: 
  The Planning BOM is closely related to other components of the PP-PEO module, such as material requirements planning (MRP) and production orders. It is also related to other modules, such as inventory management (IM) and warehouse management (WM).