SAP Business One supports all your basic requirements for production activities by enabling you to accurately and effectively manage bills of materials (BOMs), resources, production orders, and material requirements.
The application simplifies definition and management of BOMs for production, assembly, and sales. For example, with a production bill of materials, you can readily document the type, quantity, and price of materials needed to manufacture the final products, as well as quantity availability. Once BOMs have been defined, production orders can be created and released based on them. Component needs, costs, and materials availability are automatically added to your work orders, enforcing accurate allocation of raw materials to products and volume control.
Production orders allow you to initiate and track the production process and effectively move the materials used in the process through your organization. For example, once a production order is released to the shop floor, SAP Business One can automatically issue transactions for components needed to produce the parts. On the other hand, material requirements planning (MRP) functionality in SAP Business One allows you to plan your material requirements and maintain an optimum production plan for complex, multilevel production processes. It replaces informal, ad hoc production scheduling with a more structured process using data from various sources across your business to create an accurate picture of your production and supply chain. Sources of data include:
- Bills of materials
- Inventory data
- Inputs from scheduled production
and purchase orders
- Demand inputs from actual and forecasted orders
The Resources module serves as an extension to the Production module; together they provide a base platform for managing light manufacturing processes in SAP Business One. As opposed to items, resources have capacity available throughout a period of time which can be assigned to production orders. Consumption of resources in a production process contributes to overall production costs and can be split into underlying cost elements for further accounting purposes.
The benefit of this module is the visibility of available capacity to avoid bottlenecks and optimize production plan. Also, resource costs are included in the final product cost.