Production and Manufacturing with SAP Business One


In this training, Pioneers Oren and Elizabeth delve into SAP Business One to provide B1 users with a foundational knowledge of Production & Manufacturing processes and reports. You can view the webinar version of this training OnDemand on our Pioneer B1 Youtube Channel, or read the quick overview below!

Production & Manufacturing in SAP B1 Agenda

We try to cover everything you need to know about Production & Manufacturing in SAP Business One! We will be showing mainly out of the box items that apply to both the HANA and SQL environments!

  • Bill of Materials (BOM) Types
  • BOM Components
  • Creating a Production Order
  • Production Process
  • Shop Floor Management
  • Reports
  • Documentation

Bill of Materials (BoM) Types

Starting off with Bill of Materials (BoM), we first want to break them down into 4 different types:


  • Parent Item is Sales Item (Not Inventory)
  • Sales Docs show Parent Item and Sub-Items
  • Sub-Items: CAN update QTY, CANNOT substitute Sub-Items

EX: PC Set (Monitor, Mouse, Keyboard)


  • Flexible
  • Can be used in Purchase and Sales Documents
  • Items can be replaced, updated, or removed freely

EX: Build-A-Bear


  • Represents a set of Individual Items with a specific price
  • Similar to Sales BoM
  • Final Product managed as Sales Item
  • Sales Docs show Parent Item only

EX: Promo Package


  • Required for Production and MRP
  • Lists Parent Item (Finished Product) and Component Items (Raw Materials)
  • Raw Materials are consumed, and finished product is added to Inventory

EX: Dog Toy

BoM Components

Now that you know what Types of BoMs there are, let’s look at what components make up a BoM:

  • Arrows
  • Text
  • Items
  • Resources
  • Routing
    • Subassemblies
    • Manage Routes
    • Issue Components to Production when they are needed
    • Waiting Days
  • Warehouses
  • Pricelists

Creating a Production Order

Moving on to the Production Orders, we first look at how to create one. With SAP Business One, there are 3 ways you can create a Production Order:

  1. Manual
  2. Procurement Wizard
  3. MRP

Production Process

Now, you can’t talk about creating a Production Order without also touching on the Production Process!

For this step, we feel it’s better to show and not tell:

Add-On Solutions

SAP Business One for Production and Manufacturing is robust! But your company is unique! That’s why different Add-Ons may be available to your company to enhance your SAP B1 experience!

Reports for Production & Manufacturing

Moving right along, our team touches on the different Reports available to you in SAP B1.

Bill of Materials Report

Open Item List

Query Manager – OWOR

Utilities in Production & Manufacturing

Following closely behind Reporting, we wrap up the training by touching on Utilities:

  • Bill of Materials Component Management
  • Production Cost Recalculation Wizard
  • Production Standard Cost Management


Production & Manufacturing in SAP B1 Resources

Looking for more information? Below are a few links carefully selected by our experts that should give you everything you need to know about Production & Manufacturing in SAP Business One. Feel free to browse our resources or check out our knowledgebase. If you have any questions about Production & Manufacturing or want to know how you can run your business better with SAP B1, reach out to us by phone 602-888-2100 or email

Production & Manufacturing in SAP Business One Presentation

Production & Manufacturing Training Webinar on our Youtube Channel 

SAP Business One LinkedIn Tips and Tricks Group

Inventory Management in SAP Business One Blog


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