How to Configure Sales BOM for Product Groups in SAP SD

In many industries, especially manufacturing and wholesale, companies often bundle products together into what's known as a “Product Group.” The idea is simple: a customer calls in and orders a group—say, a bundle of products A, B, and C—and expects all associated components delivered seamlessly. So, how do you make that work in SAP SD? That's where the Sales Bill of Materials (BOM) comes into play. Let’s break this down in plain language, with just enough technical detail to help you confidently set up and maintain this configuration.

What Is a Product Group in SAP?

A Product Group, in this context, is a collection of materials bundled together for sales. Your client might refer to it by a single name (e.g., “Starter Kit D”), but behind the scenes, it includes several individual materials, each with specific quantities. When a customer orders “Product Group D,” they’re actually getting Materials A, B, and C automatically—without needing to order each one individually.

Do You Need a Sales BOM?

Yes, if you're trying to automate this process in SAP SD, you’ll need to configure a Sales BOM. But—and this is important—how you configure it depends on how your pricing and logistics are structured. There are two main types of Sales BOM configurations:

1. Pricing at Item Level
2. Pricing at Header Level Let’s dive into both.

Scenario 1: Pricing at Item Level (LUMF)

This setup is ideal when:

You want the pricing and delivery determined at the sub-item (individual material) level.
The price of each component may vary.
You want flexibility in changing the assemblies and their quantities.

Here’s how to do it:

1. Create a Material Master for the product group—let's say “Material D”.
- Assign the item category group as LUMF (this signals it's a Sales BOM with pricing at item level).

2. Create Material Masters for components A, B, and C.

Use the standard item category group NORM.

3. Go to Transaction CS01 to create the Sales BOM.

Material: D (the product group)
Plant: Your relevant plant
BOM Usage: 5 (Sales and Distribution)
Add components A, B, and C along with their respective quantities.

4. Pricing Setup:

Create pricing condition records in VK11 for A, B, and C.

5. Item Category Configuration:

Use T-code VOV4 to configure item categories.
The header item (D) will be TAP.
Sub-items (A, B, C) will be TAN.

Result:

When a sales order is created using Material D, SAP will explode it into sub-items A, B, and C. These sub-items are the ones priced and delivered. The header item acts only as a placeholder or text—it’s not priced or shipped. This model is great when you don’t know the exact configurations in advance or if the customer frequently changes the quantities of the bundled items.

Scenario 2: Pricing at Header Level (ERLA)

This setup is preferable when:

The product group is priced as a single unit.
Components are standardized and do not vary often.
Delivery and billing are based on the group, not individual components.

Steps to configure:

1. Create Material Master D with item category group ERLA.
2. Use CS01 to define the BOM, just as you did before.
3. Maintain pricing conditions only for the header item D.
4. In VOV4, set:

TAQ for the header item.
TAE for the sub-items.

Result:

When you enter Material D in a sales order, sub-items A, B, and C still appear for reference, but pricing and delivery are handled at the header level. The system sees the group as a single product. Sub-items are not considered for delivery or pricing—helpful for pre-assembled kits or standardized offerings.

Which One Should You Use?

It depends on the business scenario:

Choose Item Level (LUMF) when the components vary and each has its own pricing.
Go with Header Level (ERLA) when you're selling a fixed kit or set with a bundled price.

If your customer often negotiates individual item prices within the group, LUMF gives you the flexibility you need. But if you're offering a “bundle deal” with a single price tag, ERLA keeps things neat and straightforward.

Real-World Example

Let’s say a company sells an emergency repair kit:

Material D – Repair Kit

Includes:

Material A: Wrench (Qty 1)
Material B: Tape (Qty 2)
Material C: Gloves (Qty 1)

If the price of tape changes frequently based on the market, LUMF lets you keep that price dynamic. But if the repair kit is sold as a fixed package for $49.99 regardless of tape prices, ERLA is your go-to.

Key SAP Transactions to Remember

CS01 – Create BOM
VK11 – Maintain pricing conditions
VOV4 – Configure item categories
MM01 – Create material masters

Bonus Tips

Use BOM Usage 5 only for Sales BOMs. This ensures the correct explosion of components during order creation.
Test thoroughly in QA. Make sure both pricing and delivery behave as expected before deploying to production.
Document all configurations with screenshots and sample orders for your client’s reference.

Conclusion

Configuring a Sales BOM in SAP SD isn’t overly complex—but choosing the right type of BOM setup is crucial. Whether you’re pricing at the header or item level, the goal is always the same: smooth order processing and accurate delivery. By understanding your client’s expectations—flexible pricing or fixed bundles—you can configure SAP to work with the business, not against it. Whether you’re dealing with starter kits, spare part sets, or seasonal product groups, Sales BOMs bring order and efficiency to the chaos of bundled sales.

FAQs

1. Can you change a Sales BOM after it's been created?

Yes, use CS02 to edit an existing BOM. Make sure to coordinate changes with pricing and logistics teams.

2. What happens if I delete a component from the BOM?

Future orders won't include it, but past orders remain unaffected.

3. Can a BOM include another BOM (nested BOM)?

In some industries, yes, but it adds complexity. For sales BOMs, it’s generally best to keep it flat.

4. Is it possible to use configurable materials instead of fixed BOMs?

Yes, but that enters the domain of Variant Configuration—ideal for complex products like machinery.

5. What if my client wants to see the components but only price at the header level?

Use the ERLA method. The sub-items will show for reference, but pricing will only apply to the top item.

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