Example vertical: Discrete Manufacturing
How a discrete manufacturer maps its vocabulary โ bills of materials, production orders, raw materials, work-in-progress, finished goods, sub-assemblies โ onto SAP Business One entities so Norma answers in the client's language. A deep, replaceable template.
This is an example, not a fact about your business. It shows the shape of a per-customer vertical doc for a manufacturing business: how the client’s everyday words map onto SAP Business One entities so Norma answers in their dialect. A real client replaces this with their own โ same structure, their vocabulary. It teaches Norma the customer’s language; it does not change what Norma can do.
Who this is for
A discrete manufacturer buys raw materials and components, assembles them into finished goods (and often sub-assemblies) on production orders driven by a bill of materials, and sells the finished goods to distributors or OEM customers. Staff talk in “BOMs”, “work orders”, “WIP”, “components”, and “finished goods” โ not SAP table names. Stock exists in three states (raw / in-progress / finished) and cost rolls up through the BOM. This doc records that dialect.
Vocabulary โ SAP entity
| The client says | SAP Business One entity | Notes |
|---|---|---|
| Finished good (“the Model-X pump”) | Item (OITM), typically a Bill of Materials parent | The sellable product; its cost rolls up from its components. |
| Component / raw material (“the 40 mm impeller”, “steel stock”) | Item used as a BOM child | Purchased or produced; consumed by production. |
| Sub-assembly (“the pre-built motor unit”) | an Item that is itself a BOM parent AND a component of a higher BOM | Multi-level BOM: a phantom or a stocked sub-assembly. |
| Recipe / bill of materials (“the Model-X BOM”) | Bill of Materials (OITT) | Defines which components + quantities make one finished good. |
| Work order / production order (“work order 500123”) | Production Order (OWOR) | Consumes components (issue) and receives the finished good (receipt). |
| Issue components to the floor | Goods Issue to the production order | Raw stock leaves inventory into WIP. |
| Receive finished goods | Goods Receipt from the production order | Finished stock enters inventory; WIP closes. |
| WIP (work-in-progress) | value/quantity on an open production order | Not a warehouse of its own here โ it’s the open order’s consumed-but-not-yet-received state. |
| Raw / finished warehouse | Warehouses | Stock is read per warehouse; raw vs finished are different bins/warehouses. |
| Customer (“the OEM in Leon”) | Business Partner (customer) | Buys finished goods. |
| Supplier (“the steel mill”) | Business Partner (supplier) | Supplies raw materials. |
| Sales order for finished goods | Sales Order | Demand for finished goods; may trigger production. |
| Purchase of raw materials | Purchase Order โ Goods Receipt PO โ A/P Invoice | The procure side feeds the BOM. |
Terms that need care
- A BOM is not a document you post โ it’s a definition. “Make 50 Model-X” is a production order against the BOM, not editing the BOM. Norma drafts the production order; it does not rewrite the recipe.
- Three stock states. “How much stock?” is ambiguous: raw components, WIP, or finished goods. Norma asks or reads the specific item/warehouse โ a finished-good count is not a component count.
- “Consume” vs “sell”. Issuing components to a production order (consume) is an internal goods movement, not a sale. Only finished goods leave via a sales document.
- Cost rolls up. The finished good’s cost derives from its components + labour/overhead in the BOM; Norma reads item cost, it does not recompute the roll-up.
- “Short on parts” means a component shortage against open production demand โ a stock read against the BOM explosion, not a customer under-delivery.
- Multi-level BOMs: a sub-assembly is both a product and a component. “Do we build or buy the motor unit?” depends on whether it’s a made sub-assembly or a purchased item โ read the item + its BOM.
Industry jargon
The words manufacturing staff actually use, and where each lands:
- SKU โ stock-keeping unit โ a SAP Item (raw, sub-assembly, or finished good).
- BOM โ bill of materials โ Bill of Materials (
OITT): the recipe of components per finished good. - Routing / operations โ the sequence of steps to build it. SAP B1 tracks this lightly; largely operational.
- Work order / production order / job โ the order to make N units โ a Production Order (
OWOR). - WIP โ work-in-progress โ value/qty on an open production order (consumed but not yet received).
- RM / FG โ raw material / finished goods โ Items in raw vs finished warehouses.
- Sub-assembly / phantom โ a component that is itself built; a phantom is a BOM grouping never stocked.
- MRP โ material requirements planning: explode demand โ components. Norma can read a BOM explosion; it doesn’t run full MRP.
- Lead time โ days from order to availability. An item/supplier attribute.
- MOQ / lot size / min run โ minimum quantity to purchase or produce economically. A rule on the item/BP.
- Reorder point (ROP) / safety stock โ the level that triggers replenishment / the buffer. Stock heuristics.
- Yield / scrap / rework โ good output % / waste / redo. Scrap is an inventory write-off (goods issue).
- Backflush โ auto-consuming components when the finished good is received. A production-receipt behaviour.
- Kitting โ pre-picking a set of components for a job. An internal goods movement.
- Cycle count โ periodic partial stock count โ inventory counting, not a sale.
- Standard cost / cost roll-up โ the finished good’s cost derived from its components + overhead. Norma reads item cost; doesn’t recompute.
- Takt time / throughput โ pace/rate of production. Operational KPIs, not SAP documents.
Typical asks โ what Norma does
- “Do we have enough impellers to build 50 Model-X pumps?” โ explode the Model-X BOM, read component stock, compare to demand.
- “Draft a production order for 50 Model-X.” โ a production order against the BOM, through the review gate.
- “What raw materials are we low on?” โ a stock/coverage read on component items.
- “Order more steel from the mill.” โ a purchase order to the supplier BP, held for review.
- “What did we ship the Leon OEM this month?” โ an A/R / delivery read on that BP.
What Norma will and won’t do here
- Will: read stock across raw/WIP/finished, explode BOMs to check component coverage, and draft production orders, purchase orders, and sales documents โ with the human approving every write.
- Won’t: plan the shop-floor schedule, recompute standard cost roll-ups, or decide make-vs-buy โ those are planning/costing judgements, not documents Norma posts.
Replace this file with your own vocabulary. Keep the habit โ your word โ the SAP entity โ and note the terms that need care.