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 saysSAP Business One entityNotes
Finished good (“the Model-X pump”)Item (OITM), typically a Bill of Materials parentThe sellable product; its cost rolls up from its components.
Component / raw material (“the 40 mm impeller”, “steel stock”)Item used as a BOM childPurchased 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 BOMMulti-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 floorGoods Issue to the production orderRaw stock leaves inventory into WIP.
Receive finished goodsGoods Receipt from the production orderFinished stock enters inventory; WIP closes.
WIP (work-in-progress)value/quantity on an open production orderNot a warehouse of its own here โ€” it’s the open order’s consumed-but-not-yet-received state.
Raw / finished warehouseWarehousesStock 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 goodsSales OrderDemand for finished goods; may trigger production.
Purchase of raw materialsPurchase Order โ†’ Goods Receipt PO โ†’ A/P InvoiceThe 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.