Defining BOM Items

Before you can add a BOM for an assembly or end item, the end item and its component items (including substitutes) must be defined within PeopleSoft Inventory.

Once you've added the general attributes for the item, you must add the business unit-specific attributes within PeopleSoft Inventory. In addition, specify whether an item is a purchased or manufactured item. Although you can add BOMs for both manufactured and purchased items, the system uses only a manufactured item's BOM for planning and cost management purposes. Therefore, to correctly plan for items that you both make and buy, you should set the source code of these items accordingly.

You can maintain BOMs only for owned or consigned inventory items whose books use the Standard Cost option as the costing method in PeopleSoft Inventory. The components can be either owned or non-owned, and they can be either inventory or expensed items. In addition, you cannot control or manage the items using staged dates. Except for planning BOMs, you can add production and rework BOMs only for an item that is approved and defined as an inventory item with the source code Make, Buy, Floor Stock, or Expense.