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SAP Phantom Assembly

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Advantages of SAP Phantom Assembly

SAP phantom assemblies reduce master data maintenance. Since several items are grouped by a phantom assembly, we do not need to maintain all these items again and again. Also, changes in items can be done inside BOM of the phantom assembly, so that changes are applicable to the high-level BOMs where this phantom assembly is used.

Master Data Settings for SAP Phantom Assembly

Phantom materials are identified by “Special procurement” key in material master (MRP 2 View). The special procurement key “50” represents a phantom item.

SAP Phantom Assembly Key in Material Master Data

SAP Phantom Assembly in Planning

SAP phantom assembly is not actually produced or purchased. Therefore, phantom assemblies pass the dependent requirements directly to the lower BOM level. Dependent requirements will be generated for components of the phantom assembly, and planned orders or purchase requisitions are created only for these components. Let’s say a wheel assembly is a phantom material which groups together rear wheels, front wheels and their associated components. This wheel assembly is assigned to a final product “truck”.

SAP Phantom Assembly Example – A Wheel Assembly

Here when truck production is planned for future, SAP system also plans for cabin, chassis and engine sub-assemblies. The requirement or demand for the chassis assembly will be passed to the wheel assembly which is a phantom assembly. During MRP (Material Requirement Planning) system will pass the chassis requirement directly to front wheels and rear wheels.

SAP Phantom Assembly in Costing

During costing, SAP system explodes BOM and calculates the planned costs for all the material components in the phantom assembly. Phantom assembly’s material components are displayed and updated in the cost estimate of the higher-level material. The results of the cost estimate will be updated with a reference to the phantom assembly.

Explosion Control for SAP Phantom Assembly

We can stop the phantom assembly behavior at the BOM item level by using phantom assembly off indicator. This will override the special procurement type 50 setting and will make it behave as a normal assembly. This business function can be used in cases where the same assembly acts as a phantom item in some of the final assemblies and as a normal assembly in some other final assemblies.

Let’s consider an example. A truck with 12 Ton capacity wheel assembly where it acts as phantom item (i.e., directly assembled into the truck). But for a truck with 20 Ton capacity, wheel assemblies are assembled separately and are attached to the truck due to some technical design aspect. In former case, the wheel assembly is defined as “Phantom Item” in material master by setting the special procurement key 50. On the other hand, in the BOM of 20 T truck, the phantom assembly off Indicator will be set. So that a separate planned order will be generated for 20 T truck requirements alone but not for 12 T truck.

SAP Phantom Assembly Off Indicator in BOM

In the material master of the wheel assembly, phantom assembly is set in the special procurement field. The wheel assembly is a material component in a higher-level BOM and has item number 0010. It also has a BOM of its own, containing components rear wheels and front wheels. In the standard system, dependent requirements are generated for components when the BOM is exploded in MRP.

The following graphic shows how a BOM that contains a phantom assembly is exploded for production. The phantom assembly (wheel assembly) is ignored and only the components of the phantom assembly (components rear wheels and back wheels) are read.

Example of How a Phantom Assembly is Exploded for Production

The BOM of 20 T truck that contains a phantom assembly (wheel assembly) is also exploded. However, the explosion type is set to off for phantom assembly in BOM, so the material wheel assembly is also included in the planning run.

Example of How a Phantom Assembly is Exploded for Production when Phantom Assembly Indicator is Enabled

Did you like this tutorial? Have any questions or comments? We would love to hear your feedback in the comments section below. It’d be a big help for us, and hopefully it’s something we can address for you in improvement of our free SAP PP tutorials.

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7 thoughts on “SAP Phantom Assembly”

Please provide information in detail. each and every step from creation of material master to production order confirmation.

Could I use phantom item as a hierarchy level in SAP B1? Add standard items to the phantom item as children( level 2). Then add phantom items to a defined item group (level 1)

Is it possible to get the total material cost of a phantom assembly (the MC of all of the parts included in the phantom assembly)? If so, what transaction is this?

Can you please explain PP – PI , what you teaching is excellent.

I need to remove the Phantom Bom classification. How do I do that? When I go to the main BOM through CS02 and select the sub assembly that is currently a phantom bom, highlight the phantom bom, click on the puzzle piece icon it takes me to the Basic Data tab for the phantom bom; however it will not allow me to de-select “Phantom Item”. It will not allow me to change the Procurement type in CS02 in the bom itself for the part number. How can I accomplish removing the phantom bom classification?

T Code –> MM02 –> MRP1 –> special procurement, empty the field and save.

go back to your master recipe and check after that. it should no longer be a phantom item in the BOM.

Can we sale phantom assembly

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Author's profile photo Rajen Madan

Exploring Special Procurement Types: Phantom Assemblies


For a plant, the term ‘procurement’ refers to the process of getting inventory of a particular material. In a simple and broad classification, procurements can be:

  • In-house production
  • External procurement

In the simplest case of External procurement, an order is placed to a supplier for a material, and the supplier supplies it.

In the simplest case of In-house production, a product is manufactured in a plant location (work center) based on a Routing and a Bill of Material.

In practice, the procurement process can be more complex. The procurement type of a material may not be ‘the simplest in-house production’ or ‘the simplest external procurement’. In SAP, these complex procurement types are addressed by ‘special procurement types’ ‘that more closely defines the process of procurement’.

The special procurement keys are defined in OMD9 configuration. The configuration is stored in T460A configuration table. You can call this configuration alternatively by calling transaction SM30 and maintaining view V460A.


In this document we will try to explore special procurement type ’50’ Phantom Assemblies.

The special procurement type is maintained in Material Master MRP2 view (MARC – SOBSL). This is a plant level data field.


Phantom Assemblies:

Phantom assemblies are ‘logical groupings’ of components, and they are ‘fictitious assemblies’ that never get produced. Their components are integrated with the higher level product. The basic reasons of the popular use of phantom assemblies are:

  • Grouping by a logical process and creation of a ‘nomenclature’
  • Simplicity in the BOM structure for a complex in-house product containing thousands of materials as BOM components.

Configuration setting for the special procurement type ‘Phantom Assemblies’:


Regarding master data difference of a phantom assembly and a real assembly is: a phantom assembly does not need a Routing, since it is not going to be produced. This derives the following consequences:

  • There are no planned orders/ production orders for the phantom assemblies.
  • There are no stocks of the phantom assemblies.

A phantom assembly, when used as a BOM component inside a superior assembly, system automatically updates the ‘phantom’ indicator in the BOM General Item view, as well as component detail data view.


The BOM of the phantom assembly is already exploded in the Routing component allocation screen, as well as inside Production order component overview:

The phantom assemblies are listed there for information purpose, and the indicators for phantom items are duly updated.


The MD04 list for the Phantom Assembly remains empty:


The components of the phantom assembly although shows the dependent requirements for the Phantom Assembly.


Multilevel Phantom assemblies are supported in the system.

Further Controls:

If it is required that an assembly will be considered as phantom for one superior assembly, while it will be treated as a real assembly for another superior assembly; that flexibility can be controlled in the following two methods. Routing will be necessary since it is going to be treated as a real assembly.

  • Defining the assembly as a real assembly in material master (procurement type E and no special procurement type), and mentioning it as a phantom assembly in BOM component details screen. To do the same, maintain the special procurement type for phantom assembly in the BOM component general data tab.
  • Defining the phantom assembly as a phantom assembly, and use the explosion type configuration inside BOM component general data tab.


The ‘explosion type’ is configured in:


Accordingly, the consequences like ‘creation of planned orders by MRP’ will follow since it is being treated as a real assembly.

Thanks for viewing the document.

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Good efforts, Keep contributing.

Anupam Sharma

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Author's profile photo Rajen Madan

Thanks a lot for your support!

Best Regards,

Author's profile photo Former Member

Thanks for sharing.

Hi Saravanakumar,

Thanks for the feedback.

Author's profile photo Subhojit Banerjee

Brilliant Document.

Thanks for Sharing.

Hi Subhojit,

Many thanks for your feedback!

Good Document.

You may wish to include a note/caution that a material set with the Phanton indicator in SAP(Special Procurement Key = 50) must be set up with a valid BOM as well

Otherwise we will hit errors while running the Cost Estimates for a higher assemblies (e.g, error msg: BOM not found for material XYZ(Phantom material)).

Hi Senthil,

Many thanks for the feedback, I'll do it. Besides, I'll add up excerpt from the note that mentions that phantoms without a BOM are considered as raw materials.

Excellent document!!!

can you please explain if we 'switch off Phantom Assembly'  using indicator 2. 

Is it is like a regular material we will have planned orders and we can maintain stock etc.?? my assumption was still this is non stockable item as material level you have set it as Phantom? Can you please share your thoughts on this.

Yes, it will be treated like a regular assembly. E.g., suppose BOM of material A contains material B which has been defined as phantom in material master, and you have a BOM for material B. But inside the BOM of material A, you have maintained the explosion type as '02' for B as in my example (one which has indicator 'phantom assembly off').

Now you can test the following two cases:

(a) Create a production order for material A, in the component overview, you will see material B, not the components present inside the BOM of B (which normally happens due to the explosion of phantom assembly).

(b) Run MRP, you will note planned order generation of material B due to the dependent requirements/ reservations generated from the receipts of A.

To sum up, the assembly B will be treated as a 'real assembly' whenever the requirement is generated from A, i.e., BOM explosion of A takes place. In other cases, it will be treated as a phantom assembly.

You can test these points in your test system.

Author's profile photo Srini Ravindra Kumar Pandi Gurusamy

Good document Rajen. Couple of pointers:

1. In real business scenarios there are many levels of phantom assemblies one below the other in a BOM hierarchy and the way to look at the hierarchy is via what we call as Order level/Order path as seen in Routing or Prod Order. Business users look for this info to understand the actual phantom level in the hierarchy. May be you can touch upon this info in the document.

2. Also include the basic info operation/component assignment related to phantoms:

What happens if you assign the phantom assembly to an operation and what happens if the components inside do not have any assignment?

And what if you have assigned individual material components from the phantom assembly to various operations without also actually allocating the phantom assembly?

I stay having some doubts abaout the Phantom operation with my PP products.

I made all those configurations inside BOM plant SAP but I can't see the results.

I don't know what I made wrong?

Can you have any more information about the functionality of Phantom Assembly?

Thank you for help me. 

Author's profile photo Abdelali EL KADDOURI

Please I am not able to see component of my phantom item in pick list or in production order

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How To Configure SAP PP System For Phantom Material

Hi All, Kindly explain how I'm to configure the BOM and Production Order for a semi finished material without a storage location which is component of the next semi finished material in the production process.

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2925721 - Production Version for Phantom Assembly using Production Orders and S/4HANA Systems

You create a production order with a component that is a phantom assembly on an S/4HANA system. This component does not have a production version maintained. As production versions are mandatory on S/4HANA, you expect an error while creating the order.

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Phantom, Assembly, Production Version, Production Order, Process Order, S/4HANA, MD511, CO01, MD11 , KBA , PP-SFC , Production Orders , PP-PI-POR , Process Order , How To

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  1. What is a phantom item & how is it used?

    Phantom items are typically used in multilevel 'Bill of Materials' (BOM), where a single row of a phantom item serves the purpose of an entire sub-tree. These items do not exist in the inventory.

  2. What is a phantom material?

    1. Phantom Assemblies: - A phantom assembly is a logical (rather than functional) grouping of materials. - From the design point of view, these materials are grouped together to form an assembly. The components of a phantom assembly are grouped together to be built into the assembly on the next level up the product structure.

  3. s4/hana where is the Phantom item setting?

    Jan 03, 2019 at 03:32 PM s4/hana where is the Phantom item setting? 301 Views Follow RSS Feed Dear All, I would like to set a material to be a Phantom, But there is no click button in material master and the Phantom item is gray in BOM. I don't know where is the setting go. Could anyone help me? Thank you very much. Add a Comment Alert Moderator

  4. SAP Phantom Assembly Tutorial

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  5. How to Define Phantom Items in Assembly

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  6. Creating a Phantom BOM

    Mar 11, 2008 at 01:45 AM Creating a Phantom BOM 3144 Views Follow RSS Feed I want to create a phantom assembly, but I think I'm missing some steps. Here's what I've done so far. 1) I've created my phantom item as a Semi-Finished material type and assigned it to procurement group E with a special procurement key of 50.

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    The special procurement type is maintained in Material Master MRP2 view (MARC - SOBSL). This is a plant level data field. Phantom Assemblies: Phantom assemblies are 'logical groupings' of components, and they are 'fictitious assemblies' that never get produced. Their components are integrated with the higher level product.

  9. SAP Help Portal

    During planning, you can define an item as phantom or a phantom item as non-phantom item depending on your requirement. Prerequisites You have defined phantom assembly by entering 50 in the Special procurement field and E (In-house production) in the Procurement type field on the Material Requirements Planning 2 tab in the material master ...

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    Be aware that, if you don't have a valid BOM and production version (as of S/4HANA the production version is mandatory for phantoms), MRP will generate a dependent requirement for phantom materials as well, so the MRP type might be relevant in this case.

  16. SAP Help Portal

    To enable the explosion of the product structure of a phantom assembly in the planning matrix, you have to create a material master record in SAP S/4HANA for the phantom assembly. Then you have to enter this material number in the access node of the phantom assembly or in the assembly header of the phantom assembly.

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    The requirements for a particular phantom material are displayed on the phantom material 's stock requirements screen (Transaction: MD04) as Order reservations for particular production orders under MRP element data: "Planning without assembly". Why are these requirements being displayed?

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  19. How To Configure SAP PP System For Phantom Material

    Apr 29th, 2016 at 7:14 AM One way to manage this sub-assembly as a phantom is to set the special procurement type to 50 on the material master. If you do this, then this sub-assembly will be treated as a phantom on orders for all next higher assemblies that use this material as a component.

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