A planning bill is an artificial grouping of items and/or events in bill of material format that is used to facilitate master scheduling and/or material planning. It is sometimes referred to as a pseudo-bill of material.
It cannot be stocked, sold or bought and is used to forecast a family of products as one entry, while generating gross requirements into the master production schedule (MPS) or material requirements planning (MRP) for each member of the family independently.
Planning bills provide an aggregate forecast tool for forecasting families of products with a similar sales profile. It allows you to make decisions about your items, ensuring that you have right amount of materials and resources available to make the required item.