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material type

Former Member
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Hello gurus,

could someone tell me " when we have to create a new material type? and Please give me the step to create a material type.

Thank You

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Dear Sri,

Grouping of material that have same basic properties are assigned with one material type.For Example Raw Material , Semifinished , Finished Goods etc.

SAP have given many of the material type which covered almost all types of material in present business scenarios.You can find this list in the initial screen of MMO1.If your material is not covered under these types then you can create new material type.It is recommended to copy existing material type & make changes as per your requirement.

Material Type controls following things.

1) Material is intended for certain purpose for e.g.. consumption.

2) Whether material number to be assigned internally or externally.

3)Number range interval

4) Which screen appears during material master creation & in what sequence.

5)Which user department can enter data.

6) Which Procurement type ( i.e.. External or Internal)

7)Type of inventory management i.e.. Qty based or Value based or both

8)Indicator for price control i.e.. Std or Moving avg price

Material Type can also be changed subject to following conditions

Old & new type must be assigned to same account category


No open PO , Stocks ,reservation etc.

I hope this will clarify your doubt.

If useful please reward points,

Vivek Maitra

Answers (2)

Answers (2)

Former Member
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In simple words, if u have different requirement than standard.

e.g. in some cases raw material may be sold.

Former Member
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Material types in the SAP standard version are, for example, raw materials, trading goods, semi-finished products, finished products, or services. The material type represents certain features of materials in the system, and has important control functions: the material type is used, among other things, to group field selection functions for a material, or to define the screen sequence, the type of number assignment and number ranges during material master record maintenance. Depending on the material type, company areas maintain different data screens. This screen selection applying specifically to an application is called a "view".

The following are examples of possible material types in the SAP standard version:

• Trading Goods

• Non-stock Material

• Services

• Packaging Material

Depending upon your requirement, custom material type can be defined to represent various features of your needs.

Please let me know if it helps.

Former Member
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Thank You Mr.Muthu, and also could plz tell me what other things i have to look into when i create a material type ( for example valuation class and soo on ) could you Plz explain the process.

Thank You

Former Member
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suppose if you want a material type that have characteristics of semifinished and UNBW(for example) ,you have to copy the existing one and modify it as per client cant directly assin valuation class in material type .you have to group valuation classes assign them to account category reference(ACR) .this ACR has to assigned to materil create ACR follow the menupath

OLMW---->automatic a/c determination without wizard

this will help you

reward if useful