Material with multiple material type

[#1]

Hi SAP Experts,

Greetings to all. I wish to ask following question:

I have a Material A which is a RAW material, Semifinished good, finished good and also we sell the RAW material directly. In SAP I have observed that I have to create 4 material master records for the same material (e.g. Material 1,2,3,4). I would like to ask whether this is right or should i take some other approach.

Basically I would like to ask why should we create 4 different material codes for it because I will not be able to track the total procurement cost of material A or is there any way I can relate that the Material 1,2,3,4 is same material?

Thanking you in advance,

Regards,

Uday K.

[JL23 · Accepted solution]

A material type is like a mother, the material like the child, a child cannot have more than one mother.

this mother can have her role as mother to her child, can do her job in the office, can be the cook for the family.

So it with the material types. they can support several business needs, they are customizable. Dont focus on the name, if  ROH or HAWA is not liked then create a new one XYZ and call it "mixed material type" .

The main purpose of the material type is to control which views can be maintained and what field have to be there, and which number range is used.

If you material is just one material that shall serve several purposes, then you should not create several material numbers.

[Former Member]

Hi,

For each and every case, you should think about the excise and accounting treatment.

you should see, how accounts wants to see the values of stock in their books and how your excise wants to treat those materials.  Based on that you have to take a decision.

Options available in SAP:

1. Single material code

2. multiple material codes

3. Split valuation

If you are using external number ranges, then you can use the logic like this in case of option 2.

for Raw Material -Rpen

for SFG- Spen

for Finished material- FPen etc.

you discuss with excise and accounts and business process owners and then decide.

Regards

Ravi

[Former Member]

dear,

its not possible becoz every material type has different no. range

[BijayKumarBarik]

Hi,

Why only one material code needed for all material types such as RAW material, Semifinished goods and Finished good?

What is your real procurement process!

If you procure material externally and then sold,better use material type:HAWA (trading goods) where you can have purchasing data and sales data.

Regards,

Biju K

[Former Member]

Dear,

How ,One Material becomes act as Raw,SFG and FG ?

If yes ,we have to differentiate which one is Raw ,SFG and FG in Financial Level  So ,we have to maintain different G/L Accounts and Account Assignment Categories with different Valuation Area etc.

If you have any doubts please let me know.

Thanks,

Naren