Procurement of a Material Without a Material Master in SAP MM

[imanedr]

Procurement of a Material Without a Material Master in SAP MM

In SAP Materials Management (MM), the material master plays a central role in procurement processes. However, there are situations where it may be necessary to procure a material without creating a material master record. This process is called procurement using non-material master items, and it is particularly useful for low-value, one-time purchases or services.

Below is an explanation of how this process works and the key considerations for implementing it in compliance with SAP Community Forum terms.

1. What Is Procurement Without a Material Master?

In standard procurement, material master data provides key information about the material, such as its description, unit of measure, and valuation. When procuring without a material master, these details are manually entered during the procurement process.

This method is often used for:

Consumables that do not justify creating a master record.

One-time purchases (e.g., office supplies).

Services or non-stock materials.

2. How It Works in SAP MM

To procure without a material master, follow these steps:

a. Create a Purchase Requisition (ME51N)

Open the transaction code ME51N (Create Purchase Requisition).

In the Item Overview section, enter the required details:

Short Text: Provide a description of the material or service.

Quantity: Specify the quantity needed.

Unit of Measure: Input the unit of measure (e.g., EA for each).

Material Group: Assign an appropriate material group to categorize the item.

Valuation Price: Enter the expected price of the material/service.

b. Convert to a Purchase Order (ME21N)

Use transaction code ME21N to create a purchase order.

Copy the purchase requisition into the purchase order.

Ensure the Account Assignment Category is set to identify the cost object (e.g., cost center, order, or project).

Review and finalize the data.

c. Goods Receipt and Invoice Verification

Use MIGO for goods receipt (if applicable).

Use MIRO for invoice verification.

3. Key Considerations

Account Assignment: Procurement without a material master always requires an account assignment (e.g., cost center or internal order) since the material cannot be stored in inventory.

Material Groups: Assigning the correct material group is essential for reporting and analytics.

Valuation and Control: Since no standard valuation exists, ensure the valuation price is realistic to avoid discrepancies during invoice verification.

Audit Compliance: Maintain detailed documentation for audit purposes, as this process bypasses standard material controls.

4. When to Avoid This Approach

While convenient, this approach should not be used for:

Frequently procured materials.

Materials requiring inventory tracking.

Scenarios where valuation and reporting accuracy are critical.

In such cases, creating a material master ensures better control and efficiency.

Procurement without a material master in SAP MM is a flexible option for one-time or low-value purchases. By understanding the process and its limitations, organizations can efficiently manage ad-hoc procurements while maintaining compliance with SAP standards and best practices.

SAP Community UI SAP GUI for Windows MM (Materials Management) 

[Dominik_Tylczynski · Accepted solution]

It is worth adding that purchase requisition and goods receipt are optional in this process. 

[imanedr · Accepted solution]

Thank you sir