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creating Z material types or using standard?

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Hi Experts,

For implementing SAP, we need to decide the material types to be used in the company. Is it a best practice to define all custom material types by copying from standard material types? if yes, why?

Also, can you please guide me common material types to be used in a production company. I have listed a few but not have much experience in this

1. spare parts

2. Machine consumables

3. non-valuated materials

4. production tools

5. finished product

6. semi-finished products

7. scrap materials (since scrap is sold by the company)

8. non-stock materials

9. Standard items

10. General items

Please let me know if there are some other general material types used in a production company.

Accepted Solutions (1)

Accepted Solutions (1)

Active Contributor
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Hi Anny,

Why we suggest for Custom Material you also need to understand this, lets understand this -

We use standard material type and do the customization as per client requirement, we remove something based upon requirement.

Now you need to go for Roll out project and this time you need to pick something which you already deleted as standard material type is only source, to avoid that kind of circumstances we go for custom material type.

Also add RAW material(ROH) in your list.


Answers (4)

Answers (4)

Active Contributor

Hi Anny,

Creating Z Material type is good option, above list provided is standard material bifurcations for general manufacturing industries. By keeping FERT as is create Z/Y types helps in further FI-CO level configuration especially if any business requirement this material should be reflect to cost etc.,


Abinath. S

Active Contributor
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All standard material types you can keep for reference purpose.

For example: ROH,FERT and HALB

You can create new raw material types ROM and RAW from ROH material type and change your material types screens or any fields of ROM and RAW based on business requirement without changing any setting for ROH. ROH for reference and in future you can create another new raw material type ROW by referring to ROH.

Similarly you can create new material type ZFIN from FERT and ZSFP from HALB

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Hi Anny,

We use Standard Materials which are already in SAP as per client requirements, but if client demands for some other customise material than we Create a material as per convenience which starts by Y or Z, hence they are known as Custom materials.

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Hi Anny,

From MM & FI-CO point of view, Creating Custom Material Types is a good practice, which will be helpful when you want to further segregate same type of materials.