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Material Type

Former Member
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Hi All,

Why SAP have provided so many material types.If we use only one material type what will go wrong?.

Gopi

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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hi gopi

simply to say

material have some different types based on the usage perpose only

ex:

FERT - <b>FINISHED MATERIAL</b>- IS ONE TYPE of material which has the usage for the SALES

ROH - <b>raw matl</b> - the usage for production, or purchase dept

HALB- for the inhouse prod, or sales,

PACKINGMATL-packing purpose

Answers (6)

Answers (6)

Former Member
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Thanks for all

Former Member
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Hi Gobi,

Most important from PP side these materials types controls the procurement procedure like

Material type FERT will be sales and in-house production.

HALB relevent for sales/in-house and for procurement.

ROH relevent for sales and procurement.

Technically procurement types controls all material types.

Regards

TAJUDDIN

Former Member
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Hi Gobi,

In addition to answers i am adding few more things to your question.

material types is useful in various departments in any organization like

1. Product Costing,

2. Profit Center Accounting,

3. production (BOM, Routing)

4. Valuation & Account Assignments

5. Sales & Distribution

6. Availability Check

etc

Means for example in Production,

few material type can be configured as allowable to use only as a Header Material and few as Items not as Header (depending upon the business)

Similarly in Sales & Distribution, only FERT/HALB/HAWA will be allowed to sale not the ROH (Raw Material) again depending on the business requirements

SAP has defined some material types but you can define as many as material types you want as per the business requirement.

Regards

Rehman

Reward Your Points If Useful.

Former Member
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Hi,

For each material type the valuation class ,their price control are different.Also exicse related data must differ from material to material.So get consolidated data for finacial audit purpose different mat. types are given.

<b><b>Reward points to answer</b></b>

Regards,

Sanjay

Former Member
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hi thr ,

one of the reason :

it allows you to manage different materials in a uniform manner in accordance with your company's requirements.

hope i understood ur ' q's

regards

Former Member
0 Kudos

Hi,

Each material types has its own characteristics.For this reason SAP has provided som many material types with pre defined settings.

Material Types groups together material that have common attributes.

Controls:

1. Which dept can maintain the material master records.

2.whether and how quantities and values are updated in the system.

3.whether internal and external procurement is allowed.

4. which G/L accounts are updated in the system.

5.whether material no is assigned internally or externally.

6. Which no range intervals the material number comes from.

Regards,

nandha