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material type

Former Member
0 Kudos

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

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Former Member
0 Kudos

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