Usage of material group...

[Former Member]

Hi there,

We assign the material group to a material in the material master. As per my understanding we have material having similar attributes under the same material group....

Can you pls enlighten me the advantages of that from SAP point of view .... & the buisness tranasctions where it helps....

Points will we rewarded to helpful answers

With Regards

Kaushik

[Former Member · Accepted solution]

Hello Kaushik,

Addition to experts suggestion, Material group is used for authorization, for account determination incase of text material purchasing and as a release characterisic as well.

so if you sum up

Material group is used

- To allocate the work within organizaiton

- To devide further down level of material type

- For release procedure

- For reporting purpose

- To use for creating purchasing document incase of without material master data

- To use in long term purchasing agreement

Hope this helps.

Regards

Arif Mansuri

[Former Member]

Hi Kaushik

Material group can be used in reporting function, but also can be used to enable the proper organization of the purchasing department.

regards

Srinivas

[kaushik_choudhury2]

Hi Srinivas Ponangi ,

Can u bit elaborate on the enabling the proper organization of the purchasing department..... how the material group will help in that ...

Thanks

Kaushik

[Former Member]

Hi Kaushik

Basically in most of the companies where I worked, material group has been defined as sub set of material type. That means more than one material group is used for same material type.

Also in the Purchasing, buyers (Purchase group) will be allocated to deal with some set of material groups. However this definition is business oriented.

regards

Srinivas

[kaushik_choudhury2]

Hi Srinivas Ponangi ,

What is the advantage to assigning the material group to the purchasing group .... does it is releated in any way to increase the efficiency of SAP by decreasing the time required for certain transactions ...or it is related in some other way ...

Thanks

Kaushik

[Former Member]

I feel it more on segregation of work to each buyer for more focus.

[kaushik_choudhury2]

Hi Srinivas Ponangi ,

Thanks for your inputs.... but I am not quite convinced about the tangible advantage of the field as per our discussion in the SAP business transactions...

Thanks

Kaushik

[Former Member]

Hi

If you take a example of Raw material (ROH) in chemical industry, in same ROH, you may have different type of materials like acids, gas, liquid, powder substances like that. These you can identify as different material groups.

regards

Srinivas

[kaushik_choudhury2]

Hi Srinivas Ponangi ,

I understood what you wanted to articulate from the first post only....but what is my concern is what will be benifits of doing the same .....???

Thanks

Kaushik

[Former Member]

as a Consultant, I strongly belive and recommend, it will be useful in reporting and classification of materials.

thanks

Srinivas

[Ramki]

Hi Kaushik

I agree with Srinivas's discussion on business benefits...

If you just want to know why it's reqd in Txns, let me give you some examples:

- You cannot create purchasing documents (PR, PO etc) without material group.

- You can have contracts created for material group (item category 'W')

Best regards

Ramki