Wednesday, January 26, 2022

Influence of Material Type / Material Type: Control Factors Relevant to Purchasing

         When we create a material master record, we must assign a material type, such as raw material or semi finished product to the material.

  •  In the standard system, the material type ROH (raw material) specifies that all materials of this type are procured externally.
  • A material of the type NLAG (non-stock material), on the other hand, can either be procured externally or produced in-house.

 


                     The material type determines the selection of the accounts to which postings can be made when a material moves into or out of the warehouse or stores. In addition, the material type determines the number range of the material number and the type of number assignment – whether the number is assigned internally by the system or externally by the user.

 

Generally the material type determines or controls the following:

Ø  The business use of the material
Ø  The type of number assignment
Ø  The data screens that are displayed and the order in which they appear
Ø  The user department data that can or must be entered
Ø  The procurement type of the material; whether the material is produced in-house or procured                   externally or whether both are possible
Ø  The updating of quantities and values in the relevant valuation areas

 A material type can also be assigned to a special transaction for creating material master records.

 We can define attributes of material types in Customizing for Logistics - General under Material Master Basic Settings Material Types Define Attributes of Material Types (OMS2).

 To change the material type, on the SAP Easy Access screen, choose Logistics Materials Management Material Master Material Change Material Type (MMAM).

 Note: If we notice that the wrong material type is being used for a material master record, we can still change the material type later. The prerequisite for this is that there are no stocks and no open documents for the corresponding material.

 

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