Material master usually defined and maintained by MM, PP AND SD consultants. As a SD consultant authorization will be given to create material master that is material type trading goods (HAWA). Every material is going to be created with specific to division.
The material master data is used by the system to represent the data pertinent to the product or service your company is selling or producing. It is configured much the same way as the customer master record with different views. As your can see, you have the option to create references to already created materials. This is a popular solution, should you wish to copy the data from our material into another that is similar.
You are provided with a number of views from which to select. Like the customer master record, you have sales views as well as accounting views. A few relevant material master views are as follows:
Accounting: This screen contains the valuation and costing information. Ex: Standard price, past and future price, and moving average cost price.
Materials Requirements Planning (MRP) 1, 2, 3, and 4: These screens provide information for material
requirements planning (MRP screens) and consumption – based planning/inventory control/availability checks.
Ex: Safety stock levels, planned delivery time, and reorder levels for a material. Purchasing: purchasing for a material provides Data here.
Ex: Include the purchasing group responsible for a material, over delivery and under delivery tolerances, and the
order unit.
Storage: This screen contains information relating to the storage/warehousing of a material. Ex: Unit of issue, batch management, and storage conditions.
Forecasting: Here you will find information for predicting material requirements. Ex: How the material is procured, the forecasting period, and past consumption/usage.
Sales and Distribution: These views are most relevant for SD team. It covers information pertinent to sales orders
and pricing.
Ex: Delivering plant, taxes, pricing reference material, item category group, and availability check. Transaction code: MM01 Path: Logistics Material management Material master Material Create (general) MM01 – Immediately
Material: We can specify the description of the material or if we leave it the system assigns a number internally. Industry sector: The material that we are going to create belongs to certain industry sector.
Ex: Chemical industry, mechanical, pharma, service industry, etc.
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Ex: Finished products, raw materials, semi – finished products, packaging materials, etc. The material type signifies whether the material can be procured internally or externally. Ex: If it is raw material system can understand that the material can only be procured internally. If it is finished product both procurements are possible.
Click one select views push button on application tool bar
Choose Basic data 1
Sales: Sales organization data 1 Sales: Sales organization data 2 Sales: General/plant data General plant data/storage 1 General plant data/storage 2 and Accounting 1
NOTE: MRP1, MRP2, MRP3, MRP4 views are maintained by PP consultants.
Purchasing and purchasing order text, warehouse managements are maintained by MM consultants. If warehouse management type is lean warehouse SD consultants maintain the data.
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Specify our Plant: Ex: SRI
Storage location: Ex: SRI
Sales organization: Ex: SRI
Distribution channel: Ex: SRI
NOTE: In enterprise structure client (company) is the highest organizational element/unit.
In Sales and Distribution sales organization is the highest organizational unit. For material management plant is the highest organizational unit.
ERROR: Company code (Ex: SRI Inc. Corporation Limited) has not been fully maintained or defined.
As FI/CO consultants and MM consultants has to do some basic settings like below:
Maintain materials at company code level: Transaction code: OMSY
As the materials in the plant moved to different plants, it has to be maintained in all relevant plants. Choose our company code from position button
Specify current year (as a posting means) and specify current month in the period field Check ABp (allowed back posting periods), which allows back posting.
The materials in the industry moved in and to of the plant. The movements should be updated with in a specified fiscal year (financial year) can be a financial year that can be identified by fiscal year variant.
Ex: K4 = Calendar year V3 = Year dependant Save and Exit
Quantity/Value updating of material: Transaction code: OMS2
Choose material type FERT from position button (as we have choose in material type as a finished product)
SAP system can recognize material type by its KEY
Ex: FERT = Finished product HALB = Semi – finished product HAWA = Trading goods
VERP = Packaging material
LEIH = Returnable packaging material NLAG = Non – stock material
PIEP = Pipeline material DIEN = Service item ERSA = Spare parts
KMAT = Configurable material Select the FERT
Click on Quantity/Value updating control button under dialog structure sub screen Choose valuation area and material type from position button.
Ex: Valuation area = 0003 – SRI Plant Material type = FERT
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Select our valuation area and material type Check quantity updating and value updating
These are the control parameters to update material quantity and value. As materials moved in and moved out from the plant, the materials should be updated in respective G/L accounts.
Save and Exit
Assign company code variant to fiscal year variant: Transaction code: OB37 Path:
IMG
Financial accounting
Financial accounting global setting Fiscal year
Assign company code to fiscal year variant Choose our company code from position button
Assign fiscal year to our company code as K4 (calendar year) Save and exit
Assign chart of accounts: Transaction code: OB62 Path:
IMG
Financial accounting General ledger accounting G/L Accounts
Master records Preparations
Assign company code to chart of accounts Choose our company code from position button
Assign chart of accounts to our company code as INT (International) Save and Exit
Now come back to MM01 and maintain the description.
TAB: Basic data 1
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Base unit of measure: Ex: EA = Each: This is the unit of measure used as a basis for all transactions. All quantity
movements in other units of measure, should any exist, are converted automatically by the system in the base unit of measure.
Specify the material group: Ex: 00208 Division: Ex: OC: Here specify our division
General item category group: Ex: NORM = Standard item
System proposes general item category group and system use this item category group to determine item category of line item in the sales order. The material has been categories as a standard item
NORM = Standard item 0001 = Make – to – order 0002 = Configuration
BANC = Individual purchase order BANS = Third party item
DIEN = Service without deliver LUMF = Structure/material – below ERLA = Structure/material – above NLAG = Non – stock material VERP = Packaging material As a Standard item = TAN Free of charge item = TAAN
Text item = TATX
Gross weight: Ex: 100 kgs Maintain gross weight Net weight: Ex: 100 kgs Maintain net weight TAB: Sales: Sales organization data 1
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Sales unit: Sales unit is nothing but a selling unit. The unit of measure in which materials are sold is referred to as
a sales unit. The value you define in the material master record is proposed during business transactions relevant for sales. You can replace them with other alternative units of measure in the sales order.
Ex: Box, piece, box or bottle.
1 box contains 100 units. Then selling unit is 1 box
Delivering plant: Ex: SRI Plant
System determines a plant for a line item in the sales order by following a search criteria like below: (A) Customer Material Info Record
(B) Customer master (C) Material master record
(D) OR Manually it has to be determined in the sales order level.
Check cash discounts: In the business all the materials may or may not be eligible for cash discounts. The material
that is eligible for cash discounts, this control should be check (condition type SKTO used in pricing procedure).
Tax: Specify the tax indicator to determine output tax. Ex: 01 = Full tax Quantity stipulations: Minimum order quantity: Ex: 5 Boxes
We can specify the unit of measure for minimum order quantity. The minimum order quantity refers to the minimum quantity the customer must order. A warning message appears if the minimum order quantity is not reached during order entry.
Minimum delivery quantity: We can specify unit of measure for minimum delivery quantity. The minimum
delivery quantity refers to the minimum quantity you must deliver to the customer. This quantity is automatically checked during delivery processing. A warning message appears during delivery processing if you enter a delivery quantity lower than the minimum delivery quantity.
Ex: 100 Boxes.
Conversion factors for unit of measure: Maintain the conversion factor. Ex: 1 X 100: 1 Box = 100 items.
TAB: Sales: Sales organization 2
Material statistics group: Ex: 1 = Relevant for statistics.
The value of this field system will be taken into consideration to update LIS.
Material pricing group: We can group the materials as Ex: 01 = Standard. So that we can create condition type