MM Master Data - Introduction

Material Master – Industry Sector
Industry sector is used to group records

It determines industry-specific data that
will appear on the master record
Industry sector examples:
◦ Chemical industry (C ),
◦ Mechanical engineering (M),
◦ Pharmaceuticals (P),
◦ Plant Engineering/Construction (A),
◦ Retail, and so on.
© SAP AG - University Alliances and

The Rushmore Group, LLC 2008. All
January 2008 rights reserved. 1
Material Master – Material Type
It is used to categorize materials
It defines material attributes of:
◦ Valuation
◦ Procurement, and
◦ Price control, etc.
It controls transaction (types) allowed for
the material
It controls the screen (view) sequence,
number assignment, field selection, and
account determination

Material Master – Material Type
Material type information determines:
• What views are maintained
• Whether internal or external procurement is
allowed
• whether changes in material quantity need to
be updated
• Which general ledger accounts need to be
updated

Material Master – Material Types
SAP standard material types (used in all
industries):
◦ ROH (Raw Materials)
 Purchased externally only
 No sales view
◦ HAWA (Trading Goods)
 Always purchased externally
 Sold without any change to the material
 No manufacturing views exist
◦ FERT (Finished Products)
 Are produced internally
 Normally no purchasing views exist
Material Master
– More Material Types
 HIBE (Operating Supplies)
 VERP (Customer returnable packaging)
 LEER (Empty containers)
 KMAT (Configurable material)
 ERSA (Spare parts)
 DIEN (Services)
 NLAG (Non-stock, non-valuated material)
 UNBW (Non-valuated, stocked material)
 HALB (semi-finished)

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Material Master – Data maintenance
features
 Default
◦ It speeds data entry by using the most frequently used
field values (plant, purchasing organization, etc.)
 Reference Material
◦ It speeds data entry by copying data from existing
material master
 Profile
◦ It speeds data entry by copying standard data created in
a profile into a selected view Materials Requirements
Planning (MRP)
 Collective entry of storage location data
◦ It speeds the creation of multiple storage locations

Material Master – Organization Levels
Material master data can be related to all

organizational levels
General information of material master
records (such as description, number,
base unit of measure) has to be related to
the highest level of organization (i.e., the
client)
Other material master records are tailored
at the plant or lower levels

Material Master
– at Various Organization Levels
Data are visible
◦ At client level:
 Description
 Units of measure
 Material number
 Engineering data
◦ At plant level:
 Planning data
 Manufacturing data
 Purchasing data
◦ At storage Location level:
 Stock quantities
Material Master
– Primary Views
Basic data 1
Sales: sales organization data 1
Sales: sales organization data 2
Sales: general/plant data
hasing
c
Sales: texts Pur
View MR
Purchasing V ie P 1
w
Forecasting
Barrel Pen

Material Master
– More Primary Views
MRP: 1
MRP: 2
MRP: 3
Work scheduling
General Plant Data/Storage
Accounting 1
Costing 1

Material Master
– Basic Data 1 View
General data
◦ Basic Unit of Measure
 Unit of measure in which stocks of the material are
managed
◦ Material Group
 Used to group together several materials or
services with the same attributes
◦ Division (areas)
 Used to determine the sales area and the business
area for a material, product, or service

Material Master
– Basic Data 1 View
Dimensions/EANs
◦ Gross weight
 Used to check storage capacity in warehouse
◦ Net weight
 Weight excluding packaging and extras – this is needed for
sales and distribution
◦ Weight Unit
 Unit of Measure for weight
◦ Volume
 The space that the material occupies per unit of volume

Material Master
– sales view 1: sales organization
General Data
◦ Base Unit of Measure
 The Base Unit of Measure is the unit of measure in which
stocks are managed within your company.
◦ Division
 You may enter the Division which your product is in for sales
(defaults if entered in the Basic data screen).
◦ Material Group
 A key that’s used to group several materials or services for
analysis/reporting as well as search by match code.
◦ Sales Unit
 The unit of measure in which the material is sold, if left blank
then uses the base unit of measure.

Material Master
◦ Delivering Plant
 Plant from which the material is available for sale.
◦ Cash discount
 Indicator used for materials, which allow for a
cash discount.
◦ Conditions
 Pricing procedure for the material
Tax Data
◦ Tax classification material
 The indicator with which the system determines
output tax for the material when processing sales
and distribution-specific documents
Material Master
Quantity Stipulations
◦ Minimum Order Quantity
 Minimum quantity a customer may order.
◦ Minimum Delivery Quantity

• Minimum quantity that may be delivered to a
customer
◦ Delivery Unit
 The delivery unit consists of a number and a unit
of measure. In the case of a delivery unit of 30
pieces, 30, 60, 90, and so on pieces can be
delivered, but not, however, 100 pieces.

Material Master
Grouping Terms
◦ Material Statistics Group
 Determine which data the system updates in the
logistics information system
◦ Material Pricing Group
 A way of grouping materials to which you want to
apply the same conditions
◦ Volume Rebate Group
 Group definition used for rebate settlement.
◦ General Item Category Group
 Materials grouping that helps the system to
determine item categories during sales document
processing.
Material Master
Grouping Terms (continued)

◦ Item Category Group
 A grouping of materials that the system uses to
determine item categories during the processing
of sales documents.
◦ Commission Group
 Commission group to which the material is
assigned.

Material Master
– sales view: general/plant view
General Data
◦ Base unit
 The unit of measure in which items are managed
in the company
◦ Gross weight
 Used to check storage capacity in warehouse
◦ Net weight
 Weight excluding packaging and extras – this is
needed for sales and distribution
◦ Availability check
 Option to do an availability check for orders and
MRP

Material Master
Shipping Data (times in days)

◦ Transportation Group
 Defines materials that have the same
transportation requirements. For example, bulk
stock materials
◦ Loading Group
 Defines materials that have the same loading
requirements, such as forklift truck, or crane.

Material Master
Packaging Material Data
◦ Material group Pack Materials
 Materials that require similar packaging materials
General Plant Parameters

◦ Negative stock
 It indicates if negative stocks of the material are
allowed at the plant
◦ Profit Center
 It identifies the profit center in the current
controlling area

Material Master
- sales view: sales texts
Sales Texts
◦ Sales texts are information to be exchanged
throughout the logistics chain
◦ In sales and distribution, this exchange of
information is supported by texts in master
records and documents
◦ The user may define as many text types as
required for master records and documents
such as:
 sales texts,
 shipping texts,
 internal notes, &
 supplement texts, etc.)
Material Master
– Purchasing View
General Data
• Order Unit
• The unit of measure in which a company
purchases the product
• Purchasing Group
• Key for a buyer or a group of buyers, who is/are
responsible for certain purchasing activities.
Purchasing Values
• Purchasing Value Key
• It defines the reminder days and tolerance
limits for purchasing

Material Master
– Forecasting view
Number of Periods Required
◦ Historical Periods
 The number of historical values the system uses
for the forecast
◦ Forecast Periods
 Number of period splits for which a forecast
should be created
Forecast Values
◦ The numeric quantity for future periods
Consumption Values
◦ The sum of planned and unplanned
consumption

Material Master – MRP view 1
General Data
◦ Purchasing Group
 The buyer(s) who are responsible for certain
purchasing activities
MRP Procedures
◦ MRP Type
 It determines whether and how the material is
planned
◦ Reorder Point
 If stock falls below this point, the system is
flagged to create a planned order
◦ MRP Controller
 The person(s) responsible for the material
planning

Lot Size Data
◦ Lot Size
 The lot sizing procedure to calculate the quantity
to be produced or procured
◦ Minimum Lot Size
 The smallest order quantity
◦ Fixed Lot Size
 The quantity to be ordered

Scheduling
◦ Planned Delivery Time
 Number of calendar days needed to obtain the
material
◦ Scheduling Margin Key
 Used to determine the floats required for
scheduling
Net Requirement Calculation
◦ Safety Stock
 It specifies the quantity of safety stock whose
purpose is to satisfy unexpectedly high demand in
the coverage period

Availability Check
◦ It specifies whether and how the system checks
availability and generates requirements for
materials planning

Material Master – work scheduling view
Production scheduler
◦ It specifies the production scheduler
Production Scheduler Profile

◦ It specifies production scheduler profile

Material Master – plant data/storage view 1
 General Data
◦ Container Requirements
 It defines the regulations that govern which type of
container the material must be stored and shipped
in
◦ Storage Conditions
 It defines the conditions on how a material must
be stored or warehoused
 Shelf Life Data
◦ Minimum remaining shelf life
 Minimum time the material must keep upon goods
receipt for the goods receipt to be accepted by the
system
◦ Total Shelf Life
 Period of time the material will keep in total, from
the date of production or receipt to the shelf life
expiration date © SAP AG - University Alliances and
Material Master – Accounting view 1
Current Valuation
◦ Valuation Class
• It allows the stock values of materials of the
same material type to be posted to different
G/L accounts.
• It allows the stock values of materials of
different material types to be posted to the
same G/L account.
• It determines together with other factors the
G/L accounts updated for a valuation-relevant
transaction (Material Movements)
◦ Price Unit
• Number of units to which the price refers

Material Master – Accounting view 1
Current Valuation
◦ Price Control Indicator
• The price control used to valuate the stock of
a material (e.g., Standard or Moving
Average Price)
◦ Standard Price
• The valuation of material stocks at standard
prices means that all goods movements are
valuated at the same price over an extended
period
◦ Moving Average Price
• The system calculates the moving average
price automatically by dividing the material
value in the stock account by the total of all
storage location stocks in the plant concerned
Material Master – costing view
General Data
◦ Overhead Group
 It assigns same overhead rate to group
Standard Cost Estimate
◦ Future
 Planned cost of material in future
◦ Current
 Current standard cost of material
◦ Previous
 Historical standard cost of material

Material Master – Costing view
Planned Prices
◦ Future price of material
Valuation Data
◦ Valuation Class
 Class type for G/L posting


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Material Master – Industry Sector

Industry sector is used to group records

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

Material master data can be related to all

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

◦ Minimum Delivery Quantity

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Grouping Terms (continued)

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© SAP AG - University Alliances and

Shipping Data (times in days)

© SAP AG - University Alliances and

General Plant Parameters

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© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

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© SAP AG - University Alliances and

Production Scheduler Profile

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© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

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