Material Master - SAP SD

The material master contains all the information about the product or service being sold. This information is shared across the organization and maintained by different departments. Hence, it is structured in views according to the various functions such as Purchasing view, MRP view, Accounting view, and Sales view. SD-related data is structured in three views—Sales: Sales Org 1, Sales: Sales Org 2,and Sales: General/Plant. These three views will be the focus of the following discussion.

Common terms in Material Master Data

In your organization, you manage different types of materials such as raw materials, semifinished goods, and finished goods. Materials with a similar set of attributes are grouped under the same material type. The material type , therefore, is the key to controlling screen sequence, data fields, and data. SAP has a set of predefined material types that meet most business requirements. Check whether the following terms match the materials and products you manage in your organization:

  • FERT : Finished products
  • HALB : Semifinished products
  • ROH : Raw materials
  • DIEN: Services
  • KMAT : Configurable materials
  • H AWA : Trading goods

From the sales and distribution angle, we will be most concerned with products and services sold to the customer. Hence, FERT, DIEN, and HAWA will be of greater interest to us than other material types.

Creating Material Master Data

You can create a material master record using transaction code M M01. The path is SAP Menu > Logistics >Sales and Distribution > Master Data > Products Material >Other Material > Create.The screen is where you specify the material type that you plan to set up. Use the Industry Sector field to specify the type of industry (Chemical, Pharmaceutical, Retail, and so on) to which the material belongs. There is a provision to create a material by copying it with reference to an existing record. Use the Copy From field to specify the reference material and the organizational levels from which the data can be copied over.

The Select View(s) button allows you to choose which data screens you want to create. You can always create a material for a certain view first (such as Basic Data) and later extend it for other views. This is the typical scenario in most organizations, where different departments maintain their own piece of information and then hand it over to the next group. Based on your selection, you will then have to specify the organizational levels (plants, sales organizations, and so on) for which the data will be created.

Create Material screen: selecting views

Create Material screen: selecting views

Basic Data

This view contains product data common to the entire organization. Hence, you do not have to specify any specific organizational level to create this view. The material description, units of measure, and attributes such as weight, volume, and status appear in this view.

Sales: Sales Org 1 View

This data is specific to a sales organization and distribution channel. The following are some of the key fields:

Units Of Measure

Here you specify one or more units of measure used for stocking, selling, delivering, or procuring the material. You can maintain three different units of measure for a material:

Base Unit Of Measure

This represents the unit of measure in which the stocks of the material are maintained. This is the base unit of measure. All other units will be converted to the base.

Alternative Unit Of Measure

If you have more than one unit of measure, you maintain the alternatives and their conversion to the base unit in the Additional Data section of the material master .For example, some music CDs are stored as individual pieces (EA) but could also be sold or procured in packs of 10 (PAC). In this example, EA is the base unit of measure; PAC is the alternative unit of measure. The conversion is 10 EA = 1 PAC.

Sales Unit Of Measure

The unit of measure in which the material is sold is the sales unit. If you need to specify a different unit for sales, enter it here.

Quantity Stipulations

You can specify any stipulations regarding material quantity in sales.
Minimum Order Quantity

This refers to the lowest quantity that a customer must order for this material. The marketing or pricing strategy of your organization may set a limit on the order quantity.

Minimum Delivery Quantity

This refers to the minimum quantity that must be delivered to the customer. This is often governed by transportation and logistical constraints.

Delivery Unit

This is the unit in which the material is delivered. If you specify the Delivery Unit setting as five pieces, then you can deliver in multiples of five only (5,10,15,and so on).

Sales Status

To signify the status of the material in the sales life cycle, you use the Sales Status setting. Certain products may be new and not yet released in the market. Others may have reached the end of their life cycle, become obsolete, or be discontinued. You can update the status in the material master in order to control or stop the sales of such items. In the material master, you can set the Sales Status setting specific to a distribution chain (using the field DChain - Spec. Status) or across the entire organization (using the field X-Distr. Chain Status). These fields are used in conjunction with the validity date to specify when the status will take effect.

Tax Data

This allows you to specify the tax classification for the material in each country. (We will cover the details and impact of this in Chapter, “Pricing and Tax Determination.”)

Delivering Plant

This is where you specify the default plant chosen to deliver this material.

Sales: Sales Org 2 View

This view primarily contains various grouping terms:

General Item Category Group

This is a critical field that determines the item category. It controls the behavior and flow of the material across the sales documents.

Material Pricing Group

This field is used in pricing a product. It is used to group together materials that have the same price or pricing condition.

Material Group

There are five grouping terms provided to classify and group the material in various categories.

Product Attributes

You can capture the specific attributes of the product and control the sales transaction such that the order can be processed only if the attributes are acceptable to the customer.

Sales: General/Plant Data View

This view contains some general data and some fields that are plant specific

Plant Specific Information

This includes fields such as availability checking group and loading group.

Availability Checking Group

The availability group controls how stocks are checked and committed to sales orders. Hence, it is a critical field. It plays a key role and will be, “Availability Check, Transfer of Requirements, and Backorders.”

Loading Group

This field plays a role in logistics by determining the shipping point. It will be covered in detail in Chapter, “Shipping and Transportation.”

General Information

Other general data fields include packaging material information, transportation groups, and weight.

Sales Text View

On the Sales Text tab, you can maintain a description or notes about the material in different languages. Through controls in text determination, the text is copied to sales documents.

Material Requirement Planning Views

Data in these views are specific to a plant and storage location. This data contains MRP-related information such as the MRP type, controller, and plant-specific material status. Information relevant to

material requirements planning (MRP) is spread over four views in the material master. They are named MRP1 to MRP4. Settings here affect material availability check and inventory control.

Purchasing View

The data in this view is provided by the purchasing department. It includes information such as purchasing groups, handling and procurement of the material, tolerances, and order units.

Accounting and Costing View

This view contains data about valuation class, standard price, past price and costing data, and so on.

Other views

Other views that are beyond the scope of this chapter include the following:

  • Warehouse Management
  • Storage
  • Work Scheduling
  • Quality Management

Maintaining Material Master records

As discussed earlier, you can create the material master using transaction MM01.The following transactions help you maintain existing material master records:

Change Material Master (MM02)

To make changes to any field in the material master, you proceed with this transaction code. You specify the material number and select the view(s) that are to be edited. You can then navigate to the required screen, make the changes, and save the record.

Display Material Master (MM03)

This transaction provides display rights to the user.

Flag For Deletion (MM16)

If any material master is to be discontinued, you can flag it for deletion using this transaction code.

Change Material Type (MMAM)

If the material type is to be changed at a later date, you can do so using this transaction code.

Change Log in the MateriaLMaster

Changesmade to a material master arerecorded inSAP.To checkthechanges done from within a material master record, select Environment Display Changes. You can get a log of old and new values along with a time stamp and user details.

Customizing Material Master Data

You can use several settings to configure the material master. However, the focus of this discussion is primarily on certain settings that are critical to SD.

Unit of Measure

You can customize all the required units of measure centrally from the General Settings menu. SA P lists all major ISO codes for measurement. If you need to add a custom unit of measure, follow this path: IMGSAP NetweaverGeneral Settings Check Units Of Measurements (transaction CUNI). Here you can specify the following:


Specify the dimension for the unit of measure and the SI unit of measure.

ISO Code

This is a standard list of ISO codes. It is important in data exchange with other systems via EDI.

Unit Of Measure

Here you can set up a custom unit of measure, link it to an ISO code, and specif y other details such as decimal places and rounding rules. Other settings for key fields appear in the menu when you follow the menu path Logistics – General >Material Master > Basic Settings > Setting For Key Fields.

Defining a Material Group

you’ll find a list of existing material groups. To create a new group, click New Entry, and then enter a unique alphanumeric name and a brief description. For Galaxy Musical Instruments, we have grouped a wide range of products under material groups GM0 01 to GM005. As the business diversifies, we can add other material groups to this list. We can then design reports to get sales for each group.

Defining a material group

Defining a material group

In the Setting For Key Fields node, there is a special submenu critical to sales and distribution. The path to it is Logistics–General Material MasterSetting For Key FieldsData Relevant To Sales and Distribution. Two of the important settings here are Define Sales Statuses and Define Material Groups.

Defining the Sales Status

To set up a custom status, click New Entries (or Copy As to copy from a reference). Define a two-character status code with a description. In the same menu, you can specify whether the material is to be blocked in various sales documents, as well as the response of the system when this material is used.

When certain new products are launched, Galaxy Musical Instruments accepts e book ings before the product release date. In this phase, the new products are flagged with a sales status of Not Yet Released.we have defined a custom status of 91(Not Yet Released). We have also specified that if we receive an inquiry, quotation, or sales order, the system will respond with a warning message. Any delivery will be blocked.

Defining the status of a material

Defining the status of a material

Defining the (Sales) Material Groups

SAP offers five grouping fields in this menu (Material Group1 to Material Group5). Select the material group for which you want to add custom values. Specify a three-character term and description. Effective use of these grouping terms facilitates data categorization and reporting. In the case of Galaxy Musical Instruments, Material Group1 has been used for the various musical instrument types such as guitars, drums, and keyboards.

Defining Material Group1

Defining Material Group1

In Material Group2, you can specify further attributes. Guitars, for example, are grouped based on their properties.

Defining Material Group2

Defining Material Group2

You can use some or all of the grouping terms provided, based on your requirements. The material group fields appear in the material master, Sales: Sales Org. 2 view.

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