Key Objects to Configure Material Master in SAP

What do we require to Configure Material Master?

Master data in materials management requires a significant amount of understanding, not only on the part of the SAP consultant but also on the part of the SAP customer. When implementing SAP, customers usually transition from one or more legacy systems. That’s why it is very important to conversion of existing data into master data in SAP.

Intro to SAP Material Master

A material master (SAP MM) is a repository of data related to a material. The material master serves as a single source of information for each material and the system maintains all information about a material in the material master. Thus, from the same, we can access it as well.

We use the material master throughout the SAP system and by different business users. A material number is a unique 18 to 40-character field that we can enter manually or the system can create it automatically, based on the type of number assignment.

Why to Configure Material Master in SAP?

With an external assignment, a master data controller needs to enter the material number manually with an internal number assignment. The system creates the material number automatically once we save a material master record. The industry sector controls the screen setup and screen sequence.

SAPO system includes predefined industry sectors but if these predefined sectors can’t meet any specific requirement, we can also create a new industry sector.

Material Types have many controlling functions.

It majorly includes the following:-

• Number assignment
• Number Range
• Procurement Type
• Screen setup. ( allowed views, field selection etc )
• Price Control
• Account Determination
• Quantity and Value updating in Plants

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Material Types to Configure Material Master in SAP

SAP provides preconfigured material types, but you can also create new material types. Some standard material types include:-

1. ROH: Raw Material
2. HALB: Semifinished material
3. FERT: Finished Material

HAWA: Trading Material

Configuring a New Material type

A material type is the definition of a group of materials with similar attributes, such as raw materials, semifinished materials, finished materials or consumable materials. We must assign a material type to each material record that we enter into the material master.

To configure a new material type Use T code- OMS2.

On the screen that appears, either make changes to an SAP-provided material type or create a new material type. Depending on your business needs, maintain the following key settings in material types.

Define a Number Range for a Material Type

When creating a material master record, each material must have a unique number. Two ways of defining a number range exist.

• Internal number assignment- The SAP system assigns a number within the defined number range.
• External number assignment– Here we can assign a number externally within the defined number range interval. We can also define the intervals for external number assignments as numerical as well as alphanumerical values.

The Process to Configure Material Master in SAP

In real-world scenarios, most companies use internal number assignment when they want numerical number ranges for materials, so the system automatically assigns the unique material number serially and incrementally.

In cases where alphanumerical number ranges are desired, use an external number assignment.

Defining Field Selection

The field status of a field in material master data is controlled by:-

• Material Type
• Transaction code
• Industry Sector
• Plant
• Procurement Type (Internal/external)

Similar fields are organised under different groups called field selection groups.

For example, Field selection group 1 contains two fields, Base Unit of Measure and Unit of Measurement Text.

Field Reference Key

A field reference key is assigned to each of the different controlling units, such as material types, transaction codes, industry sectors, plants and procurement types.

Maintain the field status for each combination of field selection group and field reference key.

Some points to keep in mind include:-

• You must not change the field status of a field selection group for a field reference key prefixed with SAP.
• The field reference key for transaction codes and certain procurement types (Internal procurement & F- External Procurement) is already configured and can’t be changed.
• New filed reference keys must begin with Y or Z.
• New field selection groups, if required, we can create from field selection groups that the system doesn’t preconfigure. For example, field selection groups 206 through 240 are available.
• The system determines how to set the field status. The field status Hide has the highest priority, followed by Display, Required (mandatory) and Optional in that order.

Defining Material Groups

We can see the benefits of using material groups in reporting. Some companies have buyers based on the material group. One buyer may be responsible for procuring only materials under material groups for “stationery” and “Repairs”.

Another buyer may be responsible for procuring materials under the material group “ steel” etc. We can define different material groups to distinguish among various materials. For example, an enterprise that manufactures computers can classify computers as Desktops, Laptops and servers. Each of these items would be its group.

Summary

In this blog, we discussed the major configurable objects required to set the material master in the SAP system including material types, material number ranges, number assignments, industry types etc.