Submitted By: Aryan Bhat (MBA 3rd Sem)

SAP: 500071395

MATERIAL CODE
 Every Material in SAP, is identified by the unique identification number, called as the Material
Number.
 The SAP Material Number (8 digits) is the primary master data element of the SAP MM module
(Suresh, 2009). It is used to both describe and record history of purchases made. Material Groups
(represented by a 4 digit code) are the hierarchical grouping of like materials. The Material numbers,
for each unique material, is generated by the SAP system1.
 Materials are linked to an account code, vendor, price, description and other information needed
for the execution of a structured PO using this number.

 USE:
 The material number uniquely identifies a material in the SAP System (Anold, 2008).
 As a rule, a material master record must exist for each material subject to inventory
management within a firm. This record is stored under the material number.
 The material number is the primary linking mechanism within SAP MM. It can reference
multiple data sources within SAP and link them to the PO for reference, agreements,
vendors, terms, BOM, etc. Setting up a material number is not a simple task, since it can
link into a significant number of data sources. The links also must be maintained and the
links updated as things change.2

 WHY:
 Without a material number, the systems allow us merely to report on who we are
buying from (who we are paying), it provides no information about what we are buying.
 Each department will have access to purchasing reports to allow determination of
spending patterns of their Purchasing Groups or against Suppliers and Material Groups
and materials.

1
Anold, J. T. (2008). Introduction to Materials Management. Pearson .
2
Suresh. (2009, Jan 08). SAP Community. Retrieved from SAP:
https://answers.sap.com/questions/5319151/relationship-between-material-code--accounts-assig.html
 Submitted By: Aryan Bhat (MBA 3rd Sem)
SAP: 500071395

YIELD

 Yield is the income returned on an investment, such as the interest received from holding
a security (Banton, 2019). The yield is usually expressed as an annual percentage rate based on
the investment's cost, current market value, or face value. Yield may be considered known or
anticipated depending on the security in question, as certain securities may experience
fluctuations in value.
 Yield is forward-looking. Furthermore, it measures the income, such as interest and dividends,
that an investment earns and ignores capital gains. This income is taken in the context of a
specific period and is then annualized with the assumption that the interest or dividends will
continue to be received at the same rate3.
 A bond yield can have multiple yield options depending on the exact nature of the investment.
The coupon is the bond interest rate fixed at issuance, and the coupon rate is the yield paid
by fixed-income security. The coupon rate is the annual coupon payments paid by the issuer
relative to the bond's face or par value4.
 The current yield is the bond interest rate as a percentage of the current price of the bond.
The yield to maturity is an estimate of what an investor will receive if the bond is held to its
maturity date.

REFERENCES

 Anold, J. T. (2008). Introduction to Materials Management. Pearson .

 Banton, C. (2019, July 22). Bonds. Retrieved Nov 20, 2019, from Investopedia:
https://www.investopedia.com/ask/answers/difference-between-yield-and-return/
 Initialyield.com (May 2012). "Glossary, Initial Yield". Initial Yield. Retrieved 2019-11-20
 Suresh. (2009, Jan 08). SAP Community. Retrieved from SAP:
https://answers.sap.com/questions/5319151/relationship-between-material-code--
accounts-assig.html.

3
Banton, C. (2019, July 22). Bonds. Retrieved Nov 20, 2019, from Investopedia:
https://www.investopedia.com/ask/answers/difference-between-yield-and-return/
4
Initialyield.com (May 2012). "Glossary, Initial Yield". Initial Yield. Retrieved 2019-11-20