Material Master Hierarchy

1- Material Type

2 - Material Group

3 - Material

MASTER DATA:

It’s a pool of data that is going to be created centrally in the system and that is available for relevant
documents whenever they want to access master data.

Basic Data 1, 2 - Client Level

MRP 1, 2, 3, 4, Purchasing, Accounting - Plant Level
General Data/Plant/ Storage Location - Storage Level
Warehouse Levels - Warehouse Level

Configuration steps for defining output format of material number

T-code: OMSL

SPRO > IMG > Logistics General > Material Master > Basic Settings > Define output format of material
numbers

Only character that can be used in the template as Underscore.123@456@789@74185

The 2 character decide how the material is stored in Mat master Lexicographical, Leading Zeros.

Lexicographical:
This indicator is for only numeric material number. If the indicator is not set means number are stored in
leading zeros like 00000001234578

Leading Zeros:
If the material number ranges are internal number assignment, than the zero will be valid. For e.g. If the
material number length is 6, number range 1 – 100000, than the material number will be 000001. So it is
required to enter 000001 material number (including zeros) for every time in transaction.
If leading zero is not activate, then material number will be 1.

Prerequisites material master record

 The material type and industry sector

 The units of measure, such as the base unit (stock keeping unit), and the order unit
 The purchasing group (buyer group) responsible for the material
 Accounting data, such as the valuation class, price control, and standard or moving average price

Use of OMSY:

OMSY - Is done and maintained by MM people. Here we maintain the company code for
materials management. We can see which the current period of posting is, we can see the
previous month of posting. A setting can be done to allow back postings also.
SPRO logistic general --> Material master --> basic settings --> Maintain Company Codes for
Materials Management
For ur company code u can give ABP (allowed back posting) tick Indicator that allows posting to
the previous period (back posting). In this case, the previous period is the preceding month.

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 within 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 dependent

Save and Exit

 Number Range for material types = MMNR

SAP IMG • Logistics-General • Material Master • Basic Settings • Material Types • Define Number Range
for each Material Type.

Main attribute of Material Master:

1. Material Number: 18 char alpha numeric
2. Industry Sector: 1 char alpha numeric
3. Material type: 4 char alpha numeric

Industry Sector = OMS3

SAP IMG – Logistic General – Mat Master – Field Selection – define Industry Sector & Industry Sector
Specific screen Selection

SAP provided 4 predefined Industry sector

P = Pharma
C = Chemical
M = Mechanical
A = Plant Engineering & Construction
# Industry sector needs to linked with field reference

Material type = OMS2

Materials with the same basic attributes are grouped together and assigned to a material type.
This allows you to manage different materials in a uniform manner in accordance with your company’s
requirements.
Path:

SAP IMG • Logistics-General • Material Master • Basic Settings • Material Types • Define Attributes of
Material Types

Material type determines:

 Whether the material is intended for a specific purpose, for example, as a configurable material
or process material
 Whether the material number can be assigned internally or externally
 Which screens appear and in what sequence
 Which type of view you want
  What procurement type the material has; that is, whether it is manufactured in-house or
procured externally, or both Together with the plant, the material type determines the material's
inventory management requirement; that is:
 Whether changes in quantity are updated in the material master record
 Whether changes in value are also updated in the stock accounts in financial accounting
 The accounts affected by a material entering or leaving the warehouse depend on the material
type.

STANDARD MATERIAL TYPES 40 TYPE

1. ABF Waste

2. CBAU Compatible Unit

3. CH00 CH Contract Handling

4. CONT Kanban Container

5. COUP Coupons
6. DIEN Service

7. EPA Equipment Package

8. ERSA Spare Parts

9. FERT Finished Product

10. FGTR Beverages

11. FHMI Production Resource/Tool

12. FOOD Foods (excl. perishables)

13. FRIP Perishables

14. HALB Semi-finished Product

15. HAWA Trading Goods

16. HERS Manufacturer Part

17. HIBE Operating supplies

18. IBAU Maintenance assemblies

19. INTR Intra materials

20. KMAT Configurable materials

21. LEER Empties

22. LEIH Returnable packaging

23. LGUT Empties (retail)

24. MODE Apparel (seasonal)

25. MPO Material Planning Object

26. NLAG Non-stock materials

27. NOF1 Nonfoods

28. PIPE Pipeline materials

29. PLAN Trading goods (planned)

30. PROC Process materials

31. PROD Product groups

32. ROH Raw materials

33. UNBW Non valuated materials

34. VERP Packaging

35. VKHM Additional

36. VOLL Full products

37. WERB Product catalogs

38. WERT Value-only materials

39. WETT Competitor products

1. Trading goods (HAWA)

Trading goods are always procured externally and then sold. A material master record of this material
type can contain purchasing data and sales data.
2. Empties (industry LEER, retail LGUT)
Empties are a type of returnable transport packaging generally subject to a deposit. They can consist of
several components grouped together in a bill of material (BOM) that are assigned to a full product. For
example, an empty crate and the empty bottles are assigned to the full product beer. Each of the
components in the BOM has a separate material master record.
3. Returnable Transport Packaging (LEIH)
Reusable packaging material is used to pack finished goods to send to the customer. After consuming
the finished the goods customer return the package to vendor.
4. Finished products (FERT)
Finished products are produced in-house. Since they cannot be ordered by Purchasing, a material
master record of this material type does not contain purchasing data.
5. Full products (VOLL)
Full products are the counterpart to empties. For example, with a crate of lemonade, the full product is
the lemonade itself, while the empties are the individual bottles and the crate.
6. KANBAN containers (CONT)
This material type is recommended for creating KANBAN containers as a material. In the standard
system, only the Basic Data view is offered. Using this material type makes it easy to search for KANBAN
containers.
7. Manufacturer parts (HERS)
Manufacturer parts are materials that can be supplied by different manufacturers and/or vendors who
use different manufacturer part numbers to identify the materials.
8. None stock materials (NLAG)
None stock materials are not held in stock because they are consumed immediately. It isn’t maintained
on a quantity or value basis.

9. None valuated materials (UNBW)

None valuated materials are managed on a quantity basis, but not by value. Non-valuated material is
material that’s stored in a storage location.

10. Operating supplies (HIBE)

Operating supplies are procured externally and required for the manufacture of other products. A
material master record of this material type can contain purchasing data, but not sales data.
11. Packaging materials (VERP)
Packaging materials are used to transport goods and come with the goods free of charge. A material
master record of this material type is managed on both a quantity basis and value basis.
12. Raw materials (ROH)
Raw materials are always procured externally and then processed. A material master record of this type
contains purchasing data, but not sales data since they cannot be sold.
13. Semi-finished products (HALB)
Semi-finished products can be procured externally and manufactured in-house. They are then processed
by the company. A material master record of this material type can contain both purchasing and work
scheduling data.
14. Services (DIEN)
Services can be performed internally or procured externally (outsourced).They cannot be stored or
transported. Construction work, Janitorial/cleaning services, Legal services
15. Spare parts (ERSA)
Spare parts are used to replace defective parts. They may be kept in stock. A material master record of
this material type can contain purchasing data, but not sales data.
16. Intra materials (INTR)
Intra materials exist only temporarily between two processing steps. A material master record of this
material type contains neither purchasing nor sales data.
17. Nonfoods (NOF1)
Nonfoods are items sold in grocery stores, other than food. Paper products, Magazines
18. Maintenance assemblies (IBAU)
Maintenance assemblies are not individual objects, but logical elements to separate technical objects
into more clearly defined units in plant maintenance. For example, an automobile can be a technical
object, and the engine, gearbox, chassis, and so on the maintenance assemblies. A material master
record of this material type can contain basic data and classification data.
19. Perishables (FRIP)
Goods that are perishable in an assortment. Fruit and vegetables, Dairy products, Meat

20. Pipeline materials (PIPE)

Materials such as oil, power, or water that flow into the production process directly from a pipeline, line,
or other type of conduit. Since pipeline materials are always available, they are not planned.
21. Process materials (PROC)
Process materials are used in the manufacture of co-products. They are not physical entities, but
represent production processes. They are useful if production is initiated by the availability of input
materials and capacities, and not by material requirements planning.
22. Product groups (PROD)
Product groups aggregate materials according to certain freely definable criteria. For example, the
products may be similar to each other in some way, or they may be finished products that were
produced on the same machine.
23. Production resources/tools (FHMI)
Production resources/tools are procured externally and used in production or plant maintenance. A
material master record of this material type can contain purchasing data, but not sales data. It is
managed on a quantity basis.
Jigs and fixtures, Measuring and test equipment
24. Value-only articles (WERT)
A value-only article represents a group of articles whose inventory is not managed on an article basis. All
goods movements for this group of articles are posted to the value-only article.
25. Competitive products (WETT)
Observing and evaluating the activities of your competitors is essential for optimum market analysis.
You can enter basic data on the products of your competitors in material master records of this material
type. By specifying a competitor number, you can assign the product to a particular competitor
26. Configurable materials (KMAT)
Configurable materials are materials that can have different variants. For example, an automobile can
have different types of paintwork, trim, and engine. The Material is configurable indicator is already set
forthismaterialtypeinCustomizingforthe MaterialMaster bychoosing Basicsettings → Material Types → D
efine Attributes of Material

# If no master record for the material yet exists, enter the short text (short description), the base unit
of measure, the material group, and the purchasing group responsible for procuring the material.

Material Group
Material group is used to classify materials for reporting/classification/authorization purposes. In short
it is a grouping of materials and services according to their characteristics.

Eg:
Account determination with mat group when we don’t use master data.

In certain cases in SAP you don’t have to create mat or services at that point of time we can use
mat group to assign to the valuation class & it’ll be used to linking with FI module.

FIELD SELECTIONS = OMS9

Field reference:
Field reference key determines the field status such as required, hidden, display, and optional. A field
reference key is assigned to each of the different controlling parameter such as material types,
transaction codes, industry sectors, plants, and procurement types.

Path:
IMG – Logistic General – Mat Master – Field Selection – Maintain Field Selection For data screen

The field status of a field in mat. Master data is controlled by the following Parameters

1. Material type IMG Control

2. T-Code
3. Industry sector

4. Plant SAP Deliver

5. Procurement type (internal/external)
6. SAP Reference

We can change/modify the IMG deliver parameter, but we can’t change the SAP deliver parameter.
SAP Recommendations
 The field status of a field selection group for the field reference key prefixed with “SAP” must not be
changed.
 The field reference key for transaction codes and procurement type (E – internal procurement, and F
– external procurement) are already configured and can’t be changed.
 New field reference keys must begin with Y or Z.
 New field selection groups, if required, can be taken from those that aren’t preconfigured.
For example, 206 through 240 are available.

FIELD STATUS MATRIX

Setting Priority
Hide 1
Display 2
Required entry 3
Optional entry 4

Field selection groups:

Similar fields are organized under different groups called Field selection groups.
For example, Field selection group 1 contains two fields, Base Unit of Measure and Unit of Measurement

OMSR = Assign Fields to Field Selection Group.

You can assign a field to one field selection group only. Each field selection group has a number
between 1 and 240.

The values of the field selection groups have been pre assigned as follows:
001-110  Material master for industry 
111-120  Reserved for customers (except where the values are already in use) 
121-150  Material master for industry 
151-210  Material master for retail 
211-240  Reserved for customers 

26 Material Master Views:

1. Basic Data 1
2. Basic Data 2
3. Classification
4. Sales: Sales Org. Data 1
5. Sales: Sales Org. Data 2
6. Sales: General/Plant Data
7. Foreign Trade: Export Data
8. Sales Text
9. Purchasing
10. MRP1
11. MRP2
12. MRP3
13. MRP4
14. Foreign Trade: Import Data
15. Purchase Order Text
16. General Plant Data / Storage 1
17. General Plant Data / Storage 2
18. Warehouse Management 1
19. Warehouse Management 2
20. Accounting 1
21. Accounting 2
22. Costing 1
23. Plant Stock
24. Storage Location Stock
BASIC DATA 1

1. Material description: max 40 char alpha numeric

2. Base Unit of Measure:  It is Unit of measure in which stocks of the material are managed.
3. Material Group = OMSF Material group is used to group similar type materials.
Path:
SPRO: Logistic general --> material master --> settings for key fields --> define material group
4. X Plant Material status = OMS4
It is in basic data 1 the cross-plant material status restricts the usability of the mater for all plants that is
it defines whether a warning or error message is displayed if you include the material in a particular
function. For plant specific u cannot use.
Cross-plant material status is saved in MARA-MSTAE.
5. General Item category Group: 
Q:-

Explain the difference between Gen. Item Category Group and Item Category Group in Material
master.

General item category grp is used in the sales processes like BOM, where we have higher item category
and the default item categories.  
General item category grp would refer to the higher level item category and item category grp would
refer to the default item category

*General Item category Group* is an extension item category group. Example: if one select item
category group as NORM, but under item category group, NORM can further be classified as Service
item, packaging item or Normal item using "general item category group". 

Also, General item category group is maintained at client level, this field can be maintain from Basic Data
View of Material Master. Thus in case item category group is missing, then general item category group
is used for item category determination.

*Item category group* determines how a material is processed in the sales order. When processing
sales and distribution
documents, the system uses the item category group to determine the item category and proposes it in
the respective document. Item category group is defined in the Sales Org View 2 of Material Master
Record.  

Example, in the standard SAP System, the item category group NORM is defined for materials kept in
stock and the group DIEN for services and non-stock material

6. EAN/PUC:
EAN is assigned by the manufacturer of the particular material.
 Internal & External Number Range = W4EN
 Number Range 4 & 5 Digit
 Prefixes for EAN/PUC
 Attributes for EAN/PUC
Path:
Spro > Logistics General > Material Master > Settings For Key Fields > Nternational Article Number
(Eans) > Define Attributes Of Gtins

Sales: General/Plant Data

PURCHASING

 Order Unit of Measure: It is the unit of measure that the material can be purchased. If the order
unit is lank then we can use base unit of measure as a purchasing unit.
 Plant Specific material status:
The plant-specific material status restricts the usability of the material for the plant concerned, that is, it
defines whether a warning or error message is displayed if you include the material in a particular
function.
This can be used plant specific, as per ur requirement u can use in purchasing view to block for a
particular plant
If u want plant specific block then do not use this indicator in basic data 1 view, use it in purchasing
view. Select the material in mm02 with plant and store then in purchase view material plant status give
this indicator.
 Purchase Value Key:
Purchasing Value Key is useful for setting reminder for the material you can find in material master
in Purchasing view.
Purchasing value key determines the following things:
1) Reminders keys- There are 3 keys which determine in how many days before or after the vendor has
to be reminded or urging letters for the material procurement.
2) Over and under deliveries tolerances.
3) Order acknowledgement requirements in PO. Table is T405

Path:
IMG – Material Management - Purchasing – Material Master - Define Purchasing Value Keys.
 GR Processing Time:
This processing times refers to the number of working days required after receiving the material.
 MPN:
MPN is particularly suitable if you wish to influence the precise source or quality of materials, you can
tell the vendor from whom you want to procure a material which manufacturer the material is to be
supplied by and the part number used by that manufacturer.

Plant data – Storage 1 View:

Warehouse administration team should supply the data for maintenance of this view. These are mostly
storage data valid on the plant level. Let's go through all the essential fields for this view.

 Unit of issue: this is the unit in which material is issued from any storage location within the plant
(except for the warehouse managed locations which have a setting that overrides this field value).
 Temperature conditions: temperature (and atmospheric) conditions in which the material must be
stored.
 Storage conditions: storage conditions required by material.
 Container requirements: type, and conditions in the container in which the material is shipped.
 Max. storage period: maximum period of time for which a material can be stored.
 Minimum remaining shelf life: minimum remaining time for the material to be allowed to be stored
(in case the remaining time is shorter than minimum – system will deny goods receipt).
 Period indicator for SLED: used as a unit of time for Minimum remaining shell life. If this field
contains D, than minimum remaining shelf life is maintained in days. Indicator M is for months etc.

Accounting 1

1) Valuation Class: It is a mechanism to assign a material to a G/L Account. VC is assigned to a

material type via configuration.
T code OMSK
Path:
IMG – Material Management – Valuation & account Assignment – Account Determination –
Account determination without Wizard – Define Valuation Class
2) Valuation Area: Material may be valuated at plant level or at company code level. The level at which
materials are valuated is known as valuation area or plant.
3) Valuation category: is used to define which is ur valuation type, this is used in the case of Split
valuation.
 E.G
Origin is ur valuation category
I valuation type import
L valuation type local
4) Valuation types:
The valuation type identifies split-valuated stocks of material. With split valuation, the same material
number at a plant can have different stock quantity and value for different groupings.
5) Price control:

It indicates the price control used to valuate the stock of the material. We can valuate the material

Based on Standard price (S) or Moving average price (V).

Pre – requisite: The material ledger should be activated, Moving average price (OR) Standard price
should be

Specified and price determination indicator also should be activated to determine at which the standard
price (OR)

Moving average price (periodic unit price) this material is valuated.

Standard price: A constant price at which a material is valuated without taking goods movements and
invoices into account.

Moving average price: A price that changes in consequences of goods movement, and the entry of
invoices and which is used to valuate a material. The moving average price is calculated by dividing the
value of the material by the quality of material in stock. It is automatically recalculated by the system
after each goods movement or invoice entry.

The value of this field will be taken into consideration by the system as a COST of the material and used
to calculate profit margin of a line item (of this material) during pricing.

MRP View 1

MRP views are maintained mostly for production purposes. This information is supplied by the
appropriate MRP controller or someone else from production planning team. The only mandatory field
in MRP 1 View is Planning type. We will cover the most important fields used in a productive
environment in more detail.
 Purchasing group: this field is used to indicate which purchasing group is the default for purchasing
this material. We haven't maintained it yet as this is a finished product of our company, we don't
need it to be purchased at any time. We will set up this field for another material that needs to be
purchased.

 ABC indicator: This is an indicator showing the importance of the material in terms of stock
availability. Most of the companies use several ABC values, but most common are:
A – the most important materials, they need to be available for sales in every moment customer
requests it, 
B – Less important materials that are often supposed to be available but the lack of this material can
happen and is allowed, 
C – Least important materials. There can also be few more categories, 
N – new, material not yet tested on the market, so we don't actually know if it's going to be A, B or C
yet. 
S – Material that is produced only on customer request
D – Same as S with the difference that it has a certain quantity on stock just in case someone needs
it ASAP, in production planning it is called a material safety stock.
 MRP type: there are various types of MRP that can be utilized. In this case, our MRP controller
signaled that it should be PD – default MRP for most of the SAP installations.
 MRP controller: MRP controller responsible for production of this material, he manages all the data
in these MRP views, along with the MRP results itself, production planning for this material etc. It is
usual that the MRP controller provides the data for MRP views, or even in some organizational
structures MRP controllers are maintaining these views on their own.
 Lot size: defines the procedure used by the system in order to calculate the procurement or
production quantity of the material. Other fields in this view MRP group: this setting is used to
group materials with same MRP control parameters which are, for example, the strategy group, the
consumption mode, etc. If this field is not maintained, the system will use material group from Basic
Data 1 when performing the MRP.
 Plant-Specific Material Status: If set, this indicates the usability of material in special functions, for
example, material can be used for Testing or is going to be discontinued, so the MRP doesn't take it
into account when it runs. This setting could restrict the use of material in a particular function. 
 Reorder Point: indicates at which stock level MRP should create a new order (either procurement or
production order).
 Planning cycle: cycle of planning, it is defined in customizing and assigned to a material, it can
represent a day on which the planning is performed.
 Minimum and Maximum lot size, Fixed lot size: used to indicate the boundaries for lot size, or a
fixed quantity to be used. 
 Ordering costs: fixed cost per order in company code currency, used to calculate the optimal lot
size. 
 Rounding Profile and Unit of Measure Group: like the fields in sales views, these are the same fields
you can populate with rounding type to purchasing or production (if applicable). 
 Rounding value: it is used in procurement for rounding the procurement quantity to a value of
multiple of the number entered here.

MRP View 2

MRP view 2 contains data about Procurement, Scheduling, and Net requirements calculation.
 Procurement type: here you can choose if your material has internal production (our case), external
procurement, or both types of procurements are possible. It also mightn't have procurement at all.
 Production storage location: here you will maintain the storage location that is copied throughout
the production documents. If this is a production component this marks the location from which the
goods issue is posted, or if it's produced material it annotates a location to which the material
receipt is posted.
 Goods Receipt Processing Time in Days: you can set up this value that represents needed time in
days for goods to be inspected and placed into appropriate storage location.
 Schedule margin key: this represents a key used for determination of the floats required for
scheduling an order. It is defined in customizing and is supplied by your MRP controllor or PP
administrator. Other fields in this view Special procurement: used to override the procurement
type. 
 Batch entry: indicates when the batch determination should be executed. 
 Default supply area: if you define it this will be a proposed supply area for the material, it's mostly
used for KANBAN type of materials. 
 Back flush: determines if back flush indicator is to be set in the production order. 
 Storage location for external procurement: storage location to be proposed in the purchase
requisition. 
 Stock determination group: this indicator along with the stock determination rule create a key for
the stock determination strategy 
 Co-product: if checked, indicates that this material can also be used as a co-product.
 Bulk material: this identifies a bill of materials item as a bulk material. This is important as
requirements of bulk materials are not relevant for the MRP.
 Safety stock: quantity in base UOM to use as a safety stock. 
 Minimum safety stock: Safety stock in never allowed to drop below this value.

MRP View 3

MRP view 3 contains several valuable fields mostly used by planning functions.

 Period indicator: indicates if material is to be planned/forecast monthly, weekly, yearly, daily etc.
This is in most cases set to monthly.
 Strategy group: used for grouping the planning strategies, for example, this can be set to Make to
Order, Make to Stock etc. There are a number of options, and this must be defined by the
production planning management. In most cases, material types and/or material ABC classification
influences the decision which strategy group material should be assigned.
 Consumption mode: this controls how system will consume requirements. In backward mode sales,
orders, dependent requirements or material reservations consume planned independent
 requirements that lie before the requirements date while in forward mode they consume planned
independent requirements that lie after the requirements date.
 Forward consumption period: number of day used as a consumption threshold in forward
consumption mode. Can be set from 1 to 999 days but usually not longer than several days. We are
using 0 since we are utilizing backward consumption mode for this material.
 Backward consumption period: Same as previous except it is used for backward consumption
mode.
 Mixed MRP: defines if material is available for subassembly planning and gross requirements
planning.
 Other fields in MRP 3 View Planning material: Only for use with planning strategy "planning with
planning material".

MRP 4 View

This is the only MRP view that is maintained on Plant / Storage location organizational level. It doesn't
contain as much valuable fields as previous, but there are three handy indicators that can be used to
optimize processes in some modules.
 Selection method: if you are using BOMs (Bill Of Materials) for your production, you could govern
with the selection of alternative BOMs with this field. You can set selection type by order quantity,
production version, explosion date.
 Discontinued indicator: you can select the indicator for discontinued part as per requirements.
 SLoc MRP indicator: this is the most powerful indicator on this view. It tells us if our storage location
(that we used in organizational levels screen – in this example 0001 – Lager 0001) is relevant for
MRP. That is highly significant as it can reflect not only MRP but also ATP (available to promise)
quantities. For example, if we use the default value (empty field), it means that our storage location
is taken into account in our MRP runs. It is also taken into account in ATP so sales department can
see the stock on this location available for sales activities. On the other hand,

if you choose indicator 1 – Storage location stock excluded from MRP, this stock will not be taken
into account for the MRP run, as well as it won't be available to promise (ATP) to the customer, so it
couldn't be sold.

If you choose indicator 2 - Manage storage location separately, it means that you want to manage
this locations stock separately from plant stock (useful in some rare cases). The most obvious
example for usage of this function is rejects storage location. When our LCD TV 40" comes out of the
production line it can be fully functional, or it might have a flaw. If it is ready for sales we will
transfer it to our 0001 location and sales department will see that quantity available to be sold. Let's

say we produced 3000 TV sets. Out of that quantity there is 10 TV sets with some problems and our
quality control department chooses that those cannot be sold, so these are sent to our location
0003 for rejects. In MRP 4 view, we have to maintain the indicator 1 for our rejects location 0003 as
we don't want sales department to see the stock as available. We only want the other 2900 pieces
available that are on the 0001 location, for which we maintain empty field for this indicator (include
in MRP/ATP).

MM17: Mass Maintenance of Material Master in SAP

In order to create multiple materials at once, you should have access to a function like

1. E Catt tool
2. LSMW(Legacy System Migration Workbench)
3. BDC (Batch Data Communication) recordings
4. BAPI (Business Application Programing Interface)

Load Program" for material master?

What is a "Load Program" for the Material master? Is this the Mass Maintenance MM17? Can a Material
be extended to all VIEWs + all Plants in one shot via MM17?
Yes,
There is a Program to Upload Material Master Ie: RMDATIND, RMDATGEN
Using the above Program you can Upload Material Master. And you can Also use Uploading Tools like
LSMW / BDC etc. MM17 is For Mass Maintenance. Suppose If you want to Update Purchase Group /
Purchase Value Key / MRP Controller / Etc... to 1000 Materials Using this MM17 you can Update in Bulk.
For Extending Views You can Use MM50 with LSMW if Material is Bulk.

You can also use mass maintenance transaction MM17 to create views in some cases. But you must
keep in mind that not all of the organizational levels should contain the same data (MM17 requires that
all data for the materials and organizational levels you select should be the same). 
Mass creation is never considered to be end users responsibility. But as a module specialist you may
need to work on MM17. In case of LSMW, BDC or BAPI, it is considered to be developers or consultants
work. So you do not have to understand in detail, you just have to know the concept, and that there is
this kind of possibility for mass data maintenance. You can use MM17 for mass changing of material
master data (if something can't be accomplished by this transaction it can be done using LSMW, BDC or
BAPI).

Step 1)

1. Enter transaction MM17

2. Select the data type you need to change, for example, we need to change a field in general data.
3. Execute.

Step 2)

1. Enter the material range or list for which we want to change the data
2. Execute
Step 3)

1. When clicking on the button shown below – you will get the Select fields screen.
2. Check the appropriate field (we are changing base unit of measure for our two materials).
3. Click the arrow pointing to the left to add the selected field to the list of fields to be changed.
4. Click the OK button.

Step 4) 

Now we are presented with the next screen where we can input our value to be transferred. Let's say
we have maintained PAL – pallet as the base unit of measure for our TV sets of 24" and 32" and we need
to change that to PCS – pieces.

1. Enter the value you want to copy in the box.

2. Click on the column heading.
3. Select the button, to overwrite the old values by "PCS".
4. Execute.
1. Creating Material master Immediately = MM01
SAP Menu>>>logistics>>>Mat Mngmt>>>Mat Master>>>Mat>>>change immediately
2. Creating Material master Schedule = MM11
SAP Menu>>>logistics>>>Mat Mngmt>>>Mat Master>>>Mat>>>create general schedule
3. Creating Material master special = MMR1
SAP Menu>>>logistics>>>Mat Mngmt>>>Mat Master>>>Mat>>>create general special raw mat
4. Change Material master Activate = MM13
SAP Menu>>>logistics>>>Mat Mngmt>>>Mat Master>>>Mat>>> change Activate
5. Flag for deletion Immediately = MM06
SAP Menu>>>logistics>>>Mat Mngmt>>>Mat Master>>>Mat>>> Flag for deletion>>> Immediately
6. Flag for deletion Schedule = MM16
SAP Menu>>>logistics>>>Mat Mngmt>>>Mat Master>>>Mat>>> Flag for deletion>>> Schedule
7. Material Master Archiving = MM17
SAP Menu>>>logistics>>>Mat Mngmt>>>Mat Master>>>Mat>>>
Other>>>Archiving>>>Archive/Delete

Difference between Standard Pricing and Moving Average Price

Standard Price(S) ---

Is one whose value is fixed and does not change .It is defined by setting "S" in Accounting view of
Material Master Record. It is usually used for finished or semi finished products.
Because their prices are usally fixed.

Moving Average Price(M)---

Moving average price are used mainly for raw materials that are purchased externally. The advantage of
using moving average price for your raw materials is that your inventory costs will always reflect the
current market cost. SAP recommends:
Price control V for raw materials and trading goods
It is calculated using formula MAP= Total stockvalue(Rs)/Total stock(Nos).
Total stock ---Stock available in plant (MMBE ) also you get that value in material master.
Total stock value----Cost of one *No . of stock.

Externally Materials produced in-house should be subject to a standard price control. Generally all raw
materials (ROH), spare parts (ERSA), traded goods (HAWA) etc. are assigned as moving average price
(MAP) because of the accounting practice of accurately valuating the inventory of such materials. These
materials are subject to the purchase price fluctuations on a regular basis. The semi-finished goods
(HALB) and finished products (FERT) are valuated with standard price because of the product costing
angle. If these were to be MAP controlled, then finished/semi-finished product valuation would
fluctuate due to data entry errors during back flushing of material and labour, production inefficiencies
(higher cost) or efficiencies (lower cost). This is not a standard accounting and costing practice
For Split valuated material it is recommended to use Moving average price

How to calculate moving average price (MAP) when price variance in IV

My current stock for a material is 39 and MAP is 0.8 GBP.

A purchase order is created for the material for a quantity of 1 at price of 0.8 GBP per unit.
Invoice is posted for the above PO at price of 1.74 GBP.
What will be the new MAP for the material now??How to calculate MAP when there is a price
variance in Invoice?

Option 1

Case 1 :- PO at different price

If in Material Master your MAP is 0.8GBP & closing stock of 30Nos, value is 24GBP
In PO if the price is 0.9GBP & qty is 10nos, then after Goods Receipt Total Value of the GR i.e. Qty * Price
+ any other delivery cost will be added to the material stock value. Qty is also updated. New Total
Value / New Stock Qty will be MAP.
In this case Qty received 10 & price is 0.9 that means value would be 9GBP.
Total Value becomes 24GBP (Present Stock) + 9GBP (Goods Receipt) = 33GBP
Total Qty becomes 30Nos + 10Nos (Goods Receipt) = 40Nos
MAP becomes = 33GBP / 44Nos = 0.75
Case 2 : Invoice Posting (MIRO) at different price than PO
While doing MIRO is we post at different price system will check whether sufficient stock posted in GR is
available. In the above case it is 10Nos,
If it is there, then the above logic as in case 1 will take place
If not available, to the extent of stock availability system will post the different value & adjust MAP &
remaining is posted to Price Difference Account.
In your case it would be like this :
1. MAP 0.8 for 30Nos (Value would be 24GBP)
2. Invoice Posting 1.74GBP for 1No. That means value would be 24GBP + 1.74GBP = 25.74GBP
Qty would be 30+1 = 40
MAP = 25.74 / 40 = 0.64GBP

Option 2

The MAP is calculated as (Total Value of Stock) divided by (Total Qty of Stock).
In your case, your toal stk value before PO id 39 x 0.8 = 31.2 GBP.
If new stock comes at the rate of 1 x 1.74 = 1.74
So Now the total Qty is 40 and Total Stk value is 32.94 GBP. So, MAP is 32.94 / 40 = .824 GBP.

Option 3

Total Value = 39 x 0.8 GBP = 31.2GBP

At the time of GR =40 qty with total value 32 GBP (MAP 32/40=0.8 GBP)
Stock Account Debit for 0.8 GBP
GR/IR account Credit for 0.8 GBP
At the time of IR ( Considering GI is not done for 40 nos) = Total Value for 40 nos =
Vendor account credit 1.74 GBP
GR/IR account Debit 0.8 GBP
Stock account Debit ( 1.74 -0.8 = 0.94 ) GBP
Hence total value for 40 nos 32+0.94 =32.94 GBP ( MAP 32.94/40 = 0.8235)
If GI is done then instead of stock account it goes to price differance account for insufficient stock
coverage

Different ways to find Moving average Price Calculation on selection Date:

They are different ways to check moving average price calculation. If you need to find the Logic to
develop the Report to see Moving average price on period or day basis- Need to find Logic for this.

1.   By using Formula
2.   From Standard Reports
3.   From Multiple tables Mapping
4.   From Info Structure tables

1. 1) By using Formula :

When material is subject to moving average price control, the system values for goods movements in
following way
Using above formula we can calculate Moving average price. Below explained with example.

Example:

1. 1)    20.04.2015 Goods Receipt Quantity 100 Kg and the value of Goods Receipt as 1200 Rs.
2. 2)    21.04.2015 Goods Receipt Quantity 90 kg and the value of Goods receipt as 1100 Rs.
3. 3)    24.04.2015 Goods Issue Quantity 50kg
4. 4)    29.04.2015 Goods Receipt Quantity 110Kg and the value of Goods receipt as 1600.

Now I need to find the moving average price on 24.04.2015. Using above formula we can find this.
The moving average price on 24.04.2015 is 12.11 and on 29.04.2015 is 13.18.

                                      

1. 2) From Standard Reports :

In standard, we have standard report can view the moving average price.

T-code: S_P00_07000139
Here we need to work out on date basis. If more than one entry on the date then you have to pick the
last entry Moving average price.

You can find moving average price Period wise also.

T-code: MC.1   / MC.9

Here we need to work out on formula.  i.e.; Total valuated value / total valuated stock.

Enter Period and other required fields and execute the Program.

You will get the total valuated value and total valuated stock.
Total valuated stock value = 86500, Total valuated stock = 3250

=86500/3250 = 26.62.

If you need you can compare MC.1 and S_P00_07000139.

In S_P00_07000139, you have to give 30.04.2015 for month of period 04.2015.

Same you can compare with MB5B- Total receipts – total issues with quantity and value.

1. 3)    From Multiple Table Mapping :

We can write logic to get the report for moving average price on selection date.  As know everybody we
can get latest price from MBEW table. But how we can see when the price was updated and how it was
updated can be get values from CKMI1.

Tables: MBEW, CKMI1

Logic:

1. 1)    Pass Material and valuation area (plant) in MBEW table and pick the value of Prod
CostEst.No. (KALN1)
2. 2)    Pass Prod Cost Est no into CKMI1 table – filed name Cost estimation no (KALNR) and pass
year
3. 3)    Check the values of quantity and amount and moving average price.

    

The moving average price will be update when the next accounting entries updated. Example: if you are
checking on 30.04.2015 and next entry updated at 01.05.2015 then you should see moving average
price on 01.05.2015 and it will be the moving average price on 30.04.2015

Here see above entries. On 30.04.2015 the moving average price is 26.62 which is updated on
04.05.2015.

You can calculated summation of all the amount / summation of all the Quantity up to date.

If you want to see on 30.04.2015 then (Qty -> 1000+1500+750 = 3250) and (Value->
25000+45000+16500 = 86500) = 86500/3250 = 26.62.
 I. If you want to see latest price when it was updated means -à see the last date entry on date in
CKMI1 and check in MBEW for latest price.
1. 4) From Info structure Table :

S031 – Material movement data on monthly basis

In Standard we have S tables which is related to LIS structures. The below S Table which is related to
Inventory stock and price. From this you can find the moving average price on date. We can call as info
structure table.

Table: S031 – information structure for Inventory stock and price on period based on date based. While
updating the values you should select date basis (daily basis).

For better practice you can copy from S031 to S931 and update the values in S931 on daily basis.

In this table, will get valuated receipt stock and valuated receipt value and also valuated issue stock and
valuated issue value.

Summation of all valuated receipts quantity and value as well as valuated issue quantity and value from
up to date all entries (selection date).

Moving average price = (total value receipt – total value issues)/ (total quantity receipt – total quantity
issues).