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SAP Training

Material Master

June 2003

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Processing Material Master

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Introduction to MM

• The material master contains information on all the materials that a

company procures or produces, stores, and sells. It is the company's
central source for retrieving material-specific data. This information is
stored in individual material master records

• The material master has a hierarchical structure resembling the

organizational structure of a company. Some material data is valid at all
organizational levels, while other data is valid only at certain levels.
• For every material that your company uses, you must create a material
master record in the material master. This record is uniquely identified by
a material number.
Material Master Data

Material Type
e.g. Raw material, semi-finished good, service, trading good, finished product
Controls access security
Determines how material is procured
Controls how material movements affect financial accounts
Linked to material number ranges
Controls what fields appear on what screens

Industry Sector
Controls what fields appear on what screens

Unit of Measure
e.g. Piece, box, crate, pallet
Different parts of the business can measure quantities in different units

Multi-Lingual Texts
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Material Master Data

Material Master

General Data Sales Specific Data Plant Specific Data St. Loc. Specific Data

Data applicable Data dependent on sales Data relevant Data referring to storage
throughout the client organization and for planning and and inventory
distribution channel production management
e.g.
Material number e.g. e.g. e.g.
Description Delivering plant MRP profile Quantities
Units of measure Sales text Production costs Special stock
Weight Sales units Planning data Warehouse
Shipping data Valuation attributes
Volume
Product hierarchy Division

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Material Types in the Standard SAP

Material Type Description

DIEN Service
ERSA Spare Part
FERT Finished Product
HALB Semi-finished Product
HAWA Trading Good
HIBE Operating Supply
LEER Empty Containers
NLAG Non stock Item
ROH Raw Material
VERP Packaging
WETT Competitor Product
PROD Production Resources/ Tools

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Material Types

Raw materials

Raw materials

Semi-finished Semi-finished
products products

Finished products Finished products

Others Others

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Material Type / Industry Sector

Chemical
Retailing
Industry
Inventory
Purchasing
Desc:---------------------

Raw Material

Inventory
Purchasing
Inventory Desc:---------------------
Quality
Sales Information
Production Information Spare Part
Desc:---------------------

Finished Product -
Inventory
Quality
Sales Information
Production Information
Desc:---------------------

Semi-Finished
Master Data Views

 Master data is a key piece

of information in the system
 Master data can be seen from
a number of views
Finance Engineering
Design  Each view can correspond
to an SAP module
Sales
Product Purchasing  Each view has a number
Data of information screens

Production  Each view belongs to an org unit within the

Stock business
 One product may have multiple plant and
sales views, one for each plant or sales
area

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 Views of the Material Master
 Basic Data Purchasing

 MRP Sales
The material master is a
central data object for all
Stocks in plant/ material types: Work

storage location scheduling
• raw materials
Quality
 Accounting • semi-finished products management

• finished products
Storage Forecasting

 Costing Classification

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Usage of Material Master Records

Design Sales &

Engineering Material Distribution
master record
Purchasing Costing $
Definition
St
Work
MRP
t
The material master scheduling
is a central data object
Plant/storage in the SAP System. Forecast
A
B
location stocks
The material master
A B
represents raw materials,
XX XX
Accounting operating supplies, Classification
semi-finished products,
products, PRT's.... Warehouse
Storage
management

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Examples of How Data is Used

Controls which
General Ledger Material description
Account is updated used in reporting

Finance Engineering
Design

Sales
Controls customer
ordering rules Product Purchasing Texts copied
for material Data to purchase orders

Production Stock

Data used to
calculate MRP Maintains stock levels
lead times by plant, storage
location, and batch

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 Control of Material Master Usage

• Factors that can influence field selection for material master records are:
 Transaction
 Procurement indicator
 Material type
 Plant
 Industry sector
• Material statuses can be defined to control processing allowed for a given
material, some examples include:
 Whether a product can be purchased
 Whether a product can be used in a production order
 Whether inventory movements can be carried out for a material
PP Relevant MM Views

• Basic Data 1
• Basic Data 2
• Classification
• MRP1
• MRP2
• MRP3
• MRP4
• Forecasting
• Work Scheduling

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Basic Data View

• Data in this view is also used by other user departments i.e.

basic data is valid for the whole company.Some of the important
fields of this view are

 Material Description
 Base Unit of Measure
 Material Group
 Old Material Number
 Validity Date

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 Units of measure

Base unit: Piece

4 16 72

Box Crate Pallet

(unit of issue) (order unit) (sales unit)

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Important Fields — MRP1 View

• MRP Type: A key that determines whether the material will be

planned, and if so, how it will be planned. Planning options
include MRP or reorder point.
• MRP Controller: A unique number that identifies the MRP
controller or group of MRP controllers responsible for planning
material requirements.
• Lot Size Key: A key that specifies the strategy, (e.g., Lot-for-Lot,
Fixed order quantity, Part period balancing, etc.) the system uses
during MRP to calculate the quantity to be produced or procured.

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MRP parameters in Material master

• MRP type
procedure according to which the material is to be
planned
 Px : planned deterministic
 Vx : consumption-based (reorder point)
 VB (manually), VM (automatically)
 VV : forecast-based (stochastically)
 ND : no planning
• MRP group
groups materials with common parameters for
planning run ("planning strategy")

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Important Fields — MRP2 View

• Procurement Type: An alphanumeric key that signifies how

the material is procured — either in-house (E), externally (F),
or both in-house and externally (X).
• In-house Production: Number of days required to produce
the material in-house, independent of lot size.
• Scheduling Margin Key: A numeric key that determines the
floats and opening period required for scheduling an order.
• Safety Stock: If the on-hand stock falls below the safety stock
level, MRP will create a replenishment based on lot size rules
and values defined in the material master record.

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Important Fields — MRP3 View

• Strategy Group: A numeric key that contains all the possible

planning strategies (e.g., make-to-stock).
• Availability Check: A key that specifies if and how the
system checks availability and generates requirements for
MRP.
• Consumption Mode:The consumption mode controls the
direction on the time axis in which the system consumes
requirements

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Important Fields — MRP4 View

• BOM Selection
• Dependent Requirement Calculation
• Storage Location MRP
• Repetitive Manufacturing Strategy

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Forecasting View

• You can select forecast model as per the sales requirement

• Forecasting parameters for forecast execution
• You can access the screens on which you enter consumption
values and forecast values as a basis for the initial calculations.
• You can directly execute an individual forecast for a material.
Starting from the maintained forecast parameters.

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Work Scheduling View
Shop Floor
Engineering
Production
 Which departments use this view?
 Engineering
?  Shop Floor Production
Materials  Materials Management
Management

• Why is this view used?

 To record data related to
production such as:
?  Units of measure
 In-house
production time
 Delivery tolerances

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Accounting/Costing Related MM Views

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Costing and Accounting Views

Finance Purchasing  Which departments use this view?

? 


Finance
Purchasing
Cost  Cost Accounting
Accounting

• Why is this view used?

?  To maintain standard
cost
 To maintain average
cost

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Accounting data in Material Master

Valuation class

MART Allowed values

ROH 3000
3010
HALB 7920
HIBE 3000

...
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Data Maintenance:
Accounting View

Accounting View

Base UOM
Valuation Class 3000

Price Control

Accounting
Quality
Sales Information
Production Information
Desc:---------------------

Product - Blade_sm
Data Maintenance:
Accounting View

Price Control

S V

The Material Price

The Material Price
is affected by the
is controlled within
actual invoiced price
the company i.e.
giving a moving
priced at standard
average price
Tips For Material Master Maintenance

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Screen Sequence During
Material Master Maintenance

Initial Screen

Select Organisational
Views Levels
•
•

Data
Screens

-Views
Assistance in Material Master
Maintenance

Create with Settings

reference 531
Views Org Level
Eng Plant: MEXT
123
+ Acct Storage
Inventory
Quality
Sales Information
531 Sales Loc: MAIN
Production Information
Desc:---------------------

Blade_sm

Collective Entry of
Storage Location
Data
• List Incomplete Profiles
Profile
Materials and

123 123
Inventory Inventory
Quality Quality
Sales Information Sales Information
Production Information Production Information

• “Extend” for
Desc:--------------------- Desc:---------------------

Product - 123 Product - 478

Missing Views
Options for Changing Material Data
Material

----- ------ -------

----- - ----- --
------- ------- ---------

Material

Change
Change Flag for Deletion
Material Type

Immediately Schedule Activate Immediately Schedule

Change Change Change Change Change

Document Document Document Document Document
Options for Displaying Material Data
Material

----- ------ -------

----- - ----- --
------- ------- ---------

Material

Stock Overview &

Display Display Changes List of Materials
Requirements List

At Current Stocks per

Active Planned List of
Date Plant/
Changes Changes Selected
Storage
Materials
Location
Material Master: Review
• The material master is the central master “record”
for logistics.
• A material master is broken down into views.
• Data in the material master is defined at different organisational
levels including client, plant, storage location, etc.
• The material type controls such things as number assignment and
which views are allowed.
• The industry sector controls field selection in the material
master.
Material Master: Review
• The base unit of measure is the unit in which the stocks of the
material are managed. All quantities which are entered in other
units of measure are converted to the base unit. Other units of
measure include: order unit, unit of issue, sales unit, and delivery
unit.
• Data in the material master can be changed immediately or the
change can be planned and then activated on a future date.
Changes can be made with or without reference to a change
number from Engineering Change Management.
• A material can be displayed in its current status or in its status on a
key date.
Thank you

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