Material Master

SAP AG

SAP AG

TAMM10 4.0B

9-1

Material Master:
Unit Objectives
You will see the interdependencies between
organizational levels, material type, industry sector,
and status in the material master.
You will see the structure of the material master
with its different views.
You will see which units of measure you can define
for a material.
You will see that you can configure the material
master to meet your own requirements.

SAP AG

SAP AG

TAMM10 4.0B

9-2

Material Master Data

Purchasing data

Material
master
record

Materials Planning
data

...
Inventory Management
data

Accounting data

SAP AG

The material master record is the main source of material-specific data in an enterprise. It is used by all
components in the R/3 Logistics System.
The integration of all material data in a single database object prevents the problem of data redundancy.
Every area, such as Purchasing, Inventory Management, Materials Planning, and Invoice Verification
can use the data stored.
The data contained in the material master record is required for many functions within the R/3 Logistics
System, for example:
Purchasing data for ordering
Inventory management data for posting goods movements and managing physical inventory
Accounting data for material valuation upon goods movements or in Invoice Verification
Materials planning data for Material Requirements Planning

SAP AG

TAMM10 4.0B

9-3

Organizational Levels in the Material Master

General data

Client

Material number
Description
Units of measure
Technical data

The material master has a

hierarchical structure, which
covers the following
organizational levels:

Client, plant, storage

location

Plant-specific
Plant-specific data

Plant

Storage
location

MRP data
Work scheduling data
Purchasing data

Engineering/design data is
managed at client level.

Material

Storage location data

Stock quantities

SAP AG

Some material data is valid for all organizational levels, whereas other material data is only valid for
specific levels. The material master has a hierarchical structure that reflects the structure of a company.
This allows you to manage material data centrally without having to store data redundantly.
Data on client level
On client level, you store general data that is valid for the entire company, such as material group, base
unit of measure, material descriptions, general technical data, and conversion factors for alternative
units of measure.
Data on plant level
On plant level, you store all the data that is valid in a plant and all the storage locations in it, such as
MRP data and forecast data.
Data on storage location level
On storage location level, you store all the data that is valid for one storage location, such as storage
location stock.

SAP AG

TAMM10 4.0B

9-4

Material Master: Views

Basic data

Purchasing

Mat. planning

Sales

St

Stocks in
plant/storage loc.

A
B

Accounting

Material
master
record

Storage

Work
scheduling
Quality
management

Forecasting

Warehouse mgmt

Classification
R

SAP AG

The material master is subdivided into information grouped by user departments (functions). Each user
department has a different view of the material master record and is responsible for maintaining the data
to support their function.
The data maintained within a view may be valid for more than one organizational level.

SAP AG

TAMM10 4.0B

9-5

Screen Sequence: Maintaining a Material

Master Record
Material

Material
Material
(Industry
(Industry sector)
sector)
(Material
(Material type)
type)
(Reference)
(Reference)

Views
Views
-- Basic
Basic data
data
-- Purchasing
Purchasing
-- Storage
Storage
-- Accounting
Accounting
-- ...
...

Organizational
Organizational
levels
levels
-- Plant
Plant
-- Storage
Storage location
location
-- ...
...

Data
Data screen(s)
screen(s)

SAP AG

When processing material master data, you go through the screens in a particular order. From the initial
screen, you go to two successive dialog boxes. In the first one, you specify the views you want to
process. In the second one, you specify the relevant organizational levels. You then go to the data
screens.
You can change the standard screen sequence by changing the default values.
Some screens are not integrated in the standard screen sequence. You can only access these screens by
specifically choosing them from the menu bar.

SAP AG

TAMM10 4.0B

9-6

Data Screens in Material Master Maintenance

Material

St
A

Purch.

Work
scheduling

Mat.Planng Forecasting

Sales

Accounting

Texts

Document
data

Units of
measure

Administrative Consumption
data
R

SAP AG

The data screens used in processing material master records can be subdivided into the following types
of screens:
Main work level:
These are the screens for each user-department, such as basic data, materials planning, and so on.
Additional data level:
These are screens you use to maintain additional information, such as units of measure, material
descriptions, consumption values, forecasting data, and administrative data.
Most data in the material master record can be maintained directly by the user. But some information is
automatically updated by the system. When you enter goods movements, for example, the system
updates stock and consumption data.
Some data in the material master is only used for information purposes, for example, description, size,
and dimensions.
Other types of material data have a controlling function in an application. For example, the MRP type
controls the MRP procedure and the price control indicator determines which material valuation
procedure is used.

SAP AG

TAMM10 4.0B

9-7

Material Type

Raw materials
Semi-finished
products

Operating
supplies
Spare parts

Finished products

Empties

Trading goods

Other

SAP AG

In order to manage many materials as similarly as possible according to your business requirements,
materials with the same characteristics are split into groups and assigned a material type, for example,
raw materials, semi-finished and finished products.
The material type defines particular characteristics of a material and is an important controlling factor
in the maintenance of the material master record. When you create a material in the material master, the
material type determines:
whether the material number can be assigned internally or externally
the number range interval from which the material number is derived
which screens are displayed and in which order
which user-department-specific data is suggested for entry
which procurement type is permitted for a material, i.e. whether the material is produced inhouse, procured externally, or whether both options are allowed.
which G/L accounts are updated.
Various material types are provided in the standard SAP R/3 System. If your enterprise needs additional
material types, you can tailor these to your requirements in Customizing.

SAP AG

TAMM10 4.0B

9-8

Control Using Material Type

Procurement type
Material

Views for material maintenance

Number assignment (check external numbers Y/N)
Type of inventory management (quantity/value)
Assignment of account categories and references

Material type

Field selection and screen sequence

General ind.

(pricing for pipeline, process,

configurable)

Costing control
Item category group in SD
R

Authorization group

SAP AG

You specify a material type for every material. It belongs to the general data of a material.
The views specified for a material type determine the user departments that can be maintained for a
material with this material type.
You can control the type of inventory management (quantity or value) for a material type depending
on the plant.
Pricing can be defined as a default standard value or as a fixed standard value.
The assignment of inventory and consumption accounts takes place using valuation classes.
You can determine inconsistencies in valuation areas using Customizing for the material type.
The material type has an influencing factor on field selection and the user-specific material master.
You can control access protection more exactly using the authorization group.

SAP AG

TAMM10 4.0B

9-9

Industry Sector
The industry sector
determines which branch of
industry the material is
allocated to.
The industry sector
determines:

which screens appear and

in which order

which industry-specific data

appears

Industry Sector
B

Description of Industry Sector

A
C
M
P

Plant engineering/construction
Chemical industry
Mechanical engineering
Pharmaceuticals

SAP AG

Besides grouping together materials as different material types, you must also allocate a material to a
specific branch of industry. You can do this by specifying the industry sector when you create a material
master record.
If necessary, you can hide this field from display.

SAP AG

TAMM10 4.0B

9-10

Units of Measure
Base unit of measure: piece

Carton
(Unit of issue)

16

Crate
(Purchase order
quantity)

72

Palette
(Sales unit of
measure)
R

SAP AG

As well as the base unit of measure that the system uses for stockkeeping and to execute all its
calculations, other departments can use their own units of measure.
All units of measure in the SAP R/3 System additional to the base unit of measure are grouped together
under the title "Alternative units of measure". There are the following alternative units of measure:
Base unit of measure: Stockkeeping unit. All other units that you use are converted to the base unit
of measure. If there is no standard formula for converting an alternative unit to the base unit of
measure, you must enter a conversion factor in the material master record.
Purchasing unit:
Unit of measure used for ordering the material. This is the default unit that is
displayed in purchasing functions.
Sales unit:
Unit of measure used for selling the material. This is the default unit that is
displayed in the sales order. You can change this unit in the sales order.
Unit of issue:
Unit of measure for issuing the material from stock. You use this unit for
goods issue and stock movement functions.
The engineering/design department usually uses the base unit of measure.

SAP AG

TAMM10 4.0B

9-11

Materials Planning Procedures

Materials Planning Procedures

Consumptionbased

Reorder point
procedure

Manual
reorder point

Forecast-based
planning

MRP

Time-phased
materials planning

Automatic
reorder point
R

SAP AG

You use the MRP type in the Materials Planning view to define the procedure you want to use to plan
requirements of a material.
You can define different materials planning procedures in different plants for the same material.
The main procedures are:
reorder point planning
material requirements planning
forecast-based planning
master production scheduling
time-phased materials planning
replenishment (IS Retail)

SAP AG

TAMM10 4.0B

9-12

Material Valuation Procedures

Material Valuation

Price control
(in material master)

"S"
Standard price

"V"
Moving average price

SAP AG

You set the material valuation procedure you want to use in the accounting view of the material master
record. In the R/3 System, you can carry out material valuation using the standard price procedure or
moving average price procedure.
In the standard price procedure (price control S), the system carries out all stock postings at a price
defined in the material master. Variances are posted to price difference accounts.
In the moving average price procedure (price control V), the system valuates goods receipts with the
purchase order price and goods issues with the current moving average price. The system automatically
calculates the latter upon every goods movement by dividing the total value by the total stock quantity.
Differences between the purchase order price and the invoice are posted directly to the relevant stock
account if there is sufficient stock coverage.

SAP AG

TAMM10 4.0B

9-13

Valuation Class
Material type
Valuation class 1

Accounting 1

300000

Valuation class 2

Valuation class

300100

Material
master

SAP AG

You can use the valuation class to combine materials for assigning G/L accounts so that you do not have
to manage a separate stock account for each material.
You maintain the valuation class in the Accounting view of the material master record. The valuation
class allowed for a material depends on the material type, and can be configured in Customizing.
In automatic account determination, the R/3 System works with valuation classes. The valuation class is
used to determine which stock account is to be updated upon goods movements.

SAP AG

TAMM10 4.0B

9-14

Extending the Mat. Master Record: Example

Material:
4711

Extend
View

Purchasing Plant 3000

MatPlann.
Plant 1000
SLoc 0001
Accounting Plant 1000
Storage
Plant 1000
SLoc 0001

Maintained

View
- Basic data
- Purchasing
- Storage

OrgLevel

Transaction
Create
Create
Create
Change

Organizational
levels
- Plant:
Plant:
- Plant:
SLoc.:

1000
1200
1000
0001

SAP AG

Once a department has created data for a material, the material master record exists in the database. If
someone from another department then wants to enter data, he or she does have not have to create the
material master record from scratch, but only has to extend (add) the information from his or her
department. A material master is also extended when data for a material is saved for other organizational
levels.
You can add the misssing views or organizational levels to the material master by choosing the
transaction Create material master record..
You can only change data from views and organizational levels that have already been maintained, using
the transaction Change material master.
Any changes (creation or change) you make to data in the material master record are saved in a change
document. This means that you can check the change history at any time.
You can also activate engineering change management for materials.

SAP AG

TAMM10 4.0B

9-15

Extending a Material
Extendable materials

Selection screen

Status

Material

Parameter

D MRP

TP-F112

Maint. status
From date
Plant
Warehouse no.
TP-F112
Material
Material type
Industry sector

E Purchasing

TP-F112

K Basic data

TP-F112

B Accounting

TP-F112

SAP AG

Allows you to extend the material master record by further views.

The following questions can be answered:
Which departments have to extend a material master record?
Which material master records does a single department have to extend?
Important maintenance statuses:
Department:
Maintenance status:
Work scheduling
A
Accounting
B
MRP
D
Purchasing
E
Production resources/tools F
Basic data
K
Costing
G
Classification
C

SAP AG

TAMM10 4.0B

9-16

Entry aids in Material Master Maintenance

Settings
Settings

Material
Materialmaster
master
maintenance
maintenance

Reference
Referencematerial
material

Profiles
Profiles

Collective
Collectiveentry
entryof
of
storage
storagelocation
locationdata
data
R

SAP AG

The following entry aids facilitate material master maintenence:

Settings: Quicker data entry by presetting the organizational levels and views most often used.
These default values are user-specific, and you can overwrite them.
Reference material: Quicker data entry by adopting the relevant data from existing material master
records.
Profiles: Quicker data entry by adopting data from the materials planning or forecast profile to the
relevant view.
Collective entry of storage location data: You can create material data for several storage locations
in one step, thus reducing the effort required considerably.

SAP AG

TAMM10 4.0B

9-17

Materials List
Numbers
Nummern

In plants

Of material type

Material

For user

SAP AG

This function allows you to create materials lists according to specific, combinable selection criteria:
Material numbers list
List of all materials that have been created in a certain plant
List of all materials of a certain material type
List of all materials of a certain material group
List of all materials that have been created by a specific user in a material master record.

SAP AG

TAMM10 4.0B

9-18

Deleting a Material

Client

1. Set deletion flag

Plant

Storage
location

2. Reorganization
R

SAP AG

You can delete materials by setting a deletion flag either in the material master record, or by using a
proposal list.
The deletion flag can be planned for the future and must then be activated at the correct time.
All flagged records are deleted by a reorganizational program run, as long as these are no longer to be
used, for example, as a BOM header.

SAP AG

TAMM10 4.0B

9-19

Archiving a Material
Database
1. Archive

Sequential
file

Tables

Database
2. Delete

SAP AG

You can archive material master records.

The data is stored in a sequential file (archive file).
Archived data can be deleted from the database during each deletion program/reorganization.
Archived material master rceords can be displayed, but they cannot be retrieved.
Archiving and reorganization are handled in detail in the administration courses.

SAP AG

TAMM10 4.0B

9-20

Authorization Groups for the Material Master

Material
4711

Authorization:
Material master

Field:
Authorization
group:
group: 150

Material
4712

Field:
Authorization
group:
group: 50

Change = (0000 - 0100)

Display = (0000 - 5000)

SAP AG

Setting up user master records and authorizations is dealt with in a separate course on this subject.
If you have the appropriate authorization, you can display and check authorization objects in
Customizing.

SAP AG

TAMM10 4.0B

9-21

Material Status
Material status field
Basic
data

Application
Purchasing
BOM header
BOM item
Routing
Independent requirements
Forecasting
MRP
Production order header
Production order item
Quality check
PRT
Plant maintenance
Inventory management

Plant

Control

Application
No dialog

Warning Error
X

X
X
X
X
X
X
X
X
X
R

SAP AG

The material status allows you to control the usability of a material for business purposes.
You define the material status in the material master record in accordance with the material, client and
plant.
You can limit the usability of a material in different ways:
The material can be flagged for deletion.
The material can be locked against certain business processes by the material status from the
Materials Management/Production Planning and Control view.
You can display whether a material is subject to restrictions, and what these restrictions are, with the
status information function. You can call this function when you create, display, or change a material
master record. Proceed as follows:
Choose Extras - Status information from any screen.
You can define the material status for all plants (basic data view), or separately for each plant (plant
view).
The cross-plant status is dominant.

SAP AG

TAMM10 4.0B

9-22

Number Assignment for Materials

Database

Material

Material
Material number:
number:
18
18 characters
characters
Check externally assigned number
Material type

Group 01

Internal interval NV
External interval NV

Group nn

...

Internal interval NV
R

External interval NV

SAP AG

You create a record in the material master for each material that your company uses. Each material
master record has its own unique material number.
Depending on your company's requirements, an identifying or a non-identifying key can be assigned as
material number. For this reason, there are two types of material number assignment in the R/3 System:
External number assignment
Internal number assignment
If you use an identifying key mostly an alphanumeric key you enter your chosen character string as
material number when you create the material master record. This is called external number assignment.
If you use a non-identifying key, you do not enter a material number when you create the material
master record. The system automatically assigns the material number internally and enters it in the
appropriate field of the basic data screen. This is called internal number assignment.
You define which type of number assignment is allowed for each material type when you configure your
system in Customizing.

SAP AG

TAMM10 4.0B

9-23

How the Material Number is Displayed

Material

Database
Material
Material number:
number:
18
18 characters
characters
Conversion
Input/output length
Leading zeros
Template
Form of storage

SAP AG

The specifications regarding material number conversion apply only to online activities and printouts.

SAP AG

TAMM10 4.0B

9-24

Field Selection: Influencing Factors

Transaction

..................

Material type

Procurement
indicator
?

..................
..................

Field selection
Plant

Industry sector

R/3 user

SAP AG

A separate control string exists for each of these influencing factors.

Each position in a control string of this kind applies to a specific field selection group. The field option
is valid for the whole group of material master fields.

SAP AG

TAMM10 4.0B

9-25

Customized Material Master

You can set up the material master according to your
company`s requirements:
Material

You can remove screens that you do not need form the screen
sequence.

You can create your own screens by deleting standard subscreens or

by inserting your own subscreens.

You can change individual fields in subscreens.

Screen
sequence
Basic data
Sales

Screens

Subscreens

Basic data

Purchasing

SAP AG

When you configure your system, you can customize the dialog functions for material master records to
suit your company's requirements. You can use either standard subscreens or subscreens that you create
yourself to set up your own screens.

SAP AG

TAMM10 4.0B

9-26

Material Master: Summary

A material has different organizational levels.
Material processing is controlled by the material
type, the industry sector, and the material status.
The data in a material master record is divided

between different views (departments).

In addition to data pertaining to the organizational

level(s), a view usually contains data for more

general organizational levels (e.g. client).
The material master record can be maintained
centrally or can be maintained on a decentralized
basis according to the organizational levels and
views.
R

SAP AG

SAP AG

TAMM10 4.0B

9-27