In SAP MM , the term "material type" refers to a classification or categorization of materials that are

managed within the system. Material types are used to differentiate various types of materials based on
their attributes, characteristics, and usage in the business processes.

When you create a material in SAP, you need to assign it a material type, which determines how the
material will be treated and processed within the system. The material type defines the screen layout,
field selection, and default settings for the material master record.

Examples of material types in SAP include:

1. Finished Product (FERT): This material type represents finished goods that are ready for sale or
consumption.

2. Raw Material (ROH): Raw materials are the basic components used in the production process to
manufacture finished products.

3. Trading Goods (HAWA): Trading goods are items that are bought and sold without any further
processing. They are typically used in wholesale or retail businesses.

4. Spare Parts (ERSA): Spare parts are materials used for maintenance, repair, and overhaul of
machinery or equipment.

5. Packaging Material (VERP): Packaging materials include items such as boxes, containers, or other
materials used for packaging finished products.

6. Semi-Finished Product (HALB): Semi-finished products are materials that have undergone some
processing but are not yet ready to be sold as finished products.

7. Non-Stock Material (NLAG): Non-stock materials are items that are not kept in inventory. They can
include items like office supplies or consumables.

8. Service (DIEN): Service material types are used to represent services provided rather than physical
products. They are used in scenarios where services need to be procured or planned.

9. UNBW (Non-Valuated Material): Represents materials that are not valuated or have no monetary
value, such as samples or promotional items.

10. KMAT (Configurable Material): Used for materials that are assembled or configured based on
customer requirements, where different components can be combined to create a unique finished
product.

11. Asset (ANLA): This material type is used to represent fixed assets, such as machinery, buildings, or
vehicles.
12. HIBE (Operating supplies): Represents materials used for the day-to-day operations of an
organization, such as office supplies, cleaning materials, or maintenance tools.