1

MATERIAL
MASTER
IN SAP SD

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SAP SD Material Master Data and Master Data Management is of core importance in
SAP. A transaction’s accuracy is based on correct and accurate Master Data. If the
Master Data is not maintained in the SAP system, transactions cannot be performed. If
the Master Data is not properly and accurate maintained, process like either Procure-to-
Pay or Order-to-Cash, Record-to-Report, Hire-to-Retire, Plan-to-Produce will not be
processed accurately. If same are not processed accurately, accurate reporting cannot be
obtained by any means.

The importance of Master Data can be understood by this example that many companies
have experienced and dedicated Master Data Management resources in their Master
Data Management team meaning, there are set of employees who are dedicated and
solely look after Master Data they are usually called the Master Data Management (MDM)
team. They carefully consider the Master Data, responsible for entering accurate data in
prescribed fields. They also closely observe, look vigilantly and check thoroughly if there’s
any repetition, duplication and redundancy of the Master Data.

Material master in SAP is used by different modules. Here you can find tutorials about
using SAP material master in other modules:

SAP SD Material Master is a centrally shared data used by all logistics modules.
Information captured in the Material Master record can be descriptive or can have
functional control depending on the usage. This information can be maintained across
several organization levels or can be maintained for specific organization level (e.g., plant,
storage location, sales organization, etc.)

SAP SD Material Master Data in SAP has several material types. Each material type has
its own set of ‘Views’. By ‘Views’ in SAP Material Master data we mean areas (tabs) and
their fields which are required to be filled up or populated for smooth processing of
transaction and processes.

Material Master in SAP is used by following modules:

• Material Master
• Production Planning
• Quality Management
• Plant Maintenance
• Finance
• Controlling
• Warehouse Management

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Each view has its own functionality and their fields have their own meaning. If any of the
view is not maintained, the respective module cannot perform their activity. E.g., to make
a material salable, Sales and Distribution Views must be maintained. Similarly, to carry
out quality check on the received material, Quality Management View in SAP material
must be maintained with accurate settings.

Material Types

The Material Type groups materials with similar characteristics and attributes. It also
determines whether the material will be valued at a standard price or at a moving
average price. It also maintains which screens are to be maintained depending upon the
screen sequence assigned. Once a material has been maintained in the SAP system and
if any change is needed, the Material Master record can either be:

• Extended: SAP SD Material Master extension is done when organizational

level data or departmental data has not been maintained. The extension
process allows the user to define these levels (e.g., the purchasing data view
has not been maintained or the material has not been extended for a certain
storage location)

• Changed: If the data maintained needs to be altered, the record can be

changed using the material master change transaction

SAP Material Master Data for Sales & Distribution

Sales processing is based on the following basic structures:

• In Sales and Distribution, products are sold to Customers and / or services are
performed for them. Related Master Data about the products and services are
maintained in the SAP SD Material Master Data. Sales processing with the
SAP System require that the master data has been stored in the system.
• The processing of business transactions in Sales and Distribution is based on
the Master Data. In the SAP System, business transactions are stored in the
form of documents. These Sales and Distribution documents are structured in
such a way that all necessary information in the document is stored in a
systematic way.

A Material Master record is either created or extended when:

• No Material Master Data record exists for the material in the first place.

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• Material master record exists for the material but has not been created for a
certain organizational level, e.g. Plant, Sales Organization or Storage
Location.

When an end user in the Sales department needs to sell a material, this user will search
for the Material in the SAP. If the material is not available, the user will raise a request
with the concerned department or a person responsible for Master Data
creation/maintenance, so that the material master record is created in the system. The
department/ person responsible for creating SAP Material Master will create Master Data
by selecting correct material type and entering all the relevant information.

Master data relevant to materials is more specifically pertaining to the Materials

Management (MM) module’s domain. However, each salable material is extended to a
combination of Sales Organization and Distribution Channel (sales line), for carrying out
sales.

Unless a material is not extended to at least one sales line, the system will not allow the
user to record sales in the SAP. Material Master can be extended to multiple combinations
of Sales Organizations and Distribution Channels (sales lines) by maintaining sales
related views.

The following ‘Sales Views’ are relevant for all salable materials:

• Sales: Sales Org. Data 1:

• Basic sales relevant data, tax classifications, delivering plant, units
of measure (e.g., base & sales unit of measure)
• Sales: Sales Org. Data 2:
• Account Assignment Group of Material, Material groupings (e.g.,
product hierarchy, material group)
• Sales: General/Plant Data:
• Sales and Shipping data (e.g., gross and net weight, availability
check strategy, transportation group, loading group), profit centre
can also be entered here

Important SAP SD Material Master Transactions

Following are the key transaction related to SAP SD Material Master:

• MM01 – Create Material Master

• MM02 – Change Material Master
• MM03 – Display Material Master
• MM06 – Flag for Deletion
• MM60 – Material Master List

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How to Create SAP SD Material Master

There are two options to start the transaction for creating a new material.
Enter MM01 in Transaction Command Field or executing Material Master –
Creation Transaction / Screen

Enter MM01 Transaction

• Navigate through ‘Tree’

Find MM01 in the SAP Menu Tree

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SAP SD Material Master Data – Sales & Distribution ‘Views’

As a responsible for SAP SD module, chances are likely that Material Master’s basic
information will be maintained by a person from SAP MM team and the material number
will be generated. You will be responsible for maintaining SAP Sales & Distribution
relevant data in the Master Master’s Sales Views.

Let’s look at SAP’s Material Master Data Views related to Sales & Distribution Module.
In the main screen of Material Master transaction (MM01), enter the material you wish
to maintain SD’s views and press Enter.

Material Master – Initial Screen

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Material Master – Initial Screen with Material Number Populated

Once you press Enter a dialog box will appear to select the views you wish to maintain,
change or display.

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Material Master – Initial Screen with ‘Views’ Selection Dialog Box

In this case, we will select Basic Data 1 and SD’s Views and press Enter.

Material Master – Initial Screen with ‘Views’ Selected in the Dialog Box
Once you press Enter, another dialog box will appear. Enter relevant Plant, Sales
Organization and Distribution Channel for which you wish to maintain, change and display
SD’s Material Master values and press Enter.

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Material Master – Initial Screen with Organizational Levels Selection Window

Material Master – Initial Screen with Organizational Levels Populated

Hint: In Change and Display transactions, if you either press F4 or button and SAP
system will display all values of Plant, Sales Organization and Distribution Channel
where the selected material is already maintained.

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Material Master – Initial Screen with Organizational Levels Selection Window

Once you press Enter, you will reach the view which you have selected.

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Material Master – Basic Data 1

In the Basic Data tab, as the name suggests, it contains information basic information
about the product. Product’s description, Base Unit of Measure / stock keeping unit,
Material Group to which it belongs, old material number, Division, Weight, Volume,
Dimensions, etc. When you press Enter, after maintaining, changing or viewing the data
in the tab, the system will take you to the next tab which you have selected in the
previous screen.

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Material Master – Sales: sales org. 1

On the screenshot above is the Sales: sales org. 1 screen. The header part contains the
information which you have selected initially.

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Material Master – Sales: sales org. 1 > Header

Below is the General data part:

Material Master – Sales: sales org. 1 > General data

It contains basic information like the Base Unit of Measure which have been selected by
the warehouse as the lowest stock keeping unit.

Sales Unit which can be same or different to Base unit of measure. Example:
warehouse stocks a material in Pieces whereas the Sales is carried out in boxes or
cartons. For this, an alternate unit of measure shall be maintained which we will have a
look at the later part of this tutorial.

Unit of Measure Group is the option that you can use for grouping several units of
measure.

Division – the product line or group of materials to which this material belongs.

Delivering Plant – the plant from where the said material is shipped to a customer.

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Material Group – option to group materials and services due to their distinct nature.

Conditions – takes you to the pricing master where you can maintain the base price of
the selected material.

Material Master – Sales: sales org. 1 > Tax data

Tax Data contains the taxation details for the material country wise. A material can
either be non-taxed material, half tax, full tax or exempted.

Material Master – Sales: sales

org. 1 > Tax data options

Material Master – Sales: sales org. 1 > Quantity stipulations

Quantity stipulations contain information regarding the minimum order and delivery
quantity that the customer should order so that goods can be shipped.

Delivery Unit – specific multiples in which goods can be shipping.

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After you are done with Sales: sales org. 1 view, press Enter and the system will take
you to the second view Sales: sales org. 2 provided that you have selected the said
view on the initial views selection dialog box.

Material Master – Sales: sales org. 2

Grouping terms allows to group the material on certain criteria

Material Master – Sales: sales org. 2 > Grouping terms

Material statistics grp – is required for SIS (LIS) reporting.

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Material pricing grp – is used for pricing condition purposes. Example, if you want to
have a certain set of materials with the same base price or discounts, etc.

Volume rebate group – group used for rebate settlement.

Account assignment grp – used for account determination and selection relevant G/L at
the time of posting Sales invoice.

Gen. item cat. grp – grouping materials to define item categories and selection of
relevant item categories during sales order processing.

Item category group – used for selection of relevant item category in the Sales Order
automatically.

Pricing Ref. Matl – master record that the system uses as a reference for pricing
purposes.

Product Hierarchy – for grouping together materials by combining different

characteristics. It is used for analyses and price determination.

Material Master – Sales: sales org. 2 > Material Groups

Material Groups are used to classify the material based on its different attributes, e.g.
size, packaging, color, etc. for analysis purposes.

Once you are done with Sales: sales org. 2 view, press Enter and the system will take
you to the third view Sales: General/Plant view provided that you have selected the said
view on the initial views selection dialog box.

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Material Master – Sales: General / Plant

Material Master – Sales: General / Plant > General data

Base Unit of Measure, Gross and Net Weight – will be copied from the Basic Data
screen, if they were populated there.

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Availability Check – check group which defines whether and how the system checks the
material’s availability and generates requirements for materials planning.

Batch Management – if the material is managed, stored and shipped in batches.

Material freight grp – is used to group materials so that they can be classified according
the shipping and freight requirements.

Material Master – Sales: General / Plant > Shipping data

Shipping data contains information which is relevant for shipping and should be
maintained in the material master for smooth shipping activities at the Distribution
Center.

Material Master – Sales: General / Plant > Packaging material data

Packaging Material Data contains information if this material requires packaging and
what type of packaging at the time of shipment / dispatch.

Material Master – Sales: General / Plant > General plant parameters

General Plant Parameters contain information if the negative of the material is all
allowed. Profit Center to which this material belongs to. It is important for Profit Center
Accounting in Controlling.

Additional Data – Alternate Units of Measure

As discussed briefly above, if your stock keeping unit at warehouse is different than
your sales unit, the conversion of the same can be maintained in the Alternate Units of
Measure. It contains, for example, ‘X’ number of Base Unit of Measure contains ‘Y’
number of Sales Unit.

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To reach to the Additional Data view, select button.

Material Master – Additional Data

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Material Master – Additional Data > Units of Measure

Select tab to enter conversion.

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Material Master – Additional Data > Units of Measure

Here in this example it is shown that 01 Carton, which is a Sales Unit, contains 10 ST
pieces of Base Unit of Measure. Once you are done with maintaining and changing
values in the SAP Sales & Distribution ‘Views’ of SAP SD Material Master, don’t forget
to Press Save or CTRL+S for the values to take effect in your sales transactions.

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