Module Objectives

• Upon completing this module, you will be able to:

• Understand Material Master.

• Understand on the usage of Material Master in different

departments.

• Understand how Material Master will be useful in

creating PO.

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 Agenda
• Conceptual understanding of Material Master data with an
overview of Business Scenario

• Introduction to Industry Sector, Material Types.

• Attributes of Material Type/ Ind ustry Sector.

• Various levels of material master data.

• Importance of Different Views.

• Creation and maintenance of material master.

• Configuration of material types.

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 Agenda
• Conceptual understanding of Material Master data
with an overview of Business Scenario
•
• Introduction to Industry Sector, Material Types.

• Attributes of Material Type/ Industry Sector.

• Various levels of material master data.

• Importance of Different Views.

• Creation and maintenance of material master.

• Configuration of material types.

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 Conceptual understanding of Material
Master data
• Material master contains the information on all the materials that a company
procures, produces, stores or sells.
• The material master record is a company’s main source of material specific
data. It is used by all components in the R/3 logistics system.

•Material Master Data

•Basic data •Purchasing

•Materials planning •S & D

•Stocks in Plant/ stor Loc • Material •Work scheduling

• Master
•Accounting • Record •Quality management

•Storage •Forecasting

•Warehouse Mgmt •Classification

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 Conceptual understanding of Material
Master data
• Each department in company has it’s own view in material master.

• The material master record is a companies main source of material specific

data. It is used by all components in the R/3 logistics system.

• Some material data is valid for all organization levels, while some is valid only
for certain levels.
• Data at client level
• Data at plant level
• Data at storage location level

• Material data is always organized in the same hierarchical fashion.

• From the Purchasing viewpoint, a material master record contains the following
Organizational levels: client, purchasing organization, plant, and storage
location.
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 Conceptual understanding of Material
Master data

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 Agenda
• Conceptual understanding of Material Master data with an
overview of Business Scenario

• Introduction to Industry Sector, Material Types.

• Attributes of Material Type/ Industry Sector.

• Various levels of material master data.

• Importance of Different Views.

• Creation and maintenance of material master.

• Configuration of material types.

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 Introduction to Industry Sector, Material
Types
• 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.
• Examples of material types are given in the graphic below

•Material type

•Number assignment

•Raw materials •Procurement type

•User departments

•Control
•Semi finished •Field selection

•Account determination

•Finished products •..............

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 Introduction to Industry Sector, Material
Types
• Industry sector has a control function in SAP R/3 and identifies the industry.

• When you create a material master record, the industry sector defines. which
screens are displayed and in which order which industry specific fields are
displayed in each screen.

• Industry sector you assigned to material cannot be changed latter.

•Industry Sector

• • Selection Screen
Raw materials
• Co
ntro
l
• Field Selection
• Operating Suppliers

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 Introduction to Industry Sector, Material
Types
Material type controls :

• The type of number assignment (internal or external).

• The permitted number range interval.

• Which screens are displayed and in which order.

• Which user-department-specific data (view) is suggested for entry.

• Which procurement type is permitted for a material; that is, whether the
material is produced in-house, procured externally, or whether both options
are allowed.

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 Introduction to Industry Sector, Material
Types
Material type controls :

• Along with the plant, the material type determines a material's inventory
management requirement; that is,

• Whether the system updates quantity changes in the material master record
or updates changes in value in the stock accounts in Financial Accounting.

• The material type also determines which accounts are posted when a material
is posted to stock or leaves the warehouse.

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 Agenda
• Conceptual understanding of Material Master data with an
overview of Business Scenario

• Introduction to Industry Sector, Material Types.

• Attributes of Material Type/ Industry Sector.

• Various levels of material master data.

• Importance of Different Views.

• Creation and maintenance of material master.

• Configuration of material types.

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 Attributes of Material Type/ Industry
Sector.
• Attribute of material type is nothing but the settings for each material type.

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 Agenda
• Conceptual understanding of Material Master data with an
overview of Business Scenario

• Introduction to Industry Sector, Material Types.

• Attributes of Material Type/ Industry Sector.

• Various levels of material master data.

• Importance of Different Views.

• Creation and maintenance of material master.

• Configuration of material types.

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 Various levels of material master data and
importance of different views
• Data in Material Master is maintained at three levels basically :

1) Data at Client level : Data maintained in material master at client level and can
be used by all organization levels which is valid for the entire company.

2) Data at Plant level : Data maintained in material master at plant level which is
relevant to Planning, Inventory and production.This data can be extended to
new plant(if created) under same company code.

3) Data at Storage location level : Data which is valid for a particular storage
location is stored at storage location level.

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 Various levels of material master data and
importance of different views
•Basic data 1 and Basic data 2

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 Various levels of material master data and
importance of different views
• Purchasing view

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 Various levels of material master data and
importance of different views
• MRP 1 and MRP 2 Views

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 Various levels of material master data and
importance of different views
• MRP 3 and MRP 4 Views

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 Various levels of material master data and
importance of different views
• Accounting 1 and Accounting 2 Views

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 Various levels of material master data and
importance of different views
• Data in Material Master is maintained at three levels basically :

1) Data at Client level : Data maintained in material master at client level and can
be used by all organization levels which is valid for the entire company.

2) Data at Plant level : Data maintained in material master at plant level which is
relevant to Planning, Inventory and production.This data can be extended to
new plant(if created) under same company code.

3) Data at Storage location level : Data which is valid for a particular storage
location is stored at storage location level.

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 Agenda
• Conceptual understanding of Material Master data with an
overview of Business Scenario.

• Introduction to Industry Sector, Material Types.

• Attributes of Material Type/ Industry Sector.

• Various levels of material master data.

• Importance of Different Views.

• Creation and maintenance of material master.

• Configuration of material types.

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 Creation and maintenance of material
master
• Demo : T-code: MM01

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 Creation and maintenance of material
master
• Demo :

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 Creation and maintenance of material
master
• Demo : MM01  Basic data view

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 Creation and maintenance of material
master
• Demo : MM01  Purchasing view

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 Creation and maintenance of material
master
• Demo : MM01  Accounting view

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 Important T Codes in Material Master
•MM01 - Create Material Master

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 Important T Codes in Material Master
•MM02 - Change Material Master

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 Important T Codes in Material Master
•MM03 - Display Material Master

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Important T Codes in Material Master
•MM04 - Display Material Changes

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 Important T Codes in Material Master
•MM06 - Delete Material Master

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 Important T Codes in Material Master
•MM17 - Mass Maintenance

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 Important T Codes in Material Master
•MMAM - Material Type

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 Important T Codes in Material Master
•MM11 - Schedule creation of Material Master

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 Important T Codes in Material Master
•MM50 - Extend the material view(s)

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 Important T Codes in Material Master
•MM60 – Material List

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 Agenda
• Conceptual understanding of Material Master data with an
overview of Business Scenario

• Introduction to Industry Sector, Material Types.

• Attributes of Material Type/ Industry Sector.

• Various levels of material master data.

• Importance of Different Views.

• Creation and maintenance of material master.

• Configuration of material types.

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 Configuration of material types.
• Logistics general  Material Master  Basic settings  Material Types 
Define attributes of Material type

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 Configuration of material types.
• Demo : Attributes of material type  Material type

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 Configuration of material types.
• Demo : Attributes of material types  Quantity/Value update

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 Quiz/Check point
• Questions/Discussions :
1) What is the material type for Non Stock
Material?

2) What is the material type for Non Valuated

Material?

3) What are the different types of price control

that can be updated in Material Master?

4) In which View of Material Master does

Source list requirement can be set up?

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 Questions and Comments
• What questions or comments
do you have?

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 Exercise

Exercise 3: Conceptual understanding of Material Master Data

(60 min.)

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