What is material type in SAP?

 In SAP (Systems, Applications, and Products in Data Processing), the term "Material Type" refers to a classification or categorization of materials within the SAP ERP (Enterprise Resource Planning) system. SAP uses material types to group similar materials together based on certain characteristics or attributes. Each material type in SAP is associated with a specific set of predefined properties and behaviors that are relevant to that type of material.

Commonly used material types in SAP include:

1. Raw Materials (ROH):

   • Represents materials that are used in the production process but are not finished products.

2. Finished Products (FERT):

   • Represents materials that are finished goods ready for sale.

3. Trading Goods (HAWA):

   • Represents materials that are bought and sold without any further processing.

4. Semi-Finished Products (HALB):

   • Represents materials that are partially finished and will undergo further processing to become finished products.

5. Packaging Materials (VERP):

   • Represents materials used for packaging finished goods.

6. Non-stock Materials (NLAG):

   • Represents materials that are not kept in stock but are procured as needed.

7. Service (DIEN):

   • Represents services rather than physical materials.

8. Configurable Materials (KMAT):

   • Represents materials that can be configured or assembled based on customer requirements.

The material type is assigned to a material master record in SAP, which is a central data repository containing information about a material, such as its description, unit of measure, procurement data, and accounting data. By assigning a material type to a material master record, SAP determines how the material is to be managed, what accounting and valuation methods to use, and how the material behaves in various business processes.

Configuring material types in SAP allows organizations to streamline their business processes, control how materials are handled, and ensure consistency in data management across different types of materials. The use of material types is an essential aspect of SAP's inventory and materials management functionality

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