SAP Material Types

Use

Material types in the SAP standard version are, for example, raw materials, trading goods, semi-finished products, finished products, or services. The material type represents certain features of materials in the system, and has important control functions: the material type is used, among other things, to group field selection functions for a material, or to define the screen sequence, the type of number assignment and number ranges during material master record maintenance. Depending on the material type, company areas maintain different data screens. This screen selection applying specifically to an application is called a "view".

The following are examples of possible material types in the SAP standard version:

• Trading Goods

• Non-stock Material

• Services

• Packaging Material

Trading Goods

Trading goods are movable goods intended for commercial exchange. Examples of trading goods are market goods, consumption goods and durable goods. Trading goods are always bought and re-sold by your company. The material master record for trading goods therefore always contains purchasing data and sales data. Trading goods are managed in the SAP R/3 System using the key HAWA.

Non-stock Material

Non-stock material includes materials that are not managed on an inventory basis (for example, small parts such as nails) though physically in stock. Non-stock materials are managed in the SAP System using the key NLAG.

Services

Services are represented and managed in the SAP System as materials. Services are immaterial goods that differ from other goods, particularly in that their production and consumption coincide. Services are generally regarded as non-transportable and non-stockable. Typical services are commercial services, transport services, bank and insurance services, goods from cultural organizations and the mass media, as well as services provided by the public security forces or the education and health sectors.

Since services cannot be stored, a material master record of this material type does not contain inventory data or inventory management data. No fields for gross weight, net weight or unit of weight are included in the basic data for a service, as are for other material types. Services are managed in the SAP R/3 System with the key DIEN.

Packaging Material

This material type includes all materials needed for packaging. For example, boxes or crates. Packaging materials are managed in the SAP R/3 System with the key VERP.

Other Material

Materials which cannot be assigned to any of the standard material types, can be maintained, as "Other material". Thus, besides standard material types (trading goods, finished products, services etc.) you can also create additional material types. When creating such a material, note that a material type must be entered on the first data screen. For standard material types, this entry is not necessary because the material type is selected in the menu.