Section 2 of 10

Material Master

The view structure of the material master, which organisational level holds what, what the material type controls, and the role of the valuation class.

Open contents

The material master is referenced by more modules than any other master record in SAP. Purchasing, inventory, production, sales and accounting all read the same record, which is why it is divided into views.

Views

Each department gets its own view, and not every material needs every view. Something never purchased needs no purchasing view.

The main views
ViewKey fieldsUsed by
Basic dataDescription, base unit, material group, weightEveryone
PurchasingPurchasing group, order unit, GR processing time, auto-PO flagPurchasing
MRP 1โ€“4MRP type, lot size, safety stock, procurement type, lead timesPlanning
SalesSales unit, shipping conditions, statistics group, tax classificationSales
StorageStorage conditions, shelf life, batch managementWarehouse
Quality managementInspection types and setupQuality
AccountingValuation class, price control, standard or moving average priceFinance
CostingWhether it is costed, lot size, special procurementControlling

Which level holds what

Views differ in the organisational level they are held at, and this is the single most important thing to understand about the material master.

LevelViews held thereMeaning
ClientBasic dataShared company-wide โ€” description, base unit
PlantPurchasing, MRP, costingSettings differ by site
Storage locationStock quantityStock per warehouse
Valuation areaAccountingUsually the plant; valuation class and price
Sales org / channelSalesTerms differ per sales route

The same material can therefore be produced in-house at plant A (procurement type E) and bought externally at plant B (type F), because the MRP view is held per plant.

Material types

Common material types
TypeMeaningStock management
ROHRaw materialQuantity and value
HALBSemi-finishedQuantity and value
FERTFinished productQuantity and value
HAWATrading goodsQuantity and value
VERPPackagingQuantity and value
NLAGNon-stockNot stocked; consumed on purchase
DIENServiceNo stock concept
UNBWNon-valuatedQuantity only

Office supplies consumed on arrival use NLAG: the purchase is expensed directly without passing through an inventory account.

Valuation class and account determination

The valuation class on the accounting view is the key link between MM and FI: it determines which G/L accounts stock movements post to.

Raw materials to account 150000, finished goods to 151000, and so on. The mapping is configured in OBYC, derived from the movement type together with the valuation class.

Price control

MethodIndicatorBehaviour
Standard priceSAlways valued at a fixed standard; differences go to a price difference account
Moving averageVRecalculated on each receipt; the stock value moves

Manufactured materials normally use standard price so that variances against standard are visible. Purchased materials often use moving average so that valuation follows actual purchase prices.

๐Ÿ“– Unfamiliar term? Look it up in the SAP glossary.

Check your understanding

Test what you just read.

Quiz 1

Which transaction is used to create a Material Master record?

Quiz 2

The Valuation Class is used for GL account determination for inventory postings.

Quiz 3

What is the Material Type for a finished product?

Quiz 4

MRP data in the Material Master is managed at the Plant level.

Quiz 5

Which Price Control code represents Moving Average Price?

Quiz 6

Arrange the Material Master views in a typical creation sequence.

Click items in the correct order