In SAP S/4HANA’s Production Planning (PP) module, material types are essential for defining the attributes and behaviors of materials within the system. They determine the material’s role in business processes, the departments responsible for its data maintenance, and the specific views available in the material master record.
Common Material Types in SAP PP:
The material type determines if the material is
- Finished assembly
- Semifinished assembly
- Raw material
- Packaging material
| Material Type | Description | Key Characteristics |
|---|---|---|
| FERT | Finished Goods | – Produced internally – Sold to customers – Typically lack purchasing views |
| HALB | Semi-Finished Goods | – Produced internally – Used in the production of other goods – May have both production and purchasing views |
| ROH | Raw Materials | – Procured externally – Used in production processes – Usually have purchasing views but no sales views |
| VERP | Packaging Materials | – Used for packaging finished goods – Can have purchasing views – May have sales views if sold separately |
Key Considerations for Material Types:
- Departmental Maintenance: The material type dictates which departments can maintain specific data in the material master. For instance, a raw material may require input from procurement, while a finished good involves production and sales departments.
- Number Assignment: Material types determine whether material numbers are assigned internally by the system or externally by the user, as well as the number range intervals used.
- Screen Sequence and Data Entry: The material type influences the sequence of screens displayed during material master creation and the mandatory data fields for each department.
- Special Material Types: Certain material types allow for special attributes, such as configurable materials, which can be customized based on specific requirements.
- Procurement Type: Material types define the allowed procurement methods—internal production, external procurement, or both.
- Inventory and Valuation Updates: They determine whether quantity and value changes are updated in inventory management and financial accounting stock accounts.
Importance of Correct Material Type Selection:
Selecting the appropriate material type is crucial, especially in complex organizations like multinational corporations. A material might serve different purposes across various divisions—acting as a finished product in one, a trading good in another, and a raw material elsewhere. Since material types are independent of organizational levels, careful consideration is necessary to ensure accurate representation and processing of materials within the system.