How to Create Material Master in SAP MM

How to Create Material Master

This article describes how to create the material master. Some of the key fields will be explained through the process The transaction codes to do the same are

MM01 Create Material Master

MM02 Change Material Master

MM03 Display Material Master

Typically all materials are maintained by the MM consultant, but the SD and PP consultants can also specify their parameters and create them. However, ultimately creating and maintaining material masters is the job of the SAP MM Consultant. Click through if you are interested in SAP MM Training .

Step No. 1 The menu path to create the material master is as follows [Logistics->Material Management -> Material Master -> Material-> Create ( General ) -> Create Immediately ]

Step No. 2: Enter the material name, industry sector and material type.

Material type is the most important field in this screen. It controls how the material behaves in the material master as well as across the supply chain. For example, the material type determines all of the following

  • Price Control ( Standard or Moving Average )
  • Item Category Group ( NORM.. etc )
  • Views ( A material master has so many views that will be discussed soon )
  • Valuation Category
  • Procurement type

And much more.

Step No. 3 : Now after the material name has been entered, hit enter and you will be prompted to choose the views. The material type defines the views. For now, lets choose the following views as relevant for SAP MM training.

Step No.4 – In this step, we select the organizational levels. Organizational levels are org units that this material will be created for. For example, a material could be restricted to a particular purchasing organization. If you need to use that material for a different purchasing organization, the material needs to be extended. Let’s choose Plant 1200 and storage location 0001

Step No. 5 – Enter the basic data – Material Description : A brief description of the material Base Unit of Measure : There are different units of measure like the base unit of measure, purchasing unit of measure, sales unit of measure, warehouse unit of measure etc. Materials are measured in different units depending on the place where they are used. A soda manufacturing plant might use crates as the unit of measure, whereas the same soda can can be sold in 6-packs in sales.

We are selecting a material group of 001201 which stands for pumps. Material groups can be configured elsewhere and it will be covered as part of our full-fledged SAP MM Training. We also enter a division of 01 which stands for pumps. You can refer to our organization structure tutorial to understand divisions. Item category Group : As the name says, this is a grouping of materials depending on attributes. This field can be used as the origin point for procurement proposal or for return deliveries in purchasing. Item category group in the sales view is used extensively in SD to determine item category. Here are some standard item categories VERP – packaging NLAG – Non stock material DIEN – Service with delivery BANS – Third Party Item LEIH – Returnable packacing Click on the drop down for the general item category group to learn more. This finishes the basic data tab. Now, lets move on to the purchasing tab

Step No. 6 : After you hit enter, if there are no more mandatory fields to be filled in the basic data, the focus automatically moves to the next selected view, which in this case is purchasing. Some fields are repeated here like the description, unit of measure, Material group etc. As discussed previously, there could be multiple units of measure depending on the function where the material is being used – like sales, purchasing, manufacturing etc. Here you can select a different unit of measure which becomes the purchasing unit of measure.

Plant Specific Material Status : This field is used to restrict the material to a particular function – Like Blocked for procurement, Blocked for Task List Blocked for Purchasing, Blocked for costing etc.

Tax Indicator for Material : This defines the taxability from a procurement perspective. For sales, there is another indicator in the sales tab that defines the taxability

Material Freight Group: This is used to finally determine the freight code that is used in determining freight prices for that material. For now, we will leave it blank.

Automatic PO : This indicator is used to determine if the purchase requisition can be converted to purchase order automatically (although there are other parameters like source of supply, vendor info records etc that should be set )

Batch Management : This field is used to identify if the materials can be used in batches. G/R Processing Time : This is a very important field and will be discussed in full during the SAP Training session.

Post to inspection stock : If this field is activated, the system automatically posts the goods receipt into the quality inspection stock ( As opposed to unrestricted or blocked stock )

Quota Arrangement Usage : This field requires extensive explanation regarding vendors, quota, quota file etc and will covered in the SAP MM Training session.

64 thoughts on “How to Create Material Master in SAP MM

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