Why We have to Create Material Types in SAP System ?

Why We have to Create Material Types in SAP System ?

• If we want to distinguish material type of origin and usage – like a finished product (produced goods ready for sale), semi finished product (used as a part of a finished product), trading goods (for resale), raw materials (used for production of semi finished and finished products) etc. 
• Whether the material is intended for a specific purpose such as a configurable material or process material
• Whether the material number can be assigned internally or externally
• If we want to create the material that stock are not required to maintain but only value have to maintain or vice versa
• If we want to Crete the Items Which only Procure from externally 
• If we want to Crete the Items Which only Procure from internally
• By creating Material Types we can control
• The number range from which the material number is drawn 
• Which screens appear and in what sequence 
• Which user department data you may enter  
• What procurement type the material has; that is, whether it is Manufactured  in-house or procured externally, or both         

SHARE

About Admin