Saturday, 15 October 2011

Material Master

Master data contains information, stores in a database for longer period of time and it is used for different application.
Different types of Master Data in SAP MM are: -
1. Material Master
2. Vendor Master
3. Info Records
4. Source list
5. Quota Arrangement
Materials are the goods that are subject of business. The material can be traded, used in manufacture, consumed, or produced
It is a Master file which contains information of a particular material, depending upon the views selected from the user departments.
Material type
It is a key that assigns the material to a group of materials such as Raw materials, trading goods. This allows you to manage different materials in a uniform manner in accordance with your company's requirements.
The Material type defines certain attributes of the material and has important control functions.
When creating a material master record, the material type determines
• Whether the material number is assigned internally or externally
• From which number range interval the material number comes
• Which screens are displayed
• The order in which screens are displayed
• Which department-specific data is displayed for the user to enter

Different Material Types available: -
ROH - Raw Material
FERT - Finished Product
HALB- Semi finished Product
HAWA- Trading goods
DIEN - Services
ERSA - Spare Parts
PIPE - Pipeline material
LEIH - Returnable Packaging
HERS- Manufacturer Parts
FGTR - Drinks
FOOD- Foods
FRIP - Perishable Goods
Material Group: -T Code WG21
Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.

Price Control: - Two types of Price Controlled given by SAP
1. Moving Price – ‘V’
2. Standard Price- ‘S’

Standard Price:
Valuation using a standard price has the following features:
  • All inventory postings are carried out at the standard price.
  • Variances are posted to price difference accounts
  • Variances are updated
  • Price changes can be monitored
If a material is assigned a standard price (S), the value of the material is always calculated at this price. If goods movements or invoice receipts contain a price that differs from the standard price, the differences are posted to a price difference account. The variance is not taken into account in valuation.
Moving Average Price:Valuation using a moving average price results in the following:
  • Goods receipts are posted at the goods receipt value.
  • The price in the material master is adjusted to the delivered price.
  • Price differences occur only in exceptional circumstances.
If a material is assigned a moving average price (MAP), the price is automatically adjusted in the material master record when price variances occur. If goods movements or invoice receipts are posted using a price that differs from the moving average price, the differences are posted to the stock account; as a result, the moving average price and the value of the stock change

SAP MM Introduction
SAP MM Transaction Codes
Procurement Process

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