Understanding SAP Material Types: A Complete Guide for Beginners
SAP Material Types
The material type can be termed as a definition of materials that are grouped based on their likeness in characteristics, thus defines how the materials behave in the system. The material type defines basic data such as the function of the material, the range of the material’s ID, the data screens required for the material’s document, among others. You need to choose the material type while entering the material code into SAP by using the GUI transaction MM01 or the Fiori application.
Key Purposes of Material Types
- Controls Data Entry: Specified the mandatory, optional, or hidden fields in the Material Master.
- Defines Valuation: Determines whether the material is of the type that is valued (for example, by count and value) or non-valued (for example, for services).
- Influences Processes: Impacts on procurement, storage, sale, or manufacturing of goods and materials.
- Organize Materials: Categorize items, such as inventory and finish goods, which might otherwise be lumped together.
Here are the basic material categories that are used in the SAP system in inventory, procurement, as well as production.
🏭 ROH – Raw Materials – Production Input
Raw materials employed in manufacturing procedures that are converted into finished goods.
Key Characteristics:
- Procured externally
- Used in production BOMs
- Inventory managed
- MRP relevant
Examples:
Steel sheeting, plastic pellets, chemicals, wood, fabric
⚙️ HALB – Semi-finished – Intermediate Products
Intermediate goods that are produced in-house and serve as inputs for final products.
Key Characteristics:
- Manufactured internally
- Used in higher-level BOMs
- Has own production BOM
- Stock managed
Examples:
Engine blocks, circuit boards, subassemblies, machined parts
📦 FERT – Finished Products – End Products
Completely finished products, ready for consumption by the customer or for internal usage.
Key Characteristics:
- Sales relevant
- Can be manufactured
- Finished goods stock
- Customer deliverable
Examples:
Car, computer, furniture, appliances, packaged products
🛒 HAWA – Trading Goods – Resale Items
Goods acquired from suppliers and sold to consumers without changes.
Key Characteristics:
- Procured externally
- Sold without modification
- No production BOM
- Direct resale
Examples:
Retail merchandise, spare parts, accessories, Branded products
🔧 DIEN – Services – Service Items
Non-physical services that can be procured or provided to customers.
Key Characteristics:
- No physical inventory
- Time/quantity based
- Can be outsourced
- Service procurement
Examples:
Maintenance, consulting, training, transportation, repairs
📋 VERP – Packaging – Packaging Materials
Materials used for packaging processed goods or parts.
Key Characteristics:
- Used in packaging process
- Consumed in production
- Inventory managed
- Cost allocation
Examples:
Boxes, bottles, labels, wrapping materials, pallets
📝 UNBW – Non-valuated – Consumables
Materials consumed immediately upon receipt without inventory valuation.
Key Characteristics:
- No stock valuation
- Direct expense
- Immediate consumption
- Cost center charged
Examples:
Office supplies, cleaning materials, small tools, consumables
🔧 KMAT – Configurable – Variant Products
Products with multiple configuration options that are customized based on customer requirements.
Key Characteristics:
- Variant configuration
- Customer-specific
- Dynamic BOM
- Sales configuration
Examples:
Custom computers, configured machinery, made-to-order products
⚡ NLAG – Non-stock – Direct Procurement
Materials procured for direct use without maintaining inventory stock.
Key Characteristics:
- No inventory management
- Direct delivery
- Project-specific
- One-time procurement
Examples:
Project materials, special equipment, one-off purchases
You may also like
Key Skills Employers Look for in SAP Functional Consultants
Types of Projects in SAP
