What is a Material Type?
A material type in SAP is a classification that defines how materials are managed within the system. It specifies how materials behave in terms of procurement, inventory, and financial tracking.
Why is a Material Type Used?
Material types ensure that different kinds of materials—like raw materials, finished goods, or services—are handled appropriately by the system. Each material type dictates the processes SAP uses to store, account for, and track materials.
Purpose of a Material Type:
The main purpose is to:
- Control how materials are processed (e.g., stocked, ordered, consumed).
- Determine the relevant data and fields (like inventory, purchasing, or accounting views).
- Help businesses manage different items efficiently according to their specific needs.
1. ABF (Waste)
- Explanation: Materials classified as waste or by-products, typically generated during the production process. They hold no significant value and are either disposed of or recycled.
- Example: Scrap metal from a car manufacturing plant or defective items.
2. CBAU (Compatible Unit)
- Explanation: Represents materials or equipment used in industries like utilities, which can be easily integrated or replaced in the system.
- Example: A compatible unit in an electrical distribution system, such as a transformer that fits a standardized slot.
3. CH00 (CH Contract Handling)
- Explanation: Refers to materials handled under a contract for bulk or continuous supply agreements.
- Example: Bulk petroleum delivered under a long-term supply contract.
4. CONT (Kanban Container)
- Explanation: Refers to materials held in containers used in Kanban inventory management systems. These containers trigger replenishment when emptied.
- Example: Reusable plastic bins used to store small components on a production line.
5. COUP (Coupons)
- Explanation: Represents discount coupons used for marketing campaigns and sales promotions. These can be tracked in the system for issuance and redemption.
- Example: Discount vouchers for a retail store offering 20% off on selected products.
6. DIEN (Service)
- Explanation: Used to represent non-tangible services that are provided by external or internal suppliers. Services do not require physical inventory tracking.
- Example: IT consulting services or equipment maintenance.
7. EPA (Equipment Package)
- Explanation: Represents a package of equipment, often used for large projects where multiple items are bundled together for ease of procurement and installation.
- Example: An IT infrastructure package that includes servers, network equipment, and software.
8. ERSA (Spare Parts)
- Explanation: Represents spare parts used for the maintenance and repair of machinery or equipment. These are crucial for keeping operations running smoothly.
- Example: Replacement engine components for a vehicle.
9. FERT (Finished Product)
- Explanation: Refers to finished products that are ready to be sold to customers. These are the final goods resulting from the production process.
- Example: A fully assembled car or a completed smartphone.
10. FGTR (Beverages)
- Explanation: Specifically used for managing beverages, typically in industries related to food and drink distribution.
- Example: Bottled beverages like soda or juice.
11. FHMI (Production Resource/Tool)
- Explanation: Represents tools and other resources used in production but not consumed in the process. These are necessary to carry out production activities.
- Example: Special cutting tools used in a manufacturing plant.
12. FOOD (Foods, excluding perishables)
- Explanation: Refers to food products that are non-perishable and have a longer shelf life. These products do not require special handling for short-term use.
- Example: Packaged snacks or canned goods.
13. FRIP (Perishables)
- Explanation: Used for perishable food items with a limited shelf life. These require special storage conditions and faster turnover in inventory.
- Example: Fresh vegetables or dairy products.
14. HALB (Semifinished Product)
- Explanation: Represents semi-finished products that are partially processed and will undergo further production steps before becoming a finished product.
- Example: A car chassis that will be assembled into a finished vehicle.
15. HAWA (Trading Goods)
- Explanation: Refers to goods that are purchased and resold without any further processing or modification. These items are bought for resale, not for use in production.
- Example: Office supplies purchased and resold by a retailer.
16. HERS (Manufacturer Part)
- Explanation: Used for materials or parts that are specific to a certain manufacturer. These parts are often standardized for specific machinery or equipment.
- Example: A proprietary hard drive made by a specific manufacturer for use in their computers.
17. HIBE (Operating Supplies)
- Explanation: Refers to consumable materials used internally in operations but not directly part of the production process. They are expended during use.
- Example: Lubricants for machinery or cleaning agents for factory floors.
18. IBAU (Maintenance Assemblies)
- Explanation: Represents assemblies of parts used in maintenance activities, often grouped for easy handling and procurement.
- Example: A maintenance kit for servicing a vehicle engine.
19. INTR (Intra Materials)
- Explanation: Refers to materials used within the organization for internal purposes but not sold or consumed by customers.
- Example: Materials used for internal research and development or employee training.
20. KMAT (Configurable Materials)
- Explanation: Represents materials that can be customized or configured based on customer requirements. These items have variable specifications.
- Example: A customizable car where the customer can choose engine size, color, and interior features.
21. LEER (Empties)
- Explanation: Used for empty packaging or containers, typically reusable, that are returned after use.
- Example: Empty glass bottles returned for refilling by a beverage company.
22. LEIH (Returnable Packaging)
- Explanation: Represents returnable packaging materials used for transporting goods, which are intended to be returned to the supplier.
- Example: Wooden crates used to transport fragile goods and returned after delivery.
23. LGUT (Empties for Retail)
- Explanation: Specifically for empty packaging in the retail environment, often related to customer returns or reusable packaging.
- Example: Plastic containers used by customers for returning items to a retail store.
24. MODE (Apparel, Seasonal)
- Explanation: Refers to seasonal apparel or fashion items, typically managed based on trends and seasons.
- Example: Winter jackets or summer dresses sold in specific seasons.
25. MPO (Material Planning Object)
- Explanation: Represents a material object used for planning purposes, often for forecasting demand or production.
- Example: A planning object representing expected material demand for the next quarter.
26. NLAG (Non-Stock Materials)
- Explanation: Refers to materials that are not managed as inventory but are used immediately upon receipt.
- Example: Stationery or office supplies consumed directly.
27. NOF1 (Nonfoods)
- Explanation: Used for non-food items, often consumer goods that are not related to food or beverages.
- Example: Cleaning products or household items.
28. PIPE (Pipeline Materials)
- Explanation: Represents materials that are delivered via continuous supply pipelines, such as gas or liquid materials.
- Example: Natural gas or water supplied through pipelines.
29. PLAN (Trading Goods, Planned)
- Explanation: Refers to trading goods that are planned for future procurement or resale, based on demand forecasts.
- Example: Forecasted stock of smartphones for an upcoming product launch.
30. PROC (Process Materials)
- Explanation: Refers to materials used in specific processes during production. These are essential for carrying out certain operations.
- Example: Chemical agents used in the production of plastics.
31. PROD (Product Groups)
- Explanation: Represents groups of related products that are managed together, often for organizational or reporting purposes.
- Example: A product group of electronic devices like laptops and tablets.
32. ROH (Raw Materials)
- Explanation: Refers to raw materials that are used in production processes but are not sold directly.
- Example: Steel or wood used in manufacturing.
33. UNBW (Non-Valuated Materials)
- Explanation: Materials that are managed in the system but do not carry a financial value, often used for internal purposes like R&D.
- Example: Samples used for product testing.
34. VERP (Packaging)
- Explanation: Refers to packaging materials used to pack and protect products during shipping or storage.
- Example: Cardboard boxes or bubble wrap.
35. VKHM (Additionals)
- Explanation: Represents additional items or services offered along with a main product, typically as an add-on.
- Example: Extended warranty or installation services offered with a product purchase.
36. VOLL (Full Products)
- Explanation: Refers to fully completed products ready for sale or delivery.
- Example: A fully assembled laptop ready for shipping to a customer.
37. WERB (Product Catalogs)
- Explanation: Represents printed or digital catalogs used to showcase and promote products to customers.
- Example: A printed product catalog sent to potential customers with the latest offerings.
38. WERT (Value-Only Materials)
- Explanation: Refers to materials that are managed based on their value rather than physical quantity, often used for high-value items.
- Example: Precious metals like gold or platinum.
39. WETT (Competitor Products)
- Explanation: Represents products from competitors that are tracked for benchmarking, market analysis, or competitive intelligence purposes. These products are not sold or used internally but are analyzed to understand market trends or competitor strategies.
- Example: A smartphone model from a competing brand used for analysis and comparison against your own product line.