MATERIAL MASTER

Product or material details are going to be maintain as a master data like description, dimensions,
various material groups, cost price, sales price, accounting data, purchasing data, sales data etc.
From procuring one material as a raw material fill to make it as a finished product and its sales and
distribution, one material may be processed by various departments in the business. So that relevant
data has to be maintain by the respective business users. Accordingly material
master has been structured in such a way that every material master is made up with certain structure
like..
a) Initial Screen
b) Data Screens/Main views/User Departments/Main Screens.
c) Additional Screens.
Respective views are going to be configured by respective functional consultants & respective view are
going to be maintain by respective business users.
Material master is one of the integration area of all modules.
Material Master Tables:-
MARA:-General material data.
MATNR:-Material Number.
MARD:-Storage location data for material.
MARC:-Plant data for material.
MVKC:-Sales data for material.
Functional Accounting Global Settings:-
Path:-IMG Financial Accounting Financial Accounting Global Settings Fiscal Year
Maintain Financial Year Variant:-
Every business fallows certain time period ex:-12mnths as a one financial year which is nothing but a one
fiscal year for which business wants to know it performance & growth by generating certain financial reports
like P/L accounts, balance sheets.
For every financial year maximum 4 months as a special periods are going to allowed after financial year
so as to post back date posting for certain financial adjustments(Adjustment Entries)
before closing books of accounts & generating financial reports for specific financial year.
In SAP different types of fiscal year variants are defined
Ex: - a) K4-calender dependent-JAN to DEC.
b)V3-Year dependent-April to March.
Assign company Code to a Fiscal Year Variant:-






Define, Open, & Assign posting period variants to company code:-
In SAP different type of accounts has been grouped into
a) G/L Account (S)
b) Customer Account (D)
c) Vendor Account (K)
d) Assets Account (A)
e) Contract Account (V)




Company Code Fiscal Year Variant

REIN

K4




All these type of business transaction are going to be posted for a specific posting period
Ex:-Every one month in one financial year so that every current month has to be closed & new one
has to be open.
In this work step current financial year with current posting periods are going to be open & assign to
respective company code under different account types.
There are called FI posting periods in real environments.

Path:-IMG Financial A/C Financial Accounting Global Settings Document Posting periods

Define Variants For Open Posting Period:- Ex:-1000
Open & Close Posting Periods:-
Make sure that for our fiscal year variants 1000 for all accounting types ex:- +, A, D, K, M, S, V
Current fiscal year ex:-2013 has been maintain allow with 4 special periods.
Assign variant to company code:-

Company Code Posting Period Variant
REIN

1000

Define & Assign Financial Documents to Company Code:-
All financial related transaction are going to be captured into respective financial document.
In this work step various financial documents are going to be define & assign to company code.

Path:-IMG Financial Accounting Financial Accounting Global Settings Document Document Header

Define Document Types:-
Choose Financial Document Type Ex:-RV (Billing Document Transfer)
Select it, Go to details Icon
Click on no. range information Icon.
Specify our Company Code: REIN
Click on Change Interval Icon
Click on Insert Interval Icon
Specify no. range Key A1
Specify Current Fiscal Year 2013
Specify from no. to no. & Current no. SAVE it & GO Back
Assign no. range key A1 in properties section SAVE it & Go Back.
Carry out same process for other financial year document like
Document:-













TYPE DESCRIPTION
WA GOOD ISSUE

WE

GOOD RECEPIT

WI

INVENTORY DOCUMENT

WL

GOODS ISSUE/DELIVERY



Assign Tax Calculation Procedure To Company Code:-

Path:-IMG Financial Account Financial Accounting Global Settings Tax on Sales & Purchase s Basic Settings

Assign Country to Calculation Procedure:-





General Ledger Accounting Configuration Settings:-
a) Define & assign chart of accounts to company code:-
List of G/L accounts is called chart of accounts. It is an index for all G/L accounts that are going to be used
by the business to post various financial transactions.
One chart of accounts can be assign to no. of company codes if they maintain same currency.

Path:-IMG Financial account G/L Account G/L Accounts Master Data Preparations
a) Edit chart of A/C List-----Ex:-INT International Chart of Accounts.
b) Assign Company Code to chart of Accounts.







Copy standard G/L accounts from company code 1000 to our company code.

Path:-IMG Financial account G/L Accounting G/L Accounts Master Data G/L Accounts Create &
Processing Alternative Methods Copy G/L Accounts Copy Company Code
Specific our company code--- REIN
Specify copy from company code----1000
Then select test run & execute

MM Configuration Settings:-
Assign Company Codes To Material Management Functions:-
As every material goods movement is going to be tracked & valuated for a specific time period
EX:-every month is going to be defined as a posting period under specific fiscal year in this work step current
Posting period is going to be opened (according to fiscal year variant) as well as back date posting for inventory
may also allowed.
Note:-In the real environment concern person in the business has to close current month posting period before
system dates gets changed to new posting period i.e., at least midpoint at 12 oclock of 30
th
or 31
st
of the month
by using T Code[MMPY].

Path:-Logistics-GeneralMaterial MasterBasic Settings Maintain Company Code
For Material Management [OMSY].





Country Tax Procedure
IN TAXSG
Company Code Chart of Account

REIN


INT












Define Various Material Types/ uality & Value Updation Under Valuation Area [OMS2]:-
According to certain control parameters material are going to be group into different material
type ex:-Raw material, semi-finished products, finish products etc.
Depending upon the material type every goods movements of that material may be
relevant for uantity updation as well as value updation so that in this work step different, material
types are going to be defined & those may be allowed for uantity & value updations under specific
valuation area (PLANT).

Path:-IMGLogistic-GeneralMaterial Master Basic Settings Material types Define attribute of
Material types.

Ex: - Material Type Description
ROH Raw Material
FERT Finished Product
HALB Semi-Finished Product
VERP Packaging
HAWA Trading Goods
LEIH Returnable Packaging
NLAG Non-stock Material
PIPE Pipeline Material
DEIN Service
KMAT Configurable Material

Select Standared material type -------ILk1
Click on uantity /Value updating
Under dialog structure choose our valuation area-------rep| p|ant
Material Type-------ILk1
Check uantity updating (YES) & Value updating (YES)
Save it..

Maintain Plant Parameters For Inventory Management:-
Path:-IMGMaterial Management Inventory Management & Physical Inventory Plant parameters.

Choose Standard Plant Ex:-1000
Select it, Copy it & rename it.
With our plant kLL
This work step is mandatory to carry out all inventory management functions under one plant.






Company Code Current Fiscal Year Current Posting
period
ABP

REIN

2013





Assign Valuation Grouping Code to Valuation area:-
Path:-IMGMaterial ManagementValuation & Account Assignment Account Determination Without
Wi ard Group Together Valuation area.






This work step is one of the pre re uisite to post relevant stocks accounts for relevant goods movements.

Create Material Master:-
Material master can be created & maintain by all logistic department.
Path:-LogisticS&DMaster Data Products Material Other Material MM01/Create.
a Specify Material No.:- Internal or External depending upon the material type.
b Industry Sector:- Ex:-M Mec an|ca| Lng|neers
It is client specific depending upon the industry sector proposes relevant tab pages & views in the
material master by default & Faults.
Industry sector can be defined (by MM) one material master industry sectors cannot be changed in
later times.
c Specify Material Type:- Ex:-ILk1
Assigning material master to material type. Depending on the material type system proposes
a) No. Ranges
b) Item Category Group.
c)Procurement Type(Internal/External or Both)
d) Price control (stand/moving average price) etc by default in one material master.
One material masters material type can be changed in later times.
Ex:-From HALB To FERT.
Click on select views
Select views
Basic data 1
Sales: Sales org data 1
Sales: Sales org data 2
Sales: General/plant data
General plant data/storage 1
General plant data/storage 2
Accounting
Click on Organi ational levels
& Maintain organi ation levels:

Plant - REPL

Sal. Location - SL1

Sal.Org - RESO

Dist. Channel - D1

Click on Continue & Maintain Data in




Valuation Area Valuation Grouping Code

REPL


0001


1. Basic data:-
A) Specify material description- Renault-Duster
Only 40 Charecters.
B) Specify Base Unit Of Measure:-
In which stock is going to be maintain (SKU) & material stock valuation takes place. One material can
have alternative unit of measures.

BASE UNIT OF MEASURE



Alternative Unit Of Measure

Sales Unit Of WareHouse Unit

Measure(SD) Order Unit Unit Of Measure (WH)

(MM-PO) (MM-IM)

For every alternative unit of measure conversion factors should be maintain

Ex:- 1BOX 10Each(EA)

Oum Bsum
Respective alternative unit of measure will be respective application.
If Alternative unit of measure are not maintain then system automatically propose base unit of
measure as a alternative unit of measure.
C) Material Group: - Ex: - 02001 Car.
Grouping of the material based on certain characteristic attributes that can be used for statistics
information purpose.
D) Assign Division: - Ex:-S
E) General Item Category Group: - Ex:- kM Standard
Grouping of the material based on certain characteristic attributes as a general item
category group & item category group(Sales: Sales Org data 2 view) that is going to be used to classified as standard item,
free of change item or service item etc.
F) Specify Gross Weight/Net weight: - Ex:-

2) Sales: Sales Org. data 1:-
Specific sales unit of measure as a alternative unit of measure Ex:-
Maintain Conversion Factors:-That will be proposed into all sales & distribution
documents. Sales unit not variable (Variable sales unit of measure is not allowed). If it is
activated material master alternative unit of measure & sales document line item, sales
unit of measure differs than system doesnt allow the sales.
Unit Of Measure Group:-In IMG all allow alternative sales unit of measure are going to be grouped
under one group & assign to one material master to sales the material in those alternative unit of
measure.









X-Distribution Chain Status:- Ex:-12 sales not allowed.
Valid Form:-
The combination of sales organi ation + Distribution Channel is called distribution chain.

Path:-IMGLogistic-General Material Master Settings For Key FieldsData Relevant To S & DDefine Sales Statuses.
Go to new Entries & define sales statuses
Ex:-12
Distribution Chain Specific Status:- Ex:-12
Valid Form:-
Specify specific reason to a particular distribution chain, So that the distribution chain cannot sale
that material form specific valid date.
Delivery Plant:-
Assign relavent delivery plant to material master that is going to be used by the system to determine one
delivery plant for particular line item according to plant determination strategy.
Cash Discount:-
Check this control as a pre re uisite to grand cash discounts for the material condition type SKTO uses
this control in pricing procedure.
Click on conditions icon-maintain sales price.
Tax Classification:-
Specify tax classification no. e full tax that is going to be used by the system as one of the factor to
determine output tax.
Minimum Order uantity:-
Specify minimum order uantity that should be placed for the material other system may throw
warning or error message.
Minimum Delivery uantity:-
L that should be delivered otherwise system throw warning or error message.
Delivery Unit:-
Specify alternative delivery unit of measure with re uired uantity. Ex:- Boxes, So
that delivery can be created only in its increments. I.e., box,10 box,20 box,2 box etc..
Rounding Profile:-
In IMG rounding profiles can be define & assign to material so as to optimi e order uantities.
In SAP there are 3 types of rounding profile can be created that are

For IS a) static rounding profile

Retail System b) Dynamic rounding profile
c) uantity -Addition/Subtraction.
In Static rounding profile order uantities are always rounded up:
It involves 2 aspects that are:-
a) Thresh Hold Value
b) Round Up Value.
Thresh hold value specifies the order uantities from where system has be round up.
Round Up value specifies upto which uantity system has to round up.

Path:-IMG Logistic-General Maintain Rounding Profile uantity Optimi ing & Allowed Logistic Unit of Measure.
Specify rounding profile key--- RP4
Specify plant ---REPL
Click on Static








Specify description & Maintain.







Click On simulation.
3) Sales: sales Org.data2:-
a) Material Statistical Group:-specify statistical relevance of the material as one of the prerequisite to
update one material stastical data into SIS
b) Material pricing group:- Ex:-01(standard parts) grouping of the material based certain characteristic
groups into different material price group that is going to be used in pricing Ex:- to grant discounts.

Condition type KO2G uses this field in the pricing procedure.
c) Volume rebate group:- Ex:-01 maximum rebate grouping of the materials into different volume rebate
groups as one of the prerequisite to grant rebate based on certain sales volume of the material.
Condition type BOO2 uses the value of this field in rebate pricing.
d) Account Assignment group:- Ex:-01-trading goods
02-services
03-finished goods
Grouping of materials sales revenues, sales deductions, freight revenues, & tax revenues etc.., based on
certain criteria as one of the prerequisite to post the value of those revenues & deductions in respective G/L
accounts as a part of SD & FI integration.
e) Item category group:- Ex:-NORM standard item grouping of the materials based on certain
characteristic item attributes as a different item category groups that is going to be used by the system as
one of the factor to determines one sales document line item as a Ex:-
a) TAN- Standard item
b) TANN- free to change
c) TAD- service item
d) TATX- Text item
e) TAW- value item
f) TAB- India.p.o.item
g) TAS- third party item etc..,
So, as to control the sales document line item for certain factors like pricing, billing, schedule lines etc..,
Above is default Item Category of line item Ex:-TAN
Depending on the material types system proposed item category group in the material master..
Ex:-Item Category Group..
0001---Make to Order
0002---Configuration
BANC---Indirect Purchase Order
BANS---Third Party Item
DIEN---Service With Delivery
ERLA---Structure/Material Above BOM

LUMF---Structure/Material Below ITEMS
LEAS---Leasing




Thresh Value Rounding Value






VERP---Packaging
LEIH---Returnable Packaging
LEIS---Service Or Delivery
NLAG---Non-Stock Material
VCIT---Value Contract Item etc..
4) Sales: (General/plant):-
a) (Checking group of) Availability check: - The value of this field determines weather system has to carry out
availability check for one material if it is placed in one sales document or delivery document to confirm the
quantities on the requested delivery date.
Availability check If it has to carry out availability check it also specifies what kind of requirement it
has generate that are individual requirements or collective requirements through MRP-(Material
requirement planning) MD04
If it is individual requirements immediately transfers sales order or delivery or customer specific
individual requirement to MRP as soon as sales order has been saved whereas in collective
requirements system collectively transfers per day or per week.
Together with Checking rule this checking group of availability check controls availability checks
process that means availability checks is going to be controlled by checking groups of availability check +
checking rule.
Checking rule specifies the scope of the availability check that means during availability check system
calculates (ATP-available to promise) quantities by following a formula called.

ATP (available-to promise) = WH stock + planned receipts - planned issues.
That means through checking rule only system can understand what kind of MRP elements Ex:-
[PR, PO, Planned Order, Production Order, sales order, deliveries, different type of stock etc.] whether
system have to include or exclude as a planned receipts & planned issues in ATP quantity calculation.
Checking Group of availability check is automatically determined in the material master depending
upon the material type & delivery plant.
Batch Management:-
Check this control as a pre-requisite to process one material in batches.
Transportation Group:-
Grouping of the materials that are required similar requirements for transportation.

Ex:- 0001----paleHes
0002---In Liquid Form
0003---Container
The value of this field use by the system as one of the factor to determine ROUTE for particular line
item in one sales documents.
Loading Group:-
Ex:- 0001---Crane
0002---ForkLIft
0003---Mannual
Grouping of the Materials that are required similar requirements for loading
The value of this field used by the system as one of the factor to determine shipping point.
Plant Data/Storage/And Plant Data/Storage 2:-
Valuation Class: - Assign valuation EX:- 920---Finished products as one of the pre-requisite to post stock
account for relevant goods movement as a part of MM & FICO integration.
Price Controls:-
Ex:- S - Standard Price
V Moving Average Price.








Depending upon Material type system proposes this price controls.
It represents Cost of the material & that is production cost, or procurement cost.

For internally procured materials standard price & for external procured materials moving average price is
going to be maintained or used.
So as to evaluate the stock this standard price or moving average price is going to be used.
When production order or process order is going to be evaluated after releasing standered cost
estimate run in co module, System automatically updates the standard price.
When PGI system uses the standered price to calculate COGS (Cost Of Goods Sold) account.
In SAP-SD te standered price or moving average price is going to be used as a cost (Condition VPRS) to
calculate profit margin of the line item material.
Moving average price is going to be used to calculate procurement cost if one material is being
procured from number of vendors.
Maintain standered price---Ex:-1000
Save it & Note down material No