SAP Recommended Process: Material Master Creation

SAP Recommended Process: Material Master Creation

SAP Recommended Process: Material Master Creation For all materials to be maintained, a material master record is to be created. A mate... 4:22 AM

SAP Recommended Process: Material Master Creation

For all materials to be maintained, a material master record is to be created. A material number (system generated) will uniquely identify this record.

The material number comprises 18 digits and can be assigned externally or internally by the system. For
MyCompany , 9-digit internal number ranges will be used according to the material types. Refer to the material type table for the number range intervals.

The material type groups materials with similar characteristics and treatment. It also determines whether the material will be valued at a standard price or a moving average price. Sales relevant material is to be valuated at the standard price. This includes Semi-Finished Materials and Finished Materials. The materials that are to be valuated at moving average price are Raw Materials, Packaging, Machine and Spares, and Trading Materials. The materials that are to be charged off at the time of goods receipt are Chemicals, Operational Supplies, Promotional Materials and Non-valuated items. The inventory of Promotional Materials, Chemicals and Non-valuated items will be maintained on quantity basis. Lastly, Toll Materials will be valuated at zero value and their inventory will be maintained only on quantity basis.

The following material types have been determined for MyCompany:

SAP Material Type	Material Type Description	Number Range Interval	Price Control
Raw Material (ROH)	Raw materials are always procured externally and then processed. A material master record of this type contains purchasing data, but not production or sales data since they cannot be sold.	100000000 – 199999999	Moving Average Price (V)
Packaging Material (VERP)	Packaging materials are procured externally and used in the production process. Its material master record will contain purchasing data and no data for work scheduling or sales will be maintained.	200000000 – 299999999	Moving Average Price (V)
Semi- Finished (HALB)	Semi finished products can be procured externally and processed in-house. The company then processes them. A material master record of this material type can contain both purchasing and work scheduling data.	300000000 – 399999999	Standard Price (S)
Finished products (FERT)	Finished products are produced in-house. Since they cannot be ordered by Purchasing. A material master record of this material type does not contain purchasing data.	400000000 – 449999999	Standard Price (S)
Physician Samples (ZFRT)	Physician Samples are produced in-house. Since they cannot be ordered by Purchasing. A material master record of this material type does not contain purchasing data.	450000000 – 499999999	Standard Price (S)
Trading goods (HAWA)	Trading goods are always procured externally and then sold. A material master record of this material type contains purchasing data and sales data.	500000000 – 549999999	Moving Average Price (V)
Imported Physician Samples (ZAWA)	Imported Physician Trading goods are always procured externally and then sold. A material master record of this material type contains purchasing data and sales data.	550000000 – 599999999	Moving Average Price (V)
Machine & Spares  (ERSA)	Spare parts are used to replace defective parts. They may be kept in stock. A material master record of this material type can contain purchasing data, but not sales data.	600000000 – 699999999	Moving Average Price (V)
Promotional Materials (ZLAG)	Promotional materials are held in stock but they are charged immediately. The material master record contains the purchasing view.	700000000 – 749999999	Non-Valuated
Raw Toll Materials (ZRLL)	Raw Toll materials are materials received from customers for sales order processing. They are to be managed on a quantity basis only hence are non-valuated items.	750000000 – 759999999	Non-Valuated
Packaging Toll Materials (ZPLL)	Packaging Toll materials are materials received from customers for sales order processing. They are to be managed on a quantity basis only hence are non-valuated items.	760000000 – 769999999	Non-Valuated
Semi-Finished Toll Materials (ZSLL)	Semi-Finished Toll materials are materials received from customers for sales order processing. They are to be managed Standard Price (S) basis for proper inventory management and product costing.	770000000 – 779999999	Standard Price (S)
Finished Toll Materials (ZFLL)	Finished Toll materials are materials produced for customers for sales order processing. They are to be managed Standard Price (S) basis for proper inventory management and product costing.	780000000 – 789999999	Standard Price (S)
Operating Supplies (UNBW)	Operating Supplies materials are not held in stock because they are consumed immediately. The material master record contains the purchasing view.	800000000 – 849999999	Non-Stock
Non-Valuated Materials (NLAG)	Non-Valuated are to be managed on a quantity basis only as they are charged off at the time of goods receipt hence are non-valuated items.	850000000 – 899999999	Non-Valuated
Chemicals (ZCHM)	Chemicals are not held in stock because they are consumed immediately. The material master record contains the purchasing view.	900000000 – 949999999	Non-Stock

A material master record is to be created or extended when:

·         No material master record exists for a particular material.

·         Material master record exists for a particular material, but the master data for your user department is missing.

·         Material master record exists for a particular material but has not been created for a certain organizational level (plant, storage location).

The material master record will also contain the old material code as a reference, two more text fields will further be provided for reference. When a user needs a particular material for purchasing, production or sales purposes, he/she can search for the material number in the SAP database, using the old material number or the material description.

If the material is not available and is a stock item he/she will generate a request to the department/person responsible for master data creation to create the material record in the system.

The request for material creation, extension, change and deletion will be made on a specification sheet created in MyCompany specified format outside the system. The concerned department will approve the material creation request. All production relevant materials are to be approved by Planning Department. (The Decision will be agreed by all stack holders.)