Material Master SD

Comprehensive Overview of SAP Best Practices for Material Master

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1. Definition:

The Material Master in SAP is the central repository of information about the materials (products, components, and raw materials) an organization uses. It contains all the information a company needs to manage its materials effectively in areas like procurement, production, inventory management, sales, and accounting. The Material Master is a key element of the SAP ERP system and is shared across different modules such as MM (Materials Management), SD (Sales and Distribution), and PP (Production Planning).

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2. Purpose:

The primary purpose of the Material Master is to store and manage data related to materials that a company produces, purchases, stores, and sells. This data is used to streamline processes across various business functions, ensuring consistency and accuracy in operations like purchasing, inventory management, production, and sales.

• Consistency: Material Master ensures that material data is consistent across the organization.
• Data Integration: It integrates with various SAP modules, facilitating seamless data exchange.
• Efficiency: By having a central repository, businesses can streamline their processes, reduce errors, and save time.

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3. Process Flow:

The process flow for Material Master data involves several steps, which ensure that material information is created, maintained, and utilized efficiently across the organization:

1. Material Master Creation:
   • Initiate the process by defining the material type (e.g., finished product, raw material).
   • Assign the material to a specific industry sector (e.g., retail, manufacturing).
   • Enter the basic data like material description, base unit of measure, and division.
2. Data Extension:
   • Extend the material master data to different views like Sales: Sales Org 1, Purchasing, Accounting, MRP (Material Requirements Planning), and Work Scheduling.
   • Each view pertains to a specific module or business process and contains relevant fields like purchasing group, MRP type, valuation class, etc.
3. Material Master Update:
   • Update material master records as needed, based on changes in business processes, material characteristics, or organizational structure.
   • Changes may involve updating prices, changing suppliers, or adjusting inventory levels.
4. Material Master Use:
   • Utilize material master data in various processes, such as creating purchase orders, sales orders, production orders, and inventory movements.
   • Integrated modules use the data for planning, costing, and reporting.
5. Material Master Deactivation/Archiving:
   • When a material is no longer in use, it can be flagged for deletion or archived.
   • Archiving helps in maintaining system performance while ensuring that historical data is retained.

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4. Tables:

Key SAP tables involved in managing Material Master data include:

• MARA (General Material Data): Stores basic data like material type, material group, and base unit of measure.
• MARC (Plant Data for Material): Stores material data specific to each plant, including MRP type, procurement type, and production scheduling profile.
• MVKE (Sales Data for Material): Contains sales-specific data such as sales organization, distribution channel, and tax classification.
• MARD (Storage Location Data for Material): Manages stock data for each storage location, including quantities and batch management.
• MAKT (Material Descriptions): Contains material descriptions in different languages.
• MBEW (Material Valuation): Stores valuation data, including valuation class and price control indicators.

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5. Configuration:

Configuration of the Material Master involves setting up various elements to ensure that the system accurately reflects the organization’s processes. Key configuration tasks include:

1. Defining Material Types:
   • Material types categorize materials and control various aspects, such as number range assignments, allowed views, and field selection.
   • Common material types include
     • ROH (Raw Material)
     • FERT (Finished Goods)
     • HALB (Semi-finished Goods).
2. Setting Up Field Selection Groups:
   • Field selection controls which fields are mandatory, optional, or hidden during material master maintenance.
   • Different field selection groups can be assigned to different views, material types, or industry sectors.
3. Configuring Number Ranges:
   • Number ranges ensure that material numbers are unique within a material type.
   • Internal and external number ranges can be configured based on business requirements.
4. Maintaining Industry Sectors:
   • Industry sectors determine the field selection and screens used when creating or maintaining materials.
   • Each material is assigned to an industry sector (e.g., Chemical, Retail) that reflects its primary use or business context.
5. Configuring Default Values:
   • Default values can be set for certain fields (e.g., base unit of measure, valuation class) to streamline data entry and ensure consistency.
   • These defaults can vary by material type or plant.

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Material Master Configuration Step by Step

Material Types:

FERT – Finished Product

HALB – Semifinished Product

HAWA – Trading Goods

ROH – Raw materials

NLAG – Non-Stock Material

DIEN – Service

SERV – Service Product

VERP – Packaging

LEIH – Returnable packaging

 

Configuration:

T Code – OMS2

• Create Material Type
• Quantity update and Value Update

Logistics – General -> Material Master -> Basic Settings -> Material Types -> Define Attributes of Material Types

 

Step-by-Step Guide to Create Number Ranges in SAP (T-Code: MMNR)

 

Number Range Types: 2

• Internal
• External

Length of the number Ranges for Material:

• ECC – 18
• S/4HANA – 40

Price Control Indicators:

• S – Standard Price
• V – Moving Avg Price

1. Access Transaction Code
   Open SAP and enter the transaction code MMNR to access the number range settings for material types.
2. Change Groups
   Click the Change Groups button to create, assign, or modify number ranges for different material types.
   The material types are referred to as “The Elements” on this screen.
3. Create a Group
   To create a new number range, first, create a group by entering a name in the Group Name field.
4. Define Number Range Code
   In the field labeled No, enter a two-character code to identify the number range.
5. Set Number Range Limits
   • In the From No. field, enter the first number in the range for internal intervals (or the lower limit for external intervals).
   • In the To Number field, enter the last number in the range for internal intervals (or the upper limit for external intervals).
6. Set Internal/External Indicator
   The Ext flag determines whether the number range is internal or external:
   • Internal: SAP assigns the numbers automatically within the defined range.
   • External: You must manually assign numbers, which should fall within the defined range.
7. Create Internal Number Range
   For internal number ranges, SAP automatically issues numbers between the defined From and To values. The current number level is logged in the system.
8. Create External Number Range
   For external number ranges, you will manually enter numbers between the From and To values when creating new materials.
9. Add Number Range
   To add a new number range, click the Insert Line button.
10. Assign Material Type to Group

• Select the desired material type from the list of Non-Assignment Elements.
• Click the Assign Element to Group button to assign the material type to the group.

11. Verify Assignment
    After assigning, check the appropriate group to ensure the material type has been successfully added.
12. Delete Number Range Group
    If you wish to delete a group:

• Click on the group to open it.
• Delete all number range intervals.
  Once the last interval is deleted, the group is automatically removed.

1. 13. Check Non-Assigned Elements
       Once deletion is complete, verify the group is listed under Non-assigned Elements.

 

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6. Integration:

The Material Master integrates with several other SAP modules to ensure seamless business operations:

• MM (Materials Management): Uses material master data for procurement processes, inventory management, and material valuation.
• SD (Sales and Distribution): Utilizes material master data in sales orders, pricing, and billing.
• PP (Production Planning): Relies on material master data for production planning, MRP, and work scheduling.
• QM (Quality Management): Incorporates material master data for quality inspections and control processes.
• FI (Financial Accounting) and CO (Controlling): Uses material valuation data for financial reporting and cost control.

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7. Testing:

Testing the Material Master involves creating and updating materials, checking data consistency across different views and modules, and ensuring that business processes function correctly. Key testing scenarios include:

1. Creation of Material Master Records:
   • Create material master records for different material types and industry sectors.
   • Ensure that the correct views are available and mandatory fields are correctly enforced.
2. Data Consistency Checks:
   • Verify that material data is consistent across different views and tables (e.g., MARA, MARC, MVKE).
   • Test scenarios where data is extended or changed to ensure that updates are correctly reflected.
3. Integration Testing:
   • Test the integration of the material master with other SAP modules by creating transactions like purchase orders, sales orders, and production orders.
   • Ensure that material data flows correctly through the system and that related processes work as expected.
4. Negative Testing:
   • Attempt to create or update materials with incorrect or missing data to ensure that the system correctly enforces validation rules.
5. End-to-End Process Testing:
   • Perform end-to-end testing of business processes, such as procurement to payment or order to cash, using material master data.
   • Ensure that material master data supports the entire process and does not cause any issues.

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8. Examples and Test Data:

• Example 1: Finished Goods Material Creation (FERT)
  • Material Number: FERT1234
  • Material Type: FERT (Finished Product)
  • Industry Sector: Retail
  • Base Unit of Measure: EA (Each)
  • Sales Org 1 View:
    • Sales Organization: 1000
    • Distribution Channel: 10
    • Material Group: 01
  • MRP View:
    • MRP Type: PD (Planning with MRP)
    • Lot Size: EX (Lot-for-Lot Order Quantity)
  • Accounting View:
    • Valuation Class: 7920
    • Price Control: S (Standard Price)
• Example 2: Raw Material Creation (ROH)
  • Material Number: ROH5678
  • Material Type: ROH (Raw Material)
  • Industry Sector: Manufacturing
  • Base Unit of Measure: KG (Kilogram)
  • Purchasing View:
    • Purchasing Group: 001
    • Order Unit: KG
  • MRP View:
    • MRP Type: VB (Manual Reorder Point Planning)
    • Lot Size: FX (Fixed Lot Size)
  • Accounting View:
    • Valuation Class: 3000
    • Price Control: V (Moving Average Price)