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SAP Material Master Creation Guide

SAP Material Master Creation Guide

Interactive guide to understand material master creation screens and important fields

Material Master Overview

Material Master is a central repository in SAP that contains all materials that a company procures, produces, or sells. It includes various views maintained by different departments with specific data relevant to their functions.

S/4HANA Material Master

Material Creation Workflow

Basic Data
General Info
Purchasing
Procurement Info
MRP
Planning
Storage
Inventory
Accounting
Financial Info
Key Transaction Codes
  • MM01 Create Material Master
  • MM02 Change Material Master
  • MM03 Display Material Master
  • MMSC Extend Material to Storage Location
Basic Data 1 R&D Team
Material
Material number follows company-specific numbering scheme
Material Type
Controls number ranges, views, and field behavior
Industry Sector
Description
Base Unit of Measure
Critical - cannot be changed after creation Base UoM is used for all inventory management and cannot be changed once material is created
Material Group
General Item Category Group
Basic Data 2 R&D Team
Gross Weight
Weight of material with packaging
Net Weight
Weight Unit
Volume
Volume Unit
Size/Dimensions
Purchasing Procurement
Purchasing Group
Group of buyers responsible for material
Order Unit
Unit in which material is purchased
Additional Data
Conversion between order unit and base unit
Purchase Value Key
Controls tolerances and deadlines Defines under/over delivery tolerances, GR processing time, and delivery reminders
GR Processing Time
Days needed to make material available after receipt
Post to Inspection Stock
Enables quality inspection process When checked, goods receipt will post to inspection stock instead of unrestricted use
Source List
Makes source list mandatory for PO creation
Purchase Order Text Procurement
Purchase Order Text
Special instructions that appear on purchase order
MRP 1 Planning
MRP Type
Determines planning strategy ND: No Planning, PD: Forecast Based, VB: Reorder Point Planning
MRP Controller
Lot Size
Procurement Type
Controlled by material type configuration
Special Procurement
MRP 2 Planning
Planned Delivery Time
Lead time in days (for planning purposes)
Safety Stock
Minimum Safety Stock
Storage Location for EP
Default storage location for external procurement
Storage 1 Warehouse
Storage Conditions
Temperature Conditions
Storage Bin
Picking Area
Storage 2 Warehouse
Min Remaining Shelf Life
Total Shelf Life
Serial Number Profile
Accounting 1 Finance
Valuation Class
Links to G/L accounts for material transactions
Price Control
Determines inventory valuation method V: Moving Average Price - recalculated with each goods receipt, S: Standard Price - fixed price
Price
Material Ledger Active
Required in S/4HANA Material Ledger is mandatory in S/4HANA and must be activated for all materials
Costing Finance
Quantity Structure Control
Overhead Group
Profit Center

Configuration Settings

Material Type Configuration

Material type controls the behavior of materials including:

  • Number Range Assignment: Controls which numbers can be assigned
  • Available Views: Determines which screens/views are available
  • Field Control: Makes fields mandatory, optional, or display-only
  • Procurement Types: Determines if material can be procured externally, internally, or both
  • Default Values: Sets initial values for fields like price control

Path: SPRO > Logistics General > Material Master > Basic Settings > Material Types

Field Control Configuration

Field control determines whether fields are:

  • Required: Must be filled (mandatory)
  • Optional: Can be filled or left blank
  • Display: View-only, cannot be changed
  • Hide: Not visible on screen

Field control is defined through field reference keys assigned to material types.

Path: SPRO > Logistics General > Material Master > Basic Settings > Field Selection

Purchase Value Key

Purchase Value Key controls:

  • Underdelivery Tolerance: How much less than ordered can be accepted (e.g. 50%)
  • Overdelivery Tolerance: How much more than ordered can be accepted (e.g. 100%)
  • Deadline Monitoring: When to send reminders to vendors
    • First Reminder: Days before delivery (e.g. -5)
    • Second Reminder: Days after delivery (e.g. +2)
    • Third Reminder: Days after delivery (e.g. +7)

Path: SPRO > Materials Management > Purchasing > Purchase Value Key

Material Ledger Activation

Material Ledger is mandatory in S/4HANA and must be activated for all materials that have quantity or value updates. Key points:

  • Material without Material Ledger activation cannot post any transactions
  • Material Ledger allows multiple currency and valuation views
  • Activation is controlled at plant level and material type level

Configuration path: SPRO > Logistics General > Material Master > Basic Settings > Valuation > Activate Material Ledger

Key Concepts

Different departments are responsible for maintaining specific views in Material Master:

  • Basic Data: R&D Team Provides material specifications, descriptions, weights, etc.
  • Purchasing: Procurement Maintains procurement-related data
  • Sales: Sales Team Maintains sales-related information
  • MRP: Planning Team Controls material planning strategies
  • Storage: Warehouse Team Manages storage conditions and inventory
  • Accounting: Finance Team Maintains valuation and costing

While MM Consultants may technically create the material in SAP, the data should come from the appropriate departments.

Materials can be extended to:

  • New Plants: When a material needs to be used in a different manufacturing facility
  • New Storage Locations: To enable inventory in additional warehouses
  • New Views: When adding functionality (e.g., adding sales views to a previously purchase-only material)

Transaction Codes for Extensions:

  • MM01: Used for extending to new plants or views
  • MMSC: Used specifically for extending to storage locations

Note: MM02 is used for changing existing data, while MM01 is used for adding new views or organizational levels.

Number range concept for materials:

  • Each material type can be assigned to a number range group
  • Number range groups contain one or more number ranges (intervals)
  • Number ranges can be internal (system-assigned) or external (user-assigned)

Configuration path: SPRO > Logistics General > Material Master > Basic Settings > Material Types > Define Number Ranges for Material Types

Typically, companies use structured numbering schemes that encode information about the material, such as:

  • First digits: Material category
  • Middle digits: Sub-category
  • Last digits: Sequential number

Example: 1001-RM-001 (where 1001=Plant, RM=Raw Material, 001=Sequential)

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