Key Takeaways – What You’ll Learn in This Blog:
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What are material types in SAP MM
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Why material types are important in procurement & inventory
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Common SAP MM material types with real examples
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Key benefits of correctly using material types
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A handy table for quick reference
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Top 7 FAQs answered in simple terms
Let’s Start With the Basics – What Are SAP MM Material Types?
If you’re new to SAP MM (Materials Management), you might have come across the term “Material Types.” Don’t worry — it’s not complicated.
In simple words, material types are used in SAP to group materials with similar characteristics. They help the system understand how to handle different kinds of goods — from raw materials to finished products.
Think of it like categories in a supermarket: fruits, vegetables, dairy, snacks — each behaves differently when it comes to pricing, storage, and billing. SAP does something similar with materials using material types.
Why Are Material Types So Important in SAP MM?
Using the right material type helps SAP:
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Determine what fields appear when creating a material
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Control how inventory and accounting are managed
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Decide whether stock is valued or not
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Enable automatic postings and integration with other SAP modules
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Avoid confusion in procurement, production, or sales
Common SAP MM Material Types – With Examples
Here’s a simplified table of the most commonly used SAP MM material types, with examples and usage:
| Material Type | Code | Usage | Example |
|---|---|---|---|
| Raw Materials | ROH | Purchased but not sold directly | Steel, Wood, Chemicals |
| Finished Goods | FERT | Produced in-house, sold to customers | Mobile Phones, Furniture |
| Semi-Finished Goods | HALB | Used in production, not sold directly | Motherboards, Engine Parts |
| Trading Goods | HAWA | Bought and resold without changes | T-shirts, Headphones |
| Packaging Material | VERP | Used for packing goods | Bottles, Boxes |
| Non-Stock Materials | NLAG | Not tracked in inventory | Office Stationery |
| Operating Supplies | HIBE | Used internally, not sold | Cleaning Supplies |
Key Benefits of Using SAP MM Material Types Effectively
✅ Better inventory and warehouse control
✅ Streamlined procurement and planning
✅ Improved data accuracy
✅ Better integration with SAP FI, SD, and PP modules
✅ Automatic control of important business processes (e.g., GR/IR, valuation)
✅ Efficient reporting and analytics
Top 7 FAQs About SAP MM Material Types
1. Q: Can I change a material type after creating the material?
A: No, SAP does not allow changing the material type once it’s created. You’d have to create a new material with the correct type.
2. Q: How many material types are there in SAP MM?
A: SAP comes with several standard types like ROH, FERT, HALB, etc., but you can also define your own custom types as per business needs.
3. Q: What happens if I choose the wrong material type?
A: It can lead to errors in purchasing, inventory valuation, and financial postings. Always choose carefully!
4. Q: Can different materials share the same material type?
A: Yes. For example, all packaging items can be grouped under VERP if they share similar attributes and handling.
5. Q: What determines the fields visible during material master creation?
A: Material type and industry sector. Each material type brings a different field selection.
6. Q: How are material types linked to valuation and accounting?
A: Material types determine if stock valuation is required and which accounts are posted during procurement or sales.
7. Q: Can I restrict who creates or edits materials of a certain type?
A: Yes, via authorization objects and configuration settings in SAP, access can be controlled by material type.
Final Words
Material types might sound like a small setting in SAP MM — but they control a lot more than you think. From inventory flow to costing, procurement, and even reporting, the right classification keeps everything running smoothly.
Whether you’re a beginner or brushing up your SAP MM concepts, understanding these types will save you from many headaches in real-world SAP projects.
Want to Learn SAP MM Practically?
At Ageis Technova, we provide hands-on SAP MM training that covers everything from P2P cycle to material master, customization, and certification prep — guided by industry experts.
Ready to master SAP MM?
📞 Call/WhatsApp: +91-74287 06064
📧 Email: info@ageistechnova.com
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