The document is a participant guide for a training course on material master data in SAP. It provides an overview of material master records, including the different views that contain information about a material's attributes, purchasing, sales, production, and accounting details. It also outlines lessons that teach users how to work with material master records, displaying, creating, and changing them. Exercises are included to help users practice these skills.

1. PROJECT
GUARDIAN
MATERIAL
MASTER
PARTICIPANT GUIDE

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Table of Contents
Material Master Introduction.................................................................................2
Using this Guide..................................................................................................................................3
Lesson 1: Material Master Overview....................................................................4
Lesson 1 Objectives...........................................................................................................................4
Material Types .........................................................................................................................................5
Material Master Creation ..........................................................................................................................5
Screen Displays.......................................................................................................................................5
Basic Data 1 View....................................................................................................................................5
Sales Organization 1 View........................................................................................................................7
Sales Organization 2 View ........................................................................................................................8
Sales General/Plant View .........................................................................................................................8
Sales Text View.....................................................................................................................................10
Purchasing View ....................................................................................................................................10
Purchase Order Text View ......................................................................................................................11
MRP 1 View...........................................................................................................................................12
MRP 2 View...........................................................................................................................................14
MRP 3 View...........................................................................................................................................15
MRP 4 View...........................................................................................................................................17
Plant Data/Storage 1 View ......................................................................................................................18
Plant Data/Storage 2 View ......................................................................................................................19
Accounting 1 View .................................................................................................................................19
Costing 1 View.......................................................................................................................................20
Costing 2 View.......................................................................................................................................22
Lesson 1 Exercise 1 – Display Material Master Record (MM03) ............................................................23
Lesson 1 Exercise 2 – Create Material Master Record (MM01) .............................................................23
Lesson 2: Working with Material Master Data.................................................24
Lesson 2 Objectives.........................................................................................................................24
Lesson 2 Exercise 1– Change Material Master Record (MM02) ............................................................24
Extend Material Master Record ...............................................................................................................24
Lesson 2 Exercise 2 – Extend Material Master Record (MM01)............................................................25
Quick Reference Guides......................................................................................25
Tables and Figures
MATERIAL MASTER INTRODUCTION
The following topics are covered in this guide:
 The importance of Material Master Data

 Using the existing XXX system
 Vendor Creation
After completing this course, you will be able to:
 Identify the information views and the required fields
 Define material status designations
 Post/Park PO related invoices and credit memos
 Park non-PO related invoices and credit memos
 Process recurring entries
 Process automatic payments and review check processing transactions

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 Evaluate and analyze vendor accounts
Prerequisites for taking this course are:
 Complete the SAP Basic Navigation course
Using this Guide
This guide is designed to provide you with:
 Information regarding the listed topics
 Exercises to practice what you learn
 Quick reference guides to assist you while doing your job in SAP
Use this guide in a classroom setting to follow along with the instructor and add notes wherever needed. You can
also use this guide in a self-paced manner to review how to perform the listed tasks learned in class.

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LESSON 1: MATERIAL MASTER OVERVIEW
Lesson 1 Objectives
After completing this lesson, you will be able to:
 Describe the structure of Vendor Master Data
 Define common SAP terms used in Materials Movement
Organizational Structure in SAP
Accurate master data is one of the key factors for a successful SAP implementation.
Master data is created at different organizational levels because the information contained in the master record is
arranged into views that are assigned to organizational elements.
Products and services are combined in the SAP System under the term material. All information necessary for
the management of a material and its stocks, as well as its use, is maintained in the material master record. This
includes, for example, data used for purchasing, manufacturing, sales and storage.
Material types in the SAP ECC system can be, for example, raw materials, trading goods, semi-finished products,
finished products, or services. The material type represents certain features of materials in the system, and has
important control functions: the material type is used, among other things, to group field selection functions for a
material, or to define the screen sequence, the type of number assignment and number ranges during material
master record maintenance.
Depending on the material type, different functional areas within the company maintain different data screens.
This screen selection applying specifically to an application is called a "view".

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Material Types
Material type is a designation that assigns the material to a group of materials such as raw materials, finished
products, or operating supplies. A company determines which material types will be used. The table below lists
the material types and their definition
Material Type Description
FERT Finished goods
HALB Semi-finished good
ROH Raw Material
DIEN Services
Material Master Creation
Need process diagram and role definitions
Screen Displays
Because of the large of amount of information contained in a single material master record, the viewing method
for a material employs multiple data screens. Depending on the material type, different functional areas within the
company maintain the different data screens. This screen selection applying specifically to an application is called
a "view.” Basic data views are the same across all Pregis locations. Other views are specific for each plant
location. Each material is created for at least one plant, but can be “extended” to additional plants. When a
material is extended to other plants, the plant specific data can then be changed from plant to plant, if necessary.
Basic Data 1 View
This view contains data that is the same across all Pregis locations. Basic data is used to define the general
attributes of a material which determine how it will be processed by SAP and what additional information (views)
may be required for it to be fully transacted

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Field Information
Material Material Number
Description Material description, up to 40 characters in length
Base Unit of Measure Unit of measure in which stocks of the material are managed
Material Group Materials or services with the same attributes
Division Materials, products or services grouped to determine its sales area or
business area
Prod. Hierarchy Alphanumeric character string to group materials together by
combining different characteristics. Used for analyses and price
determination
Gross Weight Used to check storage bin capacity
There are at least 5 levels for product hierarchy. This is used for sales analysis. Pricing will also use some of
these levels to price common materials. The corresponding AVIS tables are as follows:
Level
#
AVIS Description AVIS Table Example

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1 Profit Center CT820 01 – AIR CUSHIONING
2 Product Code CT825 01 – BUBBLE ROLL STOCK
3 Product Category CT645 BLR – ASTRO BUBBLE
4 Product Family CT830 LAB – LARGE ASTRO BUBBLE
5 Cost Group CT827 2751 – ASTRO BUBBLE L MONO/COLOR
Sales Organization 1 View
This view contains information relevant to a particular sales organization.
Field Information
Sales Unit of Measure Unit of measure proposes during business transactions relevant for
sales
Cross Distribution Chain and
Distribution Chain Status
Restriction of usability of the material for all distribution chains.
Defines whether a warning or error message is displayed if material is
included in a specific function
Delivering Plant In the sales order, the plant can be automatically copied into the sales
order item from a default value in the customer master record, the
material master, or the customer material info record. The system
checks whether or not it can propose a value (where the material has
been extended to that plant), and if the system can propose a value,
the plant is copied to the sales order item where you can change it as
required. Typically, the default plant is entered in the material master
where that material is produced and shipped in only one location for a
Sales Organization/Distribution Channel combination. The plant can
also be entered in the customer master and in the customer material
information record (CMIR). The hierarchy of usage would be 1st-
CMIR, 2nd-Customer master and 3rd-Material master
Tax Classification Entered for each country of departure, corresponding to every country
in which a plant is defined
Cash Discount Indicator Specifies whether an individual material qualifies for a cash discount if
the customer has been assigned payment terms that include a cash
discount
Minimum Order Quantity Minimumquantityacustomercan order
Minimum Delivery Quantity Minimumquantitythatcan be delivered
DeliveryUnit Minimumunitof quantityfora delivery,all deliveriesare amultiple
of thisunit
RoundingProfile Defineshow aquantity isroundedupto a givenvalue

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Sales Organization 2 View
Field Information
Material Pricing Group Use to group materials in order to apply the same pricing conditions
Account Assignment Group Used to influence the G/L account determination at billing
Item Category Group Usedto group materialsto determine theirappropriateitem
categoryin the salesdocument
Material Groups 1-5 Material Groups are freelydefinableandcanbe usedforany
purpose,astheyare notusedby any standardapplication.
Pricing Ref Material If pricing reference material is entered, pricing conditions for the
material entered are used
Volume Rebate Group Group definition thatcanbe usedfor rebate settlement
Commissions Group Commission percentagesassignedtomaterials,alwaysthe same for
any single representative,canvaryfordifferent representatives
ProductAttribute Whenmaterial isenteredinasalesdocument,the systemchecksif
the ship-topartyacceptsthe productattribute
.
Sales General/Plant View
This view contains data specific to the material and plant.
The General data section contains information relevant to the material’s physical characteristics such as unit of
measure and weights.
The Shipping data section is information used in the shipping processes.
The Packaging Material Data identifies the materials used in preparing the material for shipment.
The General Plant Parameters section contains information assigned to the material to manage its business
transaction processing

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Field Information
Availability check Group Specifies whether and how the system checks availability and
generates requirements or materials planning. During Phase 1,
Pregis will not check availability during sales order processing; will
check availability during delivery processing
Batch Management Indicator This indicator can be set in the material master record manually or, if
batches are valuated individually, it is set automatically for the plants
concerned, in which case it cannot be changed. The indicator cannot
be changed if stocks exist in either the current period or in the
previous period. The reason for checking the previous period is
because stocks can be posted to this period when goods movements
are entered.
Transportation Group Materials that share the same route and transportation requirements.
Used for automatic route scheduling during sales order and delivery.
The note processing

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Loading Group Materialsthat share the same loadingrequirementsduring
shipping.
The system uses the loading group as well as the Shipping
conditions and the Delivering plant to automatically determine the
shipping point for the item.
Material Freight Group Classificationaccordingtofreightcode and class,usedinthe
transportationmodule forfreightcostandsettlement
Processing Time Time neededtoprocesstoa specificquantityof amaterial,usedin
capacityplanninginshipping
Base Quantity Usedin conjunction withthe shippingprocessingtime incapacity
planning
ProfitCenter The profit center key in controlled by FI and reflects a management-
oriented structure of the organization for internal control, identifies
the business area to which profits are assigned
Serial Numbers Serial numbers assigned to the material
Sales Text View
The material sales text is an important item text, as it describes the material in more detail. In the standard
version of the SAP system, it is copied automatically from a reference document or a sales and distribution text.
As with all item texts, the material sales text can also be entered directly in the sales and distribution document.
Purchasing View
The Purchasing view

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Purchase Order Text View
The material purchase order text describes the material in more detail. In the standard version of the SAP system,
it is copied automatically from a reference document or purchase order text. As with all item texts, the material
purchase order text can also be entered directly in the purchase document.
.

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MRP 1 View
Materials Requirements Planning (MRP) data determines how SAP carries out MRP calculations and where those
calculations take place. Information is contained on for different views. The MRP 1 view identifies basic
information on the material and the MRP process.

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Field Information
Purchasing Group Identifies buyers within the Pregis Purchasing Organization, used to
sort and group purchased materials, also used to identify
transfer/transport order groupings, which is used by supplying plants
to collect requisitions from outlying plants
MRP Type Determines if the material is planned via MPS or MRP and how the
firming logic is determined
VB is the indicator for Manual reorder point planning
MRP Controller Person responsible for planning the material usage
Lot Size Determines the lot sizing procedure used in materials planning to
calculate the quantity to be procured or produced. All materials have
lot size key EX – lot for lot order quantity
Reorder Point Level that if stock falls below this quantity, the material must be
reordered

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MRP 2 View
The MRP 2 View provides information on the methods of procurement and production along with scheduling and
stock requirements.
Field Information
Procurement Type Determines if the material is produced or purchased. Type indicators:
 E – In-house production
 F – External procurement
 X – Both Procurement types
 Blank – No Procurement
Special Procurement Further determination of procurement type. Type indicators:
 10 – Consignment
 20 – External procurement
 30 – Subcontracting

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 40 – Stock transfer from 6314
 41 – Stock transfer from 6109
 50 – Phantom assembly
Prod. Stor. location Receiving storage location for repetitive manufacturing. If the
material is produced, it is the receiving storage location to which the
receipt is posted
If the material is a component, it is the issuing storage location to
which a backflush is posted.
Storage location for EP Storage location proposed in the purchase requisition in materials
planning for subsequent storage of the material.
In house production Number of days needed to produce the material in house; must be
populated if Procurement type E is entered
Planned Delv Time Number of days needed to receive an externally procured material;
must be populated if Procurement type F is entered
GR Processing time Number of workdays required after receipt of the material for inspection
and placement into storage.
Safety Stock Quantity of stock that has the purpose to satisfy unexpectedly high
demand
MRP 3 View
The MRP 3 view focuses on forecasting and planning.

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Field Information
Procurement Type Determines if the material is produced or purchased
Special Procurement Used to transfer requirements to another plant
In-house Production Manufacturing leadtime
Planned Delv Time Purchasing leadtime
Safety Stock Quantity of stock that has the purpose to satisfy unexpectedly high
demand

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MRP 4 View
The MRP 4 view contains information relevant to material composition and manufacturing strategies.
Field Information
Procurement Type Determines if the material is produced or purchased
Special Procurement Used to transfer requirements to another plant
In-house Production Manufacturing leadtime
Planned Delv Time Purchasing leadtime
Safety Stock Quantity of stock that has the purpose to satisfy unexpectedly high
demand

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Plant Data/Storage 1 View
The Plant Data Storage 1 view is concerned with material storage information, inventory cycle counting and
material shelf life.
Field Information
CC physical inventory indicator Indicates that the given material is subject to the cycle counting
method of inventory; also defines at which time intervals a physical
inventory is to be carried out for the material.
Unit of Issue Unit of measure in which the material is issued from the warehouse.
If the field does not contain an entry, the system will assume that the
unit of measure is the base unit of measure
Min remaining shelf life Minimum amount of time for which the material must keep upon
goods receipt for the goods receipt to be accepted by the system
Total shelf life Period for which the material will keep in total, that is, from the date
of production to the shelf life expiration date

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Period Indicator for Shelf Life
Expiration Date
Indicator that specifies the unit of measurement for a period of time,
for example, day, week, month year
Plant Data/Storage 2 View
The Plant Data/Storage 2 view contains information on the material weight and storage conditions, along with
information used in the financial controlling area.
Field Information
Gross Weight Gross weight expressed in the unit of weight specified in the Unit of
weight field; defaults from Basic Data 1 view
Weight Unit Unit or measurement referring to the gross weight or net weight of
the material; defaults from Basic Data 1 view
Net Weight Net weight expressed in the unit of weight specified in the Unit of
weight field; defaults from Basic Data 1 view
Profit Center Key which together with the controlling area uniquely identifies a
profit center, area to which profits are assigned
Accounting 1 View
The Accounting 1 view is maintained by the Finance and Controlling department. Accounting data controls details
relating to how material is valued and how transactions impacting it are posted to the General Ledger.

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Field Information
Valuation Class Controls automatic account postings for inventory movement.
Separate valuation classes are required for each material type
Price Control Controls whether a material is valued at standard or moving average.
All production related materials are standard priced controlled
Price Unit Net weight expressed in the unit of weight specified in the Unit of
weight field; defaults from Basic Data 1 view
Costing 1 View
The Costing 1 view is also maintained by Finance and Controlling. Costing data controls detail relating to how
material is costed for transactional exchange with customers or in-house affiliates

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Field Information
Do Not Cost Indicator that material is excluded from standard cost calculation
process; prevents accidental costing and eliminates false costing
process errors
With Qty Structure Indicates that material has a quantity structure (Bill of Material and
Routing) used in cost estimation process. Required for all direct
materials and purchased semi-finished goods, Default setting for
appropriate material types
Material Origin If this indicator is set, the material number will be written to the cost
element itemization in the Controlling module. Require for all direct
materials
Plant Specific Material Status Restricts the usability of the material for the plant concerned, that is,
it defines whether a warning or error message is displayed if you
include the material in a particular function
Profit Center Designates the assignment of the material to a profit center and is
the default profit center for all inventory movements in and out of
stock
Spec Procurem Costing Identifies the source of material that is transferred from another plant,
if it is subcontracted or if special treatment is required
Costing Lot Size Provides the basis for lot charges (amounts applied in total during
the cost calculation process)

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Production Version Can be used to control the material version that is used in cost
calculation process
Version Indicator Indicates that a production version (Bill of Material/Routing
combination) exists; indicates which specific version should be used
for a cost estimate
Versions Link to select available versions of the material
Costing 2 View
The Costing 2 view is also maintained by Finance and Controlling. Its focus is current material valuation and
planned prices.
Field Information
Valuation Class Controls automatic account postings for inventory movement.
Separate valuation classes are required for each material type
Price Control Controls whether a material is valued at standard or moving average.
All production related materials are standard priced controlled

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Price Unit Net weight expressed in the unit of weight specified in the Unit of
weight field; defaults from Basic Data 1 view
Lesson 1 Exercise1 – Display MaterialMaster Record (MM03)
Scenario: Purchase orders were created in the system and have arrived at the receiving location. A goods
receipt with reference to the purchase order is executed in the system. For this exercise, a valuated material
is received and must be placed in a storage location.
Note to Instructor: Assign the following information to each participant:
Support Document: MIGO - Create Gods Receipt for a Purchase Order
Transaction Code MIGO
Complete the following field(s): Required Data
Lesson 1 Exercise2 – Create MaterialMaster Record (MM01)
Scenario: Purchase orders were created in the system and have arrived at the receiving location. A goods
receipt with reference to the purchase order is executed in the system. For this exercise, a valuated material
is received and must be placed in a storage location.
Note to Instructor: Assign the following information to each participant:
Support Document: MIGO - Create Gods Receipt for a Purchase Order
Transaction Code MIGO
Complete the following field(s): Required Data

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LESSON 2: WORKING WITH MATERIAL MASTER DATA
Lesson 2 Objectives
Need Process to Change Material Master
Lesson 2 Exercise1– Change MaterialMaster Record (MM02)
Scenario: Purchase orders were created in the system and have arrived at the receiving location. A goods
receipt with reference to the purchase order is executed in the system. For this exercise, a valuated material
is received and must be placed in a storage location.
Note to Instructor: Assign the following information to each participant:
Support Document: MIGO - Create Gods Receipt for a Purchase Order
Transaction Code MIGO
Complete the following field(s): Required Data
Extend Material Master Record
The Material Master is maintained at different organization levels such as client, plant, and storage location.
A Material Master record is created in following cases:
 If no material master record exists for a particular material. In this case, you must create the material
master record.
 If a material master record exists for a particular material, but the master for your department is missing. In
this case, you must extend the material master record.
 If a material master record exists for a particular material and the master data for your user department is
entered, but not for the appropriate organizational level. In this case, you must extend the material master
record.

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Lesson 2 Exercise2 – Extend MaterialMaster Record (MM01)
Scenario: Purchase orders were created in the system and have arrived at the receiving location. A goods
receipt with reference to the purchase order is executed in the system. For this exercise, a valuated material
is received and must be placed in a storage location.
Note to Instructor: Assign the following information to each participant:
Support Document: MIGO - Create Gods Receipt for a Purchase Order
Transaction Code MIGO
Complete the following field(s): Required Data
QUICK REFERENCE GUIDES