The material master contains all the information on all materials that a company procures, produces, stores, and sells. It is the company’s central source for retrieving material data.
Functions and Use of the Material Master
The integration of all material data in a single database object eliminates redundant data storage. Areas such as purchasing, inventory management, material requirements planning (MRP), invoice verification, and so on, can all use the same data.
The data in the material master is used to perform the following functions in the SAP Logistics system:
- Purchasing for purchase order processing
- Inventory management for goods movement postings and physical inventory management
- Invoice verification for posting invoices
- Sales for order processing
- Production planning and control for material requirements planning, scheduling, and work scheduling
Material Master Data
- Data of a purely descriptive nature
- This is data with an information content such as name, size, or dimension.
- Data that the system uses to perform a control function
- This is data such as MRP type and price control.
MRP (MATERIAL REQUIREMENTS PLANNING)
Understanding Material Types
- which screens appear and in what sequence
- which departmental data you may enter
When do you create a Material Master Record
- If the material you need is not defined in the material master; in other words, if there is no material master record for that material. In this case, you create the material master record.
- If the material you need is already defined in the master record but the data for a specific user department is missing. In this case, you extend the material master record by selecting the Create function.
- If your user department data has already been entered for the material you need but not at the appropriate organizational level (for example, a different plant). In this case, you extend the material master record by selecting the Create function.
- Creating a Material Master Record
- Creating a Material Master Record with a Reference
- Extending a Material Master Record
The approach you adopt depends on what data is already in the system. In all cases, you use the Create function
Checklist for Material Master Creation
Before you create a material master record, consult the following checklist:
Are you sure there is no material master record in the system for this material?
Is there already a similar material in the system that you can use to enter data?
Which industry sector does the material belong to?
What is the material’s material type?
What description do you want to give the material?
In what unit of measure do you want to manage the material?
If you enter basic data or if you enter purchasing data, to which material group does you want to assign the material?
If you enter MRP data, which procedure will be used to plan the material?
If you enter forecasting data, which model do you want to use to forecast material requirements?