Material 
Purpose
Use this component to plan and monitor the material requirements and costs in projects, to control the flow of materials and for scheduling.
Integration
Material forms a link from a project to Sales, Materials Management (Purchasing and Inventory Management), and Production Planning and Control.

Features
Allocation
Via the allocation of material components to network activities, you determine the assemblies and raw materials that must be reserved or ordered for a project and trigger procurement via MRP or purchasing.
Depending on your type of project, there are various ways of allocating material components.
- In projects that have few material requirements, you can allocate the network activities
material components individually.
You can allocate a material with a BOM to an activity and then
explode the BOM (level by level).
If you work with BOMs that contain a large number of components or that are still been built up, you can expect to make several changes to the BOM during the project. You can minimize the amount of work involved in making these changes in the project by using
BOM transfer. Here you create logical connections between BOM items and the network activities. To update the changes in the BOM in the project, you only have to execute the allocation again.
If you use standard networks for creating your networks, you can predefine material allocations by
allocating material to activities in standard networks . When you then create a network, these component allocations are copied. You can use this method together with variant configuration, if you use projects to manufacture "products" that differ but use the same material components and have a similar project structure. In this case, you create a configurable standard network that is allocated a super BOM, which contains all possible components. When you create a network, the system copies the necessary components to the network, based on the characteristic value assignment.
Assembly processing is a special case of this process, in which the Project System has a direct link to sales. If you enter a material with the correct settings, to which a
Standard network has been assigned, in a sales order item the system generates the project structure from the sales order. The material requirements can be predefined in the standard network as above.
Procurement
When you allocate a material, you can determine how it is to be procured via the
item category.- Components with the standard R/3 item category N (non-stock item) are
procured directly by purchasing. The system generates purchase requisitions for these components and does not use MRP.
Components with the standard R/3 item category L (stock item) are
procured using MRP . The system generates reservations for these components. If a component cannot be supplied from stock, MRP decides whether it produced internally or procured externally. The system then generates as a procurement element either a planned order or a purchase requisition.
If a material has a long lead time (delivery or production time), you can trigger
advance procurement
Scheduling Material Flow
During the scheduling of a project, the system also determines the
requirements dates of the components in relation to the activity dates. This ensures that you can control and monitor the staging of the required components. Due to the multi-level BOM explosion in networks, you can exactly control dates, since you can explain not only the top component but also all the subordinate BOM items.
Inventory Management
Material for a project can be managed in general plant stock or in individual stock. With individual stock you can follow materials that are needed for a project with regards to stock levels and MRP separately. If a network is assigned to a sales order, you can also manage the material components in sales order stock. For more information, see
Managing Stocks of Material Components and
Project Stock.
Delivery
If components are allocated to a project, you can create
deliveries in the Project System, and as a result deliver independently of a sales order.Via third party orders, it is possible to have externally procured components delivered directly from the vendor to the customer.