Materials with the same basic attributes are grouped together and assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements. Examples of material types are given in the graphic below.
When creating a material master record, you must assign the material to a material type. The material type determines certain attributes of the material and has important control functions. For example, it is a factor determining thescreen sequence and field selection in a material master record.
When you create a material master record, the material type you choose determines:
Together with the plant, the material type determines the material's inventory management requirement; that is:
In addition, the accounts affected by a material entering or leaving the warehouse depend on the material type.
Material types are configured by your system administrator in Customizing for the Material Master in Define attributes of material types.