Material
IP-related materials, which the licensee often requires to exploit the rights transferred in the license sales contract.
You represent your material master data using the material
product type during product maintenance.
The relationship can be used to store information about the material to be shipped if licenses for the corresponding IP are sold.
Prerequisites
You have created a separate basis hierarchy and category for materials, in which the mandatory set types for materials and any additional set types that you define have been recorded.
You have assigned product type 01 material
to each category.
The basis hierarchy must be assigned to an application. This enables the hierarchy to be used as a basis hierarchy. You do this in Customizing by choosing 
Cross-Application Components
SAP Product
Product
Category
Assign Category Hierarchies to Applications
.
Assign the basis hierarchy for materials to product type 01 material.