Material Types 

Definition

Divides materials with the same properties into groups.

Use

So that different materials can be managed consistently in accordance with company requirements, those materials with the same properties are divided into groups and assigned to a material type. Examples of such groups are:

Each material is assigned to a material type so that ii is designated as, for example, a raw material, a semifinished product, or a finished product. This defines various control parameters for processing the material.

For costing, the material type controls

You determine which control parameters are linked to the material type in Customizing for Logistics General.

A costing view can only be created by the system if the Costing indicator is set for a material type. If no costing view exists in the material master record, the system creates a costing view when costing is carried out.

You can use the material type to specify that the With quantity structure indicator is set as a default when you create a material master with this material type. The With quantity structure indicator specifies that materials of this material type will generally be costed using material costing. If the indicator is not set, the system looks for an existing material cost estimate without quantity structure. If no cost estimate without quantity structure exists, the material is costed as a raw material.

In the standard system, the material types for raw materials, semifinished products, and finished products are defined in such a way that materials with these material types can be costed with material costing.

You can reset the With quantity structure indicator manually in the costing view of the material master record.