SAP R/3 works on real time data that is there is no time lag between data entry and data availability. The important thing while creating any data is to maintain data integrity. SAP R/3 data is categorized into two:
Master data - Data that is created centrally and it is valid for all applications. It remains constant over the time but we need to update it on regular basis. For Example: Vendor is a type of master data that is used for creating purchase orders or contracts.
The key points about material master are as follows:
This is the enterprise main source of material specific data. This data will include information on the materials that a company can procure, or produce, or store or sell.
Since there are different departments in an enterprise and each department works on some specific material. So they will enter different information regarding their material. So each user department has its own view of material master record. So, the data screens that are used to create material master can be divided into two categories: Main Data: This will include basic data (base unit of measure, weight), purchasing data (over tolerance and under tolerance), accounting data (standard price, moving price). Additional Data: This will include additional information like short description about material, currency etc.
Material master has the four characteristics which will be discussing one by one in below context.
Materials with some common attributes are grouped together and they are assigned to a material type. This will differentiate materials and allow organization to manage different materials in systematic manner in accordance to company’s requirement. For example: Raw Material, Finished Products are some of the material types. Material type can be created by following the below steps.
Path to create material type:
IMG >= Logistics General >= Material Master >= Basic Settings >= Material Types >= Define Attributes of Material Types