In sap similar type of materials are grouped under one head called material type. If you want to create finished goods then you need to create a material type for it. This is done to identify different materials in sap. To create it in sap you use transaction code OMS2 or following path; SPRO | IMG | Logistics > General > Material Master > Basic Settings > … [Read more...] about What is material type in sap – creation of material type