What is material type in sap – creation of material type

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 > Material Types > Define Attributes of material types

When you define a particular setting like price indicator in sap for a material type then all the master data created under it will have the same price indicator. For example if you set price indicator as S – Standard price then master data created under this material type will have price indicator S. 

Standard SAP delivered material types

  • FERT – Finished goods
  • HALB – Semi Finished Goods
  • HAWA – Trading Goods
  • ERSA – Spare Parts
  • AEM – Samples
  • CONT – KANBAN container
  • DIEN – Services
  • FHMI – Production resource/tools (PRT)
  • HERS – Manufacturer parts
  • HIBE – Operating Supplies
  • IBAU – Maintenance Assembly
  • KMAT – Configurable
  • LEER – Empties
  • LEIH – Returnable packaging
  • NLAG – Non-stock
  • PIPE – Pipeline
  • ROH – Raw Materials
  • UNBW – Non Valuated
  • VERP – Packaging
  • WETT – Competitive products

Followings are some of the most important material types used in sap;

FERT – Finished Goods

Finished goods are are produced by the organization. You do not buy finished goods. You manufacture it by using your raw materials and production processes.

HALB – Semi finished goods

Semi finished products are manufactured but not completely done. You can buy such semi finished products and make it to a finished product and sell it outside to customers.

HAWA – Trading Goods

Purchased by the business from its vendors and sold in market to customers.

ROH – Raw Material

It’s purchased by the organization and then used in the manufacturing process to produce finished products.

When you create master data by using transaction code MM01 you need to choose one of these material types created by which it will carry the same characteristics as defined.

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