1.1.SAP PP Material Master - Free SAP PP Training

4/29/2018 SAP PP Material Master - Free SAP PP Training
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SAP PP Material Master
Written by Velmurugan Saravanavelu and last updated on April 30, 2017.
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In this tutorial, we will discuss and learn about SAP PP

material master data. A material master in SAP represents
a product or service that a company purchases,
manufactures or sells. SAP ERP systems keeps all the
information about a single material in a so called “material
master record” or in short “material master”. Different
departments of a company need to store various
information about a material. For example, the customer
service department needs to save information about the
aspects related to sales of this material. On the other hand, production and planning
departments also need to store specific information about a given material. For this reason,
the SAP material master is divided in several views that correspond to a particular
business function within a company.
Since this tutorial is part of SAP PP training, we will discuss SAP PP material master that
comprises of all the views that are used by production and planning departments of an
enterprise. If you are interested in other views of a material master, check out the following
tutorials:
https://erproof.com/pp/sap-pp-training/sap-pp-material-master/?utm_source=ActiveCampaign&utm_medium=email&utm_content=%5BERP+360%5D+Free+SAP
SAP MM Material Master

SAP SD Material Master
What is a Material Master?
A Material Master is a central master data of an organization which contains information

related to the procurement, production, quality, sales and financial data for a material. The
information in a SAP PP material master will be stored at different levels:
Client Level or general data

Plant Level
Storage Location Level
Valuation Level
Material type and Industrial sector in Material

Master
Depending on the material type and industrial sector, we can restrict material views and
fields. E.g., material type ROH which is Raw material type enables Purchase, Production
and Accounting views, whereas material type HALB which is semi-finished product enables
Sales, Purchase, Production and Accounting views. The same way industrial sectors will
enables specific fields in Material master. Depending on procurement method of materials
(purchase or production or trading) a suitable material type has to be selected.
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Views Available in SAP PP Material Master
General data
Purchase Data
Sales data
Material Planning data
Production information
Quality Information
Accounting and costing
Role of a Material Master in Production Planning
The following views are relevant for production planning:
Material Requirement Planning (MRP1, MRP2, MRP3 and MRP4 views)

Work scheduling view
Material master contains information related to planning and production execution.
How to Create SAP PP Material Master?
Material master contains several views which are maintained by the respective
departments. Material master are created for all materials that a company procures,
produces or sells. We can create material master by accessing the following menu path:
Create a Material Master in SAP PP – Menu Path
We can also directly access the transaction by typing MM01 transaction code. The system
will show the initial screen of MM01 transaction.
Initial Screen of MM01 Transaction
Here Material number can be external or internal number. Depending on business

requirement we choose the suitable number range. Definition of a number range is specific
to a material type. We can define different number ranges for raw materials and finished
products.
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Next, the SAP system will show the window to choose views of the material master that we
would like to create or edit.
Select Views of a Material Master that Need to be

Created
How to Change/Display Material Master
The transactions mentioned below are used to change and display material master:
Transaction Description
MM02 Change Material Master
MM03 Display Material Master
We can also do mass changes of the material master particular fields using transaction
MM60.
SAP PP Material Master Views
Next, let us talk about some of the important fields in MRP and work scheduling views.
MRP Views
MRP views in a material master give the following information:
How the material needs to be planned

How the material to be purchased or produced
Material lead time information
Safety stock details
Planning strategy of production (Make-to-order or Make-to-stock)
Work Scheduling View
A Work Scheduling view contains the following details:
Person responsible for production

Lead time for the production process
Product is batch maintained or not
MRP1 View
MRP TYPE
MRP (Material Requirement Planning) procedure in MRP1 view determines how the
material will be planned during MRP run.
SAP MRP (Material Requirement Planning) Procedures
A Fragment of MRP1 View in SAP PP Material Master (1)
Planning procedure “MRP” plans the material according to current requirements. The
requirements may be a sale order, a production plan or a sales plan.
Planning procedure “MPS” also plans the material according to current requirements.
The requirements may be a sale order, a production plan or a sales plan.
The difference between MRP and MPS planning procedure is that MPS material will be
only planned in foreground/interactive mode.
Material which are critical or used in bottleneck resources or influence the company
inventory cost can be defined as MRP and planned separately.
MRP will not plan MPS item as it needs separate attention of the planner.
Planning Procedure “Consumption based planning” plans the material based on its
historical data or past consumption data.
Example:
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A reorder level of the material will be set based on its past consumption history manually or
automatically (by forecast).
Let say last 6 months average consumption per month was 200 PCS
Maximum Lead time for procuring the material is let say 25 days
Reorder level = Average daily consumption * Maximum lead time of the material
Reorder point will be calculated as (200/30 ) * 25 = 166.666 PCs = 167 PCs
Here reorder level is based on the past 6 month historical data.
In automatic planning scenario, the system will arrive to this reorder level from the
forecast run. But in manual planning scenario, reorder point will be calculated by planner
manually and the value will be manually set in the material master.
PLANNING TIME FENCE
Planning time fence is period in days where system will disturb the current planning
situation or existing planning situation. This topic will be explained in details in MRP lesson.
LOT SIZE
Lot size information here will be used at the time of planning to calculate purchase or
production quantity.
Lot Sizing Procedures in SAP PP
Lot sizing Procedures are here classified based on Quantity, Time and Cost.
Lot Size procedure Static Lot size Period Lot size Optimum Lot size
In period lot size,

Procurement
system groups the It group the quantity
quantity is
requirement quantity so that costs (setup,
calculated based
Procedure Usage which are in the lot size independent
quantity information
particular time costs) are
maintained in
interval. (Week, minimized.
material master
Month, etc.)
Example EX – Lot for Lot TB – Daily Lot size GR – Groff reorder

Size MB – Monthly Lot Procedure

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size, etc.
WI – Least unit cost
procedure
FX – Fixed Lot size
HB –
Replenishment up
to Maximum stock
level
Depending on the lot size some of the fields are required to be entered.
MRP2 View
Next, let’s have a look at the MRP2 view of SAP PP material master.
PROCUREMENT TYPE
During material requirement planning (MRP), once the SAP system calculated
procurement (purchase or production) quantity, it will next determine the procurement
method based on “Procurement type”. The following Procurement types are available in
the system:
F External Procurement
E In-house Production
Both Procurement types (External or In-

X
house)
Depending on the procurement type the system will create either a Planned order or a
Purchase requisition.
SPECIAL PROCUREMENT TYPE
Here we can define the procurement type more precisely. For example, in the external
procurement the material may be purchased as Subcontractor Consignment stock or stock
transfer from other plant. Examples of special procurement types:
10 Consignment
20 External procurement
30 Subcontracting
40 Stock transfer
50 Phantom assembly
BACKFLUSH
This indicator applicable for BOM components only. This controls the automatic posting of
the components. In Production Planning, we can enter backflush in 3 different levels:
Routing – Component assignment screen

Material master
Work center
B AT C H E N T RY
This is also applicable for the component of an assembly or finished goods. If raw material
is batch maintained, when should the batch entry, i.e. batch number assignment for
consumption to be made?
At the time of Goods issue

At the time of Production/Process order release
Automatically when an order is released based on the search strategy and the sort rule.
P R O D U C T I O N S T O R A G E L O C AT I O N
If material is a component of an assembly, this fields refer to ‘Issuing storage location”. If

material is an assembly or finished material, this fields refers to ‘Receiving storage
location”.
D E FA U LT S U P P LY A R E A
This field is used in KANBAN replenishment process. This is an area where material will be
kept for consumption. It helps to create KANBAN control cycle between Vendor and
Production area.
S T O R A G E L O C AT I O N F O R E P ( E X T E R N A L P R O C U R E M E N T )
When system creates Purchase requisition after MRP, this storage location will be
assigned automatically as a receiving location.
IN-HOUSE PRODUCTION
Number of days required to produce the material. This is based on work days specified in
factory calendar. This is lot size independent, i.e. for any of the order quantity the system
uses this value only.
P L A N N E D D E L I V E RY T I M E
This is number of days required to receive the material, when it is purchased externally
after placing the order. This value is in calendar days.
GR PROCESSING TIME
This is the number of days required for inspection and placing the material in a storage
location. This value is in calendar days.
P L A N N I N G C A L E N DA R
This is useful when we plan materials using time-phased planning. Some materials may be
delivered by the Vendor on specific day or date, e.g. every Wednesday or on the 10th of
the every month, etc. This type of material will be scheduled based on planning calendar.
Planning calendar has to be created in separate transaction (MD25) and assigned here.
SCHEDULING MARGIN KEY
We can still add some floats in addition to the material lead times (In-house, Planned
delivery time) using scheduling margin key. This value is in work days. The following floats
are available in Scheduling Margin Key:
Opening Period: days required for planning to start the production after an order is
created
Float before Production: days between scheduled finish date and order finish date
Float after Production days: between order start date and scheduled start date
Release period: days between Start date and Order release date
Floats in Scheduling Margin Key
S A F E T Y S T O C K C A L C U L AT I O N
Safety stock will be used in case of any sudden or unexpected demand. We can set the
safety stock manually. Also, it can be calculated automatically based on forecasted
value(s).
MRP3 View
P L A N N I N G S T R AT E G Y
In planning section of MRP 3 view, we can define which planning strategy is applicable for
the material. SAP has provided a wide range of planning strategies:
Make to order
Make to stock
Assembly to order, etc.
Behavior of individual strategies will be explained in tutorials about demand management.
AVA I L A B I L I T Y C H E C K
In production planning we can perform availability check at various places:
1. At the time of production order creation.

2. At the time of production order release.
3. We can activate dynamic availability check at the time of goods issue (optional).
Availability check is based on the scope of check that we define in customizing of SAP
ERP.
Scope of Check
In the scope of check, we can define which receipts/stocks elements and which issues
elements are considered when we perform availability check. Here are some examples of
receipt/stock elements:
Purchase requisition
Purchase order
Planned orders
Production orders
Safety stock
QI Stocks etc.
Here are some example of issue elements:
Reservation
Sales requirements
Dependent requirement
Sales delivery
Shipping notification
MRP4 View
Having finished with discussing MRP3 view of SAP PP material master, let us proceed to
MRP4 view.
SELECTION METHOD
In this section, we can control how BOM and routing will be selected when we create a
production order or a planned order or do these activities in MRP. If more than one BOM,
i.e. an alternate BOM is available for a material, we can control its selection:
By its quantity
By explosion date
By production version validity.
COMPONENT SCRAP
Some partial quantity of the components may become scrap at the production due to its
nature or operation nature. These kinds of materials need to be planned in more quantities
than the requirement. Percentages in this field will be used for this purpose at the time of
MRP run.
Example:
Assembly FG001 required raw materials RAW1 and RAW2.

Let say we defined component scrap for RAW2 as 10%.
Demand is coming for FG001 for the quantity of 100 PC.
When you run MRP, the system calculates quantities as below:
Required Planned
Material Demand Stock
quantity quantity
PC PC PC PC
FG001 100 0 100 1000
RAW1 50 100 50
RAW2 0 100 110
I N D I V I D U A L / C O L L E C T I V E I N D I C AT O R S
This determines whether requirements for this material have to be started individually or
collectively.
MRP DEPENDENT REQUIREMENTS
This indicator will be only used when assembly or components are planned separately and
we don’t want the system to plan them based on dependent requirements created for
finished material requirements. This applicable only for Make-to-stock production.
D I S C O N T I N U E D PA R T S
This section will be used when you want MRP to plan a different material instead of the
material in subject after effective out date. After this date stocks of this material should not
be exist and the system will replace it by the follow-up material.
Work Scheduling View
This view completely controls the production order and its execution. Some of the
important fields frequently used in any organization are explained here.
A Fragment of Work Scheduling View in SAP PP Material Master (1)
P - S M AT E R I A L S TAT U S
This field controls, when we don’t want a particular department or function in an

organization to use this material. For example, when you want to restrict production
activities for a material which is under design or development in R&D department, we can
set an appropriate status. We can also define our own plant specific status in SAP
customization. We can also maintain Valid from date from which this restriction will be
applied.
PRODUCTION UNIT
When you want to use a different unit of measurement other that Basic UOM, we can
maintain it here.
PRODUCTION SUPERVISOR
A person responsible for the production activity and scheduling for this material.
PRODUCTION SCHEDULING PROFILE
We can define which business transactions need to be executed during Production order
processing. For example, printing of shop floor paper which contains operation, raw
materials required, and user instructions after release of the order.
S E R I A L N U M B E R A N D B AT C H M A N A G E M E N T
If batch or serial number is required for the material, we can define them in this view.
T O L E R A N C E DATA
We can define here, the percentage above or below the quantity that can be posted when
we do goods receipt against production order. Unlimited indicator will allow system to do
GR (goods receipt) irrespective of the order quantity.
LOT SIZE DEPENDENT
In MRP2 view, we defined the in-house production which is lot size independent, i.e. for
any of the order quantity the system uses this value to calculate planned end date. If you
want the system to calculate it with respect to the lot size, we can also define here.
Did you like this tutorial? Have any questions or comments? We would love to hear your
feedback in the comments section below. It’d be a big help for us, and hopefully it’s
something we can address for you in improvement of our free SAP PP tutorials.
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5 thoughts on “SAP PP Material Master”
Jose Jesus Perea Parra

June 3, 2017 at 4:07 pm
1.1 lesson completed
Abhinav Kumar Maurya

June 12, 2017 at 10:13 pm
It is really very helpful and the way of explanation is very nice.

Thanks
Jerry
August 29, 2017 at 5:22 pm
Lesson completed; very good information.
Kavi
November 24, 2017 at 12:13 am
For the beginners I believe its well explained and understandable:) Thanks
Velmurugan S
November 24, 2017 at 3:38 am
Thanks for the feedback
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Home » SAP PP » SAP PP Training » SAP PP Material Master

SAP PP Material Master

Written by Velmurugan Saravanavelu and last updated on April 30, 2017.

In this tutorial, we will discuss and learn about SAP PP

SAP MM Material Master

What is a Material Master?

A Material Master is a central master data of an organization which contains information

Client Level or general data

Material type and Industrial sector in Material

Views Available in SAP PP Material Master

Role of a Material Master in Production Planning

The following views are relevant for production planning:

Material Requirement Planning (MRP1, MRP2, MRP3 and MRP4 views)

Material master contains information related to planning and production execution.

How to Create SAP PP Material Master?

Create a Material Master in SAP PP – Menu Path

Initial Screen of MM01 Transaction

Here Material number can be external or internal number. Depending on business

Select Views of a Material Master that Need to be

How to Change/Display Material Master

MM02 Change Material Master

MM03 Display Material Master

SAP PP Material Master Views

MRP views in a material master give the following information:

How the material needs to be planned

Work Scheduling View

A Work Scheduling view contains the following details:

Person responsible for production

SAP MRP (Material Requirement Planning) Procedures

A Fragment of MRP1 View in SAP PP Material Master (1)

PLANNING TIME FENCE

A Fragment of MRP1 View in SAP PP Material Master (2)

Lot Sizing Procedures in SAP PP

In period lot size,

Example EX – Lot for Lot TB – Daily Lot size GR – Groff reorder

Size MB – Monthly Lot Procedure

FX – Fixed Lot size

A Fragment of MRP2 View in SAP PP Material Master (1)

Both Procurement types (External or In-

SPECIAL PROCUREMENT TYPE

Routing – Component assignment screen

At the time of Goods issue

If material is a component of an assembly, this fields refer to ‘Issuing storage location”. If

A Fragment of MRP2 View in SAP PP Material Master (2)

SCHEDULING MARGIN KEY

Floats in Scheduling Margin Key

A Fragment of MRP2 View in SAP PP Material Master (3)

Behavior of individual strategies will be explained in tutorials about demand management.

A Fragment of MRP3 View in SAP PP Material Master (1)

A Fragment of MRP3 View in SAP PP Material Master (2)

In production planning we can perform availability check at various places:

1. At the time of production order creation.

A Fragment of MRP4 View in SAP PP Material Master (1)

Assembly FG001 required raw materials RAW1 and RAW2.

FG001 100 0 100 1000

RAW2 0 100 110

MRP DEPENDENT REQUIREMENTS

A Fragment of MRP4 View in SAP PP Material Master (2)

Work Scheduling View

A Fragment of Work Scheduling View in SAP PP Material Master (1)

This field controls, when we don’t want a particular department or function in an

PRODUCTION SCHEDULING PROFILE

A Fragment of Work Scheduling View in SAP PP Material Master (2)