Material Type Configuration and Number Range in SAP MM explained

Main topic

Tutorial on SAP MM Material Master configuration, focusing specifically on:

1. Material Type configuration
2. Material Type → Number range assignment (internal vs external)

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1) Material type configuration (SPRO path + key settings)

Where to configure

SPRO → SAP Reference IMG → Logistics → General → Material Master → Basic Settings → Define attributes of material types

Viewing/understanding material types

Material types are maintained in Define attributes of material types.

Examples given:

• RO = standard material type for raw materials
• FERT = standard material type for finished goods
• Special examples:
  • STRV / FORV for lean service procurement
  • PIPE for pipeline procurement (checkbox activated)

Key configuration fields/sections explained

For a selected material type (e.g., RO), the screen contains multiple configuration areas:

A) Product type group (material vs service)

Controls whether the material type represents a material or a service.

Examples mentioned:

• Blank / 1 = material
• 2 = service

For lean service procurement, a service-related material type uses a special product type group and requires maintaining specific values (e.g., S2 in the process context).

B) General data controls

Key controls described:

• Field reference: controls field selection on the material master (optional / mandatory / display / hidden)
• Screen reference: controls which screens appear and their sequence
• Authorization group: controls whether a user can create the material with that material type
• Cross-plant material status: default status values at cross-plant/client level
• Item category group: defaults the item category group used in SD/ST processes
• Quantity structure: impacts costing (quantity structure vs no quantity structure)
• Initial status for batch
• External number assignment without check:
  • if the checkbox is active, the system won’t validate entered external numbers against allowed ranges

C) Special material type functions

A checkbox section must be activated to use special functions.

Examples mentioned:

• Configurable material
• Pipeline material
• Manufacturer part material

For PIPE, the checkbox is activated to support pipeline procurement.

D) User departments (views/screens offered on MM01)

Controls which department-specific views appear when creating a material.

Example for RO:

• Sales, production tools, and warehouse management may be missing depending on which user departments are selected.

Demonstration:

• With RO, the warehouse management view is not available in MM01 because it’s not selected in the material type configuration.

E) Internal vs external procurement (PO vs production order)

Configures whether:

• External purchase orders are allowed
• Internal purchase orders / production orders are allowed

For RO example:

• both internal (production order) and external (purchase order) are allowed

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2) Classification + Valuation controls

Classification defaults

• Material master can be created with class + characteristics
• Material type can default:
  • Class type
  • Class

Valuation section (critical for pricing/accounting)

A) Price control

Options:

• Standard price (S)
  • Goods receipt posts inventory using the standard price from the material master
  • PO price difference posts to price difference account
• Moving average price (V)
  • Goods/invoice receipts adjust material price using PO price and average calculation

Practical rule-of-thumb stated:

• Raw materials → moving average
• Finished goods → standard

B) Account category reference → controls Valuation classes allowed

• Material type stores an account category reference (e.g., raw vs finished)
• The valuation class dropdown values shown to the user are driven by the account category reference

Example:

• RO uses triple01 → certain valuation classes
• FERT uses triple09 → different valuation classes

C) Price control mandatory checkbox

If active for the material type:

• End user cannot change price control during MM01 creation

Demonstrated by creating materials where price control is grayed out.

D) Quantity/Value updating (valuated vs nonvaluated vs non-stock)

Controls how goods movements update:

• Quantity
• Value

Options exist:

• for all plants / no plant / by valuation area

Examples demonstrated with material types:

• Nonvaluated material (UNBW): quantity updates, value not updated
• Non-stock (NLAG): quantity and value not updated

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3) Custom material type creation (copy + modify)

The tutorial demonstrates making custom material types by copying standard ones.

Custom raw material type example (based on RO)

• Copy RO → create custom key (example: YRH / Y_RO)
• In User departments, sales-related views are deselected
• Result:
  • when creating a material in MM01, sales-related views do not appear

Custom finished good type example

• Copy FERT → create custom key (example: YERT / Y_FERT custom)
• In procurement configuration:
  • External purchase order allowed = 0 (not allowed)
• Result:
  • when attempting to create a purchase order (ME21N), the system errors with external procurement not defined for that material type

Custom mandatory price control behavior

Tutorial also shows enabling price control mandatory:

• users cannot switch S ↔ V during material creation

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4) Number range assignment by material type

Why it matters

When creating material in MM01, the system automatically assigns material numbers based on:

• Material type → Number range group → internal/external intervals

Concepts explained

Two number range types:

1. Internal number range
   • system assigns a number (numeric only)
2. External number range
   • user enters the material number (numeric or alphanumeric allowed)

Material type can allow:

• internal only
• external only
• both internal and external

Where to configure number ranges

SPRO → SAP Reference IMG → Logistics → General → Material Master → Basic Settings → Define number ranges for each material type

Under the hood, material number range setup is two-step:

1. Create number range group + number range intervals
2. Assign that group to the material type

Number range intervals and flags

Display intervals show:

• From / To
• whether each interval is external (checkbox)
• NR status (last used)

For a group, you can assign:

• internal interval only
• external interval only
• both internal and external (tutorial notes these are typically the associated paired intervals)

Demonstrated behavior outcomes

RO example

• RO is assigned to a group with only an internal interval
• Result:
  • MM01 auto-assigns a number within that range
  • entering an external number manually produces an error like:
    • no external number assignment possible

Custom material type assigned to a group with internal + external

• The tutorial assigns the custom material type to a group containing:
  • internal interval (e.g., 01)
  • external interval (e.g., 02)

Result:

• If user leaves number blank → system assigns internal number
• If user enters number externally → system accepts it only if within the allowed external interval
• Out-of-range external number → error like:
  • “number not defined…”

Creating a new number range interval + group + assignment

• Uses a transaction for number range intervals (mentioned: T-code MMR)
• Ensures new intervals do not overlap existing ones (free interval check)
• Then assigns the created interval/group to the material type
• Demonstrates material creation where the number falls within the newly created interval

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Next video preview (what will be covered later)

• Field selection and screen configuration
• Material length configuration
• Key fields configuration for material master

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Main speakers / sources

• Main speaker: the channel host/instructor (speaking throughout the tutorial; no specific name given)
• Primary source: SAP S/4HANA + SAP MM configuration documentation/menus via SPRO reference IMG and MM01/ME21N screens
  • Also references standard SAP functions like lean service procurement, pipeline procurement, and valuation mechanisms.