03 Material Master Data T-Code MM01

Published: 22 May 2022
on channel: RAVICONSULTANCY

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SAP material master data for finished goods
In SAP, material master data is a central repository of information about a material (product) that is used in various business processes across departments like sales, purchasing, and production. Finished goods (often identified by the material type 'FERT') represent the end products that a company manufactures and sells to its customers.
Here's a breakdown of the key aspects of managing finished goods material master data in SAP:
1. Material type FERT
Definition: FERT is the standard material type for finished products, meaning they are manufactured in-house and intended for sale.
Key characteristic: Finished goods have sales information but do not contain purchasing information because they are produced internally, not procured from external vendors.
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2. Important views for finished goods
Finished goods require specific views to be maintained in the material master to ensure smooth execution of sales and production processes:
Basic Data (1 & 2): Contains general information about the material, such as description, base unit of measure, material group, and division.
Sales Views (Sales Org Data 1 & 2, Sales: General/Plant): These views store sales-related data like sales unit, delivery plant, and tax information.
MRP Views (MRP 1, 2, 3, 4): Crucial for production planning and control, containing information such as MRP type, MRP controller, lot size, and safety stock.
Work Scheduling View: Defines data related to production scheduling and capacity planning, including production schedule profile and tolerances for delivery quantities.
Accounting Views (Accounting 1 & 2): Used to define how the material is valued, including valuation class, price control (standard or moving average), and costing information.
Costing Views (Costing 1 & 2): Used to define how the cost of the finished product is calculated, including details on quantity structure and material origin.
3. Transaction codes for managing finished goods
MM01: Used to create new finished goods materials in the system.
MM02: Used to change existing finished goods materials, for instance, updating sales prices or production planning parameters.
MM03: Used to display material master data, including information specific to finished goods.
MMF1: A special transaction code used specifically to create finished goods material masters in SAP. The material type is pre-filled as FERT when using MMF1.
4. Importance of accurate data
Centralized Information: The material master serves as a single source of truth, reducing inconsistencies and redundancy across various departments like purchasing, inventory management, and production.
Process Efficiency: Accurate and up-to-date material master data is essential for efficient logistics processes, including procurement, production planning, sales, and distribution.
Cost Reduction: Correct material master data helps in avoiding duplicate purchases, optimizing inventory levels, and improving overall cost control.
Improved Decision Making: Reliable data enables better decision-making in areas like demand forecasting, inventory management, and production scheduling.
5. Potential challenges
Data Quality: Incomplete, inaccurate, or duplicate records can lead to various problems like incorrect shipments, delayed deliveries, and inflated costs.
Data Governance: Lack of clear policies and procedures for creating, updating, and managing material master data can result in inconsistencies and compliance risks.
Data Integration: Difficulty in integrating material master data across disparate systems can lead to silos and fragmented information.
Surya – SAP Trainer
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