How to Create Material Master in SAP MM

material master,sap mm,sap training,sap access

How to Create Material Master This article describes how to create the material master. Some of the key fields will be explained through the process The transaction codes to do the same are

MM01 Create Material Master

MM02 Change Material Master

MM03 Display Material Master

Typically all materials are maintained by the MM consultant, but the SD and PP consultants can also specify their parameters and create them. However, ultimately creating and maintaining material masters is the job of the SAP MM Consultant. Click through if you are interested in getting trained in SAP Training or would like to get SAP Access to practice the same.

Step No. 1 The menu path to create the material master is as follows [Logistics->Material Management -> Material Master -> Material-> Create ( General ) -> Create Immediately ]

Step No. 2: Enter the material name, industry sector and material type.

Material type is the most important field in this screen. It controls how the material behaves in the material master as well as across the supply chain. For example, the material type determines all of the following

  • Price Control ( Standard or Moving Average )
  • Item Category Group ( NORM.. etc )
  • Views ( A material master has so many views that will be discussed soon )
  • Valuation Category
  • Procurement type

And much more.

Step No. 3 : Now after the material name has been entered, hit enter and you will be prompted to choose the views. The material type defines the views. For now, lets choose the following views as relevant for SAP MM training.

Step No.4 – In this step, we select the organizational levels. Organizational levels are org units that this material will be created for. For example, a material could be restricted to a particular purchasing organization. If you need to use that material for a different purchasing organization, the material needs to be extended. Let’s choose Plant 1200 and storage location 0001

Step No. 5 – Enter the basic data – Material Description : A brief description of the material Base Unit of Measure : There are different units of measure like the base unit of measure, purchasing unit of measure, sales unit of measure, warehouse unit of measure etc. Materials are measured in different units depending on the place where they are used. A soda manufacturing plant might use crates as the unit of measure, whereas the same soda can can be sold in 6-packs in sales.

We are selecting a material group of 001201 which stands for pumps. Material groups can be configured elsewhere and it will be covered as part of our full-fledged SAP MM Training. We also enter a division of 01 which stands for pumps. You can refer to our organization structure tutorial to understand divisions. Item category Group : As the name says, this is a grouping of materials depending on attributes. This field can be used as the origin point for procurement proposal or for return deliveries in purchasing. Item category group in the sales view is used extensively in SD to determine item category. Here are some standard item categories VERP – packaging NLAG – Non stock material DIEN – Service with delivery BANS – Third Party Item LEIH – Returnable packacing Click on the drop down for the general item category group to learn more. This finishes the basic data tab. Now, lets move on to the purchasing tab

Step No. 6 : After you hit enter, if there are no more mandatory fields to be filled in the basic data, the focus automatically moves to the next selected view, which in this case is purchasing. Some fields are repeated here like the description, unit of measure, Material group etc. As discussed previously, there could be multiple units of measure depending on the function where the material is being used – like sales, purchasing, manufacturing etc. Here you can select a different unit of measure which becomes the purchasing unit of measure.

Plant Specific Material Status : This field is used to restrict the material to a particular function – Like Blocked for procurement, Blocked for Task List Blocked for Purchasing, Blocked for costing etc.

Tax Indicator for Material : This defines the taxability from a procurement perspective. For sales, there is another indicator in the sales tab that defines the taxability

Material Freight Group: This is used to finally determine the freight code that is used in determining freight prices for that material. For now, we will leave it blank.

Automatic PO : This indicator is used to determine if the purchase requisition can be converted to purchase order automatically (although there are other parameters like source of supply, vendor info records etc that should be set )

Batch Management : This field is used to identify if the materials can be used in batches. G/R Processing Time : This is a very important field and will be discussed in full during the SAP Training session.

Post to inspection stock : If this field is activated, the system automatically posts the goods receipt into the quality inspection stock ( As opposed to unrestricted or blocked stock )

Quota Arrangement Usage : This field requires extensive explanation regarding vendors, quota, quota file etc and will covered in the SAP MM Training session.

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  39. HILIKESWAR August 23, 2013 at 5:30 pm #


  40. shiv Kr Gupta February 10, 2013 at 8:36 am #

    it is really good site for learner.

  41. Ramona July 30, 2012 at 6:32 pm #

    I have save the material only with a few fields (MRP1, MRP2, MRP3 …), and i forgot to add Accounting. Can someone tell me how to do this ? I tried with mm02, but no chance… is there any other transaction ?

    • Julie July 30, 2012 at 9:07 pm #

      You need to go into mm01 and copy the material onto itself and add the view that you need.

    • siva August 3, 2012 at 11:13 am #

      Try MM01

  42. KRISHNA MOORTHY V June 7, 2012 at 10:39 am #

    please provide some information about material management…if there are any updates,please send me via E-mail…

  43. aaa May 24, 2012 at 7:47 pm #

    materail is not created

  44. David February 20, 2012 at 7:13 pm #

    material David01 created

  45. Satya February 10, 2012 at 8:39 pm #

    z_tylenol material is created

  46. Mahesh February 7, 2012 at 10:51 pm #

    Material “Apple Laptop” created.

  47. Ronaldo February 7, 2012 at 7:57 pm #

    Material “MAT_TEST”, WAS CREATED.

  48. Ilana February 7, 2012 at 7:03 pm #

    created material IL-01

  49. Murali Kotikalapoodi January 25, 2012 at 8:10 pm #

    Created Material MTEST-01
    Industry Sector: Service Provider
    Material Type: Service
    Plant 1000
    Sales Org 1000 DCl: 10
    Price Control: S

  50. Guru January 8, 2012 at 1:23 am #

    Material PRD-45263-023 created

    Industry Sector: Retail
    Material Type:Finished Product

    Sales Org:1000

    Basic Unit of Measure:PC
    Mat Group:0025
    Old Mat Number:2345
    Gross wt:2
    weight Unit:KG
    Net Weight:1

    Sales Unit:PAL

    Loading Grp:0001

    Valuation class:7920
    Standard price:220

  51. Manjunath January 4, 2012 at 4:09 pm #

    Hi, while creating material it is automatically taking some 4 digit instead of material name. plz advise how to proceed..??

    Thanks in advance.

  52. Mital Shah December 13, 2011 at 7:20 pm #

    Created Material MS-01(Cell Phone PKT short)
    Material type: FERT(Finished product
    Industrial Sector: Retail
    Sales org:1000,Dist. CH.-10,
    Unit measure:EA(each)
    Sales unit: DZ
    material group: R1142(Men Clothing)
    Gross:250, Weight Unit: G(Gram)
    Net weight:200
    Size/Dimension: 30 to 60
    Gen. Item cat. Grp: Norm(Standard Item)

  53. Hal Russell November 22, 2011 at 10:52 pm #

    I have a situation where another plant and or purchasing organization has the material I need to establish at our plant. How do do this?

    • siva November 23, 2011 at 6:16 am #

      Extend the material to your plant. Is there anything I am missing ?

  54. Larry Cabral October 19, 2011 at 12:00 am #

    I created Material# = LC-01 LC test wiget 1
    Industry class = M Mechanical Engine
    Material Type = FERT Finished Goods

    Plant = 0006 (New York)
    Storage location = 0090 (main US warehouse)
    Base unit of measure = EA
    Material Group = 001201
    Division = 00

    The intent was to create a product that might be easier to test with the NJ/NY (3000/10/00 and 3000/01/00) customers I created in previous exercises.

  55. Rawlings October 3, 2011 at 11:50 am #

    Hi Siva,

    Under Material Group you said ‘material type controls the properties of the customer’; Is the statement correct and if yes, how does that happen?

  56. justin September 21, 2011 at 9:15 am #

    hi siva,

    Item category group :
    In the above you have mentioned item can be used for orgin point for procurement proposal,and return deliveries in purchasing .

    How does a item category group is used for the above mentioned ,Could you please give a simple example so it makes clear .


  57. EHSAN August 23, 2011 at 4:55 pm #


    In step no 5. above where you wrote: “Here are some standard item categories VERP – packaging NLAG – Non stock material DIEN – Service with delivery BANS – Third Party Item LEIH ” – I think you meant to write MATERIAL TYPE? Right?

    • siva August 24, 2011 at 4:52 am #

      No – I meant Item Category Groups. The names are similar looking to material types but I meant item category groups. Check out the SAP Item Category groups in Sales Org 2 view of the SAP Material Master

  58. BHANU August 3, 2011 at 12:45 am #


    How do we create Stock in Plant for a new material created . I have created material M-BD (SAP SD Course) (Finished Good) but am having trouble in creating its stock in the plant to include this material in a Sales Order.

    Please revert


  59. Sahil July 4, 2011 at 1:54 pm #

    Creation of Material

    Material = M-21
    Industry Sector= Mechanical Engineering
    Material Type = Raw Materail
    Material Name = Sahil Material

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