Difference between material group and external material group

Hi,
Can anybody let me know the difference between the material group and external materila group from the business perspective.
Thanks

Hi Raghunandan,
Material Group : Materials having similar attributes will be goruped together and assigned to a Material Group.
Material groups are Extensively useful during :
Limit the Scope of Analysis
Reporting Purpose
External material group : Key that you can use to assign the material to an external material group or to a material group determined according to external systematics.
In General, External material groups are nothing but external representation of group of material which are extensively used in supply souce determination for provions materials related to retail and some other functions
In short if your Internal material group for example bearing is 0001 you can group externally further based on manufacturer like FAG for NRB. No accounting activity is based on it
Reg,
Ashok

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