Material type & material group

Dear All,
what is the different between material type & material group

Hi,
Material type:
Materials with the same basic attributes are grouped together and assigned to a material type. This allows you to manage different materials in a uniform manner in accordance with your company's requirements
The material type identifies the characteristics of a material that are important with regard to Accounting and Inventory Management. A material is assigned a type when you create the material master record.
"Raw materials" and "finished products" are examples of material types. In the standard MM module, the material type for the former (ROH) denotes an externally procured (bought-in) material, whereas the material type for the latter (FERT) indicates that the relevant material is produced in-house.
Material type you choose determines:
u2022     Whether the material is intended for a specific purpose, for example, as a configurable material or process material
u2022     Whether the material number can be assigned internally or externally
u2022     The number range from which the material number is taken
u2022     Which screens appear and in what sequence
u2022     Which departmental data you may enter
u2022     What procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both
Together with the plant, the material type determines the material's inventory management requirement; that is:
u2022     Whether changes in quantity are updated in the material master record
u2022     Whether changes in value are also updated in the stock accounts in financial accounting
In addition, the accounts affected by a material entering or leaving the warehouse depend on the material type.
Material Group:
    Key that you use to group together several materials or services with the same attributes, and to assign them to a particular material group.
    You can use material groups to:
u2022     Restrict the scope of analyses
u2022     Search specifically for material master records via search helps
It can be assigned in material master in Basic Data1 (Client level) and Purchasing (Pur org level) views.
Regards.
Chinna
Edited by: Chinna Veerappa on Jan 21, 2009 5:29 AM

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