Material Types in Multy-Company Structure

Hello, experts,
We are implementing SAP ERP in a multy-company structure. Seven different company codes will be definied in the same SAP client. Three of these companies (A, B and C) produce similar machines. Another company (D) produces components for the machines that the other three companies (A, B and C) produce. Two of the companies (E and F) are pure wholesalers. They buy materials from the other companies (A, B, C and D) and sell them to external customers.
Another example:
Material X is a component which company D produces. So for company D this is a finished product (FERT). The same material is used as a component in the BOM of material Y, which companies A, B and C produce. So, for companies A, B and C material X is a raw material (ROH) and material Y is a finished product (FERT). Companies E and F buy both material X and material Y from companies D and A, B, C respectively and sell it to external customers. So for companies E and F both material X and Y are trading goods (HAWA).
I guess you see the trouble :). So, what material types shall be defined in this SAP client?
Thanks in advance for your answers.
Regards,
Rosen

one material can only have one material type.
If you dont want to use standard material types such as FERT, just because the other company does not accept this because for them it is a raw material, then just define an own material type.
a material type is nothing but description with some customizing. It is mainly used to define the layout of a material master, which views and fields will be present.
But people think they need to use the material type as key for reports. This will not work in a intercompany business.
I had such dicussions several times, people often just were confused because a raw material for them becomes a FERT in SAP, so you can ease the discussion by defining an own material type, even this will not solve the reporting issue .

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We are looking for the pro's and con's of using copies of standard SAP material types for my company. We are a consumer goods company and looking to see if there are drawbacks and benefits when it comes time to upgrade SAP. Also what industry standards are out there for when we change / add views to standard SAP material types.
Regards,
Josh

there are no real pros and cons - just philosophy
We're using the SAP given material types, even adjusted to our needs, already for many years from 3.1 to 6.3 release and had never any issue with hotpackages or ith release changes.
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(Remember, it is a personal setting if keys are shown in dropdown lists, and I know many user who do not display the keys)

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Hi all,
i have this business scenario:
an import-export company in Italy that does only service of import and export of goods without purchase and sales of materials.
These materials enter in company's storage locations (but they're not of company's property) and then they leave the storage location to be delivered to another customer.
This company needs to manage these materials, in quantity, to have each day the situation of goods for each customer.
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Thanks to all,
I have seen something of trading scenario, but the most part of theseones regarding companies that buy and sell goods, and the goods are the proprerty of company. For my company, the scenario is a little different, because of goods that is only stocked in its storage location (NOT PROPERTY). And so i can't do a standard purchase order and a standard sales order.
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company bill transport and other services to customer A
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Dear All Guru,
Yesterday I had copied the plant from the plant belong to same company and maintained the same val Gr Code.
But i found that I am not able to make GR posting and the error was Plant and material type is not matching and then over SDN i got the soln to maintain qty and value for matl type and it resolved the problem.
but can anybody tell me that why this can happen ?
b'coz still if the val/qty ticks are not maintained why system is showing the material type and plant combination error...though it can consider this as UNBW material and can still post the GR
also can you suggest the right method for coping the plant so i won't face problem like this or any check methods after coping new plant
Regards,
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Hi,
For Preparation of New Plant, following steps to be adopted.
1. Excute the India Specific Localize Sample Organizational Units using SPRO> Enterprise Structure> Localize Sample Organizational Units.
In this IMG activity, you localize the sample organizational units by applying the appropriate country template like India to them.
2. Then, in the next IMG activities (under Enterprise Structure Definition and Assignment), you copy these localized organizational units to create units of your own.
Caution:
Only execute this IMG activity if you have not changed any Customizing settings in SAP R/3.
Do not execute this IMG activity in your production client, as it will overwrite the settings for any organizational units named 0001. Run it only in your production preparation client from where you will transport to Prodution Client.
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Dear Sapusers
What are the Attributes of material type can you focus on this please
Rgds
Ana.

Hi,
Define attributes of material types
Each time you create a material master record, you must assign it to a material type . You use the material type to define the attributes of a material master record. Material types are used in the following neighboring areas, where they are also configured in Customizing:
Profit Center Accounting
Product Cost Planning
Sales and Distribution (availability check)
Valuation
Bills of material
Routings
Consult with these areas if necessary.
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Under Views, you specify the following:
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          o Material type key
          o If required, an authorization group to protect access
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          o Check of number ranges if material numbers are assigned externally
          o If required, a default value for the item category group in sales data (consult with Sales and Distribution)
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          o Views and relevant fields that may be processed; that is, the user departments that may maintain a material master record of a particular material type
Under Quantity/value, you specify the following:
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Under Account assignment, you specify the following:
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Once you have maintained the material types, you must also define the number intervals before you can create a material master record.
Actions
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Note 1
If you allow different quantity/value updating, you must activate the material type for each valuation area for this updating. You do this under Diff. val. areas.
Note 2
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for any further info , pl refer below link
[http://help.sap.com/saphelp_40b/helpdata/fr/87/23ee347a34d111a4620060b03c3b0e/frameset.htm]

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I have 2 Plant under a Company Code. A material being produced in plant A has to be sent to Plant B for further processing. I would like to maintain single material master for both the plants, but different Material Types. Material has to be treated as Finished Goods in Plant A and Raw Material at Plant B. Could any one please let me know how I can MAP it in SAP.
Regards,
Nagaraja Achar.

Hi,
For the Same material Code you can not maintain two material types in two plants..
But you can make a Z* mat type with all the relevant views of FG & ROH..
For Plant 1 it will have all the views
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Thx
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Hi Experts ,
My client is thinking of expansion of its plant . This new plant would be copy of their already existing plant at another location . Now some of materials for manufacturing finish materials are same in both plants but they both use different material types . That is here there is only one mat type where there they use 4 mat types .
Now do I need to create new plant here or I can use the same existing plant for creation of new materials ? If I want to use the same plant then would be the effect on valuation of mat. Can these mat with different mat types be transported successfully ?

Hi Neal,
So you did enjoy your weekend!!! Good good; well you go to IMG ( SPRO ) and on to ENTERPRISE STRUCTURE >> ASSIGNMENT >> LOGISTICS EXECUTION; and just in case you miss out the warehouse number, ENTERPRISE STRUCTURE >> DEFINITION >> LOGISTICS EXECUTION . You will find the links there. Unfortunately I created a screenshot for you but I just do not know how to attach it.
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LL01 - warehouse activity monitor.
Since the plant and warehouse will be linked, I guess there would be no discrimination on checking stock but I am pretty sure system checks warehouse stock first. That is the entire procedure. I hope it helps. Do reward points if I was able to answer your query.
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Sreekant.

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Hello Gurus!
Can anyone please help with the following problem:
Im trying to do the material cost estimate with quantity structure, but the system is throwing back the message " There is no exchange rate for exchange rate type P on 1.01.2008: CHF -> EUR".
This happens because I have a subcontratation in my routing in CHF, and in transaction OB08, and I dont had defined that rate (type P CHF EUR).
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Points will be assigned to the suitable answer.
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Hi Sridhar
Thanks for your reply.
In OKEQ for the version 0, I have the rate type M.
I don't understand why the system throwing back the message " There is no exchange rate for exchange rate type P on 1.01.2008: CHF -> EUR".!
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Hey dear friends.
I donu2019t know in which forum I should put my question above.
In fact, Iu2019m new to SAP PM module.
Iu2019m trying to create material cost estimate with quantity structure (tcode: CK11N) for a material u201CXu201D.
This material is manufactured.
While running the transaction CK11N, I got an error message.
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It seems like the old activity types still linked to the cost centers somewhere else than in tcode CR03u2026
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Bahia.

Dear Bahia,
If its rate routing means,i guess you must be working in REM scenario.
So goto CA22,delete the existing operation and then assign the same work center in a new
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Regards
Mangalraj.S
Edited by: Mangalraj.S on Jun 17, 2009 12:05 PM

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Dear all,
I have a scenario where in i am recieving co2 gas from my vendor against a PO.
He is supplying it with cylinders i want to keep track of the cylinders and afetr using the gas want to return the cylinder to vendor.
Now the doubt arises, under which material type should I create this cylinder.
Doubt 1
I thougt of creating under the material type : LEIH, but this material type also contains the purchasing, accounting, sales view and same time in the config of the material type LEIH, value updating is not ticked, which is making me confuse.
Doubt 2
What I felt is, LEIH should be used for the our owns company returnable packaging material , which will go to the customer , but again for this also, these material should be valuated, since they belongs to our own stock , so why in standard SAP, value updation is not there.
Doubt 3
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Regards
Nitin

You can copy LEIH and create your own Materia Type say ZLEI. For this material type you can have only General Plant / Storage Data1 view enabled.
Remember, there are 2 materials here:
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2. Returnable packaging (cylinder)
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When you create the PO only mainitan Gas as the material.
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Material type for - Diesel

Hi Friends,
My Client is Construction Equipment leasing company.
They lease (Say Generator ) on lease, they also sell Diesel along with that machine.
For Diesel, which material type we use?? I thought of using (HIBE - Operating Supplies) but it doesnt have Sales View {other option - i can configure copy of HIBE with Sales View} .
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Regards,
Jackie

you can create own material types or change SAP given material types to your local needs.
if you want sales views for HIBE, then add it.
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Material type for BOM that should not create production order

Hello all,
We have following situation in our company:
We ship few products say for e.g A,B,C which are part of higer level BOM for product M1 to the customer, before the actual product M1 is shipped.Currently these ship-a-head products(A,B,C) is also part of BOM for M1.
We need to combine these ship-a-head products A,B,C as one product M2 (thinking of a BOM) and ship that M2 to customer before M1 is shipped.
In that case what could be the material type for product M2 so that MRP won't create any Production orders for M2.
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Thanks,
Sre

Hi,
Please create BOM for Material M2 by using usage other than production..
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2     .     +     .     -     -     -     .     Engineering/Design
3     .     .     .     .     -     -     .     Universal
4     -     -     .     -     -     +     .     Plant Maintenance
5     .     .     +     +     -     -     .     Sales and Distribution
6     .     .     +     .     -     -     .     Costing
7     .     -     .     .     -     -     -     Empties
8     -     .     -     -     -     -     -     Stability Study
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Kuber

Material Type for Software

What would be an appropriate material type for sellable software? Dien? Fert? thx

A material type is nothing than a description plus some customized attributes. for one company the predefined material types work right away while others may have to tweak them to their needs.
what is a spare part ERSA for one company, may be a FERT for an other company, it depends on your business.
I am working in a chemical company, a Pipe or an ellbow is just a spare part for us. A company that manufactures pipes and ellbows has those items as FERTs, a company that builds tankfarms has these items as raw materials.
what is a software, probably a FERT for the company that developes it. But the predefined nature of a FERT is quantity and value managed. Which would make sense for software too, if the software is on a CD and the CD in carton.
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Hai Everybody,
I am having a material which is a Byproduct & Scrap of final product , we are reusing the byproduct & Scrap as a raw material again in our process.
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Regards,
Mohan

Create a material type similar to Semifinished as ZBIP or ZSCRP and mark them as Bi-Products or Co-Product in the material master and also in the BOM with negative quantity.
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Now you can get this material ouptut as Bi-product or Scrap and use this as even raw material in some other semifinished or finished product BOM.
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Hoep this helps you.

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Hi,
Can we restrict any user from viewing material stock (MMBE) for particular materials or material group or material types.
Thanks
Nilesh

HI,
I cannot think of a way this is possible. You can only make these restrictions for standard LIS reporting info structures where the authorisation objects exist.
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Thanks.

Material Types in Multy-Company Structure

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