Reg. New material type and New movement type

Question

dear Friends
For what reason we need to create new material type and movement type ? this quesition is frequently asked by interviewer,but my answer is not exactly correct. Please tell me, why we are create newly. already I posted this quesition and got reply but no satisfaction with that.
Thanks in advance
Rajakumar.K
*Note : Interview questions were not allowed in forum,Search forum before posting,lot of answered
threads already available*
Edited by: Jeyakanthan A on May 26, 2011 10:57 AM

Answer 1

Hi,
New Material type is required to meet various business functionalities of client. Depending on user department views required by client, field selection key required, wheather quanity and value updation is required or not and if so under which valuation area its required, wheather the business wants to have default value of price control  in material master, number range intervals to be used and wheather its internal/external, account determination process etc are some controlling functions which may force a business to create customised or new material type.
Similarly new movement types can be created when the controlling features of the existing movement type do not match the requirement like wheather any movement type is required to move goods from GR valuated stock ( as an illustration), wheather auto PO/Auto storage location needs to be decided automatically, new account grouping and field selection procedure to be used etc are some controlling functions. As an illustration in earlier version of ECC 6.0 there was no movt type like 107,109 etc but since most of the business wanted to valuate stock when goods movement will occur from GR valuated stock , the above movt types was introduced in ECC 6.0. Thus business justification and understanding should be concrete to create new movt type.