9/17/2014 Material Types - Product Cost Planning (CO-PC-PCP) - SAP Library

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Material Types
Definition
Divides materials with the same properties into groups.
Use
So that different materials can be managed consistently in accordance with company requirements,
those materials with the same properties are divided into groups and assigned to a material type.
Examples of such groups are:
Raw materials (ROH)
Semifinished products (HALB)
Finished products (FERT)
Materials procured externally (FREMD)
Process materials (PROC)
Trading goods
Operating supplies
Each material is assigned to a material type so that ii is designated as, for example, a raw material, a
semifinished product, or a finished product. This defines various control parameters for processing the
material.
For costing, the material type controls
Whether a costing view can be created in the material master record for a material of this
material type
Whether a material of this material type is normally costed using costing with a quantity
structure (that is, using BOMs and routings), or costing without a quantity structure (manually,
using unit costing)
Whether the value and quantity for the material for the relevant plant is shown in the material
master record
How the material is assigned to the stock and consumption accounts in Financial Accounting
You determine which control parameters are linked to the material type in Customizing for Logistics
General.
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9/17/2014 Material Types - Product Cost Planning (CO-PC-PCP) - SAP Library
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A costing view can only be created by the system if the Costing indicator is set for a
material type. If no costing view exists in the material master record, the system creates
a costing view when costing is carried out.
You can use the material type to specify that the With quantity structure indicator is set as a default
when you create a material master with this material type. The With quantity structure indicator
specifies that materials of this material type will generally be costed using material costing. If the
indicator is not set, the system looks for an existing material cost estimate without quantity structure. If
no cost estimate without quantity structure exists, the material is costed as a raw material.
In the standard system, the material types for raw materials, semifinished products, and finished
products are defined in such a way that materials with these material types can be costed with
material costing.
You can reset the With quantity structure indicator manually in the costing view of the material
master record.

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