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What Happens If We Don T Maintain Cost in Material Master?

Volume rebate groups, material pricing groups, and general item category groups are used to group materials for common pricing or processing purposes. Shipping conditions, loading groups, and plants determine how materials are transported. Item category groups control how materials are processed

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Kiran Bharati
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1K views5 pages

What Happens If We Don T Maintain Cost in Material Master?

Volume rebate groups, material pricing groups, and general item category groups are used to group materials for common pricing or processing purposes. Shipping conditions, loading groups, and plants determine how materials are transported. Item category groups control how materials are processed

Uploaded by

Kiran Bharati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1. What is the purpose of valuation class?

Valuation class categorizes the G/L account on the basis of material type. For example, raw material will
have different G/L account than the finished material, as the costs will be different in both the cases. Account
reference is also maintained along with the valuation class.
What happens if we don‟t maintain cost in material master?
1) Check in condition tab of that billing document as to why the cost is not flowing. Update here

2) Yes you need to maintain the value. In fact, as you indicated, it will not always be standard price; in some
cases, it would be Moving Average price also which depends on material valuation class.

2.

I want to block the material for sales, where is the control?


You can block the material for sales in the MMR - Sales: Sales org view 1 in the Genral data tab - X -
Dist chain status or D Chain Spec status.

X - DistChain status - Cross specifc distribution status or D Distributin chain specifc status.

3.
4. What is the material type for semi finished goods? HALB
5. What is the material type for configurable material?
KMAT
6. What is the purpose of product allocation?
Product allocation functionality allows one to manage the supply of products which do not follow a fixed
pattern of supply. The system can perform availability checks together with product allocation checks. In
Production allocation, you can allocate quantity for specific materials at various hierarchical combinations
and in turn reserve these quantities for these characteristics. These characteristics or hierarchical
combinations can be either the sales area data or this can go even up to customer groups or customer
level.

7. What is the purpose of volume rebate group?


8. What is the purpose of material pricing group? A way of grouping materials to which you want to apply the same
9. What is the purpose of shipping conditions? Shipping condition ,loading group ,plant
10. What is the purpose of loading group?
Loading groups are defined in Material Master Record, which specifically means which group will load the
material for the transportaion, is it done by Crane, or on pellets, etc. A loading point is a subdivision of a
shipping point. The loading point can be entered manually in the delivery header.

11. What is the purpose of general item category group? General Item category Group is an extension item
category group. Example: if one select item category group as NORM, but under item category group,
NORM can further be classified as Service item, packaging item or Normal item using "general item category
group".

12. What is the item category group for third party material? BANS
13. What is the item category group for BOM header pricing main item? ERLA AND LUMF plz confirm erla
14. System should not allow to change the sales unit while creating sales order where is the control?
Material master (check material master for details ans)
15. While creating delivery if delivery quantity is less than 50 quantity then system should give a error
message? Minimun quantity
16. What is the purpose of item category group? The item category group determines how a material is
processed in the sales order. It defines, for example, that pricing does not take place for a free of charge
item, such as a business gift; or that inventory management is not carried out for a service

17. What is the prerequisite to determine cash discount percentage into sales document? Payment terms and skto
18. What availability check field controls in material master? Each material, whose availability you want to
check, must be assigned a checking group on the MRP detail screen in its material master. The checking
group combines materials whose availability is checked at the same time. You can, for instance, group
materials according to the material type or the MRP type.
What is the diff b/w daily requirements & individual requirements? 01 and 02 are the checking group.
Availability check is carried out with the help of these checking group and checking rule. Checking group 01 and 02 are
maintained on the material master.
01 - Individual requirement -For this system generates transfers the requirement for each order to the MRP .So that MM can
either produce or procure.

02- Collective requirement.-In this all the requirements in a day or in a week are processed at a time.

System stores all requirements and passes on to the MRP in MRP run. In this system performance is high. However you
cannot do the back order processing whereas in other you can do

19.
What is automatic PO check?
What is the purpose of Create PO automatic check?
This acts as a valid source for the Purchase Requisition to get created with a vendor assigned . For a PO to get
created automatically, it is a must to assign a vendor. It is a List created in the system under a plant for a
material which links to possible vendors for the material supply.
20.
21. What happens if we don‟t maintain cost in material master?
22. After creating material master how to change the cost in material master? MR21 t code

How requirement type determines into sales document? 1. First, an attempt is made to find a requirements
type using the strategy group in the material master.

2. If the strategy group has not been maintained, the system will determine it using the MRP group.

3. If MRP group has not been defined, the system uses the material type, instead of the MRP group, when accessing the
corresponding control tables.

4. If no requirements type is found here, the system assumes a special rule and attempts to find a requirements type with the
aid of the item category and the MRP type.

5. If this is not possible, a last attempt is made to find a requirements type with the item category only.
6. If the last attempt fails, the system declares the transaction as not relevant for the availability check or Transfer of
requirements

23.
24. What is the purpose of RLT? Replenishment Lead time (RLT) is the time required to produce the material
in SAP.

25. What is price control? Price Control is an indicator defined in the material master data. It indicates the
method used to valuate the stock of a material. It can either be S (standard price) or V (Moving average
price).

26. T-code to create CMIR?


VD51
How plant determines into sales document? Customer material info record

Customer master

Material master

27.
What is the purpose of check division? I understand that usage of control element “” Check
Division”” to to prompt for dialog or error when item division is different from the
header division if value in field is 1 or 2.

28.
29. What is the purpose of item division? Any material is uniquely belong to only one
"Division",which we maintain in the material master in the "Basic data 1". This is
called "Item division". When you create a sales document ,system searches this
item division and copies it to the sales document,which you find in the item detail

30. If document is incomplete i don‟t want system to save the order, where is the
control? To prevent the document from being saved if any fields are
incomplete, check the box IC-dialog. ... Status group indicates whether system
will record a status message in item or header status screens in sales document

31. What is the purpose of transaction variant? Transaction variant is used


to disable/Enable fields, Menu/Sub Menus functions, Screens, to pass
individual fields with default values or to change the ready for input status of one or
more fields without changing source code or enhancement.

32. What is status profile?  status profile contains the individual user statuses and
the business transaction rules defined for those statuses. You can define
multiple limit number of user status profiles that can be maintained in SAP system.

33. What is the purpose of ALT TYPE1 & ALT TYPE2? you can shift the sales
document from one document type to another in change mode,For this prerequisite is
number range should be same for both the documents.

34. What is the purpose of document pricing procedure?

What is the purpose of condition type line item? The document priceing procedure we are using in
the sales document type is for Pricing procedure determination only.

Depending up on the Sales area, Document priceing procedure and customer pricing produre
"priceing procedure" will be determined in the sales order(This process depends on Priceing Field of
your item Category)

35.
What is Make to order? What is make to order and make to stock?
Make to order works on the basis that a product need not be produced until a
customer requires it, but make to stock works on the assumption that a customer will
require the product eventually, and thus it should be made beforehand.
36.
37. What is Make to stock?
38. What is safety stock? In any supply chain planning system , safety stock is a
extra stock to avoid stock out or fulfill the uncertain demand at any point in
time .Adequate safety stock levels permit business operations to proceed
according to their [Link] stock is held when there is uncertainty in the
demand level or planned delivery ...
What is the purpose of business item check box? VOV7 define item category, check box
“business item”,
1. If it is ticked, then you can change business data in both sales
document header level and item level
2. What is the purpose of item relevant for delivery in item category? Item category
and scheduline category we need to check mark
3. Which item category we assign special stock?
4. I don‟t want to update the line item value into credit management, where is the
control?
5. What is the prerequisite to determine cost into sales document?
6. What is the T code to rum MRP?
7. What is the purpose of valuation class?
8. What is the T code for storage location determination?
9. What is the T code to determine shipping point?
10. How shipping point determines?

Common questions

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Price control in material master determines the stock valuation method: it can use either standard price (S) or moving average price (V). Standard price remains constant over time, while moving average price fluctuates with each procurement, affecting how costs are recorded and stock value is assessed .

The requirement type determination process influences whether a transaction is considered relevant for availability checks or for transferring requirements. If no suitable type is found through strategy group, MRP group, material type, or special rules, the system may regard the transaction as irrelevant, which can impact inventory and order management .

Valuation class is crucial in categorizing G/L accounts according to material types, such as using different accounts for raw materials and finished goods due to varying costs. If costs are not maintained in the material master, it can disrupt the billing document since the cost might not flow correctly. This could lead to issues in pricing that depend on the material valuation class .

The "Make to Order" model aligns production directly with customer orders, minimizing excess inventory but requiring a flexible production schedule. In contrast, "Make to Stock" anticipates customer demand, leading to stable production schedules but possibly higher inventory carrying costs. Each model suits different demand patterns and operational efficiencies .

Status profiles consist of user statuses and defined business transaction rules. They allow customization by limiting what actions users can take in the system based on the current user status. This level of customization facilitates tailored process flows and controls within the SAP environment, ensuring adherence to business rules and processes .

The requirement type in a sales document is primarily determined using the strategy group from the material master. If not maintained, the MRP group is used, followed by the material type. If these methods fail, special rules are applied using item category and MRP type. If even this fails, the system may declare the transaction as not relevant for availability checks .

Product allocation manages the supply of products by performing availability checks together with allocation checks. It allows allocation for specific materials across various hierarchical combinations, such as sales area data, customer groups, or specific customers, effectively reserving quantities for these characteristics .

Transaction variants in SAP are used to modify user interactions by enabling or disabling fields, menus, and functions. They can assign default values to fields or change input statuses without altering the source code, thereby customizing user interactions to suit specific business needs .

Individual requirements (01) process each order's demand separately, transferring needs to MRP for production or procurement, allowing back order processing. Collective requirements (02) group daily or weekly demands, passing them to MRP at once, enhancing system performance but prohibiting back order processing .

Safety stock acts as a buffer against stockouts and demand fluctuations, ensuring business operations remain uninterrupted despite uncertain demand levels or delivery delays. Maintaining adequate safety stock levels secures fulfillment of unforeseen orders, stabilizing the supply chain .

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