Day 4 — Material Types in SAP MM

What are Material Types in SAP MM?

• Material Types classify materials based on their business purpose and usage. • They control how a material is created, purchased, stored, and managed in SAP. • Common material types include ROH (Raw Material), HALB (Semi-Finished), FERT (Finished Product), HAWA (Trading Goods), and DIEN (Services).

• A mobile manufacturing company purchases screens and batteries as ROH (Raw Materials). • These components are assembled into a mobile phone, which is stored as a FERT (Finished Product). • Service activities like equipment maintenance are managed using the DIEN (Service) material type.

1. What is a Material Type in SAP MM? 2. Why are Material Types used? 3. What is the difference between ROH and FERT?