¶ Creating and Managing Material Master Data in SAP ECC
In SAP ECC, Material Master Data is a critical dataset that contains all information about the materials a company procures, produces, stores, and sells. It serves as the backbone for various SAP modules such as Materials Management (MM), Production Planning (PP), Sales and Distribution (SD), and Finance (FI). Accurate creation and effective management of material master data ensure streamlined procurement, production, inventory, and sales processes.
This article explores the importance of material master data in SAP ECC, its structure, and guidelines for creating and managing it efficiently.
Material master data refers to a centralized record that contains detailed descriptions and specifications of materials. These materials can be raw materials, finished goods, semi-finished products, trading goods, or services.
The material master supports the entire supply chain by providing essential data used in purchasing, inventory management, production planning, sales, and accounting.
Material master data in SAP ECC is organized into different views, each containing specific data relevant to a particular business function:
- Basic Data: Common attributes such as material number, description, unit of measure, weight, and dimensions.
- Purchasing View: Information related to procurement, including vendor data, purchasing group, and order unit.
- Sales View: Sales-related data like sales unit, pricing group, and sales organization details.
- Accounting View: Costing and valuation data such as standard price, moving average price, and valuation class.
- Plant/Storage Location Views: Data relevant to inventory management, storage conditions, and stock levels.
- MRP View: Material requirements planning parameters like lot size, reorder point, and safety stock.
Each material master record can have multiple views depending on the organizational structure and business requirements.
- Use transaction code MM01 to create a new material master record.
- Select the appropriate industry sector (e.g., chemical, machinery) and material type (e.g., raw material, finished product).
- Based on the material's usage, select relevant views such as Basic Data, Purchasing, Sales, Accounting, MRP, and Storage.
- The system will prompt for organizational levels such as plant and storage location.
- Input material description, base unit of measure, weight, and dimensions.
- Assign material group and division if applicable.
¶ Step 4: Maintain Purchasing Data
- Enter vendor information, purchasing group, and order unit.
- Specify purchasing value key and delivery tolerances.
- Define sales unit, tax classification, and sales organization data.
- Set pricing group and shipping instructions.
¶ Step 6: Maintain Accounting Data
- Assign valuation class and price control indicator (standard or moving average price).
- Enter price details for inventory valuation.
- Define procurement type (in-house production, external procurement).
- Maintain lot size, reorder point, safety stock, and lead times.
- Review all data entries for completeness and accuracy.
- Save the material master record to finalize creation.
Proper management of material master data involves:
- Regular Updates: Keep data current to reflect changes in product specifications, vendors, pricing, or inventory status.
- Data Governance: Assign ownership and responsibilities to maintain data integrity.
- Use of Change Documents: Track changes through SAP’s change log functionality for audit purposes.
- Data Validation: Implement validation rules to avoid errors during data entry.
- Archiving Obsolete Materials: Remove or archive materials no longer in use to keep the database clean.
- Materials Management (MM): Core module relying heavily on material master for procurement and inventory management.
- Production Planning (PP): Uses material master data for planning and controlling production processes.
- Sales and Distribution (SD): Sales views of material master guide order processing and delivery.
- Finance (FI): Accounting views support inventory valuation and cost tracking.
- Standardize Naming Conventions: Use consistent material descriptions and numbering schemes.
- Segment Data Entry: Divide responsibilities among departments for relevant views (e.g., purchasing team handles purchasing data).
- Train Users: Provide adequate training for personnel involved in data entry and maintenance.
- Audit Regularly: Conduct periodic audits to ensure data quality.
- Utilize SAP Tools: Leverage SAP transaction codes and reports for monitoring and maintaining data.
Creating and managing material master data is essential for efficient operations in SAP ECC. Accurate and comprehensive material data facilitates smooth procurement, production, inventory management, and sales processes. By following structured steps and best practices, organizations can ensure reliable data integrity and support seamless business functions across the enterprise.