What is material type in SAP LO-MD - Logistics Basic Data?

SAP Term: material type

• Component: LO-MD

• Component Name: Logistics Basic Data

• Description: A grouping together of materials with the same basic attributes such as raw materials, semifinished products, or finished products. All materials must be assigned to a material type which determines: Whether the material is intended for a specific purpose such as a configurable material or process material Whether the material number can be assigned internally or externally The number range from which the material number is drawn Which screens appear and in what sequence Which user department data you may enter What procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both

Smart SAP Assistant

• Key Concepts: 
  Material type is a classification of materials in SAP. It is used to group materials with similar characteristics and assign them the same attributes. It is part of the Logistics Basic Data component (LO-MD) and is used to define the material’s characteristics, such as its weight, volume, and price. 
  
  How to use it: 
  Material type is used to assign attributes to materials in SAP. It can be used to assign a material’s weight, volume, and price. It can also be used to assign a material’s tax rate, inventory status, and other characteristics. 
  
  Tips & Tricks: 
  When assigning a material type, it is important to ensure that the attributes assigned are accurate and up-to-date. This will ensure that the material’s characteristics are accurately reflected in SAP. 
  
  Related Information: 
  Material type is related to other components in SAP such as Plant Maintenance (PM), Quality Management (QM), and Warehouse Management (WM). It is also related to other terms such as material master data and material group.