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

standard material type - Overview

• Component: LO-MD

• Component Name: Logistics Basic Data

• Description: A material type defined in the standard SAP System. Standard material types include raw materials and semifinished products.

standard material type - Details

• 
  Key Concepts: 
  Standard material type is a component of the Logistics Basic Data (LO-MD) in SAP. It is used to classify materials into different categories, such as raw materials, finished goods, and semi-finished goods. This classification helps to ensure that the right materials are used for the right purpose. 
  
  How to use it: 
  Standard material type is used to assign a material type to a material master record. This material type is then used to determine the characteristics of the material, such as its pricing, availability, and storage requirements. The standard material type can also be used to determine which processes are applicable for the material. 
  
  Tips & Tricks: 
  When assigning a standard material type to a material master record, it is important to ensure that the correct type is selected. This will ensure that the correct characteristics are assigned to the material and that it can be used in the appropriate processes. 
  
  Related Information: 
  The standard material type is closely related to other components of the Logistics Basic Data (LO-MD), such as material group and industry sector. It is important to understand how these components interact with each other in order to ensure that materials are correctly classified and used in the right processes.