The Basic data 1 and 2 views are required for all material types and are global settings like material type. The Basic data 1 view contains fields of interest to PRODUCT COSTING users, including base unit of measure, material group, old material number, product hierarchy, and X-plant material status. The Basic data 2 view has more globally true settings, but none are of particular interest to product costing.
Base unit of measure
Base unit of measure is the unit in which material inventory is tracked. The base unit of measure is typically determined by plant leadership and the logistics project team. It should be the smallest transaction unit of a material in the system. SAP provides many standard base units of measure and you can configure additional units.
It is the criterion based on which you measure the quantity of the material. Unit of measure is a value for a physical size.
There are 4 different Unit of Measures used
1.Base Unit of Measure:
2.Sales Unit of Measure:
3.(Purchase)Ordering Unit of Measure:
4.Unit of Issue:
Keep in mind that SAP allows a fixed number of characters and digits for quantities and currency. Currency can only be expressed with two decimal places (for example: $XXX.XX). This is often a common surprise to users when converting to SAP and is of a major foundational design decision during blueprinting.
Conversions from the base unit of measure to other units of measure are available by following the menu path ADDITIONAL DATA • UNITS OF MEASURE.
With material groups, you group materials with the same attributes or purpose.
You can use material groups to:
*Limit the scope of analyses
*Systematically search for material master records via matchcodes
In addition to this, with the help of material group you can do account determination in case of non-stock direct consumption procurement (account assignment category + material group).
Material group can be a helpful field for analysis and reporting purposes, but it does not automatically drive activities for product costing. Depending on how your purchasing group decides to use material group, it can be used for classifying similar product types. A potential use of material group for product costing is as a distinguisher in your pricing and/or sales conditions. See Figure 3.1 to see the Material Master basic data 1 view.
Figure 3.1: Material master basic data 1 view
It is used to group together several materials or services with the same attributes, and to assign them to a particular material group.
You can use material groups to:
– Restrict the scope of analyses
– Search specifically for MATERIAL MASTER records via search helps
It can be assigned in material master in the Basic Data1 (Client level) and Purchasing (Pur org level) views.
The Old material number can be used as a text field to hold a legacy material number. This field can be important to product costing if you have interfaces that require mapping to a legacy system, or if you want to do analysis or reporting using this field. You can use the old material number to systematically search for material master records via matchcodes.
The Old material number is not available in many controlling reports. For this reason, it is important to either rely on the new SAP material number, or ensure that reports have this field included as a column.
Product hierarchy is another useful field for analysis that groups materials by different characteristics within a configured product hierarchy structure. It is used to break down the product into subsequent categories. SAP standard consists of three levels of product hierarchy with the first and second levels consisting of five digits and the third level consisting of eight digits. Product hierarchy can be configured to reorganize the structure up to nine levels and up to 18 digits.
Product hierarchies are the domain of materials management. It is assigned to the material master record. This hierarchy is broken down into specific levels, each level containing its own characteristics. A product hierarchy is recorded by the sequence of digits within a hierarchy number. The custom Product hierarchies can be maintained in V/76.
If you were creating a product hierarchy for a cookie company, you may choose a structure like the following for your walnut chocolate chip cookies:
Product Hiearchy: 100200300
Product Family: 100 Bakery
Category: 200 Cookie
Group: 300 Walnut chocolate chip
Cross-plant material status can be used to block a material that is unusable for certain functions in the system. X-Plant material status means that we define a status, saying that the material can be procured or blocked or not blocked. Typically this field is used to indicate a material master, whether it is still being edited or whether the material is discontinued or obsolete.
SAP cross-plant material statuses:
01: Blocked for procurement/warehouse
02: Blocked for task list/BOM
X-Plant material status tip
Keep in mind that this is a cross-plant status, meaning it applies to the material globally across all plants. A plant-specific material status is available on the costing and MRP views. There are also several fields that can be used to flag a material for deletion, or to ignore the material during costing runs.
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