different understanding about material types

[cathy_liang]

Hi experts,

Q: Which division should product A belong to? Why?

The customer is going to use SAP. However, their sales department has different understanding about some material type. For e.g., they consider product A as raw material while SAP condiders it as semifinished product.

Division in SAP includes finished product group, semifinished product group & raw material group as sales department can sell them.

[Former Member · Accepted solution]

Hi,

Firstly, I would like to check the stage at which the Project is?

If it is still in design phase, I will recommend that have only 1 Division for finished product group, semifinished product group & raw material group. This will reduce the Material & Customer Master Data. Sales Group is a good option to identify the Divisions only if required, else even eliminate Sales Group.

If it is the Live system, the users will have to be educated to identify the material appropriately.

Regards,

Rajesh Banka

[Shiva_Ram]

Hi,

In my opion, it purely depends on how the management wants to see the products sales in reporting. As the division is used in sales area determination and further in business area determination, it is upto the business on which business area reporting they want to see the sales transactions.

Regards,

[Former Member]

Hi,

In your example,Product A is nothing but the raw material in your case but in SAP it is treated as "Semi finished product".

Each are different.

These should be defined as two different divisions.Division is nothing but the line of products which means that same group of products.

Extend this products to your division.

Like for each product category,you should have different divisions.

Or Change the division to raw material in material master as your customer understands it in a different way.We can change the description.

Regards,

Krishna.

[reazuddin_md]

If client selling raw material, then you can treat them in 2 ways:

You can create them as Raw Material & extend sales views to it OR you can treat all these kind of materials as Semi Finished Goods, even at the time of procurement or sale.

Acutally Division is nothing but grouping the products which has similar characteristic in nasture eg: Electronics. Electronics goods can be produced/ assembled/ procured from the vendor . Which means, products of this division can be any type based on business i.e. Trading /Raw Material/SFG & FG etc..,

Division depends on Characteristics of the material, where as Material type depends on treatment of the material,how client deals with such kind of material.

[cathy_liang]

Hi the experts,

If assigning product A to division "raw material group", I'm afraid it easily causes confusion between sales department & production department.

If assinging product A to division "semifinished product group", it seems not much meaning to divide those 3 divisions. U know, they become the same as the material types in material master.

[former_member550050]

Hi

The division in MMR is mainly for SD area and not for MM or PP area

That is why division is not a mandatory field while creating a material which is a MM job basically (creation of material )

Where as material group is a mandatory field there

Raw material group or semifinished group these are material types and from SD point of view we dont name any division as division "raw material group", or division "semifinished product group",

The naming terminoly for division is completely different and it is for SD purposes and a SD activity and doresnot conflict with MM or areas

Division is different

Material type is different

Material group is different

They all have different purposes and different functionalities and doesnot conflict with each other

Q: Which division should product A belong to? Why?

It will belong to only one division it can be anything from the SD list of divisions

Because Division is a very important field in MMR from SD point of view directly maintained in basic data and sales org data 1

Regards

Raja

Edited by: ramanathan raja on Dec 4, 2009 7:44 PM

Edited by: ramanathan raja on Dec 4, 2009 8:52 PM

[Former Member]

Hi

Make each sales department as sales organizations in SAP say 1000, 2000, 3000...

Division in SAP includes finished product group (01), semifinished product group(02) & raw material group(03) as sales department can sell them.

Now the same material can be extended to any combination like 1000 + 01, 2000 + 02 like based on the sales team understanding you can extend the same material.