If a material changes over time in such a way that it no longer corresponds to the features defined in the material master record, but to the features of a different material number, you have to carry out a transfer posting from material to material. This is often the case in the chemical and pharmaceuticals industry, for example.
A transfer posting from material to material results in the transferred quantity being managed under a different material number. A material master record must already exist for the receiving material.
Suppose a material which the customer has order is not available in the warehouse, but there is a material which has got the same features etc. but with a different batch or different serial no. etc In this case, material to material transfer will be done. This happens only when you are sure that you are not going to get the old material any more, becoz the model is outdated etc.
Material to material transfer is used mainly to account the scraps. For example material A is scrapped using material B. Then you will do transfer posting material to material.
Another example if a company manufacturing goods of different quality with different materil number. If the material A is less quality than the expected quality then you can do material to material transfer and convert material A to material B.
It is required as per the demand of the process. Lets say certain qty of a product got diverted to seconds quality by the QC and there is a different material code for the 2nd qlty. So you have to do the material to material transfer. Another good example is converting the goods into scrap.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.