Trading Goods & Finished Products

[Former Member]

Hi

While creating new material we have to give the the material type and as per this the screen will display.I want to know what is the difference between Finished Product and Trading goods in material type.Can anyone give some example of materials/ products which will come under these two material types?

regards

jyoti

[Former Member · Accepted solution]

hi,

material type controls the field and screen sequence of the material master like the account group of customer master.

secondly :

Trading goods : like ur cosumer goods, where the material wl move from one place to another and there wl be multiple trading for the same material.

Finished goods: once it is manufactured ina plant it wl be delivered for the other uses. no further trading

[former_member204513]

Hi Jyothi,

Difference between Trading goods and Finished products.

Trading goods:- Trading goods means company will not manufacture those goods they will purchase the goode from the vedor then they will supply to the cistomer.(thses also can be finished products but not manufactured by the company).

Here production will not takes place so no need to maintain production planning data in the material master.

Supply will happen in two ways,

1.First Company will take the delivery from vendor after that company will deliver the goods to the customer(Individual purcahse order).

2.Company will instuct the vendor to supply the goods directly to the customer.(Third party process).

Finished products :- Which are the products produced or manfacured in the company premises itself.

Here production will takes place so need to maintain production planning data in the material master.

So according to that system will allow the fields in the material master.

I hope it will clear for you,

Regards,

Murali.

[Former Member]

Normally, those material which you do not produce in your organisation, but you purchase from somewhere and sell to some body, these materials are called Trading goods.

Finished products are the material which you produce in your organisation and sell.

The same material can be a Trading goods for some organisation, but it can be a Finished product for other organisation.

For e.g, a Motor bike (e.g,Hero Honda CBZ) is a Finished product for the organisation Hero Honda, but the same material is a Trading goods for the resellers.

I hope,it is clear

Regards

Pradyumna