Explain About Material Group

If you look at from business perspective, you will find that many materials of same material type could be different from each other. For example, in a steel plant both iron ore and coal would be raw materials. But if you want to further differentiate them then you can create material groups as ore and fuel or coal etc.

Define Material Group

T. Code: - OMSF
Path: - SPRO >> Logistics – General >> Material Master >> Settings for Key Fields >> Define Material Groups.
Select existing material group and click on Copy As button.
Enter material group code, material group name and long description for material group.
Then click on save button for save material group.

Advantage of Material group’s

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 Basic Data1 (Client level) and Purchasing (Pur org level) views.
 

What is the difference between customer group & customer pricing group as well as material group & material pricing group?

Both can be used for reporting and analyse purpose. To determine the pricings with different combinations in terms of material and customer, Customer and Material pricing group will be used.

If you look at some of the sample customer groups / material groups in SPRO, you could understand its usage.

Customer group:

Used for statistical and reporting purposes. For example, domestic sales customers, International sales customers

Customer pricing group:-

Bulk buyer / wholesale buyer and Individual buyer can have different pricing criteria in business. This can be achieved using this. This is mainly used in pricing.

Material group:-

Material groups enable you to classify and structure your entire merchandise assortment at multiple levels (breadth and depth). Every material is assigned uniquely to one material group across the whole corporate group.

In particular, material groups allow you to: perform structured analyses in the Information System; plan target and actual values; and store common data (such as conditions) at higher levels. Its mostly used in SAP retail.

Material pricing group:- 

Material prices can be classified with this. You can have different discounts / rebates according to material group. It can also be used in taxes.

SAP MM

Read also
Transaction MM50 to Extend a Number of Materials

SAP MM Reference Books:
SAP Material Management Interview Questions, Certification and Configuration Books

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SAP MM Purchasing

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SAP MM (Materials Management) Configuration Hints and Tips

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SAP ABAP/4 Programming, Basis Administration, Configuration Hints and Tips

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