Materials Management

Product Hierarchy

Being useful for evaluation, pricing and reporting purposes, a ‘Product Hierarchy’ is an alphanumeric character string consisting of a maximum of 18 characters. It thus defines the product and its composition.

We maintain product hierarchy in the material master through following;

SPRO-> IMG-> Logistics – General-> Material Master-> Settings for Key Fields-> Data Relevant to Sales and Distribution-> Define Product Hierarchies

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LIFO Valuation

Last-in, first-out (LIFO) is based on the principle that the last deliveries of a material to be received are the first to be used. If this is true, then no value changes occurs for older material when new materials are received. Because of the LIFO method, the older material is not affected by the higher prices of the new deliveries of material. If the older material is not affected, that means it is not valuated at the new material price. If the older material value is not increased, this stops any false any valuation of current inventory.

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MRP Processing Keys

NETCH, NETPL and NEUPL are three fundamentally different ways to schedule your MRP run:

  • NETCH – Net Change Planning
  • NETPL – Net Change Planning within Planning Horizon
  • NEUPL – Regenerative Planning

SAP is keeping track of changes that are relevant for planning a material (like sales order entry, purchase order entry, stock release, etc.). A planning relevant change signals to MRP that the material should run in the next NETCH or NETPL MRP run. MRP will thus only process those materials that underwent some type of planning relevant change. This can decrease processing time of the MRP background run when compared to processing ALL materials.

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Material Master Data

As the same in Vendor Master Data post, you will get knowledge about Material Master Data(Views, Types, Configuration, Documentation) and you will find an end-user training for initialization of Fiscal Year Period required for creating Material Masters of a Finished Product. Then you will learn creating purchasing info record and master data report finally.

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