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What is ERP?

ERP stands for Enterprise Resource Planning.

Enterprise Resource Planning systems integrate all data processes of an Oraganization into unified system.

The key feature of an ERP system is it uses a single or Unified database to store data for the various system modules.

Various Modules which comes under ERP are listed below:

i.Manufacturing
ii.Supply Chain
iii.Financials
iv.CRM
v.Human Resources
vi.Warehouse Management

What is SAP ?

SAP stands for Systems Applicatios and Products in Data Processing.

SAP AG has released SAP R/2 Version initially.The architecture of the R/2 system is Mainframe Architecture.

Later SAP R/3 is released which has different from R/2 architecture.

R stands for RealTime.
3 stands for 3 Tier Architecture.

There are over 120,000 installations at more than 30000 Companies.SAP Products are used over 15 millon People in more than 125 countries.

Material Master

Material Master - Introduction

The material master is the starting point for the rest of the modules.


What Material Types are there?

The material types that you use are configured in Customizing for the Material Master under


Logistics Master Data : Material Master -> Material -> Control data -> Define material type attributes.


The following list shows you the material types contained, for example, in the standard SAP R/3 System, and what their different roles are:


DIEN (services)

Services are procured externally and cannot be stored. A material master record of this material type can always contain purchasing data.


FERT (finished products)

Finished products are produced by the company itself. Since they cannot be ordered by Purchasing, a material master record of this material type does not contain purchasing data.


FHMI (production resources/tools)

Production resources/tools are procured externally and used in the manufacture of products. A material master record of this material type can contain purchasing data, but no sales data. It is managed on a quantity basis. Examples of production resources/tools are apparatus, equipment, and measuring and testing devices.


HALB (semifinished products)

Semifinished products can be procured externally (sub-contracting) as well as manufactured in-house. They are then processed by the company. A material master record of this material type can contain both purchasing and work scheduling data.

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