What does the material type control for a particular material?

The material type in SAP controls various attributes of a material, influencing how the system manages that specific material throughout its lifecycle. One of the primary functions of the material type is to determine the procurement type associated with that material. This indicates whether the material is procured externally (from suppliers), produced internally (manufactured), or if it is a consignment material, among other options.

These procurement types directly affect how purchasing, inventory management, and accounting processes are carried out for that material. For instance, if the material is classified as a raw material, the system will default to certain procurement behaviors tailored to acquisition, while a finished good may trigger different evaluations and processes tailored to sales and delivery.

The other options describe properties of products but are not directly governed by the material type in the primary way that procurement type is. For instance, quantity and value updates are more related to inventory and financial transactions rather than the governance the material type establishes. Similarly, while storage periods and environmental impact assessments can be important considerations, they are not fundamental aspects dictated by the material type itself.