Material type is the highest level of classification and determines the basic characteristics of a material, such as whether it is a raw material, finished good, or service.
Material group is another classification in SAP MM that allows materials
to be grouped based on similar characteristics, properties, or usage.
Material groups provide a way to organize and classify materials for
easier management and reporting.
Material class is a classification mechanism used to categorize
materials based on specific characteristics or attributes. Material
classes allow for a more detailed classification of materials beyond the
material type and material group. They can be used to define additional
properties, such as dimensions, weight, color, or any other relevant
attributes specific to the organization's requirements.
Item category in SAP MM refers to a classification or grouping of items
within a procurement process, particularly in purchase orders or sales
orders. It determines how an item is processed or handled during various
stages of the procurement process, including pricing, delivery, and
billing.
Item category group in SAP MM determines how materials are processed in
sales orders, including pricing exclusions for free items and
non-inventory management for services. It controls behaviors related to
delivery and invoicing, ensuring accurate and streamlined sales
processes.
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