ABSTRACT

The Systems, Applications, and Products (SAP) materials management (MM) masters are also part of the overall organizational structure of SAP. In real life, large global business empires consist of many legal entities, representing different companies in their own right. Material master is the most important master data in SAP MM and in fact for the whole logistics area. Material groups are a mechanism to provide a common classification for similar materials in SAP. Purchasing organization is the organization unit that procures materials and services on behalf of the organization from external sources such as vendors and negotiates favorable buying prices with them. Conditions are the elements that contain pricing and discounts information about a material from a vendor. Pricing about any material is very important as the purchasing department has to get materials at the most economical costs.