Material Type: Materials with having the same properties are assigned to the same material type like raw materials,semifinished products and finished products.
or we can say that A Material Type describes the characteristics of a material that are important in regards to Accounting and Inventory Management. A material is assigned a type when you create the material master record. “Raw Materials”, “Finished Products”, and “Semi-Finished Products” are examples. In the standard MM module, the Material Type of ROH denotes an externally procured material, and FERT indicates that the relevant material is produced in-house.
Material Type controls:
1. Types of number assignment(Internal or external)
2. The permissible number range intervals.
3. Which screens appears and in which order and which user-department data is suggested for entry.
4. Which procurement type is allowed like whether the material is procured internally or externally.