This video provides an overview of the material type concept in SAP PP (Production Planning). It discusses the importance of understanding material types and how they can affect the way materials are handled in SAP.

• Understanding Material Type: The video begins by defining a material type as a classification of materials in SAP. It explains that each material type has its own set of characteristics, such as the default valuation method, the default storage location, and the default routing. The video then discusses the different types of material types that are available in SAP. It also mentions the importance of assigning the correct material type to a material. This is because the material type determines how the system handles the material.
• Demo – Creation/Configuration of Material Type in SAP: The video then demonstrates the process of creating a material type in SAP. The process involves entering the material type code, description, and the default settings for the material type. The video also highlights the importance of configuring material types carefully. This is because the settings for a material type can have a significant impact on the way materials are handled in SAP. In this section the author opens the SAP interface to provide a hands-on demonstration of the concepts discussed and showcases the Material Master screen and various transaction options.