How to configure material determination in SAP?

Material Determination in SAP is a process used to replace or substitute one material with another during the sales order processing, based on specific conditions. This feature is particularly useful in scenarios where a certain product might be out of stock, or a newer version is available.

Material Determination in SAP: Real-Time Scenario

Imagine a company that sells mobile phones. A customer orders a specific model (Model A), but it’s out of stock. Through material determination, SAP automatically suggests an alternative model (Model B) that is in stock and meets the customer’s requirements.

1. Introduction to Material Determination
   • Definition and Purpose
   • Triggering Mechanism in Sales Orders
2. Configuring Material Determination in SAP SD
   • Accessing Material Determination in SPRO
   • Steps in Material Determination Configuration:
     • Maintaining Field Catalog
     • Creating Condition Tables [OV16]
     • Maintaining Access Sequences
     • Defining Condition Types
     • Maintaining Material Determination Procedure
3. Creating Condition Records for Material Determination
   • Navigation Path in Logistics and SD
   • Using Transaction Code VB11
   • Key Fields:
     • Determination Type (A001)
     • Material Entered (Original Material)
     • Substitute Material
     • Reason for Substitution
4. Managing Substitution Materials
   • Adding Multiple Materials
   • The Concept of Condition Technique
5. Assigning Material Determination to Sales Document Types
   • Navigation in SPRO for Assignment [OV14]
6. Defining Substitution Reasons
   • Steps to Define in SPRO [OVRQ]
   • Elements of Substitution Reason:
     • Reason Code and Description
     • Entry and Warning Options
     • Strategy and Outcome Controls

Material Determination in SAP Configuration Steps:

1. Accessing Material Determination in SPRO

• Navigate to SPRO (SAP Project Reference Object) in the SAP menu.
• Follow the path: Sales and Distribution → Basic Functions → Material Determination.

2. Steps in Material Determination Configuration

• Maintaining Field Catalog: Define the fields that will be used in condition tables. This step involves selecting the relevant fields from the existing field catalog or creating new ones.
• Creating Condition Tables [OV16]: Create tables where conditions for material determination will be stored. This step involves specifying the combination of fields that will determine when a substitution should occur.
• Maintaining Access Sequences: Define the sequence in which the system searches for valid condition records. This determines the priority of conditions in material determination.
• Defining Condition Types: Create condition types that determine the nature of the conditions under which material substitution will occur.
• Maintaining Material Determination Procedure: Set up the procedure that dictates how the system should process material determination, linking condition types and access sequences.

3. Creating Condition Records for Material Determination

• Navigate through: Logistics → SD → Master Data → Products → Material Determination → Create [VB11].
• Key Fields:
  • Determination Type (A001): Indicates the type of material determination.
  • Material Entered (Original Material): The material initially entered in the sales order.
  • Substitute Material: The material that will replace the original material.
  • Reason for Substitution: The rationale behind why the system should automatically carry out material substitution.

4. Managing Substitution Materials

• Add multiple materials for substitution as alternatives.
• Understand the concept of condition technique, which underpins the logic of material substitution in SAP.

5. Assigning Material Determination to Sales Document Types

• In SPRO, follow the path: Sales and Distribution → Basic Functions → Material Determination → Assign procedures to sales document types [OV14].

6. Defining Substitution Reasons

• Navigate in SPRO: Sales and Distribution → Basic Functions → Material Determination → Define substitution reasons [OVRQ].
• Elements to define:
  • Reason Code and Description: Establishes the specific reason for substitution.
  • Entry and Warning Options: Determines whether to display warnings or print original material details.
  • Strategy and Outcome Controls: Sets whether substitution should be automatic or allow manual selection, and whether the substitute appears as a replacement or a sub-item.

Through these steps, material determination in SAP SD is configured to meet the specific needs of business processes, enhancing flexibility and efficiency in sales order management.

Relevant SAP Tables:

• KONDM: This table stores material determination records.
• KNMTK: Header table for material determination.

Interview Question on Material Determination

1. What is Material Determination in SAP and how does it function?
   • Material Determination in SAP is a process that automatically substitutes one material for another during document creation based on predefined conditions. It uses a key stored in the system, like a customer-specific material number, instead of the standard material number.
2. How is material determination used in promotions?
   • During promotions, material determination can automatically replace a standard product with a promotional item. For instance, a product with normal packaging can be swapped with one having special packaging for a limited time.
3. How is material assignment carried out in master records for material determination?
   • In the master records for material determination, various keys can be assigned to the same material. These keys trigger the substitution when matched during the sales order process.
4. Examples of keys stored for material determination?
   • Keys can include customer-specific material numbers or International Article Numbers (IAN), enabling tailored material selection based on customer or global standards.
5. Interaction of material determination with sales documents?
   • Material determination interacts with sales documents by automatically substituting materials based on the document’s conditions, enhancing flexibility and customization in sales.
6. Can it replace materials with special packaging?
   • Yes, it can automatically substitute materials with special packaging during promotions, replacing standard products with specially packaged ones for the duration of the promotion.
7. Handling of customer-specific numbers or IAN in material determination?
   • The system recognizes these unique identifiers as keys in material determination, allowing for specific material substitutions based on these numbers.
8. Prerequisites for using material determination in SAP SD?
   • Prerequisites include setting up material determination rules in the IMG, creating relevant master records, and defining conditions and keys for substitution.

Conclusion:

Material determination in SAP SD enhances flexibility in sales order processing, ensuring customer satisfaction and operational efficiency. Proper configuration and testing are key to harnessing its full potential.

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