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SAP Material Types Explained: ROH, HALB, FERT, NLAG & More for Effective Inventory Control


Explore common SAP Material Types such as ROH, HALB, FERT, NLAG, and more. Learn their use cases, control functions, and how to manage materials like consumables, IT equipment, packaging, and services effectively in SAP ERP.

In SAP, Material Types define important controls for how a material is managed, procured, and accounted for. Each material type has specific properties, such as whether it is stock-managed, valuated, or consumed directly. Here’s a breakdown of the most commonly used Material Types in SAP:


πŸ”Ή Common SAP Material Types

Material Type Description Typical Use
ROH Raw Material Used in production but not sold directly. No sales or purchasing views.
HALB Semi-Finished Goods Used in production and assembled into finished products.
FERT Finished Product Sold to customers. Has sales and distribution views.
HIBE Operating Supplies Materials used in operations (e.g., lubricants, cleaning materials).
NLAG Non-Stock Material (Consumables) Expensed directly, not managed in inventory (e.g., USB drives, cables).
VERP Packaging Material Used to pack goods (e.g., boxes, cartons).
DIEN Service Non-material services (e.g., consulting, maintenance). No inventory.
SERV External Services External service item for structured service procurement.
ERSA Spare Parts Parts used for maintenance of equipment. Stock-managed.
LEER Returnable Packaging Materials returned by customers (e.g., containers, bottles).
PROD Product Group Group of materials for planning, not an individual material.
PIPE Pipeline Material Materials like gas, water that flow through pipelines.
FHMI Production Resource/Tool Tools used in production (e.g., molds, jigs). Not consumed directly.
TRAD Trading Goods Purchased and sold without modification.

🧠 Key Control Functions of Material Type

Material types control:

  • Whether the material is stocked or not (inventory managed)
  • Views available in the material master (e.g., Sales, Purchasing, Accounting)
  • The number range for material numbers
  • Default valuation class for accounting
  • Allowed procurement types (in-house, external)

βœ… For Consumables / IT Equipment

Use:

  • NLAG (Non-Stock Material): For items like mouse, cables, adapters.
  • HIBE (Operating Supplies): For operational materials used regularly.
  • ERSA (Spare Parts): If the item is stock-managed and replaceable.

🧠 Practice & Progress

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