NLAG Material Type in SAP: Non-Stock Material Explained

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Understand NLAG material type in SAP. Learn its use, characteristics, examples, and how it's different from stock materials like ROH or FERT.

✅ Definition:

NLAG stands for “Non-Stock Material” in SAP. It is used for materials that are not kept in stock and are not managed in inventory. These are typically consumables, like office supplies, small tools, or services — things that are used up quickly and don’t need to be tracked in inventory.

🧾 Key Characteristics:

Feature	Description
Material Type	NLAG (Non-stock material)
Inventory Management	❌ Not quantity or value managed in inventory
Valuation	✅ Can be valuated during procurement (but not tracked afterward)
Typical Use	Consumables, spare parts, services, one-time purchases
Procurement Type	External procurement (purchased directly)
MRP Views	Usually not relevant (not planned by MRP)
Stock Management	Not applicable
Posting	Expense account directly at goods receipt

📦 Examples of NLAG Materials:

Printer cartridges
Office stationery
Cleaning supplies
External consulting services
Small tools not meant to be inventoried

🔧 Common SAP Transactions:

Purpose	Transaction Code
Create Material	`MM01`
Change Material	`MM02`
Display Material	`MM03`
Purchase Requisition	`ME51N`
Purchase Order	`ME21N`
Goods Receipt (non-stock)	`MIGO`

🔄 Difference Between NLAG and ROH:

Feature	NLAG	ROH
Stock managed?	❌ No	✅ Yes
Inventory valuation?	❌ Not tracked in stock	✅ Tracked in stock
Used for	Consumables, services	Raw materials for production
Goods receipt	Directly to expense account	To inventory stock