Thematerial typein the material (product) master data plays a critical role in controlling various aspects of material management in SAP S/4HANA Cloud Public Edition. Specifically, it determines the procurement type that is allowed for a material.
Procurement type that is allowed for a material (Option B):The material type defines whether a material can be procured externally (from vendors), internally (produced in-house), or both. For example, raw materials typically allow external procurement, while finished goods may allow internal production. TheSAP Material Master Data Guideconfirms this functionality.
A. Price unit that is used for a material:The price unit is controlled by pricing conditions and material valuation settings, not by the material type.
C. Organizational data that is allowed for a material:Organizational data (e.g., plant-specific or storage location-specific data) is defined during the creation of the material master record, not by the material type.
D. Automatic creation of a purchase requisition with a material:The automatic creation of purchase requisitions is controlled by MRP (Material Requirements Planning) settings and procurement parameters, not directly by the material type.
SAP Material Master Data Guide:Describes the role of material types in controlling procurement and other material-related settings.https://help.sap.com
SAP S/4HANA Cloud Procurement Guide:Provides details on how material types influence procurement processes.
Why Option B is Correct:Why the Other Options Are Incorrect:Key References:
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