Section 4: Material Masters
SECTION 4: MATERIAL MASTERS
4.0
Overview
There are 2 common material types in SAP:
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Type 001 Materials or Stock Materials, and;
Type 002 Non-Stock or Direct Purchase Materials.
The creation, change, extension and/or deletion of a material master are centrally
managed by 3SO and are the responsibility of the Procurement Analyst. If the
material is a Type 001 material (Stock Material) then the Operations Analyst is
responsible to set-up and maintain the MRP screens to identify how the material
should be planned by the system (i.e.: ROP, ROQ, Central Inventory or SCI,
etc.).
After the initial load of materials that occurs during the on-boarding process, if a
new material is required, a request form must be completed and submitted to
3SO. Material Masters are only extended (made available) to hospital plants that
require them. However, all materials in the SAP system can be searched within
any hospital plant, regardless of whether it has been extended to that Plant. If a
hospital finds a material that already exists in SAP for use by another Hospital
that it now also requires, it can be “extended” to them for their use as well. If the
material is not in SAP at all for any plant then the request form would be
completed to request a new material be created.
As part of the Material Master Creation process, the G/L Account (MIS Code) is
confirmed by a Finance representative at KGH to ensure that the material is
correctly classified for accurate reporting to the Ministry of Finance.
All new materials created or extended will be communicated back to the
requestor as well as that Hospital’s Finance Manager to allow for the material to
be set-up in a Mapping table to go back to the Hospital’s legacy system for
financial reporting. Only KGH uses SAP for their full financial reporting system.
4.1
Components of Material Master
The Material Master record in SAP is made up of many different tabs of data set
up as follows:
Basic Data Tab: (same for all hospitals)
• Contains description of the material (Max. 40 characters)
• Contains base unit of measure (cannot be changed after creation)
• Contains material group
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•
Contains other pertinent product data (expiry, latex content, DIN etc…)
Purchasing Tab: (Plant Specific)
 Purchasing Group (Buyer Code for Buyer from that Plant)
 Identifies the tax code indicator
 Contains Manufacture Name & Catalogue Number (note: it does not
contain vendor information)
 Contains the Automatic PO indicator (this must be flagged on in both the
material master and Vendor master for an item to be managed by Auto
PO).
Accounting 1 Tab: (Plant Specific)
 Valuation Class (which is directly related to a g/l account and verified by
KGH Finance)
 Moving Price – this price is set at the material master creation step and
only fluctuates for Stock materials based on the actually cost/quantity of
goods that are received. For Non-stock materials this does not change,
however purchase order price does not come from the material master.
The Basic Data, Purchasing and Accounting 1 tab are created for all types of
materials, however the MRP and Plant Data/Stor 1& 2 screens are only required
for Stock Materials (SAP Type 001):
MRP 1 to MRP 4 Tabs & Plant Data/Stor 1 & 2:
 Determines if the material is supplied by 3PL, CI or external vendor.
 Determines which plants and which USL the materials will be made
available.
 Determines the ROP and ROQ for each USL that the material has
been extended to.
 Determines how MRP manages replenishment of the material
4.2
Material Master Descriptions
In an effort to promote consistency and make searching easier for the end user,
3SO has implemented a standard Abbreviations Dictionary. This is used to
create descriptions and can be used to assist you in searching SAP for required
materials. A full copy of this dictionary is included as additional documents at the
end of Section 4. For example, if you are looking for a Catheter then it will have
been created in SAP as CATH so you should search accordingly. Other
common terms that will be abbreviated are:
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Sizes: SM (small), MED (Medium), LRG (large) and XLRG (X-Large)
Latex content: LF (Latex Free)
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
Colours: BLK (Black), YEL (Yellow), GRN (Green), etc.
The standard dictionary can be found on the 3SO intranet under forms.
Forms can be found on the 3SO intranet at www.3so.ca/member login (top right
corner)/email address: “forms@3so” / password: “3soforms”. Then go to / 3SO tab /
3SO forms. The dictionary is found in the document 3SO_MM_Abb_Ref. Please use
this while creating new material masters. The latest copy is included at the back of this
section.
4.3 Display Material Masters MM03
Use this function to go into view the details of the material master. You can find
items by description, vendor catalogue number, by plant, other plants or material
group and material type.
See BPP_MM MATERIAL MASTER (MM01) this will give you screen shots on
what you will see when in MM03 display.
4.4 Searching SAP for Material Masters (MM03)
When looking for a material master you can search in various ways; using attributes
of the description, the vendor’s catalog number or even in some cases, the old
material number from your hospital’s legacy system. In all cases you would begin by
going to the Material Master Display screen as shown below:
Using the menu tree in SAP "PRD" - go to Logistics→Materials
Management→Material Master→Material→Display→Display Current
Or, enter Transaction Code MM03 in the command field:
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Click in the “Material” Field.
Use the drop down selection beside the material field to bring up the different search
option tabs.
A. SEARCH BY VENDOR MATERIAL NUMBER
Click on the list option and choose “Material by Vendor's Material Number”.
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Enter all or part of the Vendor Material number (with * before and after*) then select the
green check mark.
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Note: If searching by part of the number, check for the exact number in the list that is
provided when search is complete.
B. SEARCH BY MATERIAL DESCRIPTION
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If you didn’t find the material by vendor catalogue number you can do the search again
but this time select the search option "Material Number/Material Description” from the
list.
Put your cursor in the “Plant” field and use the drop down to choose your specific plant
number.
.
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Enter a key portion of the description, (i.e.: the noun, screw (but remember to use the
abbreviations listing to help with your description)) and select the green arrow.
Check the list to find the material.
Note: You could also search for the Vendor Material number in the description line as
many descriptions do include this number.
If you still can not find the material in your plant you can remove the plant number from
the Material Description search and see if it is already in SAP but at another plant.
C. SEARCH BY OLD DESCRIPTION
In some cases, as part of the initial upload of your hospital’s materials the material
number that was in the hospital’s legacy system has been loaded into SAP. To search
using your hospital’s old material number select the search option called “3SO Material
by Old Number” from the drop down list.
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Select your plant from the Drop Down List and enter in the previous number for the
material you are trying to find in the “Old Material Number” field and select the green
arrow or hit enter.
If the cross reference to the hospital’s old number was uploaded into SAP then it will
return the material and will show what the new SAP number is.
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4.5 Creating and Changing a Material Master
Material Masters are considered Master Data and all Master Data in SAP is managed
by 3SO by the Procurement Analyst. Hospital site buyers will not have access to create
(extend) or make changes to Material Masters.
The Transaction Code for Material Master Creation is MM01.
The Transaction Code for Material Master Change is MM02.
4.6 Requesting Materials to be Created or Extended
Once all searches in SAP are complete and you can’t find the item you are looking for
you will need to complete a request for a new material number using the 3SO form.
Exhaustive searches must be performed, to minimize duplicates in the system.
If you find a material that exists in SAP but is not available for your Hospital to use, then
you would use the form to request the material to be “extended” to your Plant. For this
type of request you would reference the existing SAP number.
Forms can be found on the 3SO intranet at www.3so.ca/member login (top right
corner)/email address: forms@3so / password: 3soforms / 3SO tab / 3SO forms.
The dictionary is found in the document 3SO_MM_Abb_Ref. Please use this while
creating new material masters.
The Material Master Request Form is used to CREATE, CHANGE, DELETE, EXTEND,
SUBSTITUTE materials. The form must be complete prior to sending to the appropriate
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Contract and Procurement Specialist. (A spreadsheet outlining the responsibilities of the
Contract and Procurement Specialist can be found in Section 15
The form must be completed as follows. Use the drop downs where available
Indicate CREATE, CHANGE, DELETE, EXTEND, SUBSTITUTE
CREATE (A new SAP material that does not exist at any site)
COMPANY CODE – your site
PLANT - your SAP plant code
DATE REQUESTED – Today’s date
END USER DEPARTMENT CONTACT PERSON – Person who has requested
this material
CONTACT PHONE NUMBER – End User’s phone number
REQUESTED BY – initiator of request
CONTACT PHONE NUMBER – your phone number
SUBSTITUTE FOR CURRENT SAP# - only if substitute, indicate the number
REGIONAL – is this material regional or hospital specific
HOSPTIAL SPECIFIC – is this material regional or hospital specific
STOCK OR NONSTOCK – per the definitions above
MATERIAL DESCRIPTION – maximum 40 characters, always use singular
VENDOR NAME – purchased from
VENDOR NUMBER/NEW VENDOR REQUIRED – vendor number of existing
vendor or is new vendor required?
VENDOR CAT# - as defined by vendor
MFG NAME – as defined by vendor
MFG CAT # - as defined by vendor
LATEX? YES/NO – does this product contain latex?
DRUG IDENTIFICATION # - when required
MSDS REQUIRED YES/NO
LEAD TIME – the time required from the time the material is required until it is
delivered to the hospital. Remember if you only process orders weekly, you lead
time cannot be less than 7 days.
BASE UOM – stocking unit of measure
PURCHASE UOM – unit of purchase
MINIMUM ORDER QUANTITY – minimum quantity a vendor will allow the
hospital to purchase
NUMBER of BASE UNITS PER ADDITIONAL PURCHASE UOM – after the
initial quantity is purchased, what are the lot size quantities of purchase
$ COST PER PURCHASE UOM – cost per Purchase uom
TAXES HST yes or no?
SAP MATERIAL GROUP CODE - SAP material group code for this item
GL ACCOUNT NUMBER – per SAP GL accounts
COST CENTRE – per SAP cost centre assignment
If the item is stock
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ESTIMATED MONTHLY USAGE - using base unit of measure. Estimate should
be from end user.
AREAS USED – define where this material will will be used
IS STOCK CINV OR 3PL – define where the material will be stored
IS STOCK REPROCESSED – yes/no
SAFETY STOCK QUANTITY - estimated quantity of safety stock required.
IS STOCK INTERNALLY PRODUCED – i.e. in-house printed forms
SPECIAL STORAGE REQUIREMENTS – Define any special storage
requirements
SUBSTITUTE FOR CURRENT SAP# - only if substitute, indicate the number
CHANGE (An SAP number that exists at your site)
All fields are to be completed as per the Create (above)
DELETE (An SAP number that exists at your site)
All fields are to be completed as per the Create (above)
EXTEND(An SAP number that exists at another site, but not yours)
EXTEND FROM PLANT – The plant where the material currently exists.
All fields are to be completed as per the Create (above)
SUBSTITUTE (An SAP number at your site can not be supplied, this SAP number will
replace it)
All fields are to be completed as per the Create (above)
Fully completed forms should be sent to the appropriate Contract and Procurement
Specialist. The Contract and Procurement Specialist will review and approve and
forward to the Procurement Analyst for processing.
4.7 Key Searching Techniques
The following are some suggestions to help you when searching for a material master:
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It is better to use only a portion of the item’s description or vendor catalogue
number to start your search. You can always refine your search if this initial
search returns to many results.
Make your first search plant specific (i.e.: BG01, KG01, SML1) - if no results are
found then remove the plant and search the entire data base.
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There are many different ways to search for a material in SAP - try one way,
such as using the Vendor Material Number Search and if no results are found
then try another way, such as by description (i.e.: key word in the description or
part of the vendor material number in the description field).
Exhaust all attempts to find a material number prior to generating a material
master form.
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