A grouping together of materials with the same basic attributes such as raw materials, semifinished products, or finished products. All materials must be assigned to a material type which determines:

• Whether the material is intended for a specific purpose such as a configurable material or process material
• Whether the material number (item number) can be assigned internally or externally
• The number range from which the material number (item number) is drawn
• Which screens appear and in what sequence.

What procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both.