Before our Bike Company can procure the materials needed to produce a new e-bike, we must first create a product master record (sometimes referred to as a material master record). The product master data record is the most centralized object in the ERP environment. Because it is used by all departments, each department must create the necessary data.
Because we need to buy the new material in advance for the development and the prototyping, the Procurement department starts creating a new product master record.
The product master is organized by departments. Views are allocated to each department (data tabs – grouping of fields) that contain the information necessary for the department. Because the development of a new product starts in the Engineering department, they are responsible for maintaining the basic data.
The Purchasing department is then the first one involved in the process of sourcing and they need to maintain data as well. As the new material will be managed in stock, besides the storage data, accounting data is necessary as the materials will be managed in valuated stock.
From this perspective the following departments need to maintain data:
- Engineering / Construction
Because there are different types of products, it is possible to differentiate the usage (which departments can maintain a product) of the product.
The following are examples for the material type:
- FERT for a finished product
- RAW for a raw material
- SEMI for a semi-finished product
You must also specify an industry sector, which determines the fields necessary.
A product master record is created (or maintained) for every enterprise structure needed by the department. Depending on the departments (and therefore the views), the product master needs to be maintained with a reference to the client – engineering data, with reference for plant – purchasing data, with reference for plant / storage location from the storage views.
Because the Bike Company produces products and uses production planning, the valuation level plant has been set up. Therefore, the financial views are created at the level of the plant.
Penelope has prepared some information for you. Please have a look at the interaction below, to learn more about the material master.