# SAP S/4HANA Material Groups: Configure, Assign and Report

> Source: https://netray.co/erp-help/sap-s4hana-material-groups-omsf-mm01-reporting
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: ERP Help

## Short answer

A material group classifies materials and services for purchasing and reporting. Define it in customizing with OMSF (Define Material Groups), stored in table T023 with texts in T023T, and assign it in the Basic Data 1 view of the material master (MARA-MATKL). Purchase order items copy it to EKPO-MATKL, which makes spend-by-group reporting possible.

## Kind

how-to

## System

sap

## Erp

SAP S/4HANA

## Module

MM / Material Master

## Query

sap s4hana material groups

## Alternate Queries

- how to create material group in sap s4hana
- sap OMSF material group
- sap material group table T023
- sap material group vs product hierarchy

## Applies To

SAP S/4HANA (on-premise and private cloud) and SAP ECC 6.0 material master

## Steps

### Create and use a material group

**Items:**

- Run OMSF (or SPRO > Logistics General > Material Master > Settings for Key Fields > Define Material Groups).
- Choose New Entries and enter the material group key (up to nine characters) and description. Save to a transport request.
- Optionally assign it to the right organizational scope using purchasing groups or authorization groups as your design requires.
- Create or change a material with MM01 or MM02. In Basic Data 1 enter the Material Group.
- For services and non-stock items, enter the material group directly on the purchase requisition or PO item when there is no material master.
- Report on spend: use ME2N/ME2M with the material group selection, or analyse EKPO-MATKL with a CDS-based Fiori analytical app.

## Sections

### What a material group does in the system

**Body:**

A material group is a purely classification attribute that does not drive pricing by itself. It is used in purchasing reports, in release strategies (the release strategy classification can include MATKL), in account determination (valuation class by material group in OBYC for some scenarios) and in authorization checks (authorization object M_MATE_MAR relates to material types and groups with authorization groups).

Design it as the buyer's view of spend, usually a hierarchy designed outside SAP such as UNSPSC-like categories or your own taxonomy. Keep the number manageable because it also feeds source-list and tendering decisions.

### Material group versus product hierarchy

**Body:**

The product hierarchy is a multi-level structure used mainly in sales and pricing. The material group is a flat key used in procurement and inventory reporting. Many companies use both: the product hierarchy for sales analytics and the material group for purchasing spend.

In S/4HANA the product group concept appears in Fiori apps, but the technical field remains MATKL, so existing reports and enhancements keep working.

### Reporting on material groups

**Body:**

- Checks in the database are simple: MARA holds the material to group assignment, EKPO the PO item group, and T023T the descriptions.

**Code:**

- SE16N T023: material groups; T023T: texts (SPRAS = EN)
- SE16N MARA: MATNR, MATKL (list materials per group)
- SE16N EKPO: MATKL, NETWR (sum order value per group)

## Pitfalls

- Creating too many material groups so buyers cannot choose consistently.
- Changing a material's group after documents exist and expecting history to change; document items keep the group copied at creation.
- Using material group where a material type is needed; material type controls stock and valuation behaviour.
- Transporting new groups without also assigning them to related release strategies and authorizations.

## Ai Angle

Spend-by-material-group questions and 'which materials are missing a group' are natural-language queries. A read-only assistant on the SAP data can answer them and show the underlying selection, so master data teams can clean up classification before a migration.

## Faq

### What is the tcode to define a material group in SAP?

**Answer:** OMSF in customizing. It maintains table T023 and T023T (texts). Material groups are then assigned in the material master Basic Data 1 view through MM01 or MM02.

### Which table holds the material group of a material?

**Answer:** MARA, field MATKL. The master list of valid groups is T023 with descriptions in T023T. Purchasing document items carry the group in EKPO-MATKL.

### Can material groups be changed later?

**Answer:** Yes through MM02 or mass change, but existing purchasing documents keep the old value. Plan reporting cut-over dates when you restructure material groups.

### Is a material group mandatory?

**Answer:** In the standard material master, Material Group is a required field in Basic Data 1. For service and account-assigned items, it can also be entered directly on the document.

## Search terms

sap s4hana material groups, sap OMSF material group, sap material group table T023, MARA MATKL, define material group sap, sap material group vs product hierarchy, sap spend by material group, MM01 material group

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