In SAP Sales and distribution When a product is under engineering change or there is a bug and you have another product, which is acceptable as replacement, then material determination can be used to set this scenario. Old product can be replaced by new product as per the launch date of the product. Material determination is also called as “Product selection”.

It uses condition technique for material. Material determination procedure is based on the sales document type. With condition technique, criteria can be defined and condition records can be maintained. Standard material determination procedure for order type OR is A00001. Standard material determination condition type is A001.

With standard setup, condition record for swap materials is maintained for “material entered”. It means in standard SAP, material determination is triggered when material is entered in the sales order. Additional criteria can be added by customizing condition type A001. Material condition records are maintained in the main transaction menu in master data.

Swapping can be based on certain business conditions. These are called as Substitution reasons. For each substitution reason, you can define substitution strategy. SAP System will automatically replace product as per material determination record after carrying out availability check or can give list of substitute products for users to check and select or replace material without availability check.

It can also control whether both substituted and substitute material can be displayed in the sales order or only substitute material is to be displayed in the sales order. It controls printing of substituted or substitute material on output types like order confirmations. In delivery, no material determination is carried out for items copied from the order. Material determination in a delivery is carried out for new items if material determination has been activated for the corresponding sales document type.

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