Understand about enterprise strucutre and Material Type.

Enterprise structure is the basic for configuration of other parameters. It is defined with respect to Finance and controlling, Sales and Distribution & Logistics.

Material type is the important identification for material master. Different fields and screens are controlled with respect to material type SAP defined material types are used to identify the materials. User specific material types can also be created.

Learn more, download the document on MM - Configuration and EP (796)

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