Material types in SAP define how a material behaves in procurement, production, and inventory management.

ROH – Raw Material
Basic materials procured externally and used in production.
Example: Steel, chemicals, Chips, wires

HALB – Semi-Finished Product
Partially processed materials used in further production or sales.
Example: Engine block, Mother board

FERT – Finished Product
Final goods ready for sale, produced internally.
Example: Mobile phone, laptop

HIBE – Operating Supplies
Indirect materials used for daily operations.
Example: Lubricants, cleaning chemicals

VERP – Packaging Material
Materials used for packing finished goods.
Example: Boxes, pallets

ERSA – Spare Parts
Materials used for maintenance and repairs.
Example: Spare motors, screws

KMAT – Configurable Material

Materials with multiple variants, configured at sales order.
Example: Custom-built laptop

NLAG – Non-Stock Material
Materials not stored in inventory and consumed directly.
Example: Stationery

UNBW – Non-Valuated Material
Quantity managed but without value.
Example: Free samples

DIEN – Service Material
Intangible services with no inventory management.
Example: Maintenance services.