During the Implementation we come across many requirements around free goods, minor consumable, one time purchase items etc. Many of the time Client does not want to follow the whole SAP procurement process or does not want either value or quantity or both to be updated. Many of the time these requirements come in very vague terms, complicated terminologies ,or sometime using many legal/confusing terms. At the end MM Consultant ends up creating customized material times or other workaround custom solutions for the same.
However SAP has provided 2 Standard Material Types to cover many of these requirements,
SAP provides two options for Non Valuated Materials
1. NLAG - neither quantity nor value is updated (non-stock material)
2. UNBW - only quantity updated and not value.(non-valuated materials)
During Procurement they behave as below:
1)NLAG is material that is not held in stock because it is consumed immediately. (Office supplies such as stationary. You need to create purchase order and accounting document for payment but the stock balance is always zero as it is issued out immediately to the various department.)
2) If the material is set to quantity update but no value update and it is included in a Purchase Order with account assignment, a goods receipt will increase the stock.
3) If material is non- valuated, then system will not generate the any accounting document.Examples of these material are customer and vendor stock at our premises, promotional items.These items are not tracked in value but tracked in the quantity.
4)Defining material type for UNBW in OMS2 as Qty update for plants,acct category reference as non valuated material,no accounting view. During good receipt it will not generate accounting document.
5) All non-stock material will be immediately consumed upon goods receipt. These are charged to a cost element such as Account Assignment, Work Order, or Work Breakdown Structure. As a result, the non-stock will not be charged to inventory.