The material group (base material group) is the level in the material group hierarchy which must be assigned directly to a material when it is created. It is defined across the corporate group and sub-divides the complete material assortment from a business management viewpoint.
Those material groups which themselves comprise material groups are called material group hierarchy levels. A hierarchy level can have one or more other hierarchy levels (material groups) assigned to it.
By structuring/linking material groups and material group hierarchy levels in a meaningful way you create the material group hierarchy.
Material group hierarchy
Material groups can be grouped into hierarchies. Every material group can be assigned to one material group hierarchy level.
You can create as many hierarchy levels as you wish. The lowest material group hierarchy level in a material group hierarchy is always the material group to which the materials are directly assigned.
Material group hierarchy level 3: Non-food
Material group hierarchy level 2: Household goods
Material group hierarchy level 1: Small electrical appliances
Material group hierarchy level 0: Kitchen gadgets
Material group creation
Go to OMSF and here click on "New Entries" button and maintain the Material Group and its Description and save.
Config Path: - SPRO > Logistics - General > Material Master > Settings for Key Fields > Define Material Groups