In SAP Materials Management and Sales and Distribution, which material type is typically used for goods that are purchased and then resold unchanged (trading goods)?

Introduction / Context:
SAP classifies materials into different material types that control important behaviours such as valuation, quantity updating, and integration with Sales and Distribution (SD). Understanding which material type to use for different business scenarios is essential for correct configuration and master data maintenance. Trading goods are materials that are procured from a vendor and then resold to customers without any further internal manufacturing or processing. This question asks you to identify the standard SAP material type used for such trading goods.

Given Data / Assumptions:
- The context is SAP Materials Management (MM) and Sales and Distribution (SD).
- Trading goods are purchased and then resold as they are, without in-house production steps.
- The common material types include HALB (semi-finished), HAWA (trading goods), FERT (finished product), and ROH (raw material).
- The question focuses on the standard SAP material type for trading goods.

Concept / Approach:
SAP delivers several material types with specific default settings. HALB (semi-finished goods) is typically used for components that are produced in-house and used in further manufacturing. FERT (finished goods) is used for materials that the company manufactures and sells as final products. ROH (raw materials) is used for inputs that are purchased and consumed in production processes. HAWA, on the other hand, stands for trading goods and is used for materials that are procured from external vendors and then resold essentially unchanged. This material type is set up to support purchasing, stock management, and sales without linking to in-house production structures like bills of material or routings.

Step-by-Step Solution:
Step 1: Clarify the definition of trading goods: materials that are bought and resold without further internal manufacturing. Step 2: Review the typical usage of the four material types mentioned: HALB, HAWA, FERT, and ROH. Step 3: Recognise that HALB is intended for semi-finished items used in further production, not pure trading scenarios. Step 4: Note that FERT is used for finished goods that the company itself manufactures and then sells to customers. Step 5: Understand that ROH is used for raw materials, which are usually consumed in production instead of being resold to customers as-is. Step 6: Conclude that HAWA is the correct material type for trading goods, as it is designed for items that are purchased and then sold without additional internal processing.

Verification / Alternative check:
In SAP customizing and documentation, HAWA is described as the standard material type for trading goods. If you examine the default views and fields associated with HAWA, you will see that it supports purchasing and sales views but does not emphasise in-house production data such as work scheduling or production versions. Real world SAP implementations often use HAWA for items like resold electronics, books, or imported finished products where the company acts as a reseller. This practical usage confirms that HAWA is the intended material type for trading goods.

Why Other Options Are Wrong:
Option A (HALB) is wrong because semi-finished products are typically produced in-house and form part of a larger manufacturing process, not directly purchased and resold in the same form. Option C (FERT) is incorrect because FERT is primarily used for finished goods that the company manufactures itself before sale. Option D (ROH) is wrong because raw materials are generally acquired to be consumed in production processes, not to be sold unchanged to customers. While it is technically possible to sell materials of these types, the standard and recommended material type for trading goods is HAWA.

Common Pitfalls:
A common mistake is to reuse the same material type for many different purposes to simplify master data maintenance. For example, some organisations incorrectly use FERT for trading goods simply because they are sold to customers. Doing so can cause confusion in reporting, valuation, and integration with production planning. Another pitfall is overlooking the impact of material type on default views and on allowed processes such as production orders. Understanding and correctly using HAWA for pure trading goods helps keep the system consistent and makes configuration and reporting clearer.

Final Answer:
The correct answer is HAWA, used for trading goods that are procured and resold without further processing, because HAWA is the standard SAP material type intended for materials that are purchased from vendors and then sold to customers unchanged, without in-house production.