Question 3967 : "NLAG" Material Type

In SAP Material Management, which of the following characteristics are NOT TRUE of the Material Type "NLAG" ?

(more than one answers)

A. No Quantity update and No Value update in the Material Type.
B. With Quantity update and No Value update in the Material Type.
C. Such Materials with "NLAG" cannot be included in the Bills of Material.
D. For External Procurement rather than Internal Procurement.
E. Unit of Measure is not necessary in the Material Master.

Answer: B, C, E
.

A) No Qty update and No Value update is a CORRECT statement, and therefore it should not the the answer as the Question statement looks for a NOT TRUE statement about "NLAG" Material Type. In OMS2, "NLAG" is set as without Qty and without Value update.
"NLAG" is non-Stock (According a Google search, I think the "N" is in German "NEIN" for No and the "LAG" is in German "LAGER" for Stocks), So "N" + "LAG" become "NLAG" which should be "No Stock".
Non-Stock purchasing means when the Purchase Order is received, there is no Stock entry as it is consumed immediately either to Production or Cost Center. For Non Manufacturing, Materials with "NLAG" can be items like Office Supplies; and for Manufacturing Non-Stock Materials it can be items with relatively not expensive, shorter lead time and not critical such as Production consumables of daily use.

B) This statement is NOT TRUE and therefore is a CORRECT Answer. Since in the above, standard SAP delivers "NLAG" Material Type to be "Without Qty" and "Without Value" updating; therefore "B. With Quantity update and No Value update in the Material Type" will be WRONG (NOT TRUE). 

Material Type "UNBW" is delivered by SAP as "With Quantity Update" and "Without Value Update", Materials created with "UNBW" will require Account Assignment in the PO where Goods Receipt will charge to the Account Assignment Object but Quantity will be recorded in the Warehouse BUT Without Value. 

C. Such Materials with "NLAG" cannot be included in the Bills of Material is FALSE (NOT TRUE) and therefore is the Correct Answer. Note below that bow NLAG and UNBW Materials can be included in the BOM with Item Category "N" where a Non-Stock PR will be created at Production Order creation or release. Finally, we expect the Non-Stock PR converted to Non-Stock PO where GR will charge out the Cost of the PO to the Production Order. 

D. For External Procurement rather than Internal Procurement; this is probably a difficult one because even standard SAP delivery of the Material Type setup is confusing BUT I will say this is a TRUE statement. (as below) because Work Scheduling view not selected therefore Production Order is not allowed. 

However, even if Work Scheduling view is selected. Although the Production Order can now be created and released; GR is NOT Possible (see 2nd slide below).

Note: 

External Purchase Order setting in OSM2 means Purchase Order for Vendor and Supplying Plant.

Internal Purchase Order setting in OMS2 means Production Order.

E. Unit of Measure is not necessary in the Material Master and this is NOT TRUE and therefore is a CORRECT Answer.