How to Define Attributes for Material types in SAP S4 HANA.
Go to T code: SPRO.
SPRO Path –> Logistics-General – Material Master –> Basic Settings –> Material types -> Define Attributes of Material types – Click on Execute.

Now we copy the existing standard material types.
| Standard Material type | Description |
|---|---|
| FERT | Finished goods |
| ROH | Raw materials |
| HAWA | Trading goods |
Select the line item and click on copy icon.

Just give the description and press enter button.

Now select the newly created Material type – FG00 and click on Quantity/value updating.

Give the tick marks like below.
Note: This is crucial step that we are telling SAP when the quantity updated please update the value also.
Click on save button.

Now customizing request prompt will come, select your request and click on continue.

Do the same for below material types also.

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Define Attributes for Material types in SAP S4 HANA
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