Does the Product Master Data (G101 Process) allow the Software Provider to differentiate between FMD and non-FMD Products
NO.
The Product Master Data Download (G101) transaction allows positive confirmation that the product is in the system, but does not confirm that it is in scope of FMD, as some non-FMD products have been uploaded in error.
The absence of Product Master Data does NOT confirm that the product is out of scope of FMD, as it may be that the product has not yet been uploaded.