Procurement Type and Special Procurement Type 

Use

When determining the procurement element, the system first finds out how procurement is to be carried out – either as in-house production or as external procurement. Materials planned using consumption-based planning are usually externally procured.

Prerequisites

  • You must determine whether in-house production, external procurement or both is allowed for the material in the material master record (MRP 2 view). You set the procurement type using the material type in Customizing for the Material Master. You usually set F for external procurement.
  • You must define more specifically how in-house production or external procurement is to be carried out by entering a special procurement key in the Special procurement field in the material master record (MRP 2 view).

Features

Procurement type

You usually enter the procurement type F for a material planned using consumption-based planning. If, however, in-house production and external procurement is to be allowed, you can also enter an X in the procurement type field in the material master record. You can then determine the procurement type as follows:

  • By overwriting the indicator in the material master record.
  • By converting the planned order into either a production order or into a purchase requisition.
  • Using quota arrangements by defining quotas for external procurement and in-house production in the quota file (see Quota Arrangements).

If you want to leave the indicator X for both procurement types in the material master record and have not maintained any quota arrangements, the system automatically assumes that in-house production is to be used. Therefore, the planning run creates planned orders which you can then convert to either production orders or purchase requisitions.

 

Special procurement type

You use the special procurement type to define exactly how procurement is to be carried out. In consumption-based planning, you can only define the special procurement type stock transfer from plant to plant at plant level.

If you use storage location MRP, you can also define the following special procurement types:

  • External procurement
  • Consignment
  • Production in an alternative plant
  • Stock transfer from an alternative plant