Pipeline Handling 

Use

A pipeline material is a material that flows directly into the production process from a pipeline (for example, oil), from a pipe (for example, tap water), or from another similar source (for example, electricity).

A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline at any time and in any quantity.

Depending on the system configuration, a material can be withdrawn only from the pipeline or, in addition to the pipeline, normal stocks of the material can also be managed.

  • Materials with Material Type PIPE

Pipeline handling is mandatory for materials with material type PIPE; i.e. only withdrawals from the pipeline can be posted for these materials.
These materials have the following characteristics:

    • They are neither procured nor planned. They can be withdrawn from the pipeline at any time and in any quantity.
    • They are not stored or kept in stock. No physical inventory is taken.
    • Pipeline movements are mandatory in all valuation areas; i.e. no other goods movements may be posted.
  • Other Material Types

For each material type, you can specify in the valuation area whether pipeline movements are:

    • Mandatory
    • Allowed

If pipeline movements are not mandatory but allowed, the material can be kept in stock and both pipeline and other movements can be posted.

A material of this type can be withdrawn from your company’s own stock, from consignment stock, or from the pipeline.

Activities

Pipeline Withdrawal

You can enter a pipeline withdrawal for an order or for a cost center. Pipeline withdrawals differ from other goods movements in that they are entered with the special stock indicator P.

The withdrawal is valuated at the price defined in the pipeline info record.

A withdrawal from the pipeline results in the following updates in the system:

  • The pipeline withdrawal results in a vendor liability that must be settled periodically in a similar way to the management of consignment stocks. In the standard system the same account is used for both pipeline and consignment liabilities, but a different pipeline liabilities account can be defined in Customizing.
  • A consumption history is kept.

The pipeline withdrawal has no effect on existing warehouse stock or on the availability of the material.