Procurement Type and Special Procurement Type

Use

When the system determines the procurement element, it first asks whether procurement should take place via in-house production or external procurement.

Prerequisites

You have defined whether in-house production, external procurement or both are allowed for the material, in the material master record, in the Procurement type field. The procurement type is preset by the material type in Customizing for the material master.
If necessary, you have defined more precisely how the in-house production or external procurement is to be carried out, in the material master (MRP 2 view), in the Special procurement field.

You define special procurement keys in Customizing for MRP in the IMG activity Define special procurement type.

Features

Procurement Type

If both in-house production and external procurement are defined for the material via the material type (indicator X in Procurement type field), then you can set the procurement type as follows:

By overwriting the indicator in the material master
By converting the planned order either into a production order or a purchase requisition
By using quota arrangements, in that you define that a certain percentage of the material is to be procured via in-house production and the rest via external procurement (see Quota Arrangements).

If you leave the indicator X for both procurement types in the material master record, and you have not maintained any quota arrangements, the system automatically switches to in-house production. The planned order therefore firstly creates planned orders, which you can then convert into production orders or purchase requisitions.

Special Procurement Type

The special procurement type is used to precisely define how in-house production and external procurement is to be carried out.

Special Procurement for In-House Production

For a phantom assembly
Production in alternative plant
Withdrawal from an alternative plant
Direct production

Special Procurement for External Procurement

Consignment
Subcontracting
Stock transfer
Direct Procurement