SAP Procurement Type

SAP Procurement Type is used to determine whether a material is procured in the house or it can be procured externally. For instance, a plan order or purchase order needs to be created. The type of procurement completely depends on the material type.

Material Requirement Planning is normally performed at the plant level. You can also exclude storage location stock from the plant’s MRP run. With the use of storage location MRP, you can define the following special procurement types

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

When the SAP Procurement Type supports both in house production and external procurement. material requirement planning starts with in house production.

As per the procurement type, the master data settings and MRP parameters. Moreover, the receipts (usually planned orders or purchase requisitions) are scheduled. Restrictions due to overloads are left out of consideration. However, the procurement type defines the type of procurement elements. Depending on the procurement, scheduling is applied.

Special Procurement Type is used to define how procurement has to be carried out. In consumption base planning, special procurement type stock transfer from plant to plant at the plant level can be defined.

Operational Procurement

With the use of operational procurement, it is possible to integrate the procurement process with other processes and automate other processes with the procurement process and reduce cost. It helps the organization streamline the source to contract and procure to pay processes.

Requirements Processing

Most importantly using Operational Procurement, organizations can handle a variety of purchase requisition more efficiently and quickly. In addition by displaying automatically all available sources of supply for an open purchase requisition. SAPCloouds SAP S/4 HANA increases significantly the efficiency and speed of the source of supply assignment process. To manage purchase requisition, search for an app Manage Purchase Requisition.