SAP Procurement Type
SAP Procurement Type is use to determine whether a material is procure in house or it can be procure externally. For instance a plan order or a purchase order needs to be create. The type of procurement completely depends on the material type.
Material Requirement Planning is normally perform 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
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 schedule. 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 apply.
Special Procurement Type is use to define how procurement has to be carry out. In consumption base planning, special procurement type stock transfer from plant to plant at the plant level can be define.
With the use of operational procurement, it is possible to integrate 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.
Most importantly using Operational Procurement, organizations can handle 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