Describing Special Procurement Processes

You enter a scrap posting if it is not possible to use a material any longer, for example, because it has been damaged or because its minimum shelf life has been exceeded. Scrapping is possible from each of the three stock types and is entered as a GI without a reference.

The following movement types are defined for scrapping:

• 551: Withdrawal for scrapping from unrestricted-use stock
• 553: Withdrawal for scrapping from stock in quality inspection
• 555: Withdrawal for scrapping from blocked stock

Scrapping causes a reduction in the associated stock. The system moves the value of the scrapped material from the stock account to a scrap account.

• Invoicing plans: Automate recurring payments for predictable cash flow, reduced administration, and improved supplier relationships.
• Blanket purchase orders (BPOs): Simplify recurring purchases from vendors to enhance efficiency and manage inventory effectively.
• Consignment: Manage inventory without direct payment until sale, reducing costs and risks associated with unsold stock.
• Subcontracting: Delegate tasks to external specialists for access to expertise, flexibility in workforce scaling, and cost efficiency.
• Strategic procurement tools: Assess organizational needs to align methods like invoicing, BPOs, consignment, and subcontracting with operational goals.