Processing Blanket Purchase Orders

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.

• Purpose of blanket purchase orders: Use long-term orders for low-value items to minimize high processing costs of individual purchase orders.
• Advantages of blanket POs: Reduce order processing costs with no goods receipt, service entry, or individual procurement item creation needed.
• Processing blanket POs: Utilize document type FO with item categories E or B; set limits for invoicing over validity period.
• Limit item specifications: Enter overall and expected values for control; omit material numbers and prices for flexible invoicing.