Operating Pipeline Processes

Pipeline material is material that flows directly into the production process from a pipe (for example, oil) or another kind of conduit (for example, electricity).

Unlike consignment material, pipeline material does not have to be acquired via Purchasing. Pipeline stock is not stock that is physically available in your warehouse. Material from the pipeline is always available and can be taken from the pipeline in any quantity at any time.

Pipeline Material

For pipeline material, you must create a material master record with purchasing and accounting data. Ensure you choose a material type that allows pipeline handling.

A material type can specify pipeline processing as the only possible procurement type for the material or, for example, allow pipeline processing in addition to the normal external procurement.

You can find the Customizing settings for the material type in Customizing for Logistics - General under Material Master→Basic Settings→Material Types→Define Attributes of Material Types (OMS2).

The standard material type for pipeline-only material is PIPE. The following applies to a material of material type PIPE:

• For the material, pipeline, movements are necessary in all valuation areas. No other goods movements can be posted.
• The material is not procured or planned.
• The material is not stored and no inventory management is performed for it.
• The material is not inventoried.
• The material can be withdrawn from the pipeline in any quantity at any time.
• The material can be used as a component with backflush in the production order.

In a purchasing info record with info category Pipeline, you can specify the price of the pipeline material from a vendor. You must create the pipeline info record before you can post pipeline movements. As the purchasing organization, choose the standard purchasing organization of the plant in which the pipeline withdrawal is posted.

If there is only one pipeline info record defined for a material, it is automatically proposed for the goods movements. If there are multiple pipeline info records for a material, you can enter the preferred vendors in the source list. A preferred vendor is proposed for goods movements. If no vendor is entered in the source list, the vendor offering the most favorable conditions is automatically chosen when you execute transaction MIGO. In other functions, you must select the vendor manually, without a source list.

You can enter a withdrawal from the pipeline in the same way as you enter a goods issue (GI) for the stock material, but you must also specify special stock indicator P for the pipeline and the vendors of the pipeline material.

• 201 – consumption for cost center
• 261 – consumption for order
• 281 – consumption for network
• 291 – consumption for all account assignments

A withdrawal from the pipeline results in a liability to the vendor. The amount is calculated as the product of the quantity withdrawn and the price from the pipeline info record. Pipeline withdrawals have no effect on existing warehouse stock or on the availability of materials.