Processing Material Procurement

Objectives

After completing this lesson, you will be able to:
  • Create purchase orders for material requisitions
  • Execute Material Requirements Planning (MRP) for projects

Direct Procurement

Diagram showing direct procurement process for non-stock items with item category “N,” including purchase requisition, bid invitation, vendor selection, and goods receipt steps.

The item category N non-stock item is used for components that are not procured by way of warehouse stock, project stock, or sales order stock, but are procured directly by the network activity.

Purchase requisitions are created for these components. These requisitions are passed directly to Purchasing. When the goods are received, they are not placed into stock, but posted to the activity.

Non-stock items cannot be managed as project stock or sales order stock.

Assigning Non-Stock Items

Purchasing Process

As long as you have activated the requirements within your network (for the entire network, the individual activity, or the individual component), a purchase requisition is generated when you save data. You can analyze all purchase requisitions and subsequent purchase orders for your project in the information system.

Procure a Non-Stock Item Directly

Procurement Through Material Requirements Planning (MRP)

Flowchart illustrating procurement of stock items through requirements planning, involving material reservation, MRP run, purchase orders, and goods receipt using item category L.

The item category L stock item is used for components kept in stock. When you save, the system creates a reservation for the required material.

The main function of material requirements planning is to ensure material availability (in other words, to procure the required quantities on time – both in-house and for sales). This includes monitoring stocks and, above all, creating procurement proposals for purchasing and production.

Independent requirements (requirements for finished products, saleable assemblies, trading goods, and spare parts) trigger requirements planning. To cover the requirements, order quantities and dates have to be determined, and the corresponding procurement elements scheduled. The procurement element for requirements planning is a planned order, or for external procurement a purchase requisition. Dependent requirements are determined by exploding the bill of material for materials produced in-house to determine the quantity of components required to manufacture a finished product or assembly. Planned orders are created at each BOM level to cover requirements when a material shortage occurs.

Once quantities and dates have been planned in requirements planning, these planned procurement elements are converted into "exact" procurement elements: For production, this is the production order and, for external procurement, the purchase order.

Assigning Stock Items

The reservation either takes effect immediately, after release, or never takes effect automatically. The last case is possible as of Release 4.6. This enables you to release the activity but leave the reservation inactive for planning. You can make the reservation active for planning at a later stage.

Material Stock Requirements List

Screenshot of SAP Material Stock Requirements List showing material details for P-FL300, including shortage definitions, material coverage, and stock information.

The current stock/requirements list shows the current stock/requirements situation of a material. This evaluation is contained in the project system under Project SystemMaterial Planning. Alternatively you can use the SAP Fiori app Monitor Material Coverage.

The various MRP elements are reread and displayed when the list is compiled. This means that the stock/requirements list always displays the current availability of the material. Changes that are made after the planning date are displayed directly, in other words the list is dynamic. Stock/requirements lists are not stored permanently in the system but are volatile and are only stored in the working memory.

From this list, you can display and change the individual objects that generate and cover requirements, you can display the associated master data, and you can convert planned orders to production orders or purchase orders, for example.

As of Release 4.6A, the current stock/requirements list can be called up via individual access for a material number, but also evaluated via collective access according to product group, class, MRP controller, vendor, or production line.

MRP Run for Project

Procure Stock Items Through MRP