James and Manuel Discuss the Assignment of Material Components in a Project Structure
James, who works as a project planner, discusses with Manuel from Purchasing, who is also responsible for the procurement of materials in projects, the setup for the forklift project.
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See the following video to follow their conversation:Methods to Assign Material Components to Network Activities
Material components establish the link between the SAP Project System (SAP PS) and Sales and Distribution (SD), Materials Management (MM), and Production Planning and Control (PP). A suitable material in a sales document item can be used to generate project structures automatically. Material requirements in projects form the basis for procurement, whether the material is produced in-house (production) or procured externally (purchasing).
By assigning materials to activities, you plan the necessary material requirements for a project. In requirement planning, a reservation is created for stocks. To cover the shortage requirements further, order quantities are determined and dates are derived from scheduling functions. The consequent procurement element from the requirements planning is a planned order and, for external procurement, a purchase requisition.
Once quantities and dates have been planned in requirements planning, these planned procurement elements are converted to exact procurement elements. This is the production order for production and the purchase order for external procurement.