Material Procurement

The SAP PS module is integrated with MM through the usage of networks. This allows automatic creation of purchasing data (Reservations and purchase requisitions) in logistics (MM module) in order to fulfill the requirements for the project.

Various processes are available as detailed below:

Direct procurement for Non-Stock items:

Material with Item Category “N – Non Stock” are procured directly by the network activity. Purchase requisitions are created for these components. When the goods are received, they are posted directly to the activity and do not go through the stock.

When using direct procurement with item category “N”. Two procurement types are possible:

Purchase requisition for the network
Third party

Procurement via MRP (Material Requirements Planning) for Stock items:

Materials with Item Category “L – Stock Item” are procured using Requirements planning. When saving, the system creates a reservation for the required material.

The MRP is used to ensure material availability by monitoring the stocks and creating procurement proposals for purchasing and production.

The procurement element for requirements planning is a planned order, or for external procurement a purchase requisition.

Advance Procurement

Advance procurement is used for critical components with long and unreliable delivery times. These components need to be purchased at an early stage of the project. Even before the creation of the network activities.

This preliminary procurement can only be used with sales order or project stock.

Two scenarios are possible with advance procurement:

Planned independent requirements :

This is used for assemblies that need to be produced well in advance of consumption.
The MRP run generates a planned order for this type of requirement which leads to a production process. The material is delivered to stock where it will be consumed by the final network activity.
Preliminary purchase requisition :

This is used for assemblies that need to be ordered well in advance of consumption.
The system generates a purchase requisition which leads to a purchasing process. The material is delivered to the stock and is later consumed by the final network activity.