Inventory Management: Pipeline Handling
As of Release 3.0, you can withdraw materials from a pipeline in Inventory Management.
What is a pipeline material?
A pipeline material is a material that flows directly into the
production process from a pipeline (for example, oil), from a pipe (for
example, tap water), or from another similar source (for example, electricity).
Depending on the configuration, a material can be withdrawn only from
the pipeline or, in addition to the pipeline, normal stocks of the material can also be managed.
- Material type PIPE materials
Pipeline handling is mandatory for material type PIPE materials, that
is, only withdrawals from the pipeline can be posted for these materials.
These materials have the following business characteristics:
- They are neither procured nor planned. They can be withdrawn from the pipeline at any time and in any quantity.
- They are not stored or kept in stock. No physical inventory is taken.
- Pipeline movements are mandatory in all valuation areas, that is, no other goods movements may be posted.
- Other material types
For each material type, you can specify in the valuation area whether the pipeline movements
If pipeline movements are not mandatory but allowed, the material can
be kept in stock and both pipeline movements and other movements can be posted.
A material of this type can, for example, be withdrawn from your
company's own stock, from consignment stock, or from the pipeline.
Specifying the pipeline price per vendor
Before you post a pipeline movement, you must specify the pipeline
price for the respective vendor in a pipeline purchasing info record.
To do so, you must assign a purchasing organization to the plant in
Customizing for Purchasing. This purchasing organization applies to all pipeline purchasing info records in the plant.
In the pipeline purchasing info record, you define the price of the
pipeline withdrawal for the vendor. It is possible to specify different prices for different periods.
If a pipeline material can be supplied by several vendors, but one
vendor is preferred, enter this vendor in the source list. The preferred vendor will then be proposed in pipeline withdrawal.
A material from the pipeline is always available, that is, it can be withdrawn from the pipeline at any time and in any quantity.
You can enter a pipeline withdrawal for an order or for a cost center.
Pipeline withdrawals differ from other goods movements in that they are entered with special stock indicator P.
A pipeline withdrawal has the following effects in the system:
- The pipeline withdrawal creates a liability to the vendor that must be
settled periodically in a way similar to the management of consignment
stocks. The payables account can differ from the payables account for vendor consignment.
- A consumption history is kept on consumption.
- The pipeline withdrawal has no effect on an existing warehouse stock or on the availability of the material.
Change in the case of withdrawals for bills of material
With withdrawals for bills of material, you can define a withdrawal sequence.
The withdrawal sequence determines the stock from which the material is withdrawn:
- from your company's own warehouse stock
For more information on the withdrawal sequence, see Release note
Withdrawal sequence for goods issue for bill of material.
Pipeline components in run schedule headers
The withdrawal sequence is also determined for run schedule headers.
Change system parameters in customizing
The following configurations are necessary for pipeline handling:
- Customizing - Corporate Structure:
- Customizing - Material Master:
- whether pipeline handling is mandatory for the material type (standard:
only for material type PIPE). This then applies to all valuation areas.
- the valuation areas in which pipeline handling is allowed or mandatory for the material type
- Customizing - Inventory Management: Transactions -> Goods issue ->
if you post goods issues for bills of material or run schedule headers.
You do not need to make any settings here if, for pipeline handling, you use the payables account for consignment.
If you wish to use different payables accounts, you should proceed as follows:
a) Change the rules for transaction KON (consignment payables) in such a way that account grouping (field
General modification) is active.
b) Define account allocations
- without account grouping for management of consignment stocks
- with account grouping PIP for pipeline handling
Changes in procedure
The following transactions are explained in this section:
- Create pipeline purchasing info record
- Post goods issue from the pipeline
- Settle pipeline liabilities
Create pipeline material
When creating a pipeline material, it is important that you note the following:
- Assign the material a material type that allows pipeline movements. Pipeline movements are mandatory for material type PIPE.
- Always maintain the Purchasing and Accounting views.
Create pipeline purchasing info record
You create a pipeline purchasing info record as follows:
1. From the Purchasing menu, choose Master data -> Info record -> Create.
2. On the initial screen, enter the vendor, the material, and the standard purchasing organization assigned to the plant.
Select info type Pipeline.
3. Maintain the info record data.
4. Save the info record.
Maintain source list
If you have several pipeline purchasing info records for a material,
you can enter the preferred vendor in the source list. This vendor is
proposed as a default for goods movements. If no vendor is entered in
the source list, you must select a vendor for each goods movement.
Post goods issue from the pipeline
You post a withdrawal from the pipeline as follows:
1. From the Inventory Management menu, choose Goods movement -> Goods issue.
2. Maintain the data on the initial screen. Enter the movement type and the special stock indicator:
- 201 P for goods issue for cost center
- 261 P for goods issue for order
3. Enter the cost center or the order on the collective entry screen. Enter the individual items.
You do not need to enter the vendor; this is determined automatically if
- only one pipeline info record exists or
- the preferred vendor is entered in the source list
If several vendors are possible, a dialog box containing the list of pipeline vendors is displayed. Select the vendor you want.
You need only enter a vendor if, although the preferred vendor is in
the source list, you want to enter a different vendor for the movement.
Settle pipeline liabilities
You settle pipeline liabilities in exactly the same way as consignment liabilities.
Release 3.0A does not yet enable you to include pipeline components in a production order.