A pipeline material is a material that enters the production process directly from a pipeline (for example, oil), from a pipe (for example, mains water), or via a cable (for example, electricity), and can be consumed. Pipeline materials are represented by the material type PIPE. These materials have the following business characteristics:

• They are not obtained or planned. The required quantity can be removed from the pipeline at any time.
• They are not stored and they are not managed in inventory management. No physical inventory is performed.
• You can only post withdrawals for this material using account assignment.
• Posting withdrawals creates liabilities to the vendor from whom the pipeline material is obtained. These liabilities are settled periodically.