Definition

Procurement processes are used in Product Cost Controlling to determine procurement costs and to present those costs. Procurement processes characterize the procurement transaction, possibly for multiple materials. A single process can produce multiple materials (such as with joint production), while the procurement alternative represents the production of just one material. Single-level and multilevel procurement alternatives are differentiated according to process category . Purchase Order , for example, is single-level procurement and Production is multilevel procurement. You can determine the level of detail for a procurement process by choosing a Controlling level. For more information, see Procurement Alternatives .

Use

Procurement processes are used in Product Cost Controlling , (i.e. Product Cost by Period ) as well as in the component Actual Costing/Material-Ledger .

The procurement process for the process category Production is called production process . If the Material Ledger is active with multilevel actual costing, every production order is assigned to a production process. If a goods receipt is posted to a material, that goods receipt is then assigned to the associated procurement alternative.

See also:

Controlling Level

Maintaining Texts for Procurement Alternatives/Consumption Alternatives and Procurement Processes