Advance Procurement

Use

Use this function to generate preliminary requirements when you assign a material component to a network activity. Preliminary requirements cover real requirements that are generated a later point in time. This is useful if material components have a long replenishment time (planned delivery time or in-house production time).

Prerequisites

  • Material components that are to be procured in advance must be managed in individual stock, that is in stock or sales order stock.

    If a material is procured directly for a network and is not kept in stock, the system cannot settle requirements. A preliminary purchase requisition is therefore only possible in inventory management.

  • The following settings must be made for material components that are procured using MRP, in the Planning section of the MRP 3 detail screen of the material master .

    • Mixed MRP must have the value Subassembly planning with final assembly (1).

    • A strategy group must be entered that leads via the assigned requirements type to a requirements class with suitable settings:

      In the standard system you can use strategy group Planning at assembly level (70). This leads to requirements type Planning for assemblies (VSFB) and to requirements class Assembly planning (105).

      This requirements class has been set up so that planned independent requirements are generated:

      Consumption indicator : Consume planning with assembly (1)

      Planning indicator : Net requirements planning (1)

      Consumption indicator for planning requirements : Consume (customer requirements), reservations, dependent requirements .( 2 or 3 ) (Customizing for Demand Management under Start of the navigation path Planned Independent Requirements Next navigation step Default Values and Presettings Next navigation step Define Default Values for Consumption Type per Reqmts Class End of the navigation path ).

Activities

When you assign a component, you decide whether it should be procured in advance. You can change this setting up to the release of the network activity by selecting the components and choosing Start of the navigation path Components Next navigation step Procurement End of the navigation path .

When requirements are activated , the system generates preliminary purchase requisitions and planned independent requirements for components that are procured in advance.

Materials planning treats a planned independent requirement as a requirement. If a real requirement is generated at a later time, and the system finds a component for which a sufficiently large planned independent requirement exists in the same individual stock segment, then these requirements will be set off against each other. This means for project stock that the components have to be assigned to the same WBS element.

For more information on advance procurement, see the Demand Management (PP-MP-DEM) component.