Procurement Alternatives 

Definition

A procurement alternative presents the different options for procuring a material. You can choose the level of detail used to create the procurement alternative by defining the Controlling level. 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.

For more information, see Procurement Processes.

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 from an order is posted to a material, that goods receipt is then assigned to the associated procurement alternative. In the following graphic, the goods receipt for order 0001 is assigned to procurement alternative Production Version 2.

As shown in the graphic, procurement alternatives are situated hierarchically under process categories.

Controlling Level