If a material component, for example, is only rarely used, is very valuable or its fixed properties are not known until the production process has started, it is sometimes worth delaying procurement until it is needed by a production order. This has the advantage of reducing stock costs as well as capital tie-up.

A component can be only be procured externally, if

• It is a non-stock item

• It has a material type that is not subject to inventory management

During order creation, the system creates a purchase requisition for externally procured components.

The remaining procedure for external procurement is identical to that for an external operation.