When determining the procurement element, the system first finds out how procurement is to be carried out – either as in-house production or as external procurement. Materials planned using consumption-based planning are usually externally procured.

You usually enter the procurement type F for a material planned using consumption-based planning. If, however, in-house production and external procurement is to be allowed, you can also enter an X in the procurement type field in the material master record. You can then determine the procurement type as follows:

If you want to leave the indicator X for both procurement types in the material master record and have not maintained any quota arrangements, the system automatically assumes that in-house production is to be used. Therefore, the planning run creates planned orders which you can then convert to either production orders or purchase requisitions.

You use the special procurement type to define exactly how procurement is to be carried out. In consumption-based planning, you can only define the special procurement type stock transfer from plant to plant at plant level.