Creating a Pipeline Material (SAP Library - Managing Special Stocks (MM-IM))

Creating a Pipeline Material

When creating a pipeline material, it is important that you note the following:

Assign the material a material type that allows pipeline movements. Pipeline movements are mandatory for material type PIPE.
Always maintain the Purchasing and Accounting views.

Choose price control V (moving average price), so that any pipeline consumption is posted to the consumption account at the pipeline price. In this case, the moving average price entered is not relevant since withdrawals are posted at the pipeline price.

With price control S (standard price), the difference between the pipeline price and the standard price is posted to a price difference account. In extreme cases (standard price = 0), the total pipeline consumption is posted to the price difference account. When a withdrawal for an order occurs, the consumption account is updated by an amount corresponding to the actual cost in the order.