This scenario describes how pipeline materials are handled and managed.

A pipeline material is a material that flows directly into the production process from a pipeline (for example, oil), from a pipe (for example, tap water), or from another similar source (for example, electricity). A material from the pipeline is always available, that is, it can be withdrawn from the pipeline at any time and in any quantity. Only when you do this do you incur a liability toward the vendor. Payment is due at certain set intervals, for example, monthly.

The pipeline withdrawal has no effect on the existing warehouse stock nor on the availability of the material.

"Pipeline Processing" describes how you integrate the following R/3 components in the process:

Pipeline processing begins when you post a pipeline withdrawal. This can be posted for an order (document type 261), a cost center (document type 201), a network (document type 281), or for all account assignments (document type 291). The withdrawal is valuated at the price defined in the pipeline info record.
Statistics are kept of the consumption.

Pipeline withdrawals are settled without an invoice. From the list of withdrawals, the system creates invoices that are paid to the vendor.