Procurement processes are used in Product Cost Controlling to determine procurement costs and to present those costs. Procurement processes characterize the procurement transaction, possibly for multiple materials. A single process can produce multiple materials (such as with joint production), while the procurement alternative represents the production of just one material. Single-level and multilevel procurement alternatives are differentiated according toprocess category. Purchase Order, for example, is single-level procurement and Production is multilevel procurement. You can determine the level of detail for a procurement process by choosing a Controlling level. For more information, see Procurement Alternatives.
Procurement processes are used in Product Cost Controlling, (i.e. Product Cost by Period) as well as in the component Actual Costing/Material-Ledger.
The procurement process for the process category Production is calledproduction process. If the Material Ledger is active with multilevel actual costing, every production order is assigned to a production process. If a goods receipt is posted to a material, that goods receipt is then assigned to the associated procurement alternative.
See also:Controlling Level Maintaining Texts for Procurement Alternatives/Consumption Alternatives and Procurement Processes