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 Provision Process

Purpose

Provision of NF metal in purchasing is used in a similar way to subcontract orders. NF metals are made available to vendors to manufacture finished products because they may be able to obtain better terms and conditions for the metals.

Process Flow

  1. You create a separate material master for the NF metal. The material master is used in materials management and for the provisions to be created.

  2. You enter the provision data in NF metal processing.

  3. You make a transfer posting for the NF metal to the stock of material provided to the vendor.

  4. An outward posting is made from the NF metal provided when goods receipt is made for the material ordered. If the rate determination key with or without provision is changed in invoice verification, an adjustment posting is made if necessary.

    Caution Caution

    The NF metal must not be subject to batch management.

    End of the caution.