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 External Procurement of Components Locate this document in the navigation structure

Purpose

If a material component, for example, is only rarely used, is very valuable or its fixed properties are not known until the production process has started, it is sometimes worth delaying procurement until it is needed by a production order. This has the advantage of reducing stock costs as well as capital tie-up.

Prerequisites

A component can be only be procured externally, if

  • It is a non-stock item

  • It has a material type that is not subject to inventory management

Note Note

Pipeline materials cannot be procured externally.

End of the note.

Process Flow

During order creation, the system creates a purchase requisition for externally procured components.

The remaining procedure for external procurement is identical to that for an external operation.