I want to know , how much different will it be when we are working on bulk materials rather than normal materials.
what precautions should we be taking in the whole purchasing cycle.
Bulk materials are issued to cost centre in production orders - i.e. their issue might be caused by physical use in the production order but the system records the issue as independent of the order. A material can be set as Bulk Issue in the material master (in which case it is always issued to cost centre) or just in a particular BoM (or set of BoMs).
Such materials are usually low cost and high volume. This is importnat to note because of two main factors that are affected by the Bulk Issue setting. One is cost - Bulk issue items in a BoM are not included in the production item's cost (the cost of the item goes to cost centre when issued). The second is planning - bulk issue items are not seen by MRP and so need to be reorder point planned.
One other factor is important if the material is stocked in batches - Bulk Issue items will not be batch traceable to a production order because they are not issued to the order.
There may be some other factors to consider but I think that these are the main points.
Thanks & Regardx,