query about pipeline procurement

[Former Member]

Hi

My question is "Are pipeline materials values automatically updated in material master with each MIGO (GI) , as other raw materials?"

which should be the price control for Pipeline materials ?

[Former Member]

No , They are not.

Pipeline materials are considered to be always available to you in infinite quantities. So they are not managed either by value or by quantity.

So at any point of time , there will be no stock in material master.

Edited by: TS on Sep 9, 2008 10:01 AM

[Former Member]

Hello ,

which should be the price control in material master for pipeline material?

Should it be MAP (V) or Standard S

[Former Member]

Choice of price control is a business decision.

However, normally people use 'V' for price control of pipeline. As you probably know, the price will be picked up from the pipeline info records you maintained (prerequisite for pipeline procurement).

if u use 'S', then the variance of the Material master price and the info record price will hit the 'variance account' difined in the system.

[BijayKumarBarik]

Hi,

Go for price control MAP (V) in material master for pipeline material.

Note: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 A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline at any time and in any quantity.

The Accounting Generated After GI/Settlement are:

1.Goods Issue

Consumption A/C: DR

A/c Payable For Pipeline : CR

2.Pipeline Settlement

A/c Payable For Pipeline : DR

Vendor Account A/C: CR

Regards,

Biju K

[Former Member]

Hi

No, Pipeline material directly consumed ..201 P Mvt type.

Vivek