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Direct procurement

Hi PP Experts,

Can anybody tell me what is exactly Direct procurement & Direct production.When it is require.

replied

Dear,

Direct production :- Components are produced directly for the higher-level assembly and consumed. The aim of direct production is to jointly regard scheduling and costing procedures for finished products, assemblies and components within a BOM structure.

The components that are produced directly are connected with each other in a multi-level collective order by entering the respective higher-level and leading planned order or production order. The collective order can be scheduled together and the costs incurred for the collective order can also be dealt with together.

In case of Direct production,when production order is created for finished good,then prod. order for semi-finished will also be created Provided spec. procurement key52 is used in material master of semi-finished material,without consideration of any stock.

Direct procurement means purchasing on basis of a customer order. Assembly type of materials we can procure depends on the customer requirements.Direct procurement involves materials purchased for use in the manufacturing or distribution supply chain that are "directly" related to the production of finished goods.

Regards,

R.Brahmankar

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