Difference in Direct and Indirect procurement

[Former Member]

Hi,

What is the main diff configwise between direct and indirect material procurement scenario?

[former_member183819]

Hi

I believe only this config. here you can decide what type of follow on docuemnt must be created by the system upon the data.

Define Objects in Backend System (Purch. Reqs, Reservations,

You perform this step only if you create your Materials Management documents in a backend system.

You specify the documents that are to be created in the backend system for a requirement coverage request.

The following documents can be created:

Purchase requisition

Purchase order

Reservation

You enter a product category (such as office supplies, or hardware) and/or an organizational unit. The organizational unit contains the purchasing group that is responsible for procuring products in this category.

You can enter the product category generically, such as Office*.

Note

The backend system is determined using the product category in the requirement coverage request item. The item also contains the organizatinal unit.

You can use the Business Add-In BBP_TARGET_OBJTYPE if you wish to implement a different logic for creating documents in the backend system.

Example

If purchasing group 01 wants to procure materials from the category Raw Materials, a reservation is to be created every time.

If materials in the category PC are to be procured, a purchase requisition is to be created every time.

Activities

1. Enter the organizational unit and/or the category.

2. Enter a source system.

3. Choose the procurement type.

Reservation if stock is available, otherwise external procurement

The system creates a reservation if the material is subject to inventory management and sufficient stock quantity is available in the warehouse on the requested date.

Always reservation for materials subject to inventory management

The system creates a reservation if the material is subject to inventory management, irrespective of whether stock is available.

Always external procurement

The system does not create a reservation, but always procures the item externally. In this case, you specify the type of external procurement.

The following options are significant if the system cannot create a reservation (for example, if there is no stock available or for a non-stock item) or the system must not create a reservation (choose Always external procurement).

Purchase order if item data complete, otherwise purchase requisition

The system always tries to create a purchase order. If the item data is incomplete (for example, the vendor or price is not known), the system creates a purchase requisition from the item.

Always purchase requisition

The system always creates a purchase requisition.

Always local purchase order

The system always creates a local purchase order.

if you dont want to order as direct you can disable via BADI.

Whatever scenario, for order as direct makes PO will be created in SRM system only.SRM is a leading system.

Thanks

Muthu