direct and in direct procurement

[Former Member]

Hi experts,

What is the Diff between Direct and In-direct procurement in SRM and i want to to config for Classic sceanrio.

basis team has given me the servers now please let me know basic Config settings to Implement SAP SRM classic scenario,integrate with ECC.

Smriti

[Former Member · Accepted solution]

Hello Smriti,

Direct materials are used directly in the production process and thus have influence on the value of the final good. This material is mostly held in stock and needs to be kept in inventory management.

Indirect material, also known as MRO material, could be office supplies or machine parts, for example.

In most cases, indirect material is characterized by high-volume and low-dollar transactions

Ordering a direct material means ordering a product that will be received into stock. You have to press the Order as Direct Material button in the item detail view. Selecting Order as Direct Material replaces the goods recipient with the plant you are ordering for and removes the Account Assignment information.

Hope this helps.

Thanks

Ashutosh

[Former Member · Accepted solution]

If i create a SHopping cart for Indirect material then it wont allow to add product in Stocks and do u know the configuration required in SRM side for in-direct material.

Smriti

[Former Member · Accepted solution]

Hello Smriti,

If you want to create shopping cart for indirect procurement, this means you have to enter the account assignment details in the shopping cart line item.

Just ensure config under SRM Server - Cross Application settings - Account assignment is done & Attribute (Account assignment category KNT) is maintained for user in Org structure.

Hope this helps.

Thanks

Ashutosh

[Former Member · Accepted solution]

Closed

[Former Member]

Hi Smriti,

Indirect Procurement = The procurement what you do is not used in the end product of the manufacturing compay. Like Office peripherals,Computers, Stationary. What ever you have procured is not used in your end product

The business scenario is Self Service procurement. Configuration part you can get from master guide from service market place

Direct Procurement: The procurement what you do is used in your end product of the manufacturing compay. Example: If a mobile manufacturer company procures the keypads,battery,dispay screen...all these material is used in the end product. So these kind of procurement you called as direct procurement.

Configuration for Direct Procuremtn will be as follows

In R/3

1. You need to configure two views i,e V_T160PR,V_T160EX and you need to schedule report BBP_EXTREQ_TRANSFER

In SRM.

1. Do the Technical settings like RFC Connections,Workflow Activations,Publish Templates

2.(Imp Config)Dedine an entry channel for this (Create a new Org unit which acts as )

3. Create a RFC user, so that communcation goes between R/3 and SRM

4.In Org structure you have to define values for an attribute DP_PROC_TY .

These are the config required for a PDP.

Hope this explanation resolved your query

Rg

Sameer