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Direct & Plan driven procurement question

Former Member
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SRM 5.0 - Classical scenario.

I am pretty clear about the pre requisites and the process for Direct procurement and Plan driven procurement but I have few questions

1. Can I have direct procurement and Plan driven procurement by using Classic scenario?

2. How do I create shopping cart for Direct materials? - Is it ' Internal goods / services' option from the browser?

OR Direct & Plan driven procurement is the same ?

Can anybody explain to me what is the main difference between the two and how we create the shopping cart?

Thanks in advance and full points will be rewarded.

Message was edited by:

J P

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Answers (4)

Answers (4)

Former Member
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Thanks to both Claudia and Ramakrishna.

Points rewarded to both of you.

Former Member
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Thanks to Claudia and Ramakrishna. So far I worked only in the indirect procurement scenario. Sorry for asking more questions.

Since the shopping cart can be created from catalogs, Material and services replicated from R/3, PO templates and describe requirements, here we are referring only Catalogs and Materials and services replicated from R/3..

<b>Questions:</b>

1. The replicated materials and services from R/3 will have both Direct and Indirect materials?

2. While creating the shopping cart by using catalogs or materials replicated from R/3, the only way to order this as direct material is by using 'Order as Direct' option while ordering the shopping cart?.

<b>3. Plan driven procurement.</b>

"In case of Plan Driven Procurement ( PDP ) you can either order the material as <u>direct or indirect</u> (against cost center). For PDP the P.R is created in R/3 and is sent to SRM (sourcing cockpit). You will not create shopping cart again in SRM as it comes to SRM as external requirement."

A. In the above case if the sourcing is configured then the PR will come to the sourcing cockpit and from here we send this order. Is there any option in the screen we can order this as 'Direct'?.

B. If sourcing is not configured then the PR will be in the purchaser's work list so the purchaser can order this as 'Direct' material OR indirect material?.

C. Is there any case where the PR from R/3 will convert automatically to a PO in SRM and send it ( in this case the PR will not be in the sourcing cockpit or in the purchaser's worki list) if the data is complete in the PR which is transferred from R/3 to SRM during the plan driven procurement?. If yes then how we order this as 'Direct' material?

Former Member
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Hi J.P,

All your questions are welcome.

Please find the answers for your questions :

1. You replicate material master from R/3 to SRM. There is no direct material / in direct material during replication. Its the direct procurement / indirect procurement.

At the time of ordering based on the cost assignment you categorise them as direct or indirect.

2. Yes, you have to select the " order as direct" option while creating the shopping cart. Otherwise it takes the cost center as default.

3. The questions 3A & 3B are same. The sourcing cockpit means purchaser's worklist. In this case after adding the shopping cart to purchaser's work list before ordering the P.O you can go to process purchase order tab and in the change mode, you can choose "Order as direct material" in the account assignment view of the item data.

3C. If that is the case then you should refer a contract in P.R in the backend (for vendor to get assigned). But backend contracts are not considered in SRM as the contract does not exist there. So the data will not be complete.

As you have made the setting for Sourcing in SPRO to " Sourcing never carried out" so that the P.Rs directly convert into P.Os, the P.R you have created in the backend gets converted into a P.O but in held status.

You can change the P.O through Process Purchase orders link and can "Order as direct material" in the account assignment view of the item data.

Hope this will make you more clear about the topic.

Further clarifications are always welcome.

Award points for suitable answers.

Rgds,

Teja

Former Member
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Hi J.P,

These are some of the observations with reference to Direct procurement and Plan driven procurement which are in addition to the ones mentioned by claudia.

1. If you order the material as direct procurement while creating the shopping cart, (direct procurement tab) the cost assignment filed will not be displayed and the valuation happens based on the Valuation class (material master). The material gets received and stored in the storage location. So mentioning a storage location is mandatory in this case which is not the case if you order it as indirect material.

2. In case of Plan Driven Procurement ( PDP ) you can either order the material as direct or indirect (against cost center). For PDP the P.R is created in R/3 and is sent to SRM (sourcing cockpit). You will not create shopping cart again in SRM as it comes to SRM as external requirement.

If you are using classic scenario there is no point in using PDP as you will be ordering the requisition in R/3 as PDP best suits in case of ECS.

Hope this will give you a better picture. Any further clarifications are welcome.

Award points for suitable answers.

Rgds,

Teja

Former Member
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Hi J P,

the difference is between External Procurement and Plan Driven Procurement.

1. You can have both in parallel. Classic is working directly for external Procurement. For Plan Driven ECS is prerequisite; nevertheless, which adjustments it is possible to get to wrking

2. Yes, in the screen there is then a Button called "Order as Direct". The system

then takes away the accounting view and orders it as a direct material.

For me direct and plan driven is the same; difference is external procurement, where a req with accounting information is moved up to SRM for Sourcing.

For plan driven a Req is created in the operational system (R/3) and via rules moved to SRM for Sourcing, there sourced and a PO initiated.

For external procurement a req is created in R/3 (not a typical MRP req, like in plan driven) and then moved to SRM for sourcing, sourced and PO initiated.

Cheers,

Claudia