Procurement of Direct Materials

[Former Member]

HI All,

I'm trying to configure my system for procurement of direct materials,request to clarify me of the key settings required in contrast to procurement of indirect materials in self service procurement scenario + extended classic scenario.In CCM call structure when we flag do not check products in srm,how does the systems works and for this is it not required to replicate products from R/3.

Thanks and Regards,

Sathya kumar.

[yeushengteo · Accepted solution]

Hi,

(a) Direct material procurement will resulted in a local PO created in SRM and replicated to the backend. Following are what you need to configure.

1. In org structure, create a local purchasing org and group (If extended classic is already configured, you can skip)

2. Maintain the org attribute DP_PROC_TY for the department that will be buying the Direct material.

3. Maintain the location in the extended attributes (should be already configured for your indirect purchases)

(b) Catalog item w/o checking

1. No checking will be done in the SRM system. Only during posting checking to the backend, the material will be validated. In this case, there is a risk document posting failed due to master data in backend inconsistency.

Regards.

Yeu Sheng

[Former Member · Accepted solution]

HI Yeu san,

Thank you for the reply,some more queries as follows:

1. creating a local purch org and group and how do we connect it to backend?

2.Attribute DP_PROC_TY should be at puch grp?

3.Maintaining storage location for in the extended attributes?

B)

1.If material is not checked in the SRM system,so we don't need to provide G/L account for the product categories?

Kindly clarify me and in case any link available for step by step config of direct procurement in extended classic scenario,please provide me.

Best Regards,

Sathya kumar.

[Former Member · Accepted solution]

Hi Sathya,

In reference to your queries please find the following observations :

1. The org. structure should be same even for the direct procurement. You definitely need to link your P.Org and P.group with the back end R/3 ones.

2. You have to maintain the plant and storage locations in the extended attributes tab. (anyways plant would have been maintained even for indirect procurement)

3. Attribute DP_PROC_TY can be maintained at any level as per your requirement.There is no such restriction.If you assign at P.Org level all the P.Groups under that can do direct procurement. If you want to restrict it to a particular P.Group then you can assign at the P.Group level.

Hope this will make you more clear. Further clarifications are always welcome.

Rgds,

Teja

[Former Member · Accepted solution]

Hi Teja,

How about product category accout assignment,what are settings required here as this is for a standard PO creation in the backend,kindly advice me.

Thanks and Regards,

Sathya kumar.

[Former Member · Accepted solution]

Hi Sathya,

Once you choose "Order as Direct material" in the shopping cart, the account assignment tab / field gets disabled. The material gets valuated based on the valuation class in the material master record.Thats why storage location and plant here are mandatory.

So in this case cost cneter is not required.

Hope this makes you further clear on this topic.Clarifications are welcome.

Award points for suitable answers.

Rgds,

Teja

[Former Member · Accepted solution]

Hi Teja,

so we don't need to maintain the account assignment setting for product categories? and how about the purchaser forget to click " order as direct material",in the process perspective it should be foolproof, how can I achieve this functionality,kindly advice.

Thanks and Regards,

Sathya kumar.

[Former Member · Accepted solution]

Hi Sathya,

The process is fool proof in the sense that you can either order it as direct or indirect.

If you Order it as direct then the Account assignment field /tab gets disabled otherwise you have to enter the account assignment with out that the shopping cart can not be created.

Even if you order shopping cart as indirect that means with cost center / any other account assignment, you can order the P.O as direct while creating the P.O using Process P.O tab during carry out sourcing.

The main difference between the direct and indirect procurement is in case of direct you use valuation class for valuation and in case of indirect you use cost center/ WBS / Asset code for valuation.The purpose here is everything you buy should get valuated.

And you don't get this "Order as direct material" option when you use product categories with free text (description). Only materials can be valuated not product categories. So you have to use account assignment while using product categories.

Hope this makes you more clear. Clarifications are welcome.

Rgds,

Teja