Can some MM Gurus help me with this?
1.Can two different materials used by an enterprise have same material number?
2.What do u mean by procure for stock and procure for consumption?
3.If a material is procured for stock, is it accounted in balance sheet or income statement? And if a stock is procured for consumption, is it accounted in balance sheet or income statement?
4.What views of a material master are required to create a purchase requisition?
1. Two different material can't have same material number.
2. In an SAP system, the term consumable material is understood to cover a material that is subject to a procurement transaction and whose value is recorded in the cost element or asset accounts. Consumable material is thus procured directly for an account assignment object. Examples of consumable materials are office supplies and computer systems or machines.
Stock materials are procured and stored in the storage location and issued to the user department whenever required. Example: Raw materials etc.,
3. Goods movement are relevant to valuation when your company's accounting department is affected by them. For example, a goods receipt posting of a raw material usually results in an increase in the stock value of your current assets. If the raw material is only transferred within one plant, no postings are made in financial accounting.
If a material is procured as a consumable, you must specify an account assignment category and other account assignment data in the document item of the relevant requisition or external purchasing document. At the time of goods receipt and or invoice receipt, the consumption account specified in the PO is then debited with the procurement value. In addition data for the account assignment object is updated.
4. Purchasing and accounting views are mandatory for a material to create purchase requisition.