Functionality "Order as Direct Material"

[Former Member]

Hi All,

What exactly is the business need for the check box "Order as Direct Material"? (A check box in ?Shopping Cart and in PO of Item details)

I know that when you order as a direct material in SRM EBP, the account assignments disappear and

the system asks for Storage location and plant (and the product behaves as an extend classic scenario product)

But my doubt is for what product category you use this check box "O A D M"? If the material / prod category I enter in SC or in PO is already a direct material, then there is no point in flagging the check box. If I am ordering a indirect material, there is no need to order it as a direct material.

It will be very helpful if you could give the circumstances to use this check box and a business scenario

will help to clarify that.

Also I am keen to know how the R/3 sytem picks up the data from SRM and goes for the posting of the material.

Thanks in advance.

Vardhan

[Former Member · Accepted solution]

Hi. Unless I have missed something, "order as direct" creates a PO to book the material into stock in the backend.

If you do not tick this box, then no matter what material type you have chosen you will get a PO charged to an account assignment, not a stock PO.

Regards,

Dave.

[Former Member · Accepted solution]

Hi,

I agree with David.

When we click this order as direct material it will create a PO for stocks. In other words, it is like creating a PO in the backend for a material with material master. The accounting takes place by the material master valuation class. Only difference here is the document type which is not changeable in R3 backend.

When we procure without this then, it is like creating the same PO with the account assignment K in the backend for which it is mandatory to give a cost centre and hence the G/L account. So final accounting is not routed through material master any more and you can have stocks or you can skip based on the material type you use in this case.

In simple classic scenario we have the flexibility of either procuring for costcenter without clicking on the OADM button or for stocks by clicking this(in this case the R3 PO is not changeable)

So the business requirement if a client want to procure for stocks from SRM then this is useful, as he can do GR and IR in the backend just like R3 scenario. They can differentiate this by the document type.

Best regards,

Sridhar.

[Former Member · Accepted solution]

HI, Sridhardabu

i also agree with you, but i've got a problem. when i click "order as direct material" the system still request to input account assignment.

i've already post my question in [;

need your help,

best regards

Melynessa