MRP query on procurement

[Former Member]

Hi Guys

Could anyone please give me an idea on MRP related to direct and indirect procurements?

As per my understanding, stock materials (direct) having material code can be set up for the MRP Process but is it possible to set up MRP for non stock materials (no material codes) for cost center / Project / Order etc.. If so how can we achieve it.

MRP mostly can be set up for direct / indirect or both, please give your expertise solutions from your experience.

Thanks in advance.

[Former Member]

For MRP , only material code is possible .

If you want without material code , then its not possible .

MRP can be set up for Direct procurement which have material codes .

[JL23]

ANIL KUMAR GOLLAPUDI,why dont you read the link that I gave earlier. SAP had explained when MRP is able to even consider materials without material number. Hence it does not make any sense to just say it is not possible, dont you trust the SAP Help documentation?

[former_member183424]

Direct procurement = without account assignment category

Indirect Procurement = With account assignment category

Check this thread

The thread discussed about direct procurement and indirect procurement.

[JL23]

Here is the definition from SAP documentation: "Direct procurement supports the conversion of planned requirements to purchase orders while indirect procurement supports the purchasing of indirect materials, services, and subcontracting."

see SAP Library - Operational Procurement

[Former Member]

Thank you all for your answers.

I would like to know, why inventory is not maintained for the direct materials as indicated by Jurgen. What type of materials go via inventory (direct or indirect or both)

Second, though the indirect materials are directly consumed via account assignment, since we do the GR / Service entry sheet for those materials, is there any way to check stock for those materials (no material codes) like we do in MMBE  for stock materials.

Thank you all once again for clarifying.

[JL23]

both direct and indirect materials can be stored in warehouses.

direct material is a term used for materials that that finally make your end-product

indirect materials are needed to produce your end-product but will not be part of the end-product, such as oil for the machines, spare parts, or just pen and paper for the secretary.

but you had initially used the term direct procurement, which is slightly different. You procure directly to a production order, sales order or project. Here you often do not even have a material number, it can just be text items in your bill of material . If it is with material number, the material does not go neutral into a warehouse, it is usually directly consumed when received.

[former_member183424]

Both types of material can be goes via inventory.

You can't see the stock of those material which is consumed immediately.

Like as no material master PO with account assignment.

Material master PO with account assignment.

When you do GR the material stock is consumed immediately, That's because we can't see the stock of these material.

That's because no material master PO and service PO has to be an account assignment.

[Former Member]

Hi Imran,

MRP for stock material is a common scenario, however MRP for non stock item is applicable in case of BOM. In BOM, You need to set item type as Non stock for the components of BOM with the material text.

Best Regards,

Anil

[JL23]

I think you are mixing some terms here, as direct procurement is used in case the material does not go through a warehouse. And yes it is possible to do some planning under certain circumstances as described in the help documentation: Direct Procurement - Special Planning Processes - SAP Library