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why PO is not required in Pipeline Procurement? Please explain in Detail?

Hi Experts/Guru's

why PO is not required in Pipeline Procurement? Please explain in Detail.

with an example also.

Thank you

venu

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  • Best Answer
    Posted on Jun 11, 2012 at 04:21 PM

    Pipeline Material flows directly into the production process from a pipeline for example - oil, tap water or from another similar source say electricity

    A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline at any time and in any quantity such is the agreement made between you & your vendor,

    So since Material is always available at any point of time so PO is not required in Pipeline Procurement,

    Process flow for Pipeline Purchasing will be,

    1. Create a Pipeline material - MM01

    2. Create Pipleline Inforecord - ME11

    3. Maintain source list if required - ME01

    4. Posting Goods issue from pipeline - MIGO (Movement types : 201 P, 261 P, 281 P, 291 P)

    5. Settling Pipeline liabilities - MRKO


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  • Posted on Jun 11, 2012 at 04:23 PM
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  • Posted on Jun 11, 2012 at 08:13 PM

    do you do that in private with your energy and water suppliers?

    what quantity would you enter? how often would you create such order?

    it is a untility supply contract, not for a fixed quantity often not for a fixed price or even period. it automatically prolongs if you do not resign. Because of this you cannot use a quantity contract in SAP. the info record is just enough.

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  • Posted on Jun 12, 2012 at 01:44 AM

    Hi,

    For pipeline procurement, you should have a contract or PO( a commited document with vendor-logically) and all other price details flow from inforecord(for pipeline).

    Refer links:

    http://help.sap.com/bp_chem603/BBLibrary/HTML/903_EN_DE.htm

    http://scn.sap.com/thread/1055430

    Regards,

    Biju K

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