Hi,
Pipeline material is material that flows directly into the production process from a pipe (for example, oil) or another kind of conduit (for example,electricity). Unlike consignment material, pipeline material does not have to be required via Purchasing. Pipeline stock is not stock that is physically available in your warehouse. Material from the pipeline is always available, and can be taken from the pipeline in any quantity at any time.
Following are some of prerequisite for pipe line material
Material type should be PIPE
The material is not procured or planned.
The material is not stored and no inventory management is carried
out for it.
The material is not inventoried.
The material can be withdrawn from the pipeline in any quantity
at any time.
Also check following thread from SDN only for more info
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