Procurement of Consumable Material - 1

This series of articles deal with the process of procuring consumable materials. In doing so, we will cover new topics from each area (purchasing, inventory management, and invoice verification).

  • Purchasing: Consumable material, account assignment category, purchase requisition, order acknowledgment.
  • Inventory management: Difference between valuated and on-valuated goods receipts, valuation of goods receipt in the case of consumable material.
  • Invoice verification: Consequences of valuated/unvaluated goods receipt in invoice verification.

In addition to a comprehensive procurement process for consumable material, an introduction to the blanket ordering process is also included in this discussion. The item category in purchasing documents and changing the account assignment in invoice verification is also discussed in detail.

We will concentrate on the procurement of materials for direct consumption. It contrasts the procurement process for stock material with that forĀ  consumable material. It also explains what is understood by consumable material in SAP R/3.

In this scenario, procurement is triggered by an internal request - aĀ  purchase requisition. To be sure that the required materials can beĀ  delivered on the desired date, the vendor sends an order acknowledgment. Attention then moves to the goods receipt and invoice verification processes, whereby the effects of a valuated against a non-valuated goods receipt are of primary interest.Ā  In addition, you find out how you can cover recurring requirements forĀ  low-value consumables (so-called ā€œCā€ articles) economically using SAPĀ  R/3.

Consumable Material - Overview

This section gives a brief overview of the procurement of consumable materials (consumables) and introduces the account assignment category necessary for this procurement process.Ā  In a company, certain materials (such as office supplies) are procured directly for cost centers. These materials are not subject to inventory management at the storage location. As a member of the project team, you are to check the procurement process for consumable materials in SAP R/3.

In SAP R/3, one speaks of ā€œconsumable materialā€ if the material is not procured for stock. Such materials can include raw materials for production (which are processed during the production process) or a machine that is used as an asset in the company for several years (assignment to an asset account).

In SAP R/3 the term ā€œconsumable materialā€ 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.

When a material is procured directly for ā€œconsumptionā€, no material master record is necessary. In connection with consumable materials, you can distinguish between the following cases:

  • Consumable material without material master record
  • Consumable material with material master record that is not subject to inventory management (on either a quantity or value basis)
  • Consumable material with material master record that is subject to inventory management on a quantity, but not a value, basis

Related Articles:

  1. Procurement of Consumable Material - 2
  2. Procurement of Consumable Material - 3
  3. Procurement of Consumable Material - 4

October 3, 2009  Tags: , , , , , , , , , , , , , , ,  Posted in: Material Management (MM), SAP Functional Modules

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