Special procurement types and process
In special procurement, the goods are procured in a separate way and will process the customer
order as per the requirement.
Here in this process, stocks are treated as special stocks and the way we procure the material is
called special procurement activity.
The following special procurement types exist in the R/3 System:
Consignment
Subcontracting
Stock Transfer Using Stock Transport Order
Third-Party Processing
Returnable Transport Packaging
Pipeline Handling
Consignment Procurement
Consignment procurement takes place when you have an arrangement with a vendor that allows
the vendor to keep its materials on your premises. When the material is issued to your production
or stock, you must pay the vendor
Pre – requisites
Consignment info record must be maintained
Maintain condition record KONS(MRM1)
Process
First create a consignment info record through transaction ME11
Need to select info category as consignment and enter vendor, material, purchase
organization, plant and required entries in subsequent screens.
Create a PR – ME51N with (item category K)
Create a Consignment Purchase Order through transaction ME21N. (With reference to PR)
Create Goods Receipt against the PO, T-Code MIGO/ 101 (K). – Material doc will generate
Create Transfer posting to transfer the goods from consignment stock to own stock, T-Code
MB1B/ 411(K) – Material and accounting docs will generate
Create Consignment settlement using T-Code MRKO. – Invoice and Accounting docs will
generate
Hence consignment process is done.
Subcontracting Procurement
It involves an agreement where you issue raw materials to a vendor, and the vendor makes finished
products from the raw materials this procurement is used when the company doesn’t have the
facility to assemble a product or manufacture a product.
Pre – requisites
Bill Of Material (BOM)
The sales views must be maintained for all the materials.
Process
Create Subcontract info record for the finished product using T-code ME11
Create subcontracting PO for the finished product with Item category L using T-code
ME21N. In the material tab of item details section, select the components which we want to
send to the subcontractor (Vendor)
Create Transfer Posting to send/ issue the subcomponents to the subcontractor (Vendor)
using T-code MB1B/541 – No material & accounting docs will generate
we can monitor the subcomponents at vendor using t-code MBLB
Create GR to receive the finished product/ final product from subcontractor (Vendor) using
T-Code MIGO/ 101. Then material document will be created and subsequent accounting
entries will be updated as per the process.
Post invoice receipt (MIRO) – Invoice & accounting docs will generate
We can go through the material document by using the T-Code MB03, we can find the
respective movement types for the components and finished products and also, we can find
the accounting entries generated for the transaction.
Third Party Processing
In third-party processing, a company passes on a sales order to an external vendor who
sends the goods directly to the customer. The sales order is not processed by your company,
but by the vendor. Third-party items can be entered in purchase requisitions, purchase
orders, and sales orders.
Third-party processing is integrated with the Sales and Distribution (SD) component. If the
sales order contains third-party items, the system creates a purchase requisition from the
order
Steps to perform Third Party Process:
Material master should be existing in SAP with sales data maintained. Basic configuration
can be done to create PR automatically when we create Sales order. T-code MM01
Create sales order using T-code VA01 and we can find PR will be created in the background
By using PR, we create third party PO, T-code ME21N
Vendor will send the stocks of the material to customer directly and send the invoice to our
company, hence it is purchasing invoice to our company. We create invoice using T-code
MIRO
Also, we create sales invoice to get payment from the customer using T-code VF01
Hence Third-party processing is done.
Returnable Transport Packaging (RTP)
The company orders goods from a vendor. The goods are delivered with returnable transport
packaging (pallets, containers, cylinders) that belongs to the vendor and is stored on the
customer premises until they return it to the company.
Steps to perform RTP Process:
In this process, we normally see two material masters, one is finished material and
another is returnable transport packaging material. So, create material master with
material type FERT and LEIH using T-code MM01.
Create PO for the finished material using T-code ME21N
Create GR w.r.t PO and enter the Returnable Transport Packaging material details above
the item details section, transport equipment button. For T-code MIGO/101 and for
RTP movement type is 501(M).
In the above step, we have received the finished material along with the RTP material.
Now we need to return the RTP material to Vendor.
Return RTP material back to vendor using Tcode MB1C/502(M)
PIPELINE Handling
In pipeline handling, the company does not need to order or store the material concerned. It is
readily available as and when required via a pipeline (for example, oil or water and gas), or some
other type of cable (for example, electricity). Consumption of the material is settled with the vendor
on a regular basis.
Steps to perform PIPELINE Handling:
There should be PIPE line material master with material type PIPE using T-code MM01
There should be PIPELINE info record, because the prices and settlement are done with info
record details.
Hence create Info record with Item category as PIPELINE and maintain the required details.
There will be no PO and no GR for PIPELINE Handling process.
Directly create Goods Issue to respective dept (like cost center, production order etc.) using
T-Code MB1A/ 201 for cost center.
Create PIPELINE settlement by using T-code MRKO.
Hence PIPELINE Handling process is done.
