Consumable or Text procurement

Consumable or Text procurement

Consumable procurement is common in every industry. It is getting used across of various industry sectors. This is basically meant for expenditure for specific cost element,e.g. cost centers , project ,sales order, internal order etc.

Such type of procurement can happen with or without material master. Material master may be valuated or non valuated. You need to specify an account assignment category in Purchase Requisition , Purchase order or contract.

Following are the types of an account assignment category :

• K -  Cost center : In this you need to specify the cost center code along with G/L account
• F -   Internal Order:In this you need to specify the Internal order along with G/L account
• P -   Project : In this you need to specify the WBS element along with G/L account
• C- Sales Order : In this you need to specify the sales order along with G/L account
• A - Asset : : In this you need to specify the Asset  code along with G/L account
• U - Unknown : This is unknown at the time of request , You can not use account assignment category 'U' in normal purchase order, It can be used only in case of Limit or Blanket order along with document type 'FO' and item category 'B'

 Any consumable procurement most of the time starts with Purchase Requisition which is always getting approved by using release strategy in SAP system. Such expenses are getting approved by respective authorities. E.g If HR departments want to hire services for AMS ( Annual Maintenance Services ) from air conditioner service provider in that case requisition-er from dept creates a Purchase Requisition by using account assignment category 'K-Cost Center ' which is getting approved by dept head --> GM --> VP etc at various level.

Approved Purchase Requisition is getting forwarded to procurement dept for further processing. Buyer from procurement dept converts it either in RFQ, Contract or directly to Purchase Order. While converting into subsequent transaction, buyer adopts or copy purchase requisition into subsequent transactions as mentioned above. Being layout of Purchase requisition and subsequent transaction is same , it can be adopted or copied easily in these transactions.