Direct Purchasing and Indirect Purchasing in AP ?

Hi Experts
Please let me know what is direct purcdahsing and Indirect purchasing inlcuding the T codes and what are the implications in both cases on FI?
Thanks in advance and points assigned accordingly.
Meenakshi.N

Dear Meenakshi,
We can relate indirect purchasing & direct purchasing to PO based material procurement & with out PO based procurement resp.
In case of indirect purchasing, a procurement cycle starts from generating the PR -> PO -> Goods receipt -> Invoice verification.
Where as in direct purchasing no PO is generated & invoicing is done directly in FI.
Hope this of help to u.
Regards,
Ajay

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2. Create requisition.
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Value: Generic (Machine Spare Parts in any industry)
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Regards,
Anirban Roy

Direct Procurement and Indirect Procurement

Please explain the different between direct procurement and Indirect procurement??

Hi,
Direct Procurement
Raw Material and Production Goods
Order Qty: Large
Value: Industry specific (Like shirt in apparel industry)
Direct procurement supports the conversion of planned requirements to purchase orders.
Primary Processes-Direct Procurement
1. Determination of the materials and services required.
2. Create requisition.
3. Request for the quotation.
4. Quotation Management.
5. Vendor selection.
6. Create Purchase Order.
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Indirect Procurement
Maintenance, Repair and Operating (MRO) Supplies
Order Qty: Low
Value: Generic (Machine Spare Parts in any industry)
Indirect procurement supports the purchasing of indirect materials and subcontracting.
This process can be dealt with using standard functions such as material requirements planning, purchase requisition, stock transport order, transportation planning and the handling of internal deliveries.
The cross-plant, internal procurement of materials can be carried out within one company code (intercompany) or by using several company codes (cross company).
Primary Processes-Indirect Procurement
1. Requisitioning
2. Purchase Order Management
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Hope it helps.
Regards
KK

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Thanks in advance..

Hello,
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Pls briefly explain with examples.
Thanks in advance..

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