What is direct PO and indirect PO?
Dear Gurus,
What is direct PO and indirect PO?
Thanks in advance..
Hello,
Direct materials are used directly in the production process and thus have influence on the value of the final good. This material is mostly held in stock and needs to be kept in inventory management.
Indirect material, also known as MRO material, could be office supplies or machine parts, for example. In most cases, indirect material is characterized by high-volume and low-dollar transactions
Ordering a direct material means ordering a product that will be received into stock. Account Assignment information is blank at the time of creating purchase order whereas for Indirect PO, Account Assignment is mentioned as appropriate K or F (Cost center, order, WBS etc.)
Hope this helps.
Ashutosh
Similar Messages
-
What is direct procurement and indirect procurement?
Dear Gurus,
What is What is direct procurement and indirect procurement from purchasing point of view.
Pls briefly explain with examples.
Thanks in advance..Direct procurement. Direct categories are all goods purchased by the company which directly enter into the production process of that company. For the food industry as an example, ingredients and packaging will be the key direct procurement categories.
Indirect Procurement. Indirect categories are all the goods and services that are bought by the company to enable its activity. This entails a wide scope, including marketing related services (media buying, agencies), IT related services (hardware, software), HR related services (recruitment agencies, training), facilities management and office services (Telecoms, furniture, cleaning, catering, printers), or utilities (gas, electricity, water)...etc
Regards
Lakshminath Gunda -
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.NDear 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 -
Direct material and indirect material
please explain the what is direct material and indirect material and its different between them
Hi.
Direct materils: These material are bulkly needed and regularly needed for that orgnization to have their end product. these materials usually raw materials ....
Indirect materials: these materils are needed with direct materlias for the manufacture or to produce end product.
Ex: If your orgn's is cement Industry.
Direct materials: Silica Sand. etc..
Indirect matrials:BAG. Gypisum.....
Hope you are Understand with these example...
Regards
S B H -
What is the difference between Direct Taxes and indirect Tax. In which Cases those are both are applicable .
please give to me details
regards
RAMHi
a direct tax is one paid directly to the government by the persons (juristic or natural) on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax.
an indirect tax or "collected" tax (such as sales tax or value added tax (VAT)); a "collected" tax is one which is collected by intermediaries who turn over the proceeds to the government and file the related tax return.
assign points if useful -
Direct procurement and Indirect Procurement in SAP AFS
Hi,
Can you diffrentiate between Direct procurement and Indirect Procurement in SAP AFS.
thanks
AkiHi Aki,
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.
7. Goods Receipt and Invoice Receipt.
8. Invoice Verification/ Vendor Payment.
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
3. Receiving
4. Financial Settlement
Hope it helps.
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.
7. Goods Receipt and Invoice Receipt.
8. Invoice Verification/ Vendor Payment.
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
3. Receiving
4. Financial Settlement
Hope it helps.
Regards
KK -
Getting direct reporting and indirect reporting employee
Hi,
In one of my development, their is a requirement to have a screen of type Tcode PPMDT.
My screen will be having tab strip for direct and indirect employee and on both tabs org structure will be displayed.
I am using function module RH_STRUC_GET to get the org structure details. I need to know the logic of separating direct reporting employee from indirect reporting employee from the data returned from function module.
Thanks
Vishal KapoorHi,
In one of my development, their is a requirement to have a screen of type Tcode PPMDT.
My screen will be having tab strip for direct and indirect employee and on both tabs org structure will be displayed.
I am using function module RH_STRUC_GET to get the org structure details. I need to know the logic of separating direct reporting employee from indirect reporting employee from the data returned from function module.
Thanks
Vishal Kapoor -
Direct Quote and Indirect Quote
Hi,
If i m trying to post a transaction in foregin currrency, what difference does it make, if there is direct or indirect exchange rate maintained for that curreny and local currency in OB08 (TCURR)
Thanks
BallaHi,
the two methods calculate the rate in two ways (directly & inversely).
In direct quotation, one unit of the foreign currency is converted into equivalent value units of your local currency. whereas in indirect quotation, one unit of your currency is converted to units of foreign currency. -
Questions on Direct and Indirect??
Hi Experts,
My questions are
a) What is direct procurement and what will be the process in CS and ECS?
b) What is the difference with Plan-Driven procurement and Direct procurement?
c) and When we order one material what will be the further process (Follow-o Documents,and Any SAP-MM) key points??
Please help me in this regard.Hi
Please follow answers
a) What is direct procurement and what will be the process in CS and ECS?
Ans -
Direct procurment mean procument if direct material (production material)
b) What is the difference with Plan-Driven procurement and Direct procurement?
Ans - both the things are differant
direct procurement is normal procument cycle .. SC - PO - GR IV ..
after SC other doc can be created in back end depending upon the senario.
Plan driven procument is degined to get requirements from other back end system in sourcing cockpit directly, they does not require any approval flow in SRM as that of normal approch.
http://help.sap.com/saphelp_erp2005/helpdata/en/index_srmaddon.htm
c) and When we order one material what will be the further process (Follow-o Documents,and Any SAP-MM) key points??
Depending upon the senarios documents would be created in SRM or back end.
Here you should get all the relavant information about the follow on doc depending on senarios
http://help.sap.com/saphelp_erp2005/helpdata/en/index_srmaddon.htm
If you need further clarification please let me know
Regards -
Direct Procurement and Direct Production
Dear all,
Can you please explain to me what is "Direct Procurement", and "Direct Production" base on the following points:
1 - What is the process about?
2 - How and when business requirement will bump into and using these two processes?
3 - Example
Please don't copy and paste the SAP help portal explanation as I have read the SAP help-portal and am NOT understand
thanks very much
tuffyDear Tuffy,
Direct Production:
1.The components for which individual production orders are created in a collective order concept are called as directly
produced component.
2.In my understanding these components are identified with the value 52 set for special procurement key in MRP2 view of the
material master.
3.Direct production cannot be set for the components that have any one of the indicator set for - by product, co-
product,alternative item with usage probablity 0 or alternative item with strategy 2,discontinued material,follow up material,intra
material.
4.This concept atleast helps in understanding the cost breakup than the phantom assembly concept.
5. Example:
You want to produce a pump. The BOM for the pump contains a pressure regulating valve and a spiral casing. You want to
enter these two components in separate production orders, but you do not want them to be posted to stock.
You set the special procurement type to direct production in the material master record for the pressure regulating valve and
the spiral casing, so that production occurs using a collective order.
When you create a production order for the pump, a collective order is automatically created, which contains subordinate
production orders for the pressure regulating valve and the spiral casing.
Direct Procurement:__
1.Direct Procurement is generally used for non-stock items that is defined with item category N or defined using special
procurement key for direct procurement.
2.This is widely used in the case of Make ot order or Engineer to Order production where the stock of such materials are not
inventory managed.
Regards
S Mangalraj -
What r the direct and indirect taxes
hi gurus,
can any one pls give me what r the direct and indirect taxes.
Thanks in advance,
RAVI
Moderator: Please, respect SDN rules. As it's not your first warning, upon next violation your user will be bannedHi,
the Tax tht we Pay directly to Govt is Direct tax and tax tht we pay indirectly is Indirect tax. Ex. Income tax on salaries is direct tax and Sales Tax on Products is a indirect Tax.
Hope you got clarify on the Both type of Taxes.
Thanks
Goutam
Edited by: Goutam78 on May 27, 2011 3:07 PM -
Finding direct and indirect dependency
Hi,
I have table say SAPECC, which is used in one of the procedure as given below :
create or procedure test121
as
begin
insert into sapecc2
select * from sapecc;
end;
And SAPECC2 is used in another procedure as given below :
create or procedure test122
as
begin
insert into sapecc3
select * from sapecc2;
end;
Now if I want to get what are the direct and indirect dependency for SAPECC, how can we get that? Say I want to see TEST121 procedure and SAPECC2 table are the 1st level dependency for SAPECC and TEST122 procedure and SAPECC3 table are the 2st level dependency for SAPECC.
Regards,
KoushikHi Koushik,
There are no dependencies as you describe them between the sapeccX tables.
SQL> select level
,name
,type
,referenced_name
,referenced_type
from user_dependencies
start with referenced_name like 'SAPECC%'
connect by prior referenced_name = name
LEVEL NAME TYPE REFERENCED_N REFERENCED_T
1 TEST121 PROCEDURE SAPECC TABLE
1 TEST121 PROCEDURE SAPECC2 TABLE
1 TEST122 PROCEDURE SAPECC2 TABLE
1 TEST122 PROCEDURE SAPECC3 TABLE
4 rows selected.I don't know about 11g and PL/Scope maybe you can get something from there.
As a final resort you can play with user_source:
select *
from user_source
where name like 'TEST%';Regards
Peter -
Direct and indirect third party sales
Hi gurus,
please tell me what is direct third party sales and what is indirect third party sales?Hi,
As far as my understanding
Direct third party sales
Meaning is that your vendor directly ship goods to your cutomer,here no delivery takeplace from your company
Process :
Sales order >> Purchase requisition >> P.O >> Invoice reciept from vendor >>> Invoice to customer woth refrance to sales order
Indirect Third party sales
Meaning is that here vendor ship material to your company and then from your company you ship to customer
Process :
Sales order >> Purchase requisition >> P.O >> Goods Reciepts >> Outbound delivery with refrance to order >> invoice with refrance to delivery
Hope you understand
Kapil -
DIRECT MATERIAL PROCUREMENT and INDIRECT MATERIAL PROCUREMENT
please explain , what is the differance between DIRECT MATERIAL PROCUREMENT and INDIRECT MATERIAL PROCUREMENT.please explain with example.
source: http://www.ftpress.com/articles/article.aspx?p=24168
Procurement materials can be broken down into two major categories: indirect and direct.
u2022
Indirect procurement involves any commodity or service that a company buys that does not result directly in finished goods.
u2022
Indirect procurement can be divided into two groups: ORM (Operations Resource Management) materials such as office products and travel services, and MRO (Maintenance, Repair and Operations) materials such as replacement parts.
u2022
Direct procurement involves materials purchased for use in the manufacturing or distribution supply chain that are "directly" related to the production of finished goods.
Maybe you are looking for
-
but how?
-
Hi There, A month ago I had 3gs with 4.1 OS version and I synced all my photo albums from my old laptop as I have planned to sell it off. I sold my old laptop and accidentally kids at my home have pressed reset button and my phone got locked, now I g
-
Hello! Can someone please help me figure out the best settings to use in order to obtain the best resolution in FCE4 for a television show that is going to be sent out on full size Sony DVcam tapes, with 4:3 aspect ration and audio output at 48kHz? I
-
Email both Yahoo and others problem on iphone
i have had to recreate my accounts (2) several times, they work, i get/send email and then boom, overnight, it stops working. i tried to reset today and can not get either to work. when I open them it simply says "checking for mail" and the circle th
-
CRM 2011: Sending Email through Outlook first
We have never used Email through CRM. Is it possible to send an email through Outlook first then to CRM? Also wanting to make sure it is linked to the Account, when sent.