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

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