Overview

The purchasing of direct materials scenario covers the process of material purchase from vendors on a contractual basis for a fixed period of time or an amount of product. It can also be used for purchasing direct works. For repetitive manufacturing, materials are usually purchased under long-run contracts.

Purchasing direct materials is started by generating plan-based purchase orders and ends with receiving them in the warehouse for subsequent use in production or sales.

The received goods are tracked and stored in the warehouse.

Purchase direct materials flowchart

Links to User Guide

• Assess direct demand for purchasing

• Generate demand-driven purchase orders

• Generate plan-based purchase orders
• Define delivery terms
• Fill in vendor prices
• Carry out internal approval
• Follow up purchase order progress

• Process purchase order confirmation

• Process vendor invoices by purchase orders

Links to Setup Guide

• Items
• Distribution warehouse structure
• Basic warehouse operations
• Transport delivery
• Basic purchase operations
• Basic material supply
• Assigned material supply
• VAT accounting