Definition

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

Purchasing of direct materials is started by generating purchase orders based on plans and ends with receiving them in the warehouse for further use in production or trading.

The received goods are tracked and stored in the warehouse.