What are the different types of procurement processes in SAP MM and how do they differ from each other?

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Answered by suresh

Types of Procurement Processes in SAP MM

Types of Procurement Processes in SAP MM

In SAP MM, there are three main types of procurement processes:

  1. Direct Procurement: This type of procurement involves purchasing materials directly from a vendor. It is typically used for one-time purchases or specialized items.
  2. Indirect Procurement: Indirect procurement involves the purchase of goods or services that are not directly related to the production process. This could include office supplies, maintenance services, etc.
  3. Stock Transfer: Stock transfer procurement involves transferring materials from one storage location to another within the same company code. This is used to maintain inventory levels across different locations.

These different types of procurement processes in SAP MM differ in terms of the nature of the purchase, the relationships with vendors, and the impact on inventory management.

Answer for Question: What are the different types of procurement processes in SAP MM and how do they differ from each other?