What is consumption-based offset method in SAP MM-PUR - Purchasing?

SAP Term: consumption-based offset method

• Component: MM-PUR

• Component Name: Purchasing

• Description: An offset method whereby you offset an invoice for chargeable components agasint a deductible account payable for the same components. &EXAMPLE& You provide a subcontractor with the components required to assemble 10 motors, and you sent it an invoice for the chargeable components. The subcontractor assembles seven motors and invoices you for the parts that it has consumed. You offset the deductible account payable against the invoice for the chargeable components, so that the subcontractor only owes you for the components for three motors.

Smart SAP Assistant

• Key Concepts: 
  The consumption-based offset method is a feature of the SAP MM-PUR Purchasing component. It is used to offset the value of goods or services that have been consumed against the value of goods or services that have been received. This method is used to ensure that the value of goods or services received is equal to the value of goods or services consumed. 
  
  How to use it: 
  The consumption-based offset method can be used in SAP MM-PUR Purchasing by setting up a consumption-based offset account. This account will be used to track the value of goods or services consumed and the value of goods or services received. The offset account will then be used to calculate the difference between the two values and adjust the accounts accordingly. 
  
  Tips & Tricks: 
  When setting up a consumption-based offset account, it is important to ensure that all transactions are accurately recorded and tracked. This will help ensure that the offset account is accurate and up-to-date. Additionally, it is important to regularly review the offset account to ensure that all transactions are accounted for and that any discrepancies are addressed promptly. 
  
  Related Information: 
  For more information on the consumption-based offset method, please refer to SAP's official documentation on MM-PUR Purchasing. Additionally, there are many online resources available which provide detailed information on how to set up and use this feature in SAP MM-PUR Purchasing.