What is external procurement in SAP MM - Materials Management?

SAP Term: external procurement

• Component: MM

• Component Name: Materials Management

• Description: The procurement of raw materials, operating supplies MRO items, trading goods, and services from external suppliers for the organizational units of an enterprise that need such items or services.

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• Key Concepts: 
  External procurement is a process in SAP Materials Management (MM) that allows companies to purchase goods and services from external vendors. It involves creating purchase orders, managing vendor contracts, and tracking the delivery of goods and services. It also includes the management of payment terms and invoices. 
  
  How to use it: 
  In SAP MM, external procurement is managed through the Purchasing module. This module allows users to create purchase orders, manage vendor contracts, and track the delivery of goods and services. It also includes features for managing payment terms and invoices. The Purchasing module also provides tools for analyzing vendor performance and managing supplier relationships. 
  
  Tips & Tricks: 
  When using the Purchasing module for external procurement, it is important to ensure that all relevant information is accurately entered into the system. This includes details such as item descriptions, quantity, delivery date, payment terms, and invoices. Additionally, it is important to regularly review vendor performance to ensure that they are meeting expectations. 
  
  Related Information: 
  The Purchasing module in SAP MM can be used in conjunction with other modules such as Inventory Management (IM) and Warehouse Management (WM). Additionally, it can be integrated with other systems such as Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM).