What is procurement type in SAP MM - Materials Management?

SAP Term: procurement type

• Component: MM

• Component Name: Materials Management

• Description: A classification indicating whether a material is produced internally, procured externally, or both.

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• Key Concepts: 
  Procurement type is a feature of SAP Materials Management (MM) that allows users to define the type of procurement they want to use for a particular material. It is used to determine the purchasing process and the source of supply for a material. The procurement type can be set up in the material master record and can be changed at any time. 
  
  How to use it: 
  The procurement type is set up in the material master record and can be changed at any time. It is important to note that the procurement type must be set up before any purchasing activities can take place. The procurement type determines the purchasing process and the source of supply for a material. 
  
  Tips & Tricks: 
  When setting up a procurement type, it is important to consider the following factors: cost, availability, delivery time, quality, and supplier reliability. Additionally, it is important to ensure that the procurement type is compatible with other processes such as inventory management and production planning. 
  
  Related Information: 
  The procurement type is closely related to other features of SAP Materials Management such as purchasing info records, source list, and vendor evaluation. Additionally, it is important to note that the procurement type must be compatible with other processes such as inventory management and production planning.