What is procurement mode in SAP PM - Plant Maintenance?

SAP Term: procurement mode

• Component: PM

• Component Name: Plant Maintenance

• Description: A setting that determines the technical integration of and Materials Management for creating purchase requisitions for external demands. The procurement mode determines which external services can be procured for a combination of order type and maintenance planning plant.

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• Key Concepts: 
  Procurement mode is a feature in SAP Plant Maintenance (PM) that allows users to define the way in which materials and services are procured. It is used to determine the source of supply for a particular item, such as whether it should be purchased from an external vendor or produced internally. The procurement mode also determines the type of procurement document that will be used, such as a purchase order or a production order. 
  
  How to use it: 
  In SAP PM, the procurement mode is set up in the material master record for each item. The user can select from a list of available procurement modes, such as “external” or “internal”. Depending on the selection, different documents will be generated when the item is requested. For example, if the procurement mode is set to “external”, then a purchase order will be created when the item is requested. 
  
  Tips & Tricks: 
  When setting up the procurement mode for an item, it is important to consider how often the item will be requested and how quickly it needs to be delivered. If the item is requested frequently and needs to be delivered quickly, then an external procurement mode may be more suitable. On the other hand, if the item is only requested occasionally and does not need to be delivered quickly, then an internal procurement mode may be more suitable. 
  
  Related Information: 
  For more information on setting up and using procurement modes in SAP PM, please refer to SAP Help documentation or contact your local SAP support team.