What is procurement type in SAP PUR-PRP - Procurement Planning?

SAP Term: procurement type

• Component: PUR-PRP

• Component Name: Procurement Planning

• Description: Attribute that specifies how an item or component is procured. Usually, items are classified as "Make" when they are produced internally, "Buy", when they are procured externally, or they can also be procured in both ways, e.g. half-produced, half-procured.

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• Key Concepts: 
  Procurement type is a classification of procurement activities in SAP. It is used to define the type of procurement activity that is being carried out, such as purchasing, subcontracting, or inventory management. It is used to determine the appropriate procurement process and to ensure that the right resources are allocated for the activity. 
  
  How to use it: 
  In SAP, procurement type is used in the PUR-PRP (Procurement Planning) component. It is used to define the type of procurement activity that needs to be carried out. This can be done by selecting a specific procurement type from a list of available options. Once selected, the system will then determine the appropriate process and resources needed for the activity. 
  
  Tips & Tricks: 
  When selecting a procurement type, it is important to consider the specific requirements of the activity. For example, if you are purchasing a product, you may need to select a different procurement type than if you are subcontracting a service. Additionally, it is important to ensure that the correct resources are allocated for each activity. 
  
  Related Information: 
  For more information on SAP’s procurement types and how they are used in PUR-PRP, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide detailed explanations and examples of how to use SAP’s procurement types in PUR-PRP.