What is procurement type in SAP SRD-SCM-SCP - SCM-Supply Chain Planning and Control?

SAP Term: procurement type

• Component: SRD-SCM-SCP

• Component Name: SCM-Supply Chain Planning and Control

• Description: The method used to fulfill a requirement. In-house production and external procurement are both procurement types.

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• Key Concepts: 
  Procurement type is a classification of the procurement process in SAP. It is used to determine the type of procurement that is to be used for a particular material or service. It is also used to determine the source of supply and the pricing conditions. 
  
  How to use it: 
  In SAP, procurement type is set up in the material master record. It can be set up as either a one-time purchase or a regular purchase. The procurement type also determines the source of supply and the pricing conditions. 
  
  Tips & Tricks: 
  When setting up a procurement type, it is important to consider the cost, availability, and quality of the material or service. It is also important to consider any special requirements that may be needed for the procurement process. 
  
  Related Information: 
  Procurement type is part of the SAP Supply Chain Planning and Control (SRD-SCM-SCP) component. It is used in conjunction with other components such as inventory management, production planning, and sales and distribution.