What is procurement type indicator in SAP XAP-CQM - Cost and Quotation Management (SAP xCQM)?

SAP Term: procurement type indicator

• Component: XAP-CQM

• Component Name: Cost and Quotation Management (SAP xCQM)

• Description: A flag indicating whether a part is externally procured, produced inhouse, or can be eitherexternally procured or produced inhouse.

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• Key Concepts: 
  The procurement type indicator is a feature of SAP xCQM Cost and Quotation Management. It is used to define the type of procurement process that will be used for a particular purchase. The indicator can be set to either “direct” or “indirect”, depending on the type of purchase being made. 
  
  How to use it: 
  The procurement type indicator is set in the SAP xCQM Cost and Quotation Management system. It is used to define the type of procurement process that will be used for a particular purchase. The indicator can be set to either “direct” or “indirect”, depending on the type of purchase being made. 
  
  Tips & Tricks: 
  When setting the procurement type indicator, it is important to consider the type of purchase being made and the associated costs. For example, if a purchase is being made for a large quantity of items, it may be more cost-effective to use an indirect procurement process. 
  
  Related Information: 
  The procurement type indicator is just one of many features available in SAP xCQM Cost and Quotation Management. Other features include cost estimation, quotation management, and supplier management. All of these features are designed to help streamline the procurement process and ensure that purchases are made in an efficient and cost-effective manner.