What is special procurement type in SAP (PP-MRP - Material Requirements Planning)?

SAP Term: special procurement type

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: An indicator in the material master record that defines external procurement or in-house production of the material precisely. &EXAMPLE& Consignment Stock transfer Production in another plant

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• Key Concepts: 
  Special procurement type is a feature in SAP's Material Requirements Planning (MRP) component that allows users to define different procurement types for a material. This feature allows users to specify the source of the material, such as whether it is purchased from an external vendor or produced internally. It also allows users to define the lead time and other parameters associated with the procurement type. 
  
  How to use it: 
  To use special procurement type, users must first define the different procurement types in the system. This can be done by going to the MRP1 view in the material master and selecting the “Special Procurement Type” tab. Here, users can define the source of the material, lead time, and other parameters associated with each procurement type. Once these are defined, users can assign a special procurement type to a material in the MRP2 view of the material master. 
  
  Tips & Tricks: 
  When defining special procurement types, it is important to consider how they will affect the overall supply chain. For example, if a material is sourced from an external vendor, it may be beneficial to set a longer lead time in order to reduce costs. Additionally, it is important to consider how different procurement types will affect inventory levels and availability of materials. 
  
  Related Information: 
  For more information on special procurement types in SAP's MRP component, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed information on how to use this feature in SAP.