Unit 5: Stock Material Compared with Consumable Material
Whether a material is bought for the warehouse or for immediate consumption changes almost everything: the data required in the PO, the role of the material master, and which G/L accounts are posted at goods receipt and invoice. This unit also introduces the purchase requisition and its conversion into a purchase order.
Lesson 1 · Comparing Procurement Processes for Stock and Consumption
After this lesson you can
- Distinguish procurement for stock from procurement for direct consumption
- Explain the material types
NLAGandUNBWand options for consumables - Use account assignment categories and multiple account assignment
Key concepts
| Procurement for stock | Procurement for direct consumption | |
|---|---|---|
| Material master | Mandatory | Optional |
| Account assignment in PO | None – accounts are determined automatically (stock account via valuation class) | Account assignment category + object + G/L (consumption) account are entered |
| Effect at GR | Stock quantity and value increase; stock account debited | Consumption account and account assignment object (e.g. cost center) debited; stock value unaffected (quantity usually too) |
| Later consumption | Goods issue posts consumption (e.g. 201, 261) | Already consumed at GR / IR |
For a stock material, every subsequent goods movement automatically posts the right stock and consumption accounts. For a consumable, the purpose of consumption is known at purchase time and stated in the PO.
Options for consumable materials
| Option | Inventory management | Notes |
|---|---|---|
| No material master | None | Short text, material group and order unit must be entered manually in the document. |
Material type NLAG (non-stock material) | Neither quantity nor value | Master stores texts and units for frequently ordered consumables. |
Material type UNBW (non-valuated material) | Quantity only, no value | For low-value items whose stock should still be monitored. |
For materials with a master record, the material type (with the plant) decides quantity/value updating. If value updating is off, the material can only be bought with account assignment. Conversely, a stock material can still be bought for direct consumption – e.g. trading goods ordered for a specific sales order.
Account assignment categories
The account assignment category in a requisition or PO item defines which object is charged and which fields must be filled on the account assignment screen.
| Category | Object | Required data |
|---|---|---|
K | Cost center | G/L account + cost center (G/L can be proposed by Customizing) |
A | Asset | Asset number; G/L account derived from the asset (cannot be entered manually) |
F | Order (internal/maintenance/production order) | Order number, G/L account |
P | Project (WBS element) | WBS element, G/L account |
C / M | Sales order (individual customer requirement) | Sales order and item |
U | Unknown | Nothing – allowed in requisitions; in POs only with service or limit items |
Multiple account assignment
One item can be split over several account assignment objects. You must specify how the value is distributed – by quantity, percentage or amount – and how a partial invoice is spread: proportionally to the distribution ratio, or progressively (fill-up) in sequence, completing line 1 before line 2. The partial invoice indicator can be defaulted from the account assignment category.
Configuration (IMG)
SPRO › Materials Management › Purchasing › Account Assignment › Maintain Account Assignment Categories
SPRO › Logistics – General › Material Master › Basic Settings › Material Types › Define Attributes of Material Types (quantity/value updating)
(Transactions OME9 and OMS2.)
- Required in a consumption PO item: account assignment category, G/L account, short text (material number and storage location are not required).
- Material type controls whether an account assignment is mandatory (no value updating → account assignment required).
A: G/L account derived from the asset;K: G/L + cost center entered.Uunknown is not allowed in normal PO items (only service/limit).- Distribution: quantity / percentage / amount; partial invoice: proportional or progressive fill-up.
Lesson 2 · Creating a Purchase Requisition
After this lesson you can
- Create a purchase requisition directly and explain indirect creation
- Explain the valuation price, account assignment "unknown" and release
- Describe what is transferred when a requisition is converted
Key concepts
A purchase requisition (PR) is an internal document asking purchasing to procure a quantity of a material or service by a certain date. It is not sent to suppliers and has no legal effect externally.
| Creation | How |
|---|---|
| Direct | Manually by the requesting department, which decides material/service, quantity and date (ME51N, Fiori Create Purchase Requisition). |
| Indirect | Generated automatically by MRP, maintenance orders, production orders (for externally processed operations/non-stock components), networks in projects, or external systems such as SAP SCM/IBP or SAP SRM. |
Data of the material master is copied into the PR; items can also be taken from a web-based catalog. A PR can be converted into an RFQ, a PO or an outline agreement.
Special features
- Account assignment category
U(unknown): allowed in the PR when the requester does not know the object. When converting to a PO, a real account assignment must be entered – except for service and limit items. - Valuation price: for valuated materials taken from the material master; for non-valuated materials or text items entered manually. It is used for the value-based release (approval) procedure, at item or overall level.
- Release strategy: if one applies, follow-on documents (RFQ, PO) can be created only after release.
Price proposal when converting to a PO
| PR item | Price proposed in PO (no source assigned) |
|---|---|
| With material master | Info record price if an info record exists; otherwise manual entry. The PR valuation price is not transferred. |
| Without material master | The PR valuation price is proposed as PO price (changeable). |
System steps
- ME51N: enter document type (
NB), material or short text, quantity, delivery date, plant, purchasing group; for consumption also account assignment category and data. - Check and save; display/change with ME53N/ME52N.
- If a release strategy applies, the approver releases with ME54N (individual) or ME55 (collective).
- List requisitions with ME5A.
Configuration (IMG)
SPRO › Materials Management › Purchasing › Purchase Requisition › Define Document Types
SPRO › Materials Management › Purchasing › Purchase Requisition › Release Procedure › Procedure with Classification › Set Up Procedure with Classification
SAP S/4HANA offers flexible workflow for purchase requisition approval (configured with the Fiori app Manage Workflows for Purchase Requisitions) as an alternative to the classification-based release strategy. Only one of the two approaches can be active per requisition.
- Automatic PR creation: MRP, production orders, maintenance orders, networks – not material master maintenance or sales-order cancellation.
- Valuation price comes from the material master for valuated materials – not always manual.
- Valuation price is not used as PO price for items with material master.
- Released PR is a prerequisite for follow-on documents when a release strategy applies.
Lesson 3 · Creating a Purchase Order with Reference to a Purchase Requisition
After this lesson you can
- Explain sources of supply (info record, contract, scheduling agreement, own plant)
- Assign a source of supply and convert requisitions into POs
Key concepts
Before a PR can become a PO, the buyer needs a supplier and a price: the source of supply. Sources can be external (info records, outline agreement items) or internal (another plant of the company → stock transport order).
| Source | Description |
|---|---|
| Purchasing info record | Supplier–material information: current price, planned delivery time, supplier material number. |
| Contract (outline agreement) | Longer-term agreement for a total quantity or value over a validity period; individual deliveries are called off with contract release orders (POs referencing the contract). |
| Scheduling agreement (outline agreement) | Longer-term agreement whose deliveries are specified in delivery schedule lines. |
Outline agreements never contain concrete delivery dates for individual deliveries; those come from release orders or schedule lines.
Assigning sources and converting
- Enter a source directly in the PR item (fixed supplier, info record, agreement), or let source determination find one (source list, quota arrangement, outline agreements, info records – see Unit 7).
- A PR item with source can be converted manually or automatically (ME59N); the supplier is copied from the source.
- A PR item without source can still be referenced in ME21N; the supplier must then be entered manually.
System steps (Fiori: Process Purchase Requisitions)
- Open Process Purchase Requisitions, set filters (plant, material, purchasing group) and start.
- The list shows for each item whether sources are available; assign a source.
- Select one or several items and choose Create Purchase Order; items with the same supplier are bundled into one PO.
- If no source exists, use Edit to assign a supplier manually or start an RFQ.
SAP GUI equivalents: ME57 (assign and process requisitions), ME56 (assign source to requisitions), ME58 (ordering of assigned requisitions), document overview in ME21N.
- Outline agreements = contract and scheduling agreement (not info record, not production version).
- Without assigned source the supplier must be entered manually in the PO.
- Converting several items bundles them per supplier.
Lesson 4 · Entering Valuated and Non-Valuated Goods Receipts
After this lesson you can
- Explain the PO item settings for stock and consumable material
- Trace the postings of valuated and non-valuated GRs and the subsequent invoice
PO item requirements
| Field | Stock material | Consumable material |
|---|---|---|
| Material number | Mandatory | Optional |
| Account assignment category | Not allowed | Mandatory, with object and G/L account |
| Goods receipt indicator | Mandatory | Optional |
| GR non-valuated indicator | – (GR is always valuated) | Decides valuated vs. non-valuated GR (default from account assignment category) |
| Invoice receipt indicator | Optional (e.g. free-of-charge delivery without IR) | Normally set |
Postings
| Scenario | At goods receipt | At invoice receipt |
|---|---|---|
| Stock material (valuated) | Dr stock (BSX) / Cr GR/IR (WRX) | Dr GR/IR (cleared fully) / Cr supplier; differences per price control |
| Consumable, valuated GR | Dr consumption account from PO (+ cost object) / Cr GR/IR | Dr GR/IR / Cr supplier; price difference posted to the consumption account |
| Consumable, non-valuated GR or no GR | No FI posting (material document only, if GR) | Dr consumption account with invoice amount / Cr supplier – no GR/IR involved |
System steps
- Create the PO in ME21N – for consumables enter account assignment category (e.g.
K) and check the Delivery/Invoice tab indicators. - Post GR with MIGO (
101); in the document display, the FI documents button shows whether an accounting document was created. - Post the invoice with MIRO; simulate to see the accounts.
- Analyse the PO history in ME23N; for cost centers check the actual costs, e.g. with KSB1.
For account-assigned items the consumption G/L account comes from the PO account assignment (account determination via purchasing, key KBS) rather than from the valuation class.
- Stock PO item: material number + GR indicator required, no account assignment; IR indicator not mandatory.
- Consumable with GR + IR indicators (no "non-valuated"): at GR the GR/IR and consumption accounts are posted.
- Consumable with IR only: at IR consumption and supplier accounts; no GR/IR.
- Price differences for consumables go to the consumption account.
Unit summary & exam focus
Stock materials need a master record and no account assignment; their value is managed in stock accounts. Consumables are charged to an account assignment object at GR (valuated) or IR (non-valuated). Requisitions express internal demand and are converted into POs once a source of supply is known.
T-codes in this unit
| T-code | Purpose |
|---|---|
| OME9 | Maintain account assignment categories |
| OMS2 | Material type attributes |
| ME51N | Create purchase requisition |
| ME52N | Change purchase requisition |
| ME53N | Display purchase requisition |
| ME54N | Release purchase requisition (individual) |
| ME55 | Collective release of requisitions |
| ME5A | List display of requisitions |
| ME56 | Assign source of supply to requisitions |
| ME57 | Assign and process requisitions |
| ME58 | Ordering: assigned requisitions |
| ME59N | Automatic creation of POs |
| ME21N | Create PO (with reference to PR) |
| ME23N | Display PO / PO history |
| MIGO | Post goods receipt |
| MIRO | Enter invoice |
| KSB1 | Cost center actual line items |
Self-check questions
- Which entries are required in a PO item to replenish warehouse stock?
Answer
Material number and GR indicator; no account assignment category. The IR indicator is not strictly required. - Which field of the material master controls whether account assignment is mandatory?
Answer
The material type (value updating off → account assignment required). - What is the difference between
NLAGandUNBW?Answer
NLAG: no inventory management at all; UNBW: quantity-based but not value-based inventory management. - Can account assignment category
Ube used in a standard PO item?Answer
No. It is allowed in PRs; in POs only with service or limit items. - A PR item has a material master and no source. Which price does the PO propose?
Answer
The info record price if one exists, otherwise the buyer enters it. The PR valuation price is not transferred. - Consumable PO item with only the IR indicator. Which accounts are posted at IR?
Answer
Consumption account (debit) and supplier account (credit); no GR/IR account. - Where does an invoice price variance go for a valuated consumable GR?
Answer
To the consumption account (and account assignment object).