Pipeline Material Procurement

Procurement of Pipeline Material

⮚ A pipeline material is a material that enters the
Oil production process directly from a pipeline
for example:
⮚ from a pipe ,Water, Electricity via cables, which
can be consumed

⮚ In Pipeline Material Procurement material flows

continuously from vendor premises to our plant
premises through pipe or cable or a wire.
Some interesting details about Pipeline procurement process

• Pipeline materials are represented by the material type PIPE. These materials have
the following business characteristics:
– They are not obtained or planned (No PR, PO and GR ).
– The required quantity can be removed from the pipeline at any time.
– They are not stored and they are not managed in inventory
management. No physical inventory is performed.
– Only record the consumption in MIGO 201 Movement type and
special stock type “P” and pay accordingly. Goods issue for cost
centre.
– You can only post withdraws for this material using account
assignment.
– Posting withdrawals (by Cost center, order, project) creates liabilities
to the vendor from whom the pipeline material is obtained.
– All the rate and tax info is stored in info record. Info record category
for this is Pipeline.
Steps in Procurement Process of Pipeline
material
Pipeline Procurement Process Cycle (Special
Stock Type : P)
Create Pipeline Material (MM01)
Material Type : PIPE

Create Purchase Info Record (ME11)

Material X; Vendor X; Plant-X; Tax Code Validity Period; Rs. 100/ Kg of gas

Goods Issue (MB1A)

To Cost Center - Mov To Order Mov type To Network Move Material – X; Vendor
type : 201 ; 261 type 281 – X; Qty - 100 Kg

Settle Liabilities (MRKO)

Settles for GR Quantity

Maintain condition record for output type KONS (MRM1)

Settlement document Printouts (MR91)

 Master Data
⮚ Create Material with “Pipe” Material Type (MM01)
⮚ Create Vendor ( BP) with :
⮚ GR Based Invoice Verification:
This field controls the default value for goods
receipt-based invoice verification when an info
record is created and - if no info record exists - when
a purchase order is created.
– If this field is selected: the field "GR-based invoice verification"
is preselected in the info record when such a record is created
for this vendor. (Note: if you change the selection in the vendor
master record, the info record does not change automatically);
– the field "GR-based invoice verification" is preselected in the
order item field when a purchase order is created for this
vendor if no info record exists for the vendor and the ordered
material.
Material Master
Material Type Configuration (OMS2)
Material Type PIPE
Material Type Configuration (OMS2)
Quantity/Value Updation
(Pipeline Mandatory)
Vendor Master

The ‘ERS’ Indicator is

required for MRKO
settlement of Pipeline
Liability.
Create Purchase Info Record (ME11)
PIR- Purchase Org. View
 Assign Standard Purchasing Organization to Plant

In the case of goods issues of pipeline materials, the purchasing info records of the standard
purchasing organization are read.
SPRO🡪 Enterprise Structure 🡪 Assignment 🡪 MM 🡪 Assign Standard Purchasing Organization
to Plant
Goods Issue (MB1A/ MIGO)
Movement Type : 201 P

Material : pipe###
Quantity : 1
Enter Vendor :
Enter Cost Center: NAAD1000
 Settle Liabilities (MRKO)
Before Settlement

After settlement

Accounting Entry
Settlement document Printouts (MR91)
Make Payment