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What is the difference between a PR with a Master Record and without a Master Record for the material being ordered?

Print This Post Email This Post Written by rajivsharma.sap on Dec 3rd, 2008 | Filed under: Material Management (MM)

If the master record exists, then all of the information about the Source List, Information Record, and Vendor Evaluation already exist in the system. If we don’t have a Master record for the material we are ordering, the material is generally being ordered for direct usage or consumption. You can specify which consumption account is to be charged which is also known as Account Assignment. For example, we assign the purchase costs associated with a requisition to our sales order or cost center.

If the first situation exists, many times purchasing enters into a longer-term purchasing agreement with a Vendor, which is called an “Outline Agreement”. If the Outline Agreement is done, then Purchasing cannot issue a purchase order against a PR. It can only set up such an agreement (either a “Contract” or a  Scheduling Agreement”).

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