In the world of SAP Accoutrements Management( SAP MM), procurement plays a pivotal part in icing businesses get the right material at the right time and cost. While utmost enterprises use standard procurement, real- world business scripts frequently demand indispensable procurement strategies.
Understanding this concept is especially valuable for students and professionals pursuing SAP Classes in Pune, SAP Course in Pune, or SAP Training in Pune, as it forms a core part of SAP MM and Supply Chain operations.
This article explains everything about Special Procurement Types in SAP, its configuration, importance, use cases, examples, and the advantages it brings to modern business operations. We also discuss why SevenMentor is a top choice for SAP training in Pune.
Introduction to Special Procurement Type in SAP
Special Procurement Type defines how a material is sourced in SAP beyond the conventional external procurement process. In standard procurement, materials are typically purchased from external vendors using purchase orders. But many industries require alternative procurement methods due to operational or strategic reasons.
Special Procurement Types allow businesses to:
- Procure from another plant
- Use production in an alternative plant
- Perform subcontracting
- Enable consignment stock procurement
- Use stock transfer from another plant
- Apply phantom items in BOM
- Utilize pipeline handling
In SAP, these procurement types are assigned in the Material Master → MRP 2 View, ensuring system-automated decision-making during MRP planning and procurement execution.
Why Special Procurement Type is Important?
Organizations face diverse supply chain demands such as:
Inter-plant distribution
Outsourcing production
Vendor-managed inventory
Shared production lines
Consolidated procurement strategies
Special procurement helps companies automate these processes, avoid crimes, and streamline operations.
Common Special Procurement Types in SAP
Below are the widely used special procurement types:
Stock Transfer from Another Plant (Procurement Type 40)
Used when material is sourced from a different plant of the same company instead of an external vendor.
Example:
Plant 1100 procures raw material from Plant 1200.
Benefits:
- Better utilization of internal stock
- Reduces external procurement cost
- Enables centralized inventory control
Production in Alternative Plant (Procurement Type 80)
Material is produced/manufactured in another plant.
Example:
Plant A plans the material, but Plant B produces it.
Useful for companies with specialized production units.
Subcontracting Procurement (Procurement Type 30)
Material is sent to an external vendor for processing.
Example:
Sending raw materials to a vendor for assembly.
Consignment Procurement (Procurement Type 10)
Material is stored in the company’s premises but ownership remains with the vendor until consumption.
Benefits:
- No upfront investment
- Reduced inventory carrying cost
Phantom Assembly (Procurement Type 50)
Used for BOM items that are not stocked but only used for structural grouping.
Pipeline Procurement (Procurement Type 60)
For materials supplied via pipelines such as gas, water, oil.
Third-Party Procurement (Procurement Type 70)
Goods are delivered directly to the customer from the vendor.
Useful in drop-shipping business models.
How Special Procurement Works in SAP?
The special procurement type is maintained in:
Material Master → MRP2 View → Special Procurement field
SAP uses this field during:
- Material Requirements Planning (MRP)
- Purchase requisition creation
- Purchase order processing
- Production planning
Based on the assigned type, SAP automatically determines:
- Vendor
- Supplying plant
- Procurement route
- Type of purchase order (stock transfer, subcontracting, etc.)
Real-Time Business Scenarios
Scenario 1: Central Manufacturing Hub
A company manufactures products in Pune Plant but sells them from Mumbai Plant.
Special Procurement 80 helps Mumbai plant source goods produced in Pune plant.
Scenario 2: Subcontracting for Special Processing
Raw materials are sent to a polishing vendor.
SAP triggers subcontracting PO automatically.
Scenario 3: Consignment Stock Management
Vendor keeps materials in warehouse—company pays only when consumed.
SAP posts consumption-based invoice.
Scenario 4: Inter-plant Stock Transfers
Plant A has excess stock. Plant B has shortage.
Special Procurement 40 balances the stock internally.
Why Choose SevenMentor for SAP Training in Pune?
SevenMentor is one of the most trusted institutes offering SAP Course in Pune with practical, assiduity-ready class.
10 Times Assiduity Character
100 Practical SAP MM, SD, FICO, PP Training
Hands- On Real- Time systems
Commercial- position SAP Coaches
Flexible Batches Weekday Weekend
100 Placement Assistance
Placement Support
SevenMentor provides:
- Dedicated Placement Cell
- Resume Building + Mock Interviews
- Interview Scheduling with Top MNCs
- Partnerships with 500+ hiring companies
- Soft Skills & Communication Training
Trainer Profile (SevenMentor)
SevenMentor’s SAP trainers are:
- SAP Certified Professionals
- Working with MNCs like Infosys, TCS, Accenture
- 10–15 years domain experience
- Experts in SAP MM, SD, FICO, PP, ABAP, HANA
- Skilled in real-time project implementation
- Provide case-study-based learning
- Social Media Profiles
What is SAP MM & ERP? | Complete Beginner Guide
Reviews (SevenMentor)
Students consistently rate SevenMentor as:
- Best SAP Training Institute in Pune
- High-quality teaching with real-time examples
- Excellent placement support
- Friendly and experienced trainers
Google My Business Ratings
GMB Rating: 4.8/5
GMB Review Count: 6,000+ Reviews
SevenMentor ranks among the top-rated SAP training institutes in Pune.
Location & Contact (SevenMentor)
1St floor, Shreenath Plaza, Dnyaneshwar Paduka Chowk, Office No.21 and 25, A Wing, Fergusson College Rd, Shivajinagar, Pune, Maharashtra 411005
SevenMentor Training Institute
Syllabus for SAP MM
Module 1: Introduction to SAP
- ERP Concepts
- SAP Modules Overview
Module 2: SAP MM Overview
- Procurement Cycle
- Master Data
Module 3: Material Master
- Views and Fields
- Special Procurement in Material Master
Module 4: Vendor Master
- Partner Functions
- Account Groups
Module 5: Purchasing
- PR
- PO
- RFQ
Module 6: Special Procurement Types
- Subcontracting
- Consignment
- Stock Transfer
- Third-Party
- Pipeline
Module 7: MRP
- MRP Procedures
- Lot Sizing
- MRP Results
Module 8: Inventory Management
- GR, GI
- Transfer Postings
Module 9: Invoice Verification
- LIV
- Tax & Pricing
FAQs About SevenMentor
- Does SevenMentor give placement backing?
Yes, 100 placement support is handed.
- Is the SAP course suitable for freshers?
Yes, freshers and working professionals both can join.
- What are the prerequisites?
Basic computer knowledge is enough.
- Is SAP MM included in the course?
Yes, complete SAP MM is covered.
- Do trainers have industry experience?
Yes, all trainers are experienced SAP consultants.
- Are practical sessions included?
Yes, hands-on training with real-time projects is included.
- Is certification guidance provided?
Yes, trainers guide for SAP global certification.
- Do you offer weekend batches?
Yes, weekend and fast- track batches are available.
- How long is the course duration?
generally 2 to 3 months.
- Is there any EMI facility?
Yes, installment options are available.
- Will I get study material?
Yes, PDFs, notes, and assignments are provided.
- Do you provide lifetime access to LMS?
Yes, learning material is permanently accessible.
- Are demo sessions available?
Yes, free demo classes are provided.
- Is online training available?
Yes, both offline and online modes are available.
- Can I switch batches if demanded?
Yes, inflexibility for batch change is allowed.
Interview Questions of SAP S/4 Hana sourcing & procurement
Final studies
Special Procurement Types in SAP play a vital part in enabling flexible and optimized sourcing strategies for ultramodern enterprises. They help businesses streamline procurement, manage costs, enhance functional effectiveness, and acclimatize to complex force chain needs.
still, joining SAP Classes in Pune, SAP Course in Pune, If you want to master SAP MM and understand generalities like Special Procurement Types in depth. With expert coaches, hands- on labs, real- time systems, and guaranteed placement support, SevenMentor remains a leading institute for SAP literacy.