PIPELINE CYCLE PROCESS STEP BY STEP

[Former Member]

PIPELINE CYCLE

By – Ritesh Kumar Madhukar

PIPELINE CYCLE - PROCESS FLOW

A pipeline material is a material that enters the production process directly from a pipeline (for example, oil), from a pipe (for example, mains water), or via a cable (for example, electricity), and can be consumed. Pipeline materials are represented by the material type PIPE.

• There is no PO, No Goods Receipt, No stock for these materials.
• In this we need not create a PO or keep the material in stock. We only record the consumption and pay accordingly.
• We only record the consumption. In MIGO transaction, special stock type is “P”
• All the rate and tax info is stored in info records. Info record category for this is Pipeline

PROCESS FLOW

STEP 1: INFO RECORD

T Code – ME11, Material – Petrol – ZEE,  Vendor – Test Vendor.

• Info record with Info Category  Pipeline will be created.

INFO RECORD – GENERAL DATA

INFO RECORD – PURCH ORG DATA

All rate and tax information must exist in info record or else it will give error in settlement.

STEP 2: RECORD CONSUMPTION

• There is no PO or stock for the pipeline material.
• We can issue / consume material even when it is not there in stock. This is the characteristic of pipeline material.
• Consumption of pipeline material is recorded in MIGO. Special stock type is ‘P’.
• For the example given in the below screen, it is issue to cost center and special stock type is ‘P’.
• Enter the material, quantity, plant, vendor, cost center etc and post the document.

STEP 3: PIPELINE SETTLEMENT

• Pipeline deliveries are settled with the transaction MRKO. Same as consignment material.
• In this transaction select pipeline and give other selection criteria and post the document.

Please revert for any clarification or Doubt.

Ritesh Kumar Madhukar