Can you please help me understanding the difference between preference indicator and procurement indicator in sap gts Preference Determination .
Basically, a procurement indicator reflects how we can obtain our products in Business process i.e whether we can purchase a product from vendors, produce it in-house, or a combination of the two. Depending on procurement indicators, system will determine the preference eligibility for a product through long-term vendor declarations and their aggregation, through preference determination, or through a combination of both procedures. Basically, it is a raw information that is required while deciding preference eligibility of product in a business case.
But on the other hand, preference indicator is to make sure that the concerned information on preference eligibility part comes back to the Feeder system from GTS system upon finding that a product is eligible for preference determination at the GTS system end. This preference data is updated either in the Feeder system sales order or billing document to further aid in business process execution for a customer taking into account its preference eligibility.
I hope, this will be helpful to you.