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Author's profile photo Ritesh Kumar

PIPELINE CYCLE PROCESS STEP BY STEP

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

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STEP 1: INFO RECORD

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

  • Info record with Info Category  Pipeline will be created.

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INFO RECORD – GENERAL DATA

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INFO RECORD – PURCH ORG DATA

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

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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.

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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.

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Please revert for any clarification or Doubt.

Ritesh Kumar Madhukar

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      7 Comments
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      Author's profile photo Jürgen Lins
      Jürgen Lins

      From a step-by-step process document I expect much much more detail.

      you have nothing said about the material type attributes.

      I "learned"  that the tax indicator seems to be the important information in an info record

      you did not say anything about standard purchasing organisation

      in general you did not say much at all.

      the release notes from SAP 3.0 has already more information: Inventory Management: Pipeline Handling

      Please think about quality before creating a document or blog. Inform yourself by research of existing discussions what people are asking in regard to pipeline processing, what is missing in exiting documentation.

      Just copy and paste a few lines from SAP Glossary as introduction and adding a few screenshots with a one-liner is much too less to become a quality source for future readers.

      This is not even 5% of what our endusers get as training material for the pipeline process

      Author's profile photo Ritesh Kumar
      Ritesh Kumar
      Blog Post Author

      HI Jurgen,

      Thank you very much that you have gone through this document and thank you for the important feedback.

      I will definitely do the re modification and will cover all missing points.

      I am underling your feedback for a better document which will be useful for every one.

      Regards,

      Ritesh Kumar

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal

      Hi;

      Waiting for refresh document..

      Regards.

      Author's profile photo Changlin Ke
      Changlin Ke

      how to pay for the pipeline materials?

      can it pay with no invoice?

      Author's profile photo Farid Azzi
      Farid Azzi

      For people who are interested to have more details about the process, the link below from SAP Help Portal link.

      Also this video is really interesting to have more details with screen shots.

      Author's profile photo Farid ASSALI
      Farid ASSALI

      Many thanks Mr.Azzi.

      Author's profile photo Alagudurai S
      Alagudurai S

      Good Blog for beginners...