Re: What is the difference between stock material and consumption material?

Hi Ashish,

Here are the main distinctions and some information from the SAP Library:

Procurement for Stock

A stock material is a material that is kept in stock. Such materials are placed in storage following a goods receipt

. When goods are received by or issued from stores or the warehouse, the stock on hand is increased or reduced by the amount of the quantity received or issued.

When you order a material for stock, the system does not require an account assignment

. This is because the posting to the appropriate stock and consumption accounts occurs automatically after each goods movement (for example, after a material is received by the stores or issued from stores) . Furthermore, the value and the quantity of the stocked material are updated in the material master record.

To order a material for stock, the material must have a master record

. For more information on material master records, refer to Master Records from the Purchasing View.

Procurement for Direct Consumption

When you procure for direct consumption, you specify the consumption purpose by entering an account assignment (for example, a cost center)

. On goods receipt, the material or service counts as having been consumed.

If a material is procured for direct consumption, the consumption accounts in Financial Accounting are posted when the goods receipt is entered

. The total quantity and value of existing stocks of the material are not affected.

You can find more information on this link: Proc. for Stock vs. Proc. for Direct Consumption - Purchasing (MM-PUR) - SAP Library

Hope it helps!

Best regards,

Fernando