SAP and “pipeline” materials refer to a specialized concept in SAP MM/PP where a material is designated as a PIPE type, representing items that flow directly from a pipeline or similar source into production or consumption locations. In practice, such materials are treated differently for postings and movements, and require a dedicated pipeline info record to price and track withdrawals. Key points to understand about pipeline materials in SAP

• Material type and movements
  • Pipeline movements are mandatory for materials of type PIPE. This ensures withdrawals from the pipeline are posted correctly and traceably in the system.

* The material master should include views for purchasing and accounting, and be assigned an appropriate industry sector and base unit of measure, similar to other materials, so that downstream postings align with procurement and costing logic.

• Price control and postings
  • Pipeline pricing can be handled via moving average price (price control V) so withdrawals post to the pipeline consumption account at the pipeline price, while the base price is not directly used for withdrawals.

* If standard price (price control S) is used, differences between the pipeline price and standard price are posted to a price difference account, which may lead to larger adjustments depending on how the standard price and pipeline cost diverge.

• Pipeline info records
  • A pipeline info record is created to determine the pipeline material’s price with a vendor, and enables the system to post pipeline movements after the record exists. This is a key setup step in pipeline handling.

* Creation steps typically involve creating a material master (MM01) with material type PIPE, then assigning purchasing and accounting views, and finally maintaining or linking a pipeline info record to active postings (purchasing/own organization processes may vary by SAP release).

• Practical steps (high level)
  • Create the material master with material type PIPE and necessary views (basic data, purchasing, accounting) and assign a base unit of measure and material group.
  • Create a pipeline info record for pricing and upstream supplier linkage.
  • Configure purchasing and valuation settings to align with pipeline postings (price control and movement types).
  • Use appropriate transaction codes (e.g., MM01 to create the material; subsequent steps to create the info record and maintain movement types) as per your SAP version’s workflow.

If you want, I can tailor these steps to your specific SAP version (ECC vs S/4HANA), and outline exact transactions, field names, and typical settings for your industry (for example, gas, water, or oil pipelines) to ensure correct configuration and postings.