Purchase requisition

An SAP Purchase Requisition document is created electronically by a department (purchasing group) to request the purchase of goods or services. The approvals for the requisition are also done electronically. Once all approvals are obtained, the requisition is changed into a Purchase Order and sent to the vendor. The process of changing a Requisition into a Purchase Order is done automatically if certain criteria are met, or manually by Procurement Services if needed.

An indirectly created Purchase Requisition has been initiated by CBP, the PS Project System, PM Maintenance, and Service Management, or PP Production Planning and Control. The “directly created” Purchase Requisition, on the other hand, is created by a person manually in the requesting a vendor or department specifying what materials/services, units, and delivery date.

Purchase Order

A Purchase Order specifies the intent to purchase goods or services from a vendor and is processed by Procurement Services and could drive the source list. Purchase Order documents are created from approved Purchase Requisitions. Departments submit Purchase Requisitions either electronically in R/3 or by a paper form.

A Purchase Order document is:

• Entered manually into R/3 by Procurement Services from paper requisitions. These are entered as Purchase Order document types, so there is no referencing Purchase Requisition in R/3.
• Created electronically from an electronic purchase requisition done by a department. The changing of an electronic Purchase Requisition into a Purchase Order is done automatically by R/3 if certain criteria are met, or manually by Procurement Services if needed.

The Purchase Order is then printed and faxed to or electronically sent (Electronic Data Interchange – EDI) sent to the vendor.

How do you generate an automatic PO after creating a PR for a particular material?

In MMR and VMR check Auto PO (MM02/XK02).

Maintain the Source List and select the indicator for the source list record as MRP relevant (ME01). If more than one source list record is generated, make one of them fixed. Run MRP and the PRs generated will be re-assigned with the source of supply (MD01). Enter ME59 for automatically creating POs from PRs.

How to Assign Multiple G/L Accounts in Purchase Order

We can assign multiple G/L accounts in the Purchase order for the same line item. The costs can be allocated on a percentage or quantity basis. If the partial goods receipt and partial invoice receipt has already taken place, then the partial invoice amount can be distributed proportionally, i.e. evenly among the account assigned items of Purchase order. Alternatively, the partial invoice amount can be distributed on a progressive fill-up basis, i.e. the invoiced amount is allocated to the individual account assignment items one after the other.