SAP MM- Source List/PR/Quota Arrangement/PO with Business Ex

Understanding Purchase Requisitions (PRs) and Purchase Orders (POs)

Learn the difference between internal and external procurement documents. A Purchase Requisition (PR) is an internal document created by stakeholders (outside of purchasing) within a plant to initiate a need for goods. A Purchase Order (PO) is an external document sent to a vendor to procure goods and fulfill production requirements.

Key Fields for Purchase Requisitions:

• Material: Identifies the specific item needed.
• Plant: Specifies the plant where the goods are required.
• Vendor: Identifies the supplier of the goods.
• Purchase Organization: Defines the organizational unit responsible for the purchase.

Purchase Order Creation:

While it's possible to create a PO without a PR, this deviates from standard procurement policies.

SAP Transaction Codes:

• Purchase Requisition:
  • ME51N: Create Purchase Requisition
  • ME52N: Display/Change Purchase Requisition
  • ME53N: List/Display Purchase Requisitions
• Purchase Order:
  • ME21N: Create Purchase Order
  • ME22N: Display/Change Purchase Order
  • ME23N: List/Display Purchase Orders
• Reporting:
  • ME2M: PO Order for pulling reports
  • ME2L: PO Order for pulling reports

Pricing in Purchase Requisitions:

The price in a PR is automatically pulled from the Material Master. The valuation type (S or V) maintained in the Material Master determines whether the Standard Price (S) or Moving Average Price (V) is used. For example, if both standard and moving prices are maintained, the system will use the valuation type specified in the Material Master.

Order Unit of Measurement (UOM):

The Order Unit is the vendor's unit of measurement. It's crucial to order goods according to the vendor's preferred unit.

Scenario 1: PO UOM from Material Master

• If no Order Unit is maintained, the PO automatically uses the Base Unit of Measurement.
• Variable UOM: Allows for alternate units of measurement. For instance, you can define "Box" as an alternative to "PC" (pieces) with a conversion rate (e.g., 1 Box = 10 PC).
• The variable UOM must be marked as Active (1) in the PO.
• If no PIR (Purchase Information Record) exists, the PO defaults to the Material Master Order Unit.
• If no Order Unit is specified, the PO uses the Base Unit of Measurement.
• If a PIR exists, it takes priority over the remaining options.

Understanding how PRs and POs function is essential for efficient procurement processes.