Purchase Order

Purchase orders are used for a number of processes in procurement. They

can be used for internal procurement (from one plant to another), external
procurement of goods (direct consumption or stock) and services. It can also
be used for subcontracting, third-party and consignment processes. Purchase
order processing is shown in the following diagram. Purchase orders can be
created with reference to a purchase requisition, RFQ, quotation, another
purchase order, contract, sales order.

PO TABLES DESCRIPTION
EKKO Purchasing Document Header
EKPO Purchasing Document Item
EKBE History per Purchasing Document

How to create a Purchase Order

Purchase orders are created by using standard
transaction ME21N (or ME21 – the old instance of the transaction).

Step 1)

1. Enter transaction code ME21N.

2. Enter vendor.
3. Enter material number that needs to be procured.
4. Enter the quantity and unit of measure (optional – system uses UoM
from purchase info record).
5. Press ENTER to confirm the data entered.

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Purchase order item is now populated with information from purchase
info record and material master, in combination with the vendor master
data. This can be seen on the next few screens.

Delivery date and net price are populated from information supplied in master
data.

In below screenshot , Blocks 1 and 2 were populated from purchase info

record, while 3 was populated from vendor master.

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Default texts populated via purchase info record master data.

1. Info record PO text – text populated from info record master.

2. Info record note – populated from info record master.
3. Text in this field is the same as in our info recod.

Step 2)

1. You can see that purchase order contains several tabs at header
level.On the "Status" tab, you can find some information about the
status of the purchase order.
2. In this block, you can find general status (Active) as well as purchase
order confirmation (Not Yet Sent), Delivery status and Invoice status.

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 3. This is information about quantities and value, ordered qty and value,
delivered qty and value, still to deliver qty and value, Invoiced qty and
value, and finally downpayment information.

Other tabs contain information about Organizational Data, Import, Additional

Data, Partners, Communication, Address, Texts, Conditions, Delivery/Invoice
information.

Step 3)

Delivery/Invoice tab holds data about payment terms and trading terms. You
can insert payment terms here (like =D06 – payment 30 days after delivery),
trading terms (in two incoterms fields – for example EXW Wien).

Step 4)

Organizational data holds the information on the purchasing organization,

purchasing group and company code. You could choose another purchaseing
group if you needed to.

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Other tabs

 In Conditions tab, you can find data about prices and conditions on
header level.
 Texts tab is used to maintain header level texts.
 Address tab holds the vendor address data.
 In the Additional Data tab, you can find Collective number and VAT
registration number of the vendor.

At the item level purchase order contains additional information on

items

 On the delivery schedule tab, we can enter the desired delivery

schedule and quantities that are to be delivered at a certain date.

 Material data tab contains information about vendor material number,

batch, vendor batch, EAN code etc. Some of the data is populated from
purchase info record.
 On the delivery tab, you can set delivery tolerance percentages (over
and under delivery), set delivery status, delivery remainder settings and
other information.
 Invoice tab holds information on invoice related data and a field "Tax"
that should be filled if applicable (in our case the tax code is V1 for both
items).
 Conditions tab is used to specify conditions on item level.
 Delivery address – our company address, it can be changed if we want
the material delivered elsewhere.

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  Confirmation tab holds data specific for the item confirmation control
and rejection indicator.

When all the data is double-checked for mistakes and entered accurately we
can save the purchase order.

What is SAP Purchase Order Types?

SAP ERP become added so that procurement may be finished correctly in

phrases of time and value. Procurement may be finished for various sorts of
items and services. Procurement starts with developing buy order that is a
formal document given to providers and it consist of list of products and
materials which are to be procured. So, accordingly buy order can be created
for different varieties of procurement. The form of procurement may be
maintained in a area that is called object class as shown below.

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 For different procurement types, there are four types of purchase order which
are as follows:
 Subcontracting Purchase Order
 Consignment Purchase Order
 Stock Transfer Purchase Order
 Service Purchase Order

Subcontracting Purchase Order

In subcontracting the seller (the subcontractor) receives components from the

ordering party with the help of which it produces a product. The product is
ordered through your organization through a purchase order. The components
required by means of the vendor (seller) to manufacture the ordered product
are indexed in the purchase order and supplied to the subcontractor.

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Subcontracting purchase order may be created through following the below
step.

TCode to create purchase Order: ME21N

Subcontracting item category: L

Provide the TCode in command area. it will take you to buy order screen. offer
all necessary information like call of vendor, object category, name of
material, plant for which material is procured and date of transport. click on on
save. Subcontracting buy order can be created.

Consignment Purchase Order

In consignment cloth is to be had at organization save premises, however it

still belongs to the seller (vendor)/owner of the material. in case you make use

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of the material from consignment stocks, then you have to pay to the seller.
So, consignment purchase order can be created through following the below
step.

TCode to create purchase Order: ME21N

Consignment item class: ok

Provide the TCode in command subject. it will take you to purchase order
screen. offer all important details like call of dealer, object category, name of
material, plant for which material is procured and date of transport. click on
save. Consignment buy order can be created.

Stock Transfer Purchase Order

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In stock switch items are procured and supplied inside a organization. One
plant order the goods internally from another plant (receiving plant/issuing
plant). the products are procured with a unique sort of purchase order - the
stock transport order.So, stock transfer buy order can be created through
following the below step.

TCode to create purchase Order: ME21N

stock transfer object category: U

Offer the TCode in command field. it will take you to purchase order screen.
offer all necessary details like name of vendor, item category, call of material,
plant for which material is procured and date of transport. click on save. stock
transfer purchase order can be created.

Service Purchase Order

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In provider third party will offer the offerings to organization. these services will
include maintenance like electricity, oiling of machines. So, service buy order
can be created by using following the below step.

TCode to create purchase Order: ME21N

Provider item class: D

Provide the TCode in command field. it will take you to purchase order screen.
offer all necessary details like call of vendor, item category, call of material,
plant for which material is procured and date of transport. click on save.
carrier purchase order can be created.

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