SAP Purchasing

Prepared by Lavanya .M
 Purchasing
The R/3 System consists of a number of components that are completely integrated with one
another. This integration allows the various departments and units of an enterprise to share and
maintain the same information.

Purchasing is a component of Materials Management (MM). The Materials Management (MM)

module is fully integrated with the other modules of the SAP System. It supports all the phases of
materials management: materials planning and control, purchasing, goods receiving, inventory
management, and invoice verification.

The tasks of the MM Purchasing component are as follows:

• External procurement of materials and services

• Determination of possible sources of supply for a requirement identified by the materials
planning and control system or arising directly within a user department
• Monitoring of deliveries from and payments to vendors

Good communication between all participants in the procurement process is necessary for
Purchasing to function smoothly.
 Purchase Order Processing

The Purchasing system adopts information from

the requisition and the quotation to create a
purchase order.

As with purchase requisitions, we can generate POs

or have the system generate them automatically.
Vendor scheduling agreements and contracts (in
the SAP System, types of longer-term purchase
agreement) are also supported.
 Purchasing Process
• Create a requisition
• First release of requisition
• Create RFQ with reference to requisition
• Create PO with reference to RFQ
• Department receives material ordered
(GR)
• Department pays invoice (MIRO).
 Create Purchase Requisition
Create PR – ME51 (Transaction code)

Enter the Document Type and click on Enter

Create Purchase Requisition (Contd..)

Enter the mandatory details and press enter

Create Purchase Requisition (Contd..)

Enter the valuation Price and

click enter
Create Purchase Requisition (Contd..)

Click on Save
Create Purchase Requisition (Contd..)

Purchase Requisition is created

 Release purchase Requisition
Release PR – ME54 (Transaction code)

Enter the Purchase Requisition

no. and release code.
Release purchase Requisition (Contd..)

Click on Release + save button

Release purchase Requisition (Contd..)

Purchase Requisition is changed

Create Request for Quotation

Enter the Mandatory details

and click on Enter
Create Request for Quotation (Contd..)

Enter the Details in the screen

and Click on enter
Create Request for Quotation (Contd..)

Enter the details of material and

vendor and Click on Enter
Create Request for Quotation (Contd..)

Enter the Details in the screen

and Click on Save
Create Request for Quotation (Contd..)

RFQ is created
Creation of Purchase Order
Creation of Purchase Order – ME21n (Transaction code)

Enter the details of Purch Org, Group and

Company code
Creation of Purchase Order (Contd…)

Enter the Payment Terms

Creation of Purchase Order (Contd…)

Purchase order details displayed

Creation of Purchase Order (Contd…)

PO is created, Message is displayed with the document

number.
 Create Invoice
Create Invoice – MIRO (Transaction code)

Enter the Required details

in all Tabs

Enter the Purchase order no. and click on

Enter, to display the material details.
Create Invoice (contd..)

Click the check box, to calculate the Tax

Create Invoice (contd..)

Enter the Amount and click on save

Create Invoice (contd..)

Invoice is created
 SAP Reports

• Reports are collection of records that are

helpful for arriving at important decisions.

• Reports can be filtered based on requirements

parameters. For e.g., TCode MM60 we can filter
based on Material as Plant or Material or it can
even be a blind filter.
 Purchasing Reports
ME53N - Display Purchase Requisition
ME5A - Purchase Requisitions: List Display
ME5J - Purchase Requisitions for Project
ME5K - Requisitions by Account Assignment
MELB - Purch. Transactions by Tracking No.
ME56 - Assign Source to Purch. Requisition
ME57 - Assign and Process Requisitions
ME58 - Ordering: Assigned Requisitions
ME59 - Automatic Generation of POs
ME54 - Release Purchase Requisition
ME55 - Collective Release of Purchase Reqs.
ME47 – Maintain Quotation
ME49 – Price Comparison
 Comments & Queries-
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