Entering content frameComponent documentationPurchase Orders (MM-PUR-PO) Locate the document in its SAP Library structure

Purpose

The purchase order can be used for a variety of procurement purposes. You can procure materials for direct consumption or for stock. You can also procure services. Furthermore, the special procurement types "subcontracting", "third-party" (involving triangular business deals and direct-to-customer shipments) and "consignment" are possible.

You can use purchase orders to cover your requirements using external sources (i.e. a vendor supplies a material or performs a service). You can also use a purchase order to procure a material that is needed in one of your plants from an internal source, i.e. from another plant. Such transactions involve longer-distance stock transfers. The activities following on from purchase orders (such as the receipt of goods and invoices) are logged, enabling you to monitor the procurement process.

You can use purchase orders for once-only procurement transactions. If, for example, you wish to procure a material from a vendor only once, you create a purchase order. If you are thinking of entering into a longer-term supply relationship with this vendor, it is advisable to set up a so-called outline agreement, since this usually results in more favorable conditions of purchase.

In the interests of optimized purchasing, the PO quantity can be rounded in the course of PO processing to allow full advantage to be taken of negotiated conditions or for the optimal utilization of existing transport capacities.

For more information, refer to the section Optimizing the Order Quantity.

Because not all materials or services to be procured justify the effort involved in individual monitoring, you can also create a purchase order with an extended, predefined validity period and a value limit. (You may wish to do this when procuring office supplies, for example.) This type of purchase order is similar in nature to the "contract".

In this case, you need not specify the individual materials or expend any effort with respect to goods receiving activities. You can also reduce the amount of work involved in invoice verification to a minimum by employing automatic processes.

Note

As of Release 4.6A, the Enjoy purchase order, with a new interface designed along ergonomic guidelines, is available alongside the "traditional" purchase order, which is described in the following sections of the SAP Library.

The procedures and menu paths described in the SAP Library refer to the traditional purchase order (ME21, ME22, ME23) and not to the Enjoy purchase order (ME21N, ME22N, ME23N).

For information on the interface and the functions in the Enjoy purchase order, see the help area within the application, which you can show or hide. The Enjoy purchase order functionality enables you to store incomplete or faulty POs in the SAP System ( Hold function).

See also:

Structure link MM External Services Management

Structure link MM Vendor Evaluation

Structure link MM Special Stocks and Special Forms of Procurement in Materials Management (for information on special types of ordering, such as consignment, subcontracting, or inter-company stock transfers).

 

 

 

 

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