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

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