Trigger
A purchase order needs to be created, and the vendor is known
Business Process Description Overview
A purchase order is a legal document issued by the buyer to the vendor to supply materials or service at the agreed price, terms and conditions. The Purchase Order forms the basis for all follow-on activities like Goods Receipt, Invoice Verification, etc. The Purchase Orders can be created directly by entering all the required data, copying already created purchase order, with reference to an RFQ/Contract or with reference to a PR.
Purchase Order creation is possible only if sufficient budget allocation is there for the Fund Centers. It is not possible to create Purchase Orders for a Vendor who is blocked for procurement or not maintained in source list for that item. Also it is not possible to create PO for Quantity more than the PR quantity.
All the price components which are to be paid to vendors and requires to be inventoried has to be included in PO.It is possible to add different vendors for delivery costs. The tax codes should be correctly maintained in PO for the purpose of Cenvat availment etc.
The payment term defaulted from Vendor Master or RFQ has to be verified and changed if required.
The incomplete Purchase Orders can be saved as HOLD document and later completed and saved thru Change PO menu
Input - Required Fields Field Value/Comments
Vendor Vendor number
Purchasing Organization 1000
Purchasing Group Purchasing Group code
Date Purchase order date
Account assignment category Where costs will be allocated
Delivery Date Anticipated Delivery Date
Plant For which plant we are buying the material
Output - Results Comments
Purchase order document Can be changed, displayed or printed which can then be mailed to vendor
Tips and Tricks
The Purchase Orders can be created directly by entering all data required for creating PO or by copying another PO or with reference to RFQ/Contract/PR.To create a purchase order by copying existing document (PO/RFQ/PR), you can either select the desired document in the document overview .and adopt it in the current purchase order in the right-hand area of the screen using the ADOPT button .In addition you can drag it onto the shopping basket symbol with the left-hand mouse button.
Click the Personal Settings button on the tool bar, this function is for default information for purchase order header data and also purchase order item data. This will reduce the amount of redundancy in the data entry, i.e. plant, company code.
One Purchase Order may be created for several purchase requisitions
Procedural Steps
1.1. Access transaction by:
Via Menus Logistics èMaterials ManagementèPurchasingèPurchase OrderèCreateèVendor/Supplying Plant Known.
Via Transaction Code ME21N
1.2. Double-click
On screen “Create Purchase order”
On screen select Domestic Purchase order in this screen . You can also select other document if you want to create other. Here drop down menu is available.
Click to enter the organization data.
Screen will change in the header; enter data as given in the table below:
Field Name R/O/C Description
Purchasing Org. R Enter the purchasing organization code.
Example: 1000
Purch. Group R Enter the purchasing Group which is procuring the material
Example: P01
Company Code R Enter the company code under which above purchasing
Organization is.
Example: 1000
After entering the organization data enter the vendor or material supplier in the field here drop down is available.click to see the drop down.
Field Name R/O/C Description
Search term O Text that describes the vendor in more detail.
Example: MICON
Vendor O Description of the vendor.
Example: 100008
Click .
System displays all possible entries available as per data entered
Restrict value range (1) 1 Entries found
To select required Vendor Click .
Click .
Vendor selected
Now go to ,here the system will pick up the data automatically from the vendor master but if you want to chane the data you can change the data. Here drop down menu is available.
Now go to to mainatin the text.
After maintaining the text if you want to see or change the vendor address click and do the amendments.
Now Go to and click to enter the Items and other data as per the table given below:
Field Name R/O/C Description
Account Assignement R Key that identifies specific settlement receiver types such as cost centers, internal orders, work orders, asset accounts, or project WBS elements.Example: K
drop down menu is available here.
Item Cateogry O How the procurement of a material is controlled.
Drop down menu is available here.Example: Standard
Material R Here you will enter the material to be purchased from the
Vendor.
Here also drop down menu is available. Use the following
to select the material. Example ZROH-DEMO
In the figure above enter the search cretira for the material for example ZROH-DEMO and click
. The follwing result will appear on the screen select the line item and click to select
the material.
Short Text R Enter here short description about the material,if the text is not
automatically picked up from the material master.
PO Quantity R Enter here quantity to be ordered.
Example 10
Order unit R Here we enter the order unit’s of measurement.
Here also drop down menu is available.
Example : KG
Category of delivery date O Here you can enter deleviery date format.
Here also drop down menu is available.
Example : Day format
Delivery date R Enter the delivery date. You can use the calender provided by
the system.
Example : 28.02.2006
Net price R Enter the net price of the material here
Example : 1000 INR
Material group R Enter the material group to which that material belongs.Here
also drop down menu is available. This field is also automatic
picked up field.
Example : M10001
Plant R Enter the plant code for which you are purchasing the material
Here also drop down menu is available.
Example : 1100
Storage location O Here you will enter where the material is to be stored. Drop
Down menu is available here.
Example WH01
Click Enter and system will give you message
You will now see the screen
Field Name R/O/C Description
Cost Centre R The purchase is done for which purpose. Here also drop down
Menu is available.
Example: 11050 for CDU/VDU /SGU OP
G/L Account R G/L account from which payment will be done.
It will be automatically be picked up from the material group
You can change it also.
Unloading Point O Specifies the point at which the material is to be unloaded.
Recipient O Specifies the recipient for whom the material is destined.
Click to see and to change the Tax Code at item level.
Select to view the taxes applied on the line item.
click to go back to the previous screen .
On the main screen in the same tab if you want to change the taxe select the tax code from the drop down available
After selection again, Select to view the taxes applied on the line item.
If you want to add more conditions click tab and enter the conditions from the drop down
You can also maintain the text at item level by clicking tab.
After completeing this all click to check wether here is any error in the purchase order , If there will not
↓
any error then on the screen following line will appear.
If there will be some error the system will throw the message on the screen
select the line item and click to see the detail of the error.
close this window now and goto main screen to rectify the error.
After rectifying the error again click to check wether here is any error in the purchase order.
Now click to save the purchase order, after clicking the button the following message will appear
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