Hi Experts ,
iam having big confusion Between Purchase Order & Purchase Requisition
1. what is the difference between purchase Order & Purchase Requisition ?
2. what is the process of Purchase Requisition ?
3. what is the process of Purchase Order ?
4. which will be created first whether the purchase Order & Purchase Requisition ?
1. Purchase requisitions are internal documents you use to request your Purchasing department to procure a particular quantity of a material or a service for a particular date.
Purchase requisitions are either created manually by the department responsible or automatically by MRP.
A purchase order is a formal request to a vendor to supply certain goods or services under the stated conditions.
You can create purchase orders without reference, or with reference to a purchase requisition, a request for quotation, or another purchase order.
2.Purchase requisitions are either created manually by the department responsible or automatically by MRP.
3.you can create purchase orders without reference, or with reference to a purchase requisition, a request for quotation, or another purchase order.
4.Purchase Requisition is created first..
Purchase Requisition-> Staff in an orgn places Pur requisition for want of some goods/products - ME51
Related Table EBAN
Request for Quotation(RFQ)-> The Purchase dept in the orgn calls/requests for the quotation for the products against which PR was raised. - ME41
Vendor Evaluation->After receving the RFQ's, after comparison a Vendor is finalised based on the terms and conditions.
Purchase Order(PO)-> Pur order was issued to that vendor asking him to supply the goods/products -ME21N
Goods Receipt Note(GRN)->Vendor supplies the material/Products to the orgn-
Goods Issue (GI) -> People receives their respective itesm for which they have placed the Requisitions
Vendor, Material ,Qty are mandatory for PO.
Simplified Purchasing document flow
Reqirements(SD,PP,PM...) ---> Purchase Requisition --> Purchase order (sent to vendor) -- > Goods Receipt ( Receiving Material from Vendor) --> Invoice verification ( Invoice from vendor )
The requiremnts flow from different SAP modules to MM-Purchasing via MRP run (Material Requirements Planning) -> This creates Purchase Requisitions -> Based on the purchase requisition and information from purchasing info records the vendor is decided and a Purchase Order is created -> the Purchase order is sent to vendor and the vendor ships the material -> Goods Receipt is created in the SAP system for receiving the materials from Vendor -> Vendor sends an invoice for the Purchase order and it is entered into the SAP system using Invoice Verification
This is a very simplified version of flow in SAP MM-PURCHASING.