How to Create Purchase Requisition in SAP?

A Purchase Requisition (PR) in SAP is a crucial document that kickstarts the procurement process by requesting the purchase of goods or services. However, many SAP users may not be familiar with creating a PR. If you’re looking for a solution, this guide will walk you through all the steps to create purchase requisition in SAP ECC as well as SAP S/4HANA.

What is Purchase Requisition (PR) in SAP?

Purchase Requisition is an internal document in SAP requesting the procurement of a specific quantity of goods or services.

It is a component of the Materials Management (MM) module in SAP and the first step of the procurement process.

It’s created by a department that requires goods or services and usually sent to the project manager or the department head for approval. After approval, it is sent to the purchasing department. Then they evaluate potential vendors and raise a Purchase Order (PO) based on the PR.

Some steps and details of this process may vary for different organizations based on their unique processes.

In a construction company, the site manager may raise a PR for reinforced materials, which the project manager approves before reaching the purchasing department.
In contrast, manufacturing companies can have PRs automatically generated by Material Requirements Planning (MRP) systems when stock levels drop below thresholds.
And in SMEs with tight budgets, PRs often require approval from a manager and then the founder or CEO.

Regardless of the approach, PRs initiate and streamline the overall procurement process.

So let’s see the steps to create Purchase Requisition in SAP. Many organizations are still on the legacy system SAP ECC, while others have implemented to the more advanced SAP S/4HANA. We’ll cover the PR creation process for both ERP systems in detail.

Key Aspects of a Purchase Requisition in SAP

When you know these aspects, you can reduce errors and get fast approvals. These show how a request moves from idea to order. Simple steps help the whole team work better.

Internal Document

A purchase requisition is a note in SAP that tells your team you need elements or services. It starts the buying process and keeps your needs in one place.

This note stays inside the Materials Management module so everyone can see it. It makes sure details are set before you move ahead with sign-offs or buy orders.

Record: Keeps what you need in one place
Share: Lets other teams view the request
History: Shows when you added or changed details
Format: Uses the same boxes every time
Center: Lives in the Materials Management module
Files: Attach quotes or notes to the request
Link: Joins the request to the buy order later

Procurement Initiation

Procurement initiation is when you start the purchase request in SAP. It tells your buying team what you need and sets the process in motion.

You use a transaction code or app to enter basic fields like department, plant, and dates. This step officially kicks off approvals and later order creation.

Trigger: Click ME51N or the Fiori “Create PR” tile to begin
Organization: Enter your plant, purchasing organization, and group
Material: Fill in the material code for the item you need
Quantity: State how many units you require
Delivery Date: Specify when you want the items delivered
Notes: Add extra details like budget code or special instructions
Validate: Review entries for errors before you save

Information

Information includes all details about what you need. It covers material codes, quantities, dates, and any special notes. Clear info helps avoid mistakes later.

You can attach files like vendor quotes, drawings, or specs. This keeps all info in one spot for your team to check and future audits.

Material Code: Unique ID for the item
Quantity: Number of units needed
Delivery Date: Desired arrival date
Plant: Where the stock will go
Cost Center: Budget area for the purchase
Description: Short summary of item use
Attachments: Quotes, images or diagrams for clarity

Approval

Approval means getting sign-off for your request. It makes sure someone checks and agrees you need the items.

In SAP, you set approver details and workflow rules. Once someone clicks approve, your request moves forward.

Signer: Person who okays the request
Role: Defines who can approve
Step: Sends request to approver inbox
Reminder: Notifies if pending too long
Status: Shows if approved or waiting
Comments: Lets approver add notes
Alert: Flags missing info before approval

Follow-on Documents

After approval, follow-on documents show the next steps in SAP. They include purchase orders and goods receipts.

SAP links these documents back to your original request. This link lets you trace every step later.

Purchase Order: Order sent to vendor
Goods Receipt: Confirms items received
Invoice: Vendor bill matched to request
Delivery Note: Details on shipment
Invoice Check: Verifies bill against delivery
Payment: Records payment details
Completion: Marks request as done

Types of Purchase Requisitions

Different PR types cover various buying methods. Choose the right type for each buying need.
This helps your team handle orders properly.

Standard Purchase Requisition

A standard PR is the usual request for goods or services. You fill in item, quantity, and needed date. It works for one-time buys of common items. Use it when you know exact details.

One-time: For single purchases
Items: Goods or services
Details: Material, date, quantity
Simple: No extra steps
Workflow: Goes through standard approvals
Tracking: Shows status in SAP
Linkable: Converts to PO directly

Consignment Purchase Requisition

A consignment PR requests stock kept at your site but owned by the vendor. You only pay when you use items. This setup helps keep stock on hand without upfront costs. SAP tracks usage and vendor balances.

Stock-held: Vendor owns until used
Use-based: Pay when consumed
Balance: Tracks vendor and site stock
Alert: Notifies when low
Approval: Follows standard flow
View: Shows consignment levels
Invoice: Created on item issue

Subcontracting Purchase Requisition

A subcontracting request tells SAP you will send raw parts to a vendor for work. It starts the flow of materials and services between you and the vendor. You enter the parts you ship and the tasks you need. SAP tracks both your materials and the vendor’s work until you get the finished goods.

Materials Sent: Raw parts you ship to the vendor
Tasks: Work the vendor must perform
Quantity: Number of parts or service units
Dates: When to send and get back the items
Cost Tracking: Monitors cost of subcontracted work
Batch Info: Links material lots to the process
Return: Handles any unused or leftover parts

Stock Transfer Purchase Requisition

A stock transfer request moves items between your own sites. It tells SAP to pull goods from one plant and send them to another. You pick a source and a destination, plus the amount. SAP then creates transfer orders so warehouses know what to pick and ship.

Source Plant: Where to take the goods from
Destination Plant: Where to send the goods
Quantity: How many units to move
Delivery Date: When to complete the move
Transfer Order: Guides picking and packing steps
Stock Type: Unrestricted or inspection stock
Status: Shows if transfer is done or pending

Framework Agreement Purchase Requisition

A framework agreement request sets up long-term deals with vendors. It lets you plan orders under fixed terms over a set period. You enter contract dates, total value, and release rules. SAP then uses those rules whenever you need to release an order against the deal.

Deal Type: Scheduling or quantity agreement
Valid Dates: Start and end of the contract
Total Value: Maximum spend limit
Release Rules: Steps to approve each order
Price Terms: Fixed or variable prices in contract
Delivery Rules: Agreed shipping and payment terms
Usage Monitor: Tracks how much value is left

Services Purchase Requisition

A services PR tells SAP you need work done by an outside team. It lists all details like service type, hours, rates, and needed date.

Service Type: Defines the kind of work you want done
Scope: Outlines tasks or deliverables expected
Hours: States how many work hours you need
Rate: Shows the cost per hour or job
Start Date: When the work should begin
Notes: Any extra info or special needs
Approval Path: Who must sign off before you start

Internal Purchase Requisition

An internal PR tracks goods or services you need within your own company. It means you ask another department for items instead of going to outside vendors.

This keeps stock moving and cuts out extra steps in buying goods internally. It also marks each request with who made it, and keeps a simple record of why you asked.

Source Dept: Where the items come from inside your company
Item Name: What you want to get
Quantity: How many you need
Delivery Date: When you need the items
Budget Area: Which budget pays for the request
Comments: Any extra details or instructions
Status: Shows if request is done or still open

How to Create Purchase Requisition in SAP ECC?

Follow these steps to successfully create PR in SAP ECC.

Step 1: Enter Transaction Code – ME51N

Enter transaction code ME51N in the SD Master Data Screen.

Or, you can also navigate to the following path Logistics -> Materials Management -> Purchasing -> Purchase Requisition -> Create

Step 2: Fill in Purchase Details and Save

Fill in the following required fields

Purchase Requisition document type as NB Standard.
Source determination can be ON or OFF.
Header note.
Material, quantity, plant, fixed vendor, and purchasing organization.

Then click on Save, and the Purchase Requisition will be created.

Next, after successful approval, you need to convert the PR into a Purchase Order.

Converting Purchase Requisition into Purchase Order

Here’s the step-by-step process of raising a Purchase Order from the respective PR.

Step 1: Enter Transaction Code – ME21N

Enter transaction code ME21N in SD Master Data Screen to open the Create Purchase Order screen.

Step 2: Raising a Purchase Order

From here on, there are two methods to create the PO.

Method 1:

Click on Purchase Requisitions from the dropdown of the Selection variant.
Enter the PR number against which you want to create the Purchase Order. Then click on Execute.
Next, Now drag the standard reference Purchase requisition (1) to the cart next to NB Standard PO (2).
The purchase details will appear in the table. Verify the details, and finally click on Save.

Method 2:

Manually fill in the following details:

Purchase requisition document type as NB Standard.
Respective value for the Vendor.
Purchase Organization, Purchase group, and Company Code under Organization Data tab.
Purchase requisition number.

Then click on Enter.

With either of these methods, the PO will be created successfully.

How to Create Purchase Requisition in SAP S/4HANA?

For S/4HANA users, the process to create PR in SAP varies depending on the UI they are using.

When using SAP Easy Access through WebGUI, follow the same steps explained above to generate PR and convert it to Purchase Order.

However, if you’re using SAP Fiori, the brand-new user interface for SAP, you need to follow the steps below to create a Purchase Requisition.

Step 1: Log in to SAP Fiori. In the Home Screen, click on the Materials Management Tab on the top menu.

Step 2: Click on Create Purchase Requisition on the submenu.

Step 3: Now in the PR creation form, click on Create Own Item. This will open the General data entry form.

Step 4: Enter respective values for Material, Valuation Price, Quantity requested, and Delivery date.

Step 5: After filling the necessary details, click on Add to Cart.

Step 6: Go to the Cart and select the item. Provide details for Purchasing Group, Purchasing Organization, and Plant. Once all the details are provided, select Save.

Step 7: Finally on the Cart, click on Order. You will see the Purchase request is created.

Step 8: Now to convert this PR into a Purchase Order, go to the Purchase Requisition screen. Select the Purchase requisition entry you created just now. Then click on the Create Purchase Order button on the top right.

Step 9: Some messages will be displayed based on the data validation. After you fix them, the Purchase order can be created.

Step 10: Finally, once you go to the next screen, click on Save to finally create the PO.

Common Challenges and Solutions in Creating Purchase Requisitions in SAP

Creating purchase requisitions in SAP is an essential process for procurement. But users often encounter several challenges, especially those who don’t have extensive hands-on experience with the ERP. Below are some common challenges faced by users, along with practical solutions to overcome them.

Who Creates a Purchase Requisition (PR)?

PRs are usually initiated and created by:

Department Users: Employees or team members in departments (e.g., Maintenance, Production, Marketing) who need specific goods or services typically initiate the PR.

Automated Systems: In cases of automated processes, such as Material Requirements Planning (MRP), the system generates PRs based on predefined criteria like low stock levels or forecasted demand.

Project or Cost Managers: Responsible for raising PRs linked to specific cost centers, projects, or budgets.

Integration of Purchase Requisitions with Other SAP Modules

Purchase Requisitions (PRs) in SAP integrate seamlessly with various modules to streamline procurement and ensure efficient business operations:

SAP Materials Management (MM)

PRs trigger the procurement process and convert into Purchase Orders (POs), ensuring alignment with inventory and material needs.

SAP Financial Accounting (FI)

PRs are linked to financials for budget checks, ensuring procurement stays within financial limits.

SAP Sales and Distribution (SD)

PRs are generated based on sales orders, ensuring timely procurement to fulfill customer demands.

SAP Production Planning (PP)

PRs are created based on production plans, ensuring materials are available for manufacturing without delays.

SAP Supplier Relationship Management (SRM)

PRs help identify suppliers and manage procurement negotiations, optimizing vendor relationships.

SAP Workflow Management

PRs are part of an automated approval process, speeding up reviews and ensuring necessary approvals are obtained before proceeding.

These integrations make the procurement process more efficient and aligned with broader business objectives.

Conclusion

Creating Purchase Requisitions in SAP is a vital first step in the procurement process. It ensures that goods and services are acquired efficiently and cost-effectively. Whether you’re using SAP ECC or SAP S/4HANA, we’ve explained all the steps to successfully create a Purchase Requisition and raise a Purchase Order after approval. Additionally, addressing common challenges and applying best practices can further enhance the efficiency and accuracy of the procurement process. If you’re looking to dive deeper into SAP or need further guidance, stay tuned for more articles and tips on SAP’s powerful ERP systems.

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