All About Purchase Requisition in SAP ECC
In order to run an organization effectively, the most important step is to determine what kind of materials and services are required by a company and the proper source (vendor) of supply which fulfills our requirements. Once the list of requirements made, then there needs to be an approval from the higher authority (purchasing department) of an organization in order to procure the list of materials. To get an approval a request document called Purchase Requisition which contains information such as materials, services, required delivery date and quantity needs to be prepared. Purchase Requisition is an internal document which is nothing but a request made to the purchasing department in an organization to procure the list of materials in the right time of the required quantity. It can be created automatically by the system or manually. It can be created manually in SAP by using transaction code ME51N.
Purchase Requisition can be created for the following procurement types:
Standard: Getting finished material from the vendor.
Subcontracting: Providing raw material to the vendor and getting finished material.
Consignment: Procuring material that is kept in the company’s premises and paying to the vendor for that.
Stock transfer: Getting material from within the organization.
External service: Getting services like maintenance from a third-party vendor.
Once the purchase requisition is approved by the purchasing department, it will be converted to the Purchase Order. Purchase Order is an external document issued by the purchasing department to the vendor which describes the interest of a buyer to buy a certain quantity of a material at a certain price from a specific vendor. The purchase order is created with a reference to the purchase requisition documents generated by SAP during the procurement cycle using transaction code ME21N.
Create Purchase Requisition:
Steps to Create Purchase Requisition on SAP ERP-
- Enter transaction code ME51N in SD Master Data Screen or Navigate to the following path Logistics -> Materials Management -> Purchasing -> Purchase Requisition -> Create
- Fill in all 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.
- Click on Save.
- A new purchase requisition will be created.
Convert Purchase Requisition to Purchase Order:
Purchase Order from purchase requisition can be created by following below steps:
- Enter transaction code ME21N in SD Master Data Screen. Here is the Cheat Sheet on SAP SD Database Architecture!
There are two ways to create a purchase order from purchase requisition.
- Click on Purchase Requisitions from the dropdown of the Selection variant.
- Enter purchase requisition number for which you want to create purchase order.
- Click on Execute.
- Now drag the standard reference Purchase requisition to the cart next to NB Standard PO.
- Verify all the details and do the changes accordingly.
- Fill in all the following required fields.
- Purchase requisition document type as NB Standard.
- Purchase Organization, Purchase group, Company code under Organization Data tab.
- Purchase requisition number.
- Click on Enter.
- Click on Save.
- The standard purchase order will be created from standard reference purchase requisition.
By following the above steps, you can create a purchase requisition and convert it to purchase order manually in SAP. We sincerely hope that this was useful and any comment of feedback will be very helpful.
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