SAP ERP was introduced so that procurement can be done efficiently in terms of time and cost. Procurement can be done for various types of goods and services. Procurement starts with creating purchase order that is a formal document given to vendors and it include list of goods and materials that are to be procured. So, accordingly purchase order can be created for different types of procurement. The type of procurement can be maintained in a field that is known as item category as shown below.
For different procurement types, there are four types of purchase order which are as follows:
In subcontracting the vendor (the subcontractor) receives components from the ordering party with the help of which it produces a product. The product is ordered by your company through a purchase order. The components required by the vendor (seller) to manufacture the ordered product are listed in the purchase order and provided to the subcontractor. Subcontracting purchase order can be created by following the below step.
TCode to create Purchase Order: ME21N
Subcontracting Item Category: L
Provide the TCode in command field. It will take you to purchase order screen. Provide all necessary details like name of vendor, item category, name of material, plant for which material is procured and date of delivery. Click on save. Subcontracting Purchase order will be created.
Consignment Purchase Order
In consignment material is available at organization store premises, however it still belongs to the vendor (seller)/Owner of the material. If you utilize the material from consignment stocks, then you have to pay to the vendor. So, consignment purchase order can be created by following the below step.
TCode to create Purchase Order: ME21N
Consignment Item Category: K
Provide the TCode in command field. It will take you to purchase order screen. Provide all necessary details like name of vendor, item category, name of material, plant for which material is procured and date of delivery. Click on save. Consignment Purchase order will be created.
Stock Transfer Purchase Order
In stock transfer goods are procured and supplied within a company. One plant order the goods internally from another plant (receiving plant/issuing plant). The goods are procured with a special type of purchase order - the stock transport order.So, stock transfer purchase order can be created by following the below step.
TCode to create Purchase Order: ME21N
Stock Transfer Item Category: U
Provide the TCode in command field. It will take you to purchase order screen. Provide all necessary details like name of vendor, item category, name of material, plant for which material is procured and date of delivery. Click on save. Stock Transfer Purchase order will be created.
Service Purchase Order
In service third party will provide the services to company. These services will include maintenance like electricity, oiling of machines. So, service purchase order can be created by following the below step.
TCode to create Purchase Order: ME21N
Service Item Category: D
Provide the TCode in command field. It will take you to purchase order screen. Provide all necessary details like name of vendor, item category, name of material, plant for which material is procured and date of delivery. Click on save. Service Purchase order will be created.
For different procurement types, there are four types of purchase order which are as follows:
- Subcontracting Purchase Order
- Consignment Purchase Order
- Stock Transfer Purchase Order
- Service Purchase Order
In subcontracting the vendor (the subcontractor) receives components from the ordering party with the help of which it produces a product. The product is ordered by your company through a purchase order. The components required by the vendor (seller) to manufacture the ordered product are listed in the purchase order and provided to the subcontractor. Subcontracting purchase order can be created by following the below step.
TCode to create Purchase Order: ME21N
Subcontracting Item Category: L
Provide the TCode in command field. It will take you to purchase order screen. Provide all necessary details like name of vendor, item category, name of material, plant for which material is procured and date of delivery. Click on save. Subcontracting Purchase order will be created.
Consignment Purchase Order
In consignment material is available at organization store premises, however it still belongs to the vendor (seller)/Owner of the material. If you utilize the material from consignment stocks, then you have to pay to the vendor. So, consignment purchase order can be created by following the below step.
TCode to create Purchase Order: ME21N
Consignment Item Category: K
Provide the TCode in command field. It will take you to purchase order screen. Provide all necessary details like name of vendor, item category, name of material, plant for which material is procured and date of delivery. Click on save. Consignment Purchase order will be created.
Stock Transfer Purchase Order
In stock transfer goods are procured and supplied within a company. One plant order the goods internally from another plant (receiving plant/issuing plant). The goods are procured with a special type of purchase order - the stock transport order.So, stock transfer purchase order can be created by following the below step.
TCode to create Purchase Order: ME21N
Stock Transfer Item Category: U
Provide the TCode in command field. It will take you to purchase order screen. Provide all necessary details like name of vendor, item category, name of material, plant for which material is procured and date of delivery. Click on save. Stock Transfer Purchase order will be created.
Service Purchase Order
In service third party will provide the services to company. These services will include maintenance like electricity, oiling of machines. So, service purchase order can be created by following the below step.
TCode to create Purchase Order: ME21N
Service Item Category: D
Provide the TCode in command field. It will take you to purchase order screen. Provide all necessary details like name of vendor, item category, name of material, plant for which material is procured and date of delivery. Click on save. Service Purchase order will be created.