Purchase Requisitions in SAP Materials Management

Excerpt from the book Procurement with SAP MM: Business User Guide by Matt Chudy and Luis Castedo. Used with permission of SAP PRESS. All rights reserved.

In this blog, get an overview of purchase requisitions in SAP MM including a look at creating one manually.

Purchase requisitions are internal documents through which users can request the purchase of a specific item or service. These documents include information about the material to be purchased, the quantity, the person responsible for the purchase, the preferred vendor, and the date the material or service is required at the company as well as internal financial information.

The MRP system can also create purchase requisitions for materials needed either for production or sales, which are normally not subject to an approval because the company has already gone through the process of production and sales planning.

Purchase requisitions can be created for different types of purchases:

  • Standard: Purchases of stock materials.
  • Subcontracting: Purchases of services that a third party will execute to transform materials that belong to your company and will come back, most of the time with a different material number.
  • Consignment: Purchases of materials that are kept in stock but belong to the vendor until they are actually used.
  • Stock transfer: Requirements to move or purchase materials between plants or companies of the same enterprise group.
  • External service: Purchases of services, one-time services, or services included in the service master.
  • Third party: Purchases of stock materials that will be delivered to either a customer or a vendor, instead of being delivered to your facility. Normally part of a sales process, purchasing-only scenarios can also be addressed with this type of purchase requisition.

Like other SAP documents, purchase requisitions have a header and Structure item details. Unlike other SAP documents, the header is dedicated only to adding text notes that apply to all of the items in the requisition. SAP designed the requisition document with the final user in mind, who may only care about entering the items that need to be purchased. You can choose between conventional text processing and a continuous text editor, which allows automatic line breaks and text search and replace.

The requisition items contain all of the necessary information for buying the required materials or services, all in a single screen.

1 Creating a Purchase Requisition Manually

To create a purchase requisition manually, use Transaction ME51N or follow the menu path: Materials Management > Purchasing > Purchase Requisition > Create. The screen has three sections: Header, Item Overview, and Item details. Follow these steps:

1. Enter Short Texts in the header section if you need to do so.

2. In the Item Overview section, enter the basic information:

  • Account assignment
  • Item Category
  • Material number
  • Quantity
  • Unit of measure
  • Plant

With this information, the system can fetch most of the rest of the information, for example, the material description, delivery address, material group, planned delivery time, valuation price, company code, purchasing group, and MRP controller (see the figure below).

If necessary, the user can change the delivery address, which, by default, is the Plant or Stor. Loc. address.

2 Assigning Source of Supply

Purchase requisitions need to be assigned a source of supply, which can be determined automatically if the material has only one info record or several info records and a source list. The vendor can also be entered manually.

To assign a source of supply, follow these steps:

  1. Expand the Item Detail section of the purchase requisition.
  2. Select the Source of Supply tab.
  3. If you know which vendor you want to assign, enter the vendor in the Vendor field. Otherwise, click on the Assign Source of Supply button and select a vendor from the list that is presented.
  4. If necessary, run a price simulation by selecting a vendor and clicking on the Price simulation button. You can also run a price simulation for all vendors by clicking on the Price simulation all button.

Purchase requisitions can be subject to a release strategy, which will require other users to review and approve the purchase requisition. This is beyond the scope of this blog.

The following table lists some useful transactions for working with purchase requisitions.

Excerpt from the book Procurement with SAP MM: Business User Guide by Matt Chudy and Luis Castedo. Used with permission of SAP PRESS. All rights reserved.

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