The SAP MM module takes care of the purchasing
process in any business or company. SAP ERP is used to make the process of
procurement easier and efficient with respect to time and money. Many goods and
services can be procured and the process starts with the creation of a purchase
order. A purchase order is a formal document given to vendors which contains
the goods and services that need to be procured and varies from product to
product. These transactions are verifiedby SAP purchase order
transaction code.
Types of purchase orders
·
Subcontracting Purchase Order
·
Consignment Purchase Order
·
Stock Transfer Purchase Order
·
Service Purchase Order
Subcontracting Purchase Order
1. In this type of purchase order, the ordering
party gives the components to the vendor (the subcontractor) and the vendor
then creates a product. The purchase order is used by the company when the
product is ordered. The subcontractor gets the components to manufacture the
ordered product by the company listed in the purchase order.
2. The transaction code (TCode) to create the
purchase order is ME21N under the subcategory L. This code should be added in
the command field which takes the employee to the purchase screen. The employee
must provide all the required details such as the name of the vendor, the name
of the material, item category, the factory for which the material has been
procured, and the date of delivery. The subcontracting purchase order will be
created once the employee clicks save.
Consignment Purchase Order
1. The organization store contains the material but
it belongs to the vendor. The vendor must be paid if the material is procured
and used from the consignment stocks.
2. The transaction code (TCode) for the creation of
the purchase order is ME21N under the subcategory K. The employee can enter the
code in the command line and then add the requirements such as the name of the vendor,
item category, the name of the material, thefactory for procurement, and the
date of delivery. After clicking save, the consignment purchase order can be
created.
Stock Transfer Purchase Order
1. In this type of procurement, the goods or
materials are procured and supplied within the company itself. The goods are
requested by the receiving plant/issuing plant from another plant through an
internal route. The purchase order issued in this case is of a special type
called ‘stock transport order’.
2. The transaction code (TCode) for the creation of
the purchase order is ME21N under the subcategory U.The purchase order screen
pops up on the screen after the TCode is entered.The employee must enter the
details such as the vendor’s name, item category, plant for the which the
material must be procured, date of delivery, and the name of the material. The
stock transfer purchase order is created once the employee clicks the save
button.
Service Purchase Order
1. In this type, a third party is involved in the
transaction and they provide the services to the company. Some of them include
maintenance services such as electricity and oiling of machines.
2. The transaction code (TCode) for the creation of
the purchase order is ME21N under the subcategory D. By providing the necessary
details, the service purchase order can be created.
