IntroductionEvery organization acquires material or

services to complete its business needs. The process of buying materials and obtaining services from vendors or dealers is procurement.

Purchasing DocumentPurchasing Document is used for purchasing

for materials and service

Every purchase document consist of Header data, Item overview & Item Details

Internal Documents

External Documents

Procure to Pay

Determination of Requirements

The Material requirements are identified by the user departments.

Automatic through MRPTcode-ME51NStandard Doc Type: NB

Purchase Requisition

Source DeterminationIdentify the source of

supply

Based on past orders and existing longer-term purchase agreements.

Purchase info record

Vendor SelectionVendor selection is

mainly Based on Price and Quality

Local vendor

Foreign Vendor

One-time vendor

PO Processing & MonitoringPurchase order is a

formal request to vendor to supply certain goods under the standard condition

Sending the reminders to vendors in a pre defined intervals.

T-Code: ME21N

PO in SAP MM

Goods ReceiptGoods Receipt into

warehouse

Stock update

Creation of material Document

Creation of accounting document

Invoice VerificationVendor invoices are

checked for accuracy of process and contents.

PO based invoice Verification

GR-Based invoice verification

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