How to Create Purchase Order in Sap

Training Documents

TrainingPurchaseOrder

Standard Purchase

Process Description:

A purchase order is a legal document used to record an individual purchase (negotiated terms, conditions and pricing) with the vendor or arrange for a delivery based on prior agreement. It also provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification) processes.

The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date.

Purchase orders can be created for materials that have a material master or for materials that do not have a material master.

The purchase order can be printed out (User Guide MM 5.1) and posted or faxed to the vendor.

Contents:

This document will take you through the core processes required to create a basic purchase order by following steps 1.2 through 1.5.

Steps 1.6 onwards provide details of further enhancements that can be carried out to the PO if desired.

Section

1.1 1.2 1.3 1.4 1.5

Contents : Required Fields Accessing the Create Purchase Order screen Entering Header Information Entering Item Overview information Entering information in the ‘Item details’ tabs: 1.5a 1.5b

Account assignment tab Invoice tab

1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15

2.0

Entering the account assignment for split charging Entering a vendor’s catalogue number Entering a delivery schedule Removing the requirement for goods receipt Entering net discount for an item Entering extended text for an item Entering PO header text messages PO vendor address details Entering an alternative delivery address/Customer a/c # with vendor Saving the purchase order or adding further line items

Quick reference guide to create a Purchase Order

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Input - Required Fields

Purchase Order Type

Field Value / Comments

Should be defined as a personnel setting by the user to default in the purchase

order document type for each department.

Vendor

Purchase order date

Purchasing Organization

Purchasing Group

Delivery date category

Delivery date

Material

Short text

Material group

Account Assignment category

Quantity

Unit of Measure

Net price

Plant

Storage location

Vendor material

Tax code

General Ledger account

Account Assignment code

Individual

Unloading point/Goods recipient

Vendor number

Purchase Order date. Should default.

Should be defined as a personnel setting by the user to default in as 7002.

Should be defined as a personnel setting by the user to default to the department

or area for whom the Buyer is purchasing.

Daily, weekly, or monthly

The expected delivery date can be entered.

Material number if material master exists, leave blank if it doesn‟t.

Defaults from material master if a material master exists. If there is no material

master record, enter a description of the material. If a pack size needs to be

defined this should be entered at the beginning of the description eg 10g sodium

chloride, 25g sodium chloride.


master record, enter the Material group code.

The type of account, eg K - Cost center, F- Order, E or M - Sales Order or I-

Invest Account assignment must be entered if there is no material master record

or if the material master record is being used to purchase a frequently ordered

item.

Eg Each, Box, bin etc

Net Price per unit of the material

Will default in as 7002.

If the item being ordered is to go into a stores as a stores stock item, enter the

relevant store.

Supplier catalogue number.

Not mandatory, do not maintain with Z5A Order type


master record, enter the relevant G/L account here

The Cost center, Sales Order or project code, must be entered if there is no

material master record or if the material master record is being used to purchase

a frequently ordered item.

If you require to identify the requisitioner of each line item, enter the code for this

individual by selecting from the drop down box.

Any notes required in connection with a line item may be entered here. These will

not be printed on to the hard copy of the purchase order. They will be visible to

the store person during the goods receipt process.

1.1

Required Fields:

The fields that require an entry when raising a purchase order are:

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Field Name Description R/O/C User Action and Values Comments

Order type

(Purchasing)

Purchase order document type R Should default in the purchase order

document type for each department,

as defined in „Personal setting‟.

To define your personal

setting see User Guide

Purchasing

document

number

Purchase Order Number C Number will be internally assigned Leave blank

Vendor Vendor number R From the drop down menu that

appears when you place the cursor in

Where a vendor has a

Head Office and a

1.2

1.3

Accessing the Create Purchase Order screen:

To access the „Create Purchase Order‟ screen, follow the menu path: Logistics>Materials management>Purchasing>Purchase order> Create>Vendor/supplying Plant known or use transaction code ME21N.

Entering Header Information:

On the “Create Purchase Order” screen, in the Header fields next to the shopping trolley, enter information as specified in the table below:

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Purchasing

Organization

Purchasing Organization code R Should default in as 7002 as defined

in „Personal setting‟.

Purchasing

Group

Purchasing Group Code R Should default as defined in „Personal

setting‟.

Company code Company code R Should default in as 0284 as defined

in „Personal setting‟.

this field, enter the code of the

relevant Vendor required.

Purchase Ordering

Address, first select the

Head Office Address.

Doc date Purchase order date R Date PO created defaults to today‟s

date

Once all the required data mentioned above is entered click on either the

or „Enter‟ to

proceed.

On the „Org. data‟ Header tab enter information as specified in the table below:

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Item The number of the item R Will default in when item entered

A (Account

assignment

category)

Type of account where costs are

allocated

O Choose either internal Order (F), sales

order (E), or Cost Center (K,J) to

charge costs

Orders and cost centers

will have assigned

numbers. If an item is to

be placed in stock then

you would not enter an

account assignment

category. Instead a

storage location

mentioned below would

be entered.

I (Item category) Type of purchase C Will default in blank for Standard.


Material Material number R Enter the material number if a material

master record exists. Leave blank if a

material master does not exist

If no material master is to

be entered then a short

text description and a

material group is

required.

Short text Description of the material R The description is copied from the

material master if a material master

exists. If there is no material master,

you must enter a description of the

material you want to purchase. Where

there is a requirement to order a

particular pack size of a material (eg

2.5l, 500g etc) this should be entered

here, at the beginning of the short

text.

Will default in from

Material Master if one is

entered.

PO Quantity Required units or quantity R Enter qty. required

OUn (Unit of

Measure)

Unit of Measure R Enter the units the material is sold in Will default in from


entered.

C (Delivery date

category)

Indicates daily, weekly or monthly O Default is “D” for daily

Deliv. date Date material is required R Enter the expected delivery date or

leave blank for system default

Will default in as the

current day‟s date if no

entry is made.

Net Price Vendors Price R Vendors current price (excluding VAT)

should be entered here

Will default in from Info

Record if one exists.

Currency Currency R Default is USD (US Dollars)

Matl group Code categorising the type of

purchase being made.

R Select the appropriate code Will default in from


entered.

Plnt Plant to which delivery is to be made R Default is 7002 for Surgical .

1.4

Entering Item Overview information:

In the Item Overview fields, enter the information as specified in the table below:

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Stor Loc

(Storage

Where stock is stored

O

Select stores if item ordered is to go

into stock

If an item is to be placed

in stock then you would

Location) not enter an account

assignment category

mentioned above.

TIP: When entering the data described above one can press „Enter‟ after each field is entered which will have the effect of automatically placing the cursor in the field of the next required entry. This can then act to navigate you through the entry process.

Once the above data as required is entered click on the

„Enter‟ to proceed with a basic order. If you

are taken to the „Account Assignment‟ tab go directly to 1.5 below. If you entered an „Account assignment category „, go to Section 1.6

1.5

Entering information in the ‘Item details’ tabs:

1.5a

Account assignment tab

On the Account assignment tab, enter information in fields as specified in the table below.

To reach the „Individual‟ field, click on the „More‟ icon.

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G/L account General Ledger code R Enter the appropriate G/L code for the

item being purchased. A search can

be carried out via the matchcode

button.


Material Master if one

is entered.

Cost center Cost Centre R Enter the appropriate Cost centre

code for the item to be charged to. A

search can be carried out via the

matchcode button.

Unloading point Any notes required in connection

with a line item may be entered

here. These will not be printed on to

the hard copy of the purchase order.

They will be visible to the store

person during the goods receipt

process.

R Describe destination of goods

Goods recipient Any notes required in connection






process.

R Enter manually or use matchcode.

If you wish to retain the account assignment entry for subsequent line items, click on the „Account Assignment on‟ icon (looks like a match), shown below:

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match off.bmp

Click on the

match on.bmp

„Enter‟ button to proceed to the Invoice tab.

1.5b

Invoice tab

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Jurisdict. Code Used for tax determination with

Vertex

O Filled automatically

Tax code Tax status O Identifies the ltem‟s relevance for tax. No entriy here, for

exception see

documentation for

repair process.

On the Invoice tab, enter information in the tax field as specified in the table below:

Click on the

„Enter‟ button or press enter.

Then:

either, save the purchase order by proceeding to Section 1.15

or, continue to enter further lines on the purchase order, as in Sections 1.4 and 1.5 and then save the purchase order by proceeding to Section 1.15

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or, enter additional information about the item on the purchase order. Additional information may be entered as follows:

To enter a vendor‟s catalogue number , click on the „Material data‟ tab. See Section 1.7

To enter a delivery schedule , click on the „Delivery schedule‟ tab. See Section 1.8

To remove the requirement for goods receipt , click on the „Delivery‟ tab. See Section 1.9

To enter a net discount for an item , click on the „Conditions‟ tab. See Section 1.10

To enter extended text for an item , click on the „Texts‟ tab. See Section 1.11

To enter a header text , click on the „Texts‟ Header tab. See Section 1.12

To enter an alternative delivery address , click on the „Delivery address‟ tab. See Section 1.14

1.6 Entering the account assignment for split charging

If the screen below is reached due to the entry of an account assignment key „Y‟ then enter the information as specified in the table below.

(To reach the field to enter the „Individual‟ code: select the line you wish to make the entry for, click on the „Detail‟ icon, click on the „More‟ button.)

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Distribution Whether the split of quantity/value

will be based on quantity or

percentage.

R Select required data

Qty./percent Based on the distribution indicator

set above enter here the quantity or

percentage split for the cost object.

R Select/key in required data.

Cost center/

Order/WBS

Element

Cost Centre/ Order/ WBS Element R Enter the appropriate Cost object

code for a portion of the cost or the

item to be charged to. A search can

be carried out via the matchcode

button. An explanation of the structure

of the G/L codes will be given during

training by Central Finance.

G/L account General Ledger code R Enter the appropriate G/L codes for

the proportions of the item being

purchased. A search can be carried

out via the matchcode button. An

explanation of the structure of the G/L

codes will be given during training by

Central Finance.


Material Master if one

is entered.

Unloading point Any notes required in connection






process.

R Location of Goods Recipient

Goods recipient Any notes required in connection R Fill in manually or via Matchcode

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process.

Once the required data above has been entered, „Enter„ to go to the „Invoice‟ tab‟ and return to Section 1.5b Invoice tab of this Guide.

1.7

Entering a vendor’s catalogue number:

On the Material data tab under Item details, enter information in the Vendor mat. no. field as specified in the table below:

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Vend. mat. Vendor material number O The product code of the material with

the vendor.

May default in if

entered in the info-rec.

Once the required data above has been entered click on

„Enter‟ to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below. 1.8 Entering a delivery schedule:

On the Delivery schedule data tab under Item details, enter in the required delivery quantities line by line down the schedule table as specified in the table below:

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Delivery date

category

Indicates daily, weekly or monthly R Default is “D” for daily

Delivery date Date expected for delivery of

material

R Entered manually

Scheduled qty. Scheduled quantity R/O The proportional quantity of the total

ordered to be delivered at the date

specified for that line in the schedule.

StatDelD Statistical Delivery Date C Used for vendor evaluation. Day of

goods receipt – stat. del. Date will

give a value for vendor evaluation.



Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below.

1.9 Removing the requirement for goods receipt:

On the Delivery tab under Item details, remove the requirement for goods receipt by clicking on the ticks in the „Goods receipt‟ and „GR non-valuated‟ to remove them.

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Once the required entry above has been made click on


Please note, that removing the requirement for goods receipt resulted, that you don‟t have to book goods received for that item. At Zeiss it is common, that another person acknowledges that the goods were delivered.

Setting the GR non-valuated means, that GR will not be posted in FI. It will be posted with the invoice later.


1.10

Entering net discount for an item

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CnTy Condition Type O Enter in the relevant condition type.

This could be a discount or surcharge.

Those already present

on the screen are

mandatory. Although

changeable the

rate/price entered for

PBXX must be

maintained.

Rate Rate/ Price/ Percentage/ Value O Enter this value in the format dictated

by the condition type.

On the Conditions tab under Item details, enter information as specified in the table below:



Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below. 1.11 Entering extended text for an item

Select the Texts tab under Item details:

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On this tab one can enter extended text messages to appear against the line item. These texts will appear on the PO between each line item. Select „Item texts‟ and type in the required text message in the blank field.

Certain texts can be defaulted in from other master data records such as the „Info record PO text‟ and the „Material PO text‟

Once the required text has been entered click on


Double-click in the text window . Than a text editor appears. There are two text-editors available, one is the so-called line-editor, the other continuous-text-editor.

Example for line-editor :

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Same Text in the other editor:

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Go Back to PO with the Back-Button


1.12

Entering PO header text messages

Select the Texts tab, under the Header:

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On this tab one can enter extended text messages to appear against the line item. These texts will appear on the PO at the bottom.

Select „Header text‟ and type in the required message in the blank field.

Once the required text has been entered click on



1.13

PO vendor address details

To view the vendor address, select the „Address‟ tab under Header and the address will be displayed.

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If the vendor has a different purchase ordering address, to view the purchase ordering address select the „Partners‟ tab under Header. Select the „Ordering Address‟ line and click on the „Details‟ icon.

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1.14

Entering an alternative delivery address/Customer a/c # with vendor.

On the Delivery address tab under Item details, enter information as explained below:

The delivery address functionality of SAP is being utilised Zeiss to fulfill two functions. Firstly it is being used for its true purpose which is to enter alternative delivery addresses on to the purchase order. Secondly where departments order from a vendor with which they have a specific account number that must be printed on the purchase order, the delivery address functionality will be used to provide all of the possible delivery addresses these vendors might deliver too but also include in the account number.

Delivery address‟s are master data and thus need to be set up. If you require either a delivery address or one with an account number being set up please refer to the User Guide script „Delivery Address for alternative delivery‟.

The processes for entering alternative delivery addresses, be it for a customer account number or standard delivery address, is virtually the same and will therefore be described in one process as follows:

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1. In the „Delivery Address‟ tab, under Item details, in the Address field enter the master record number of the intended delivery address. If this is not known carry out a search as follows,

Place the cursor in the „Address‟ field

Click once on the „Matchcode‟ button to the right of the field

A selection criteria tab will appear. Enter any criteria that may narrow your search or leave blank

for a generic search. Click on the „Enter‟ button to carry out the search. Remember the sort

terms A & B follow a convention set out in the delivery address create Business Process Procedures 1.4 and 1.5.

The results of the search will be displayed. Click once to place the cursor somewhere on the

lines of the delivery address required. Click on the

record number in the „Delivery Address‟ tab.

„Enter‟ button to place the address‟s

2. Click on the „Enter‟ button to validate the screen and to default in the address you have selected.

3. The following options are now available to you,

Click on the

Click on the

„Enter‟ button to accept the delivery address for the selected line item.

button to automatically insert the selected delivery address for subsequent line items that are to be entered. It will not insert the selected delivery address for subsequent line items that have already been entered.

Click on the

button to switch off the selected delivery address from being

automatically inserted against subsequent line items that are to be entered.




1.15

Saving the purchase order or adding further line items

If this form has directed you to this section then you now have the choice of doing the following:

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Save the PO. Do this by clicking on the „Save‟ button. Upon saving, the system will assign a PO number at the foot of the screen.

Enter further line items. Do this as explained from 1.4 above.

Alternatively, review and change details entered before saving the PO.

2.0

Quick reference guide to create a Purchase Order

Path: - Logistics> Materials Management> Purchasing> Purchase order> Create> Vendor/supplying Plant known.

(Transaction code: - ME21N)

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In the fields next to the shopping trolley, check the correct Purchasing Document type has defaulted in. In the Vendor field, select the required vendor. Enter.

In the Org. data Header tab, check the correct Purchasing Group has defaulted in. Enter.

In the Item Overview fields, enter the Account assignment category, the short text, PO quantity, Order Unit, Net price and Material Group. Enter.

In the Account assignment tab, enter the G/L account and either the Cost center, Order or Sales Order number. Enter.

If required, enter any further information for the line item.

If required, enter further line items, entering information in the Item Overview fields, in the Account assignment tab and Invoice tab, as above.

Save.

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