 Purchasing

PURCHASING REQUST: Purchase requisition (PR) is an internal request to purchasing. You

ask the buyer to provide a certain quantity of a material or service on a certain date. A purchase
requisition can be created automatically by Material Requirement Planning (MRP) or manually
created.

Double click on a activate components / control indicators folder and Select new entries button
 1. Update Fiscal year and Select active type check box,

2. Select component active for Cost center, Order management, commit. Management.

PR is created to indicate purchase department to procure materials or services with details like
how much quantity is required, what type of materials or services to be purchased, when
required.
Transaction Code: – ME51 – Create PR
ME52 – Change PR
ME53 – Display PR

1. Purchase requisition document type: NB – standard.

2. Enter the delivery date
3. Enter the plant, storage location
4. Enter the purchasing group, and material group.
 1. Material: material number, and Enter quantity of material
2. After updating all the mandatory fields, click on save button to save the purchase
requisition.

REQUEST FOR QUOTATION (RFQ): RFQ is used to enquiry in market to obtain quotations
from prospective vendors. RFQ can be created with reference to Purchase Requisition, Outline
Agreement (Contract) and another RFQ.

Transaction Code: – ME41

On the Create RFQ: Initial Screen, enter the following data.

 Enter the RFQ type as “AN”

 Enter the Quotation Deadline
 Enter Purch. Organization and Purchasing group
 Enter plant and storage location
Enter the Collective No to track of all RFQ’s related to particular instance and reference data.
On the Create RFQ: Item overview screen, enter the following data.

1. Enter the Material No and Enter the RFQ Quantity

2. Click on vendor address button on the tool bar

On Create RFQ: Vendor Address screen. Enter vendor code and press enter and the vendor
details will be displayed automatically.

Choose save button to save the Request for Quotation (RFQ). Vendor Address screen allows to
create same RFQ data to a new vendors.
Similarly create RFQ for other vendors in the same screen and RFQ No will be generated.

The following step guides you to maintain quotation in SAP step by step. Vendor communicates
price for material and the Request for Quotation (RFQ) needs to be updated in SAP.

Transaction Code: -ME47

On the Maintain Quotation: Initial Screen, enter the RFQ and press enter to continue
Enter the net price value in that material.

After updating all the mandatory fields, choose save button to save the quotation.

Successfully quotation are maintained in SAP.

After your quotations are entered, you can compare them to select the best available offer at this
moment. We can compare the quotations in transaction code ME49.

We can select which quotations will be compared by using the collective number we addressed
before to be an important field that is maintained on RFQ (or directly on the quotation).
The comparison list looks like shown in below img

After comparing the prices/conditions, you can decide which offers to accept and which ones to
reject.

AGREEMENTS: Agreement is a long-term purchase agreement between vendor and customer.

Agreement are two types:

1. Contract
2. Scheduling Agreement

CONTRACT: The contract is draft agreement, and they do not include delivery dates for the
material. Contract is two types:

1. Quantity Contract: This contract considered to fulfill when the company supplied an
agreed total quantity of materials against the contract.
 Enter T-code ME31K in the command field.
 Enter Vendor / Agreement Type (MK- Quantity Contract) / Agreement Date.
 Enter Purchase Org., Purchasing Group in organizational data.
Enter Validity End date of contract in header data screen.

 Enter Material ,Target quantity (A quantity for which quantity contract being created) and net
price
 Click On Save Button.
1. Value Contract: This contract considered to fulfilled when the company supplied agreed
total value of material against the contract.

 Enter T-code ME31K in the command field.

 Enter Vendor / Agreement Type (WK- Value Contract) / Agreement Date.
 Enter Purchase Org., Purchasing Group in organizational data.
Enter Validity End date and target value of contract in header data screen.

The target value is the total value of all materials to be released against the contract. If this value
is exceeded, the user receives a system message when creating a contract release order.

 Enter Material ,Target quantity (A quantity for which quantity contract being created) and net
price
 Click On Save Button.
SCHEDULING AGREEMENT: The scheduling agreement is a long-term purchase agreement
with the vendor in which a vendor is bound for supplying of material according to predetermined
conditions. Details of the delivery date and quantity communicated to the vendor in the form of
the delivery schedule.

1. Enter T-code ME31L in command field.

2. Enter Vendor / Agreement Type (LP- Scheduling agreement) / Agreement Date.

3. Enter Purch. Organization / Purchasing group.
4. Enter Plant / Storage location
Enter material number, target quantity

Click on save button

Maintain schedule agreement: After creating schedule agreement we are going to maintain that
one.

Enter T-code ME38 in command field

Enter the schedule agreement number in that box

 1. Selecting the material line
2. Enter the delivery schedule icon

Enter the delivery date and scheduled quantity of first order delivery, and also giving one by one
the delivery date and quantity of schedule agreement up to ending in total quantity of customer
schedule agreement period.
PURCHASING ORDER:

Purchase orders are used for a number of processes in procurement. They can be used for
internal procurement (from one plant to another), external procurement of goods (direct
consumption or stock) and services. It can also be used for subcontracting, third-party and
consignment processes. Purchase order processing is shown in the following diagram. Purchase
orders can be created with reference to a purchase requisition, RFQ, quotation, another purchase
order, contract, sales order.

T-CODE: Purchase orders are created by using standard transaction ME21N

1. Enter vendor.
2. Enter [Link] / purch. Group / company code.
3. Enter material number / purch. Quantity/ plant / storage location that needs to be procured.
4. Enter check (icon) to check any error issues.
5. When all the data is double-checked for mistakes and entered accurately we can save the
purchase order.