Explaining the high-level business process flow for Purchase Order Collaboration

There are five essential document types in Purchase Order Collaboration. We will learn about each of these document types in this unit. We'll describe what they are and how each one fits into the overall process flow for Purchase Order Collaboration.

1. Purchase Order
   • The Buyer creates the Purchase Order in SAP ERP system.
   • The Purchase Order contains the original items to be ordered from the Supplier.
   • Buyers can create, change, or cancel Purchase Orders and Purchase Order line items.
   • Suppliers can reject Purchase Orders or Purchase Order line items.
2. Order Confirmation
   • The Order Confirmation is created by the Supplier in SAP Business Network.
   • The Order Confirmation allows the Supplier to confirm to the Buyer that they can fulfill the order and inform them of any deviations from the original Purchase Order.
3. Advance Ship Notice
   • The Supplier creates the Advance Ship Notice in SAP Business Network.
   • The Advance Ship Notice is sent by the Supplier to notify the Buyer in advance about the upcoming shipment.
   • There is usually one Advance Ship Notice for each shipment.
4. Goods Receipt
   • The Goods Receipt is created by the Buyer in SAP ERP System.
   • The Goods Receipt tells the Supplier that the goods they shipped were received.
5. Invoice
   • The Supplier Creates the Invoice in SAP Business Network.
   • The Invoice is sent by the Supplier to the Buyer to request payment for the goods ordered and received.

For an overview of the Purchase Order Collaboration process, please refer to the image below.