Managing Purchase Orders

The next business process step to be covered is Operational Procurement.

Select the business process steps, to see the selected scope items:

Having managed individual requirements with – purchase requisitions – and established a long-term relation with our supplier by using a quantity contract, we now focus on the creation of purchase orders.

Start with the Interaction below, to learn more about the creation and structure of purchase orders.

It is also possible to automate the creation of purchase orders.

For example, if we don’t need any approval when ordering our production materials and we already know our preferred supplier.

Imagine that we order our production materials and don't need any approval and we know our preferred supplier already. In that case we should generate the POs automatically.

A purchase requisition item with an assigned source contains all the information (for example, supplier and price) required for the system to convert it into a purchase order.

To automatically convert a purchase requisition into a purchase order, the following apply:

• The Automatic Purchase Order indicator must be set in the material master record (purchasing data).
• The Automatic Purchase Order indicator must be set in the supplier master record (purchasing data).
• A valid source of supply must be assigned to the purchase requisition item.
• No additional entries (such as the tax code for automatic goods receipt settlement) are required during conversion.