Carrying Out the Purchasing Process for Investment Projects

For investment and development projecst, you can not only rely on internal resources, but might also need the support of external suppliers, such as consultants, developers, or testers. The services of these suppliers are usually procured using purchase requisition and purchase orders. Whereas it is possible to create purchase documents directly in materials management and assign them to a WBS element, purchase documents may also be generated using Execution Services in SAP Easy Cost Planning (ECP).

Using Execution Services in SAP Easy Cost Planning you generate purchase requisitions for external processing activities, service activities, and material components procured externally. These purchase requisitions are passed on to the purchasing department, where they are processed further.

The purchase requisition results in purchase requisition commitments for the account assignment object (WBS element). When you convert the purchase requisition to a purchase order, it results in purchase order commitments for the account assignment object (this value type is different from the purchase requisition commitments). Based on the account assignment category of the purchase order, actual costs are posted upon goods receipt or invoice receipt. Based on the account assignment, actual costs are passed on to the WBS element. The goods receipt posting may also be skipped as it is difficult to identify the work already delivered. Usually, the supplier just sends the invoice for the work carried out. Depending on the account assignment category or the purchase order itself, it is defined if a goods receipt is required or not.

In the SAP standard system, you use account assignment category P for the account assignment of WBS elements.

As an alternative to the automatically generated purchase requisitions, you can manually create purchase requisitions and purchase orders, and assign them to WBS elements.

You post the invoice receipt with reference to the purchase order item. Although it is possible to post the invoice in Accounting without reference to a purchase order, it is not advised as in this case the commitment from the purchase order will not be reduced and the purchase order will not be updated.