purchase requisition

· SAP Purchase Requisition 1

This series of article introduces the purchase requisition as an in-house instrument for entering requirements. The creation of purchase requisitions is shown using an example of consumption material with and without a material master record.

Following will also be covered in these articles:

• Use of transaction ME51N for purchase requisitions
• Creating a purchase requisition with items with single and multiple account assignments
• Requesting a material without a material master record

A practical example would be that in any plant maintenance department, you must have sensors and a particular testing instrument. Because this testing instrument is required for only one time, you do not want to create a material master record for it. Now you want to test the use of a purchasing requisition to process the internal requisition of these materials directly for your cost center.

Purchase Requisition in Procurement

In procurement, the internal requisition for materials or services triggers a procurement process. Purchase requisitions are internal documents for asking your Purchasing department to procure a particular quantity of a material or a service for a particular date. A purchase requisition (PReq) can be created directly or indirectly in the SAP R/3 system.

SAP MM Consumption Material Procurement PR

Figure SAP MM Consumption Material Procurement PR

“Direct” means that a purchase requisition is created manually in the department that made the request. Whoever creates the purchase requisition determines which material or service is ordered, and the quantity and date.

“Indirect” means that that purchase requisition from another SAP component is created automatically. Purchase requisitions can be created automatically, as follows:

• in MRP
• with maintenance orders
• with production orders
• with networks
• Purchase requisitions can also come from the SAP Advanced Planner and Optimizer (SAP APO) or the SAP Enterprise Buyer (SAP EBP).

SAP MM Purchase Requisitions

Figure SAP MM Purchase Requisitions

When you create a purchase requisition for materials that have a material master record, SAP R/3 transfers data in the material master record to the purchase requisition. You can convert purchase requisitions into RFQs, purchase orders or outline agreements.

SAP Purchase Requisition - 2

In this article we will discuss the structure of the purchase requisition. By highlighting common features and differences between a purchase requisition and a purchase order, such as the following:

• Missing a “proper ” document header in the purchase requisition • Specifying the vendor at item level of the purchase requisition is possible, but not compulsory
• Document overview in transactions ME21N and ME51N

In the transactions for creating, changing or displaying a purchase requisition (ME51N, ME52N, ME53N), there are single-screen transactions, just as in the purchase order. The division into different screen areas (header data, item overview, item details, document overview) and the operation correspond with the purchase order transaction.

SAP MM Purchase Requisition with ME51N, ME52N, ME53N

Figure SAP MM Purchase Requisition with ME51N, ME52N, ME53N

Entering the Account Assignment

If you want to request materials or services directly for an account assignment object, for example, for your cost center or for an asset, you must specify in the item overview the corresponding account assignment category. This means that you have to enter additional account assignment data in the item detail on the Account assignment tab.

If you have the single account assignment screen displayed on the Account assignment tab, you can use Multiple account assignment to switch to the multiple account assignment screen. On the multiple account assignment screen, choose Single account assignment to switch to the single account assignment screen. The SAP R/3 system stores your last setting. On the multiple account assignment screen, you can also create single account assignments.

With multiple account assignment, you can distribute the costs for one purchase order item among several cost centers, for example. In this case, the created account assignment data represents individual account assignment items. With multiple account assignment for an item, you must decide whether the value of the item is to be distributed on a quantity basis or as a percentage (for example, 10 pieces or 10% of the purchase order value to cost center 1000).

SAP MM Single or Multiple Account Assignment

Figure SAP MM Single or Multiple Account Assignment

If there are partial invoices, you can choose whether

• the partial invoice amount is distributed proportionally to the account assignment items
• the partial invoice amount is distributed to the account assignment items one after the other

The partial invoice indicator can also be derived automatically from the account assignment category if a partial invoice indicator is specified in Customizing for the account assignment category. For items with multiple account assignments, the system automatically sets the GR non-valuated indicator.

If you want to distribute the quantity in a purchase requisition item with account assignment to the different account assignment items, you just need to enter the account assignments, but not the quantity. The system automatically distributes the requested quantity proportionally to the existing account assignment items. If you change the requested quantity in the item overview, the quantity is adjusted in the relevant account assignment items. As soon as you change the quantity or percentage of the account assignment item, the system can no longer execute an automatic distribution.

SAP MM Single or Multiple Account Assignment

Figure SAP MM Single or Multiple Account Assignment

Example of an automatic account assignment distribution: You have requested 90 office chairs and assigned them equally to three cost centers. However, because you require 120 office chairs, you change the requested quantity in the item overview. The system then automatically changes the distribution so that 40 office chairs are assigned to each cost center.

SAP Purchase Requisition – 3

Features of the Purchase Requisition

In this article, we will start discussing the most important features of the purchase requisition: account assignment category unknown is allowed and then valuation price will be discussed.

Account assignment category: Unknown

If you do not know the account assignment object for which the material is being procured when you create the purchase requisition, you can use account assignment category U (unknown) in the purchase requisition

Then you do not need to enter any more account assignment details. If you create a purchase order with reference to this purchase requisition, you must specify precise account assignment information because account assignment category Unknown is not allowed in the purchase orders. Account assignment category U is allowed in purchase orders for external services and blanket purchase orders.

SAP MM Features of Purchase Requisition

Figure SAP MM Features of Purchase Requisition

Valuation price

When you create a purchase requisition item for valuated material, the valuation price is pulled from the material master record. For non-valuated material or material without a master record, the creator must manually enter the valuation price. This valuation price can be used for a value-related release procedure. The release can refer to the value of the individual item or to the total value of the requisition. If a previously defined release strategy becomes effective, you can create a request or a purchase order with reference to a purchase requisition only after the purchase requisition has been released. You can also dispense with the manual entry of a valuation price and use the missing valuation price as a criterion for your release strategy.

Status and Creation Indicator

If you want to trace whether your purchase requisition items have been processed, evaluate the processing status of the item. You can see the processing status on the Status tab page in the item detail area. The processing status provides information about whether the item has been ordered, not ordered or requested, or whether the item has been converted into an outline agreement. On this tab, the purchase order history of referenced purchasing documents (created with reference to this purchase requisition item) is listed. You can obtain information about previously posted goods receipts and invoices.

SAP MM Processing Status and Creation Indicator

Figure SAP MM Processing Status and Creation Indicator

For you as a buyer, it might be interesting to see how the purchase requisition was created in the system, manually or automatically (for example, through materials planning). In the item detail on the Contact person tab, the creation indicator can provide information.