​ SAP MM - PROCUREMENT PROCESS

SUMMARY

Every organization attains material or services to complete its business needs. The process of

buying materials and obtaining services from vendors or dealers is called procurement.

Procurement should be done in such a way that materials are ordered in the correct quantity,

with a proper value at the proper

time.

Procurement plays an essential role within an organisation. It is the process of cost effectively

acquiring products or services from preferred suppliers. Procurement procedures and processes

vary between organisations, with factors such as delivery time frames, product quality and profit

margins being a major consideration in the procurement

cycle.

The article shows how the procurement procedure starts, that is realising the need for materials

to use in the production and then plan the amount of raw material required, suppliers to be

considered which is also known as Material Resource Planning that makes procurement

suggestion which converts into a Purchase Requisition (PR). PR change into Purchase Order

(PO), and upon receiving of goods against the particular PO, the purchasing process can be

completed by raising invoice receipt.

This article gives a detailed view of steps taken by an organisation to acquire raw materials,

from RFQ to Purchase requisition to Purchase order to

invoice.