Purchase Order: PO02 - Purchasing Requisition Process

The Associated Cement Companies Limited
Purchase Order
PO02– Purchasing
Requisition Process
ACC Mumbai, 11 JULY 2006
Rsubramania.sarma@acccement.com
Classified: INTERNAL USE ONLY Not to be quoted or reproduced without written permission
Agenda
 Objectives
 Procurement Process Overview
 Introduction and Concept
 PR Process Flow
 How to Create PR
 Process Flow: Manual PR
 Process Flow: PR via Planned Order
 Process Flow: PR via MRP
 Source of Supply Allocation and Process PR
 PO with Source Determination
 How is the source determined?
 System Walkthrough
 Question & Answer
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The Associated Cement Companies Ltd 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
Objectives
 To understand how a Purchase Requisition

(PR) is created and used in SAP
 To understand how to assign a source of supply
into PR
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Procurement Process Overview
MRP Unplanned
Determination
of Outline Agreement
requirements Determination
Payment of source of Source List
supply
Info Record
Invoice
RFQ
Verification
Inventory
Goods
Receipt/ Management Quotation
Services Entry
Entry Sheet
Order Vendor
Monitoring Selection
Purchase
Contract
Order
Processing
Processing
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Introduction and Concept
 Before sending a purchase order to a supplier, it

is necessary to have some internal agreement
on what is required, together with an audit trail of
approvals for that requirement
 A Purchase Requisition (PR) provides this facility
and is an internal request from a requesting
department to purchasing for a supply of
material or service
 Users need to understand that a PR cannot be
used for ordering to a supplier
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PR Process Flow
Purchase
Requisition
Source List
Quota Arrangement
Identify
Supplier Outline Agreement
(Automatically)
Info Record
Assign and
Process
Requisition
Purchase Release
RFQ
Order Order
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How to Create PR
MRP Manual
Purchase
Requisition Creation
Planned
Order
Source List
Quota Arrangement
Identify
Supplier Outline Agreement
(Automatically)
Info Record
PR Approval
Purchase Release
RFQ
Order Order
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PR from PR Manual Form
 A manual purchase requisition is usually

created for office supplies, Service, Capex, non-
stock items, …
 According to the procurement type, the Account
Assignment Category and/or Item Category in
this PR will be identified by the Originator
 The number of this PR will be generated by the
system of which the first two digits will be
25XXXXXXXX
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Process Flow: PR via Planned Order
Plant Maintenance
1. Define the Maintenance 2. Enter PM Order into 3. On-line PR
Plan SAP and Release Approval
Procurement
5. Process PR (e.g. RFQ/

PO)
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PR from Planned Order
 For planned orders, a purchase requisition for non-
stock items can be automatically generated from
PM Work Order
 A Purchase Requisition can also be generated
from PM Work Order for External Services
 The Account Assignment Category and/or Item
Category in this PR will be defined from PM Work
Order
system of which the first two digits will be
25XXXXXXXX
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Process Flow: PR via MRP
MRP Controller
1. Run MRP (e.g. Raw, 2. Display MRP List 3. Update and Sign
Spare Parts) (Reservation, PR) MRP List(PR)
Procurement
4. Send PR to Purchasing 5. Update and Process PR

(e.g. RFQ/ PO)
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PR from Running MRP
 A purchase requisition can also be automatically
generated by running MRP. The frequency of
such running will be subject to the production and
inventory management of each and every plant
 In view of the Scope of Planning, the system can
generate PR(s) for all Spare Parts or Raw
Materials within plant
system and begins from 25XXXXXXXX.
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Source of Supply Allocation and
Process PR
Outline Agreement
Client 400
Select
Source List
Purchase
Requisitions PR List
Info Record
--- -- -
---- --
------F--or--m--a--
----
t-
------
F U
os
- --
rmag--e-- -
A llo w ----
a t--
Usag ed Valu
Allowe e es
d Valu
es
Manually Allocate
Generate: Generate: Purchase
PO RFQ Requisition
(Change PR)
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Process Flow: PO with Source
Determination
Requested
Items (PR)
Automatic Manual
(ME52N) (ME51N)
Allocate Source
of Supply
Purchase
Order
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How is the source determined?
1
Quota No
?
2
Source No
List
Yes ? 3
Outline No
Agreement
Yes ? 4
Pur
Info
Rec
Yes
?
Yes Purchase
Requisition
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System Walkthrough
 Maintain normal PR
 Maintain planned service PR
 Assign source of supply to PR
 Process PR via assignment list into RFQ
 Process PR via assignment list into PO
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Q&A
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We…
Know the way, show the way, go the way
18
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Purchase Order: PO02 - Purchasing Requisition Process

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The Associated Cement Companies Limited

 To understand how a Purchase Requisition

 Before sending a purchase order to a supplier, it

 A manual purchase requisition is usually

5. Process PR (e.g. RFQ/

4. Send PR to Purchasing 5. Update and Process PR

Know the way, show the way, go the way

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