The Associated Cement Companies Limited

Purchase Order
PO04– Purchase Order
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
 PO Process Flow
 PO with Source Determination
 System Walkthrough
 Question & Answer

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The Associated Cement Companies Ltd. 24.09.20/TRG
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 Objectives

 To understand the available options for

generating a Purchase Order
 To understand the preceding documents and
related master data to be used for maintaining
Purchase Order
 To understand the process of monitoring the PO

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The Associated Cement Companies Ltd. 24.09.20/TRG
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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

Purchase
Goods to
Receipt/ Pay Cycle Quotation
Services Entry
Entry Sheet

Order Vendor
Monitoring Selection

PurchaseOrd
Contract
er
Processing
Processing
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The Associated Cement Companies Ltd. 24.09.20/TRG
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 Introduction and Concept
 A Purchase Order (PO) is a formal request or instruction from a
Procurement department to a vendor or a plant to supply or provide
a certain quantity of goods or services at or by a certain point in
time
 A Purchase Order is also a legal document to record an individual
purchase (negotiated terms, conditions and pricing) with the vendor
or arrange for a delivery based on prior agreement. Furthermore,
it provides the purchaser a reference document to link to goods
receipt and invoicing (Logistic Invoice Verification) processes (PO
history). The Purchase Order is a commitment to the vendor for a
given material in a specified quantity at the predetermined price
and delivery date
 All items on a purchase order must belong to the same company
code.

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The Associated Cement Companies Ltd. 24.09.20/TRG
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 Process Flow: Purchase Order

1. Create PO 2. Online Approval 3. Print out PO form

by Procurement

5. Send to vendor 4. Approve and sign off

(fax or e-mail) by cost center owner

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The Associated Cement Companies Ltd. 24.09.20/TRG
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 Process Flow: PO with Source
Determination

Requested
Items (PR)

Automatic Manual

Allocate Source
of Supply

Purchase
• Process PO via PR assignment list
Order • Automatic PO

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The Associated Cement Companies Ltd. 24.09.20/TRG
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 System Walkthrough (1)
 Maintain PO with reference to PR (ME21N)
 Maintain PO with reference to RFQ (ME21N)
 Maintain PO with reference to outline agreement
 Automatic creation of PO from assigned PR
(ME59)
 On-line release of PO (ME28)
 PO release program
 Print PO (ME9F)

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The Associated Cement Companies Ltd. 24.09.20/TRG
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 Q&A

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The Associated Cement Companies Ltd. 24.09.20/TRG
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 We…

Know the way, show the way, go the way

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MM-PO
The Associated Cement Companies Ltd. 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission