- Purchase Orders can be created automatically or manually from Purchase Requisitions.
- Purchase Order can be created by referencing any existing RFQ, Quotation, PO,Contract or Scheduling Agreement, Purchase Requisition.
- Purchase Order will have Approval Process (Release procedure) at header level.
- Detailed terms and conditions will be defined in the system so that it will be automatically printed in the Purchase order.
- Restriction of field selection is different for one document type to another, every document type has unique field selection group. Restriction of fields will decided based on the document type.
- Changes in the purchase order will be updated in version tab in header of the purchase order, for Updating of changes in Purchase order it requires version management activation. Version management will be covered in version management topic in purchasing.
- In condition tab all pricing condition will be appeared based on the vendor selected in the purchase order, user has to enter required input in conditions. All taxes related information is available in the invoice tab, if user press F4 on the tax code it will appear all possible tax classification, user has to select appropriate tax code in the purchase order. For viewing of tax calculations in the purchase order user has to click on display taxes tab in invoice tab in the purchase order line item.
- Octroi is a special tax in the state of Maharashtra, user has to enter the percentage of Octroi in the purchase order, and this will be loaded to material cost. While entering of the tax user has to enter the service tax amount which will be collected by Octroi agent from company.
- All planned delivery cost will be loaded to material cost.
- Purchase order number and purchase order line item are mandatory fields in the F-48 transaction for Making of advance payments to vendor against the purchase order. Purchase against F form and C forms are tracked in sap system, for identification of Purchases against the F form using tax code.
- Generally Price variance for purchasing order is maintained 10 % upper to 10 % lower Limit.
- Generally Max. Cash disc. Deduction for Purchase orders is satisfied 10 % Upper to 5 % Lower Limit.
- Info update check box is checked for all the purchase order except return purchase orders, functionality is system create the purchase info record automatically and update the price history in the purchase info record.
- It is possible to maintain the vendor retentions in the purchase order header level or item level.
- If we want to post the GR with beyond tolerance limits change the purchase order delivery tolerance limits in the delivery tab. If delivery tolerances are changed in the purchase order it will effect vendor rating. if changes are not effected to vendor rating instead of changing delivery tolerances change purchase order quantity .
- Goods Receipts indicator should be check in the purchase order > item details >delivery tab, if this indicator is not your unable to post the GR against the Purchase order.
Important Purchase Order Transaction codes
- ME21N: Create Purchase order
- ME22N: Change Purchase order
- ME23N: Display Purchase order
- ME29N: Individual release Purchase order
- ME28: Collective release of Purchase order
- ME9F: Print Purchase order
Purchase Order Related Reports
- ME2M: List of Purchase order by Material
- ME2N: List of Purchase order by PO number
- ME2C: List of Purchase order by Material Group
- ME2B: List of Purchase order by Tracking Number
- MSRV3: List of Purchase order by services
- ME2S: Planned Vs Actual Comparison
- ME2K: List of Purchase order by Account Assignment
- ME80FN: General Analysis
- ME81N: Analysis of order values
- ME2O: SC Stock at Subcontractor
