Purchase Order PO is the legal document asking vendor to supply material or services with agreed conditions. PO can be controlled with header level release procedure. Item category and account assignment are important in PO like PR.
Processing Purchase Orders Create Vendor/ One-Time Vendor Purchasing Info Rec Price Conditions Purchase Order Purchase Requisition RFQ Reference PO Outline Agreement
Contents in Purchase Order PO Header PO Overview Texts Additional Data Delivery Schedules Account Assignment Pricing Conditions Changes Services Order History PURCHASE ORDER
Account assignment in PO Every item in PO is assigned to an account. One item can be assigned with more than one accounts also. E.g. Procurement of certain project related items has to be accounted with two cost center.
Multiple Account Assignment Purchase Order Desc Qty Pur Req 1 Chair 2 Cost Centre 2200 Pur Req 3 Chair 4 Cost Centre 3200 Pur Req 2 Chair 6 Cost Centre 2100 Pur Req 4 Desk 1 Cost Centre 7211 1. Swivel Chair 12 2. Desk 01
Item Category in Purchase Order Item Category Normal Item Consignment Third Party Account Assignment = Mandatory when material Consumable = Optional when material Stocked = Not Allowed when Consignment Purchase Order
Item Category in Contract Item Category Standard Item K Consignment M Material Unknown W Material Group Account Assignment = Mandatory when material Consumable = Optional when material Stocked = Not Allowed when Consignment Contract
Contract item category Use M item category for unknown material If contracts specifies target value for all material, use material group W (only in value contract)
Account Assignment Category Release Order Unknown U Account Assignment Category Create Contract Asset Sales Order Cost Centre All Auxiliary Account Assignment A C K X Account Assignment Category X All Auxiliary Account Assignment A Asset C Sales Order K Cost Centre U Unknown
Release Orders Contract Release Order Qty Date Purchasing Data Copied Open Target “ Qty”
Centrally Agreed Contract Contract Purchase Org. COMN Plant PO Purch. Org. 2300 Plant : 9100 PO Purch. Org. 2100 Plant : MIND6 PO Purch. Org. 2100 Plant : IND7
Pricing Condition Pricing describes the price and cost Pricing is controlled with condition technique Let’s discuss about condition technique before we go to pricing.
Condition Technique It is used across all modules in SAP output determination Work flow Batch determination Partner determination Condition technique is used to determine total cost of purchase in MM
Condition Technique cont.. Following are the three important component Condition Table / condition type Access sequence Condition record
Condition Table Condition table specifies the fields combination. System searches through predefined tables in a sequence. It is defined in the configuration.
Condition Type Condition type is the four letter key controls Calculation type Type of changes allowed Scale basis Condition type contains access sequence
Access Sequence There can be more than one table used to define different field combination It is required to search more than one table to fetch a record. Defining the sequence in which these tables are to be accessed is known as access sequence.
Condition Record Condition records is the master data. Maintaining values for the condition table is known as condition record.
Partner Function <ul><li>Defines the responsibilities of people involved in the business. </li></ul><ul><li>Example in MM are: </li></ul><ul><li>Ordering address </li></ul><ul><li>Supplier of goods </li></ul><ul><li>Invoicing party </li></ul><ul><li>Different payee </li></ul>
Partner Function Contd.. Many business partners can be defined as partner in SAP. E.g. Vendors, Carriers Roles of each partner can be defined. E.g. Certain vendors are only for ordering and not for invoicing.
Summary You must have understood Purchase Order Contracts Scheduling agreements Condition Partner Function