PURCHASE REQUISITION

PURCHASE REQUISITION  ME51N

Procurement in every organization starts with gathering requirements. Once requirements are gathered, we need to inform the purchasing organization. A Purchase Requisition is a document that contains a list of requirements. The key points to note about a purchase requisition are as follows −

• A purchase requisition is a request that is made to the purchasing organization to procure a certain list of materials.

• It is an internal document and remains within the organization.

• Purchase requisition needs approval from the purchasing organization.

• If a purchase requisition has already been approved, then it can be modified only to a limited extent.

• Purchase requisition can be created for the following procurement types −

Standard − Getting finished material from vendor.

Subcontracting − Providing raw material to vendor and getting finished material.

Consignment − Procuring material that is kept in company's premises and paying to vendor for that.

Stock transfer − Getting material from within the organization.

External service − Getting services like maintenance from third party vendor.

Key Aspects of a PR in SAP MM:

Internal Document:

A PR stays within the organization, unlike a Purchase Order (PO) which is sent to an external vendor.

Starts Procurement: It's the first step, signaling a need for goods or services.

Creation: Can be manual (by users) or automatic (generated by MRP or production orders).

Details: Includes material/service, quantity, required delivery date, plant, and source (if known).

Approval: Requires internal approval before purchasing can proceed.

Types: Standard, Consignment, Subcontracting, Stock Transfer, and External Service.

Transaction Codes: ME51N (create), ME52N (change), ME53N (display) are common.

Create Purchase Requisition

A Purchase Requisition can be created by following the steps given below −

TCode: ME51N

Step 1 −  Fill in all the required details such as name of the material, quantity, delivery date, material group, and plant. Click on Save. A new Purchase Requisition will be created.

After creating a purchase requisition, we need to send our requirements to the vendor. It is done through a document that is known as the purchase order. A purchase order can be directly created from a purchase requisition.