Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page II.
... Previous Page (Page I). ... Next Page (Page III).
3) VENDOR SELECTION & COMPARISON OF QUOTATIONS:
After receiving quotations from different vendors, the buyer can select or choose the vendor after comparing all the quotations received.
4) PURCHASE ORDER PROCESSING (ME21N to Vendor):
Once the buyer has selected the vendor which will provide the material/service needed in PR, the buyer creates a Purchase Order (PO) based on the PR and the reference document (that can be an outline agreement, an info record, or a quotation).
Purchase orders (PO) are documents of authorization that are issued by a buyer and extended to a seller. The main function of the purchase order or PO is to specify the terms of purchase that will exist between the two entities, at least in regard to all purchasing activity specified in the document.
In simple words, a purchase order (PO) is a legal document "Contract" issued by the buyer to the supplier, indicating specifications, quantities, prices and agreed terms and conditions.
After the PO has been sent to the vendor, the buyer has to monitor whether the vendor delivers the material/service at the right time on the right place.
5) GOODS RECEIPT (MIGO) - (Tables – MKPF, MSEG):
When the vendor delivers the material or perform the service, the responsible person of the company must perform the goods receipt (GR) or service acceptance (SA) transaction. The GR/SA will update the PO history.
Goods Receipt is made against the purchase order (PO) issued to the vendor. The goods receipt affects the warehouse, inventory management, FI & CO modules of SAP.
A goods receipt (GR) is the physical inbound movement of goods or materials into the warehouse. It is a goods movement that is used to post goods received from external vendors or from in-plant production. All goods receipts result in an increase of stock in the warehouse.
... Previous Page (Page I). ... Next Page (Page III).
ALSO READ:
1) Introduction To SAP MM Module (Material Management).
2) SAP MM - Important Transaction Codes, Table Links & Flows.
3) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page I.
4) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page II.
5) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page III.
Your suggestions and comments are welcome in this section.
Please mail all your contributions to administrator@abapmadeeasy.com We request you to mention your Name, Designation, Experience & Organization you are working for. Your posts will be verified and posted in this site with your name.