SAP

Purchase Order (PO)

http://scn.sap.com/docs/DOC-51591

SA/PSM/8100

Definition:-

A purchase order is a formal request or instruction from a purchasing organisation 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.

Serial No. of the PO
Date of PO
Supplier on Whom the PO is placed
Reference nos. of quotation from the supplier and its date
Indent No. against Which the requirement of the items were approved
The list of items ordered with quantities and rates
Delivery date by Which the requirement of the items were approved
Dispatch and delivery Modes
Payment Terms
Reference to inspection norms
Tax details as applicable
Transporter details
List of documents that must accompany each delivery and bill submitted

Structure:-

A purchase order (PO) consists of a document header and a number of items.

The information shown in the header relates to the entire PO. For example, the terms of payment and the delivery terms are defined in the header.
A procurement type is defined for each of the document items. The following procurement types exist:

Standard
Subcontracting
Consignment
Stock transfer
External service

Delivery of the total quantity of material (or performance of the total volume of services) specified in a purchase order item can be spread over a certain period in a delivery schedule, consisting of lines indicating the individual quantities with their corresponding planned delivery dates.

For PO items to be supplied by subcontractors, you can specify the necessary input materials or components that are to be provided to the subcontractor for assembly or processing in respect of each delivery date stipulated.

An item of the procurement type "external service" contains a set of service specifications. The latter can be hierarchically structured. The summary view of such a hierarchical structure is referred to as an outline. The outline comprises a number of levels, each representing a level of the service hierarchy. The order quantities are set out in service lines, representing individual jobs or activities. Value limits are specified instead of service lines for services or work that initially cannot be specified precisely.

If services covered by an already existing contract are released (ordered, or called off against the contract), the PO item can contain a value limit relating to the contract in question.........

Conditions

Conditions can apply at various levels:

To the entire purchase order
At item level, to the material to be supplied or to the set of service specifications in the case of services
At service line level for individual services (tasks or activities)

Account Assignment

Costs can be apportioned among various Controlling objects via the account assignment.

Vendor Confirmations

Vendors can issue confirmations to the relevant purchasing organisation indicating their compliance or non-compliance with scheduled delivery dates.

PO History

The transactions following on from a purchase order are documented in the PO history on an item-specific basis.

Partner Roles

Instead of the vendor as the order recipient, other business partners can appear in various partner roles (e.g. goods supplier or invoicing party).

Plant

In the purchase order, each item is destined for a certain plant. Each plant belongs to a company code, to which the vendor’s (creditor’s) invoice is directed.

Texts

You can enter text in a purchase order directly or change texts that are suggested by the system. There are two kinds of text:

Header text: applies to the entire document

Item text: applies only to the relevant item

You define which texts appear in which order on printouts in Customising for Purchasing. You can enter several header or item texts, which you can identify by your own codes.

Step:-1