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In: Computer Science

What are the different paths from a purchase requisition to a purchase order? What determines which...

What are the different paths from a purchase requisition to a purchase order? What determines which path is selected?

Solutions

Expert Solution

The different paths from a purchase requisition to a purchase order include requesting and receiving quotes, and using a stock transport order. The path selected is determined by the source of supply.

A company may go from a purchase requisition to a purchase order by requesting and receiving quotations. It may also use a stock transport order. The source of supply usually determines the ultimate path.

How to Convert Purchase Requistion to Purchase Order

Upon release purchase requisitions can be converted into purchase orders. This can be accomplished in transaction code ME21N .Process for converting a PR into PO is straight forward, and the steps for performing it are as follows:

Step 1)

  1. Execute transaction code ME21N.
  2. Choose the appropriate purchase order type: in our case NB – standard PO.
  3. Organizational levels: enter them according to needs.
  4. Purchase requisition: enter the purchase requisition number released in the previous lesson.

Step 2)

  1. PO quantity: you can see that the PO quantity is rounded down to 2 PAL. That is because we have entered 30pcs on PR, and we have set our order unit to be PAL in our info record, so we have to order in pallets, and system rounds it down.
  2. Net price: net price field is being populated from purchase info record.

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