Traditionally, creating a purchase order in the SAP ERP system required multiple steps: entering information, checking the document, identifying and correcting errors, and rechecking. Even with templates, such as a previous purchase order, many errors had to be identified and corrected before the order could be submitted.

The purchase order processing in SAP S/4HANA is more straightforward, simpler, and faster, thanks to a central screen with automatically populated fields and a limited number of required fields. The S/4HANA app “Manage Orders” allows users to focus on the relevant (or mandatory) fields of the order and display additional detailed information in other tabs.

COVERED TOPICS:

  • Definition: Purchase order
  • Basic structure of a purchase order
    • Conditions
    • Accounting
    • Confirmation
    • Order
    • development
    • Partner roles
    • Plant
    • Texts
  • Functions of order processing with SAP S/4HANA
    • Overview and filter criteria
    • Invoice plan
    • Flexible workflow for purchase orders
    • Product compliance in purchase orders
    • Position-related inco terms
    • Other functions
  • Apps for purchase order processing in S/4HANA

DEFINITION: PURCHASE ORDER?

A purchase order is a request from a purchasing organization to a supplier or plant to deliver a certain quantity of materials or services at a specific time.

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BASIC STRUCTURE OF A PURCHASE ORDER

A purchase order consists of a document header, an overview of positions, and positions. The information contained in the header pertains to the entire order. For example, payment and delivery terms are part of the document header. Each position has a specified procurement type.
The following procurement types are distinguished:

  • Normal
  • Subcontracting
  • Consignment
  • Stock transfer
  • Service

The total quantity of material or service to be delivered in the purchase order position can be divided into various partial quantities with corresponding delivery dates.
For purchase order positions that are subcontracted, the material components to be provided can be specified for each delivery date. Ideally, a service procurement position contains a service specification. Structure levels organize the service specification, and service lines specify the ordered quantity with the unit.
For services that cannot be specified exactly, value limits are given instead of service lines. When services are called off from contracts, the purchase order position may include a value limit related to a specific contract.

additional details about our solution

Do you also want to automate your SAP purchase orders? For 100%? Then have a look at the Auto PO function by BeNeering.

FUNCTIONS OF PURCHASE ORDER PROCESSING WITH SAP S/4HANA

OVERVIEW & FILTER CRITERIA

Additional filter criteria are available in the purchase overview (see figure) for the purchasing organization, material, material group, currency, supplier, category, and purchasing group.

INVOICE PLAN

The invoice plan is a tool that specifies when and in what amount invoices should be created. Invoice creation is independent of receipt of goods or services (service entry).

In consultation with suppliers, invoices can be automatically created by the system based on invoice plan data and their payment initiated. The system uses the Automatic Goods Receipt Settlement (ERS) for this purpose.

FLEXIBLE WORKFLOW FOR PURCHASE ORDERS

The flexible workflow is a cross-functional feature that allows workflows based on conditions to be set up for approval processes. Workflows with automatic, single-stage, or multi-stage approval can be set up for purchase orders. One or more approvers can be assigned to each step. When specifying an approver, a role can be used or specific users or teams can be assigned as approvers. Approvers can then approve or reject their work items in the “My Inbox” app.

PRODUCT COMPLIANCE IN PURCHASE ORDERS

Product compliance allows compliance for products to be managed by assessing marketability in different countries and regions, classifying products according to hazardous goods regulations, sending and evaluating required safety data sheets, and determining if the supplier is a valid supplier for the product. The fields that display the product compliance status of an entire purchase order are available on the product compliance tab at the header level of the purchase order. In contrast, the fields that display the product compliance status of a line item are available on the product compliance tab at the item level.

POSITION-BASED INCOTERMS

If necessary, Incoterms can be assigned to each purchase order line item in S/4HANA.

Additional functions:

  • Changeable short text for the purchase order
  • Access to attachments for the purchase order from all apps for purchase order processing

additional details about our solution

Do you also want to automate your SAP purchase orders? For 100%? Then have a look at the Auto PO function by BeNeering.

APPS FOR PURCHASE ORDER PROCESSING IN S/4HANA

For order processing, the following apps are available, among others:

App NameDescriptionBenefitsfurther Informations
Manage Purchase OrdersCreate, manage, and search purchase ordersEnsure ordered items are delivered in the correct quantity to the correct location (recommended SAP app)Read more
Create POs - Advanced (ME21N, ME22N, ME23N)Create, modify, and display orders in one viewEnsure ordered items are delivered in the correct quantity to the correct location (classic SAP GUI app)Read more
Purchase OrderDisplay context information for an orderTransparencyRead more
Display Purchase Documents by Material GroupDisplay statistics for purchase documents such as orders, purchase requisitions, and contracts by categoryTransparencyRead more
Mass Changes to POs Simultaneously change fields for multiple ordersTime-savingRead more
Monitor Mass Changes - Purchase OrdersView simulation and mass change jobs for orders in different statusesTransparencyRead more
Monitor PO ItemsDisplay order items and their status by filtering criteria such as order, material, supplier, plant, and delivery forecastTransparencyRead more
My Purchase Order Items - ProfessionalQuickly view purchase order items by supplierTransparency, Time-savingRead more
Print Scheduled POsSend purchase order expenses to suppliersEnsure ordered items are delivered in the correct quantity to the correct locationRead more
PO Items by Account AssignmentDisplay order items by account assignmentTransparency, Time-savingRead more
Display PO Items per Requirement Tracking NumberMonitor purchase documents by requisitionTransparencyRead more
Monitor Purchasing Info Record Price HistoryMonitor multiple purchasing info records and their price development details (date, price, and unit) by filtering criteria such as material, category, supplier, and plantTransparencyRead more
Subcontracting CockpitOverview of open and closed purchase orders, book goods issues, and moreTransparency, Time-savingRead more
Monitor Subcontracting DocumentsMonitor subcontracting documents (POs and delivery schedules)TransparencyRead more
Monitor Confirmations from SuppliersDisplay purchase order items with outstanding supplier confirmations and monitor their confirmation statusTransparencyRead more

additional details about our solution

Do you also want to automate your SAP purchase orders? For 100%? Then have a look at the Auto PO function by BeNeering.