Many procurement organizations currently prioritize stronger strategic orientation and increased automation in order generation. Crucial success factors for Purchase Requisition(s) include intuitive designs, intelligent workflows, and quality catalog content for seamless order processing.
WHAT IS A PURCHASE REQUISITION?
A purchase requisition (abbreviated as “PR”) is a request to purchasing to obtain a material or service in a specific quantity at a specific time.
WHAT DOES DEMAND PROCESSING MEAN?
The term “demand processing” or “requirements processing” refers to the activity of the buyer to adjust the different needs and assign them to the sources of supply.
THE BASIC STRUCTURE OF THE PURCHASE REQUISITION
The purchase position consists of header data, an overview of the positions (“position overview”), and one or more positions. A position is assigned to one of the following procurement types:
- Normal
- Job processing
- Consignment
- Transfer
- Service
material to be delivered, or the quantity and unit of the service to be provided. For positions that are awarded to job processing, the material components to be provided can be specified for each delivery date.The position of the procurement type service can contain a service specification or alternatively limits. The service specifications can be divided into several levels of hierarchy. The service lines specify the ordered quantity, unit, and date. For service positions that cannot be specified precisely, value limits are specified instead of service lines. If services are requested from contracts, the value limit may refer to the specific contract. The costs incurred can be distributed to various controlling objects such as cost centers and PSP elements by means of allocation. A purchase requisition can be processed by means of orders or framework agreements. It is an internal document that is not used outside the company.
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CREATING, CHANGING, AND DISPLAYING PURCHASE REQUISITIONS
Header data, data from the position overview, and details of the positions can be maintained on a central screen. The three screen areas can be opened and closed and their display size can be varied. This eliminates the need to “jump” between different screens and edit an entry screen. In the same screen, you can switch between “Create”, “Change” and “Display” if the appropriate authorizations are available.
THE BASIC PROCESS OF NEEDS PROCESSING
As soon as the purchase requisition (PR) is created or generated, depending on the workflow settings of the system, it can be converted directly into a purchase order. If it is a free-text PR, it lands in the buyer’s work queue for inquiries. Catalog positions are converted directly into purchase orders by the buyer or automatically via batch.
APPS FOR NEEDS PROCESSING IN S/4HANA
The following apps are available for needs processing, among others:
| Fiori App | Description | Benefits | Further informations |
|---|---|---|---|
| Create Purchase Requisition - Advanced | Create, display and maintain purchase requisitions | Ensure availability of positions (at desired quantity and location) | Read more |
| Manage Purchase Requisitions - Professional | Create, display, maintain and edit purchase requisitions | Ensure availability of positions (at desired quantity and location) | Read more |
| Mass Changes to Purchase Requisitions | Change fields of multiple purchase requisitions simultaneously | Save time in making changes | Read more |
| Monitor Mass Changes to Purchase Requisitions | Monitor jobs created and scheduled with the "Mass Changes to Purchase Requisitions" app | Create transparency | Read more |
| Purchase Requisition | Display an overview of purchase requisition data | Create transparency | Read more |
| Purchase Requisition Item | Display an overview of purchase requisition item data | Create transparency | Read more |
| Purchase Requisition Items by Account Assignment | Display purchase requisition items by account assignment | Create transparency | Read more |
| Monitor Purchase Requisition Items | Display and navigate through purchase requisition items | Create transparency and save time | Read more |
| Confirm Goods Receipt | Select relevant purchase requisition items for goods receipt | Create transparency | Read more |
| Schedule Transfer of Purchase Requisitions for Intelligent Approval | Schedule jobs to transfer approval data for purchase requisitions from SAP S/4HANA to SAP Cloud Platform | Save time | Read more |
| Edit and Approve Purchase Requisitions | Approvers can edit certain data before approval | Save time, ensure compliance | Read more |
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Automatically create purchase orders from purchase requisitions
Exciting for procurement is the ability to automatically create purchase orders from purchase requisitions. After selecting various criteria (e.g. “by purchasing group” and “by framework agreement”), the purchaser can start the job to create purchase orders from the purchase requisitions with the selected criteria.
ADVANTAGES OF MATERIAL REQUIREMENTS PLANNING IN S/4HANA OVER ERP
Compared to processing with SAP ERP, material requirements planning in S/4HANA has the following advantages:
- Dynamic search and filtering
- Automatic suggestions during search
- Ability to change search criteria within the same screen
- Automatic suggestions of info records and framework agreements
- Direct creation of purchase orders
Approvers are notified of new work items through the SAP Fiori Launchpad. If necessary, email notifications can also be configured to be sent to the approvers. Requesters can also receive email notifications when their purchase requisitions are approved or rejected.
Flexible workflow for purchase requisitions
By default, the system is configured to automatically release all purchase requisitions. If this is not desired, the flexible workflow for purchase requisitions must be configured. The flexible workflow is a cross-application function that enables workflows based on predefined conditions to be set up. Processes with single- or multi-level approval of purchase requisitions can be defined. Approvers can approve or reject their “work items” in the “My Inbox” app, with two options available:
Approval Workflow:
The entire purchase requisition is approved. This type of approval is also known as “approval at header level.”
Approvers are notified of new workitems in the SAP Fiori Launchpad. If necessary, it can be set up to send email notifications to approvers as well. Requesters can also be notified by email when their purchase requisition is approved or rejected.
Approval of purchase requisition items:
The items of a purchase requisition are approved individually (“approval at item level”).
additional details about our solution
Are you looking to enhance the user experience to address your Maverick Buying issue?