Training Documents TrainingPurchaseOrder

Standard Purchase

Process Description:
A purchase order is a legal document used to record an individual purchase (negotiated terms, conditions and pricing) with the vendor or arrange for a delivery based on prior agreement. It also provides the vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification) processes. The purchase order is a commitment to a vendor for a given material, in a specified quantity at a predetermined price and delivery date. Purchase orders can be created for materials that have a material master or for materials that do not have a material master. The purchase order can be printed out (User Guide MM 5.1) and posted or faxed to the vendor.

Contents:
This document will take you through the core processes required to create a basic purchase order by following steps 1.2 through 1.5. Steps 1.6 onwards provide details of further enhancements that can be carried out to the PO if desired. Section Contents:

1.1 1.2 1.3 1.4 1.5

1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 2.0

Required Fields Accessing the Create Purchase Order screen Entering Header Information Entering Item Overview information Entering information in the ‘Item details’ tabs: 1.5a Account assignment tab 1.5b Invoice tab Entering the account assignment for split charging Entering a vendor’s catalogue number Entering a delivery schedule Removing the requirement for goods receipt Entering net discount for an item Entering extended text for an item Entering PO header text messages PO vendor address details Entering an alternative delivery address/Customer a/c # with vendor Saving the purchase order or adding further line items Quick reference guide to create a Purchase Order

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weekly. must be entered if there is no material master record or if the material master record is being used to purchase a frequently ordered item. do not maintain with Z5A Order type Defaults from material master if a material master exists. Box. Material group Account Assignment category Quantity Unit of Measure Net price Plant Storage location Vendor material Tax code General Ledger account Account Assignment code Eg Each. They will be visible to the store person during the goods receipt process. enter the code for this individual by selecting from the drop down box. Any notes required in connection with a line item may be entered here. eg K . These will not be printed on to the hard copy of the purchase order.Order. Should be defined as a personnel setting by the user to default to the department or area for whom the Buyer is purchasing. or monthly The expected delivery date can be entered. leave blank if it doesn’t. bin etc Net Price per unit of the material Will default in as 7002.1. Material number if material master exists.Cost center. If there is no material master record. Defaults from material master if a material master exists. enter a description of the material. If you require to identify the requisitioner of each line item. 25g sodium chloride. If the item being ordered is to go into a stores as a stores stock item. Should be defined as a personnel setting by the user to default in as 7002. E or M . enter the relevant G/L account here The Cost center.Required Fields Purchase Order Type Vendor Purchase order date Purchasing Organization Purchasing Group Delivery date category Delivery date Material Short text Field Value / Comments Should be defined as a personnel setting by the user to default in the purchase order document type for each department. Supplier catalogue number. Not mandatory. enter the Material group code. If a pack size needs to be defined this should be entered at the beginning of the description eg 10g sodium chloride. Daily. Sales Order or project code. F. The type of account. Defaults from material master if a material master exists.Sales Order or IInvest Account assignment must be entered if there is no material master record or if the material master record is being used to purchase a frequently ordered item. Should default. Vendor number Purchase Order date. enter the relevant store.1 Required Fields: The fields that require an entry when raising a purchase order are: Input . If there is no material master record. Individual Unloading point/Goods recipient 2 . If there is no material master record.

in the Header fields next to the shopping trolley. Number will be internally assigned Comments To define your personal setting see User Guide Leave blank Vendor number R From the drop down menu that appears when you place the cursor in Where a vendor has a Head Office and a 3 .1. 1. enter information as specified in the table below: Field Name Order type (Purchasing) Purchasing document number Vendor Description Purchase order document type R/O/C R Purchase Order Number C User Action and Values Should default in the purchase order document type for each department. as defined in ‘Personal setting’.2 Accessing the Create Purchase Order screen: To access the ‘Create Purchase Order’ screen.3 Entering Header Information: On the “Create Purchase Order” screen. follow the menu path: Logistics>Materials management>Purchasing>Purchase order> Create>Vendor/supplying Plant known or use transaction code ME21N.

Should default in as 0284 as defined in ‘Personal setting’. Should default as defined in ‘Personal setting’. Comments 4 . Doc date Purchase order date R Date PO created defaults to today’s date Purchase Ordering Address. Once all the required data mentioned above is entered click on either the proceed. enter the code of the relevant Vendor required. data’ Header tab enter information as specified in the table below: Field Name Purchasing Organization Purchasing Group Company code Description Purchasing Organization code Purchasing Group Code Company code R/O/C R R R User Action and Values Should default in as 7002 as defined in ‘Personal setting’. or ‘Enter’ to On the ‘Org.this field. first select the Head Office Address.

If an item is to be placed in stock then you would not enter an account assignment category. Net Price Currency Matl group Vendors Price Currency Code categorising the type of purchase being made. If there is no material master. I (Item category) Field Name Material Type of purchase Description Material number C R/O/C R Will default in blank for Standard. sales order (E). Enter qty. Will default in from Material Master if one is entered. at the beginning of the short text. Will default in from Info Record if one exists. Where there is a requirement to order a particular pack size of a material (eg 2. Indicates daily. required Enter the units the material is sold in Will default in from Material Master if one is entered. enter the information as specified in the table below: Field Name Item A (Account assignment category) Description The number of the item Type of account where costs are allocated R/O/C R O User Action and Values Will default in when item entered Choose either internal Order (F). weekly or monthly Date material is required O R Default is “D” for daily Enter the expected delivery date or leave blank for system default Vendors current price (excluding VAT) should be entered here Default is USD (US Dollars) Select the appropriate code Will default in as the current day’s date if no entry is made. 5 . date Required units or quantity Unit of Measure R R The description is copied from the material master if a material master exists. Plant to which delivery is to be made R R R Plnt R Default is 7002 for Surgical . or Cost Center (K. Leave blank if a material master does not exist Comments If no material master is to be entered then a short text description and a material group is required.5l. 500g etc) this should be entered here.J) to charge costs Comments Orders and cost centers will have assigned numbers. Will default in from Material Master if one is entered.4 Entering Item Overview information: In the Item Overview fields.1. you must enter a description of the material you want to purchase. Instead a storage location mentioned below would be entered. User Action and Values Enter the material number if a material master record exists. Short text Description of the material R PO Quantity OUn (Unit of Measure) C (Delivery date category) Deliv.

5a Account assignment tab On the Account assignment tab. enter information in fields as specified in the table below.Stor Loc (Storage Location) Where stock is stored O Select stores if item ordered is to go into stock If an item is to be placed in stock then you would not enter an account assignment category mentioned above.5 Entering information in the ‘Item details’ tabs: 1. Once the above data as required is entered click on the ‘Enter’ to proceed with a basic order. To reach the ‘Individual’ field. go to Section 1. click on the ‘More’ icon. This can then act to navigate you through the entry process.6 1. 6 . If you entered an ‘Account assignment category ‘. TIP: When entering the data described above one can press ‘Enter’ after each field is entered which will have the effect of automatically placing the cursor in the field of the next required entry. If you are taken to the ‘Account Assignment’ tab go directly to 1.5 below.

R User Action and Values Enter the appropriate G/L code for the item being purchased. These will not be printed on to the hard copy of the purchase order. A search can be carried out via the matchcode button. A search can be carried out via the matchcode button. They will be visible to the store person during the goods receipt process. Any notes required in connection with a line item may be entered here. Describe destination of goods Comments Will default in from Material Master if one is entered. These will not be printed on to the hard copy of the purchase order. click on the ‘Account Assignment on’ icon (looks like a match). They will be visible to the store person during the goods receipt process. If you wish to retain the account assignment entry for subsequent line items. Enter the appropriate Cost centre code for the item to be charged to. R Enter manually or use matchcode.Field Name G/L account Description General Ledger code R/O/C R Cost center Cost Centre R Unloading point Goods recipient Any notes required in connection with a line item may be entered here. shown below: 7 .

bmp Click on the ‘Enter’ button to proceed to the Invoice tab.5b Invoice tab 8 .bmp match on. 1.match off.

for exception see documentation for repair process. Code Tax code Description Used for tax determination with Vertex Tax status R/O/C O O User Action and Values Filled automatically Identifies the ltem’s relevance for tax. either.5 and then save the purchase order by proceeding to Section 1. as in Sections 1. save the purchase order by proceeding to Section 1.15 9 . Click on the Then: ‘Enter’ button or press enter. Comments No entriy here. enter information in the tax field as specified in the table below: Field Name Jurisdict. continue to enter further lines on the purchase order.4 and 1.15 or.On the Invoice tab.

enter additional information about the item on the purchase order. See Section 1.or. (To reach the field to enter the ‘Individual’ code: select the line you wish to make the entry for. click on the ‘Material data’ tab. click on the ‘Texts’ tab. See Section 1.8 To remove the requirement for goods receipt.6 Entering the account assignment for split charging If the screen below is reached due to the entry of an account assignment key ‘Y’ then enter the information as specified in the table below.14 1.10 To enter extended text for an item . click on the ‘Delivery’ tab. click on the ‘Conditions’ tab. See Section 1. click on the ‘Delivery address’ tab. See Section 1. click on the ‘More’ button. See Section 1. click on the ‘Texts’ Header tab.7 To enter a delivery schedule.12 To enter an alternative delivery address. Additional information may be entered as follows: To enter a vendor’s catalogue number. click on the ‘Detail’ icon.9 To enter a net discount for an item. See Section 1. See Section 1.) 10 .11 To enter a header text. click on the ‘Delivery schedule’ tab.

Enter the appropriate G/L codes for the proportions of the item being purchased. A search can be carried out via the matchcode button. Based on the distribution indicator set above enter here the quantity or percentage split for the cost object. An explanation of the structure of the G/L codes will be given during training by Central Finance. Location of Goods Recipient Will default in from Material Master if one is entered. Cost Centre/ Order/ WBS Element R/O/C R User Action and Values Select required data Comments R Select/key in required data. They will be visible to the store person during the goods receipt process. Any notes required in connection R Enter the appropriate Cost object code for a portion of the cost or the item to be charged to. A search can be carried out via the matchcode button. These will not be printed on to the hard copy of the purchase order. An explanation of the structure of the G/L codes will be given during training by Central Finance. R G/L account General Ledger code R Unloading point Goods recipient Any notes required in connection with a line item may be entered here./percent Cost center/ Order/WBS Element Description Whether the split of quantity/value will be based on quantity or percentage. R Fill in manually or via Matchcode 11 .Field Name Distribution Qty.

1. ‘Enter‘ to go to the ‘Invoice’ tab’ and return to Section 1.with a line item may be entered here. Once the required data above has been entered.7 Entering a vendor’s catalogue number: On the Material data tab under Item details. These will not be printed on to the hard copy of the purchase order. field as specified in the table below: 12 .5b Invoice tab of this Guide. They will be visible to the store person during the goods receipt process. no. enter information in the Vendor mat.

enter in the required delivery quantities line by line down the schedule table as specified in the table below: 13 .15 below. Proceed to another section to enter further information or to save the purchase order go to Section 1. Once the required data above has been entered click on ‘Enter’ to proceed.8 Entering a delivery schedule: On the Delivery schedule data tab under Item details. Comments May default in if entered in the info-rec. mat. Description Vendor material number R/O/C O User Action and Values The product code of the material with the vendor.Field Name Vend. 1.

15 below.9 Removing the requirement for goods receipt: On the Delivery tab under Item details. Used for vendor evaluation. remove the requirement for goods receipt by clicking on the ticks in the ‘Goods receipt’ and ‘GR non-valuated’ to remove them.Field Name Delivery date category Delivery date Scheduled qty. Date will give a value for vendor evaluation. del. weekly or monthly Date expected for delivery of material Scheduled quantity R/O/C R R R/O User Action and Values Default is “D” for daily Entered manually The proportional quantity of the total ordered to be delivered at the date specified for that line in the schedule. Comments StatDelD Statistical Delivery Date C Once the required data above has been entered click on ‘Enter’ to proceed. 1. Proceed to another section to enter further information or to save the purchase order go to Section 1. Day of goods receipt – stat. 14 . Description Indicates daily.

that you don’t have to book goods received for that item. Proceed to another section to enter further information or to save the purchase order go to Section 1. 1.Once the required entry above has been made click on ‘Enter’ to proceed.10 Entering net discount for an item 15 . Please note. that removing the requirement for goods receipt resulted.15 below. Setting the GR non-valuated means. that GR will not be posted in FI. It will be posted with the invoice later. that another person acknowledges that the goods were delivered. At Zeiss it is common.

11 Entering extended text for an item Select the Texts tab under Item details: 16 . Rate Rate/ Price/ Percentage/ Value O Enter this value in the format dictated by the condition type. Although changeable the rate/price entered for PBXX must be maintained.On the Conditions tab under Item details. Proceed to another section to enter further information or to save the purchase order go to Section 1. 1.15 below. enter information as specified in the table below: Field Name CnTy Description Condition Type R/O/C O User Action and Values Enter in the relevant condition type. This could be a discount or surcharge. Comments Those already present on the screen are mandatory. Once the required data above has been entered click on ‘Enter’ to proceed.

Than a text editor appears. Double-click in the text window .On this tab one can enter extended text messages to appear against the line item. Certain texts can be defaulted in from other master data records such as the ‘Info record PO text’ and the ‘Material PO text’ Once the required text has been entered click on ‘Enter’ to proceed. Example for line-editor : 17 . Select ‘Item texts’ and type in the required text message in the blank field. There are two text-editors available. one is the so-called line-editor. the other continuous-text-editor. These texts will appear on the PO between each line item.

Same Text in the other editor: 18 .

12 Entering PO header text messages Select the Texts tab.Go Back to PO with the Back-Button Proceed to another section to enter further information or to save the purchase order go to Section 1. 1. under the Header: 19 .15 below.

Proceed to another section to enter further information or to save the purchase order go to Section 1. Once the required text has been entered click on ‘Enter’ to proceed.15 below. These texts will appear on the PO at the bottom. select the ‘Address’ tab under Header and the address will be displayed.13 PO vendor address details To view the vendor address. Select ‘Header text’ and type in the required message in the blank field. 1.On this tab one can enter extended text messages to appear against the line item. 20 .

to view the purchase ordering address select the ‘Partners’ tab under Header. Select the ‘Ordering Address’ line and click on the ‘Details’ icon. 21 .If the vendor has a different purchase ordering address.

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Firstly it is being used for its true purpose which is to enter alternative delivery addresses on to the purchase order. be it for a customer account number or standard delivery address. Delivery address’s are master data and thus need to be set up. the delivery address functionality will be used to provide all of the possible delivery addresses these vendors might deliver too but also include in the account number. is virtually the same and will therefore be described in one process as follows: 23 .1. If you require either a delivery address or one with an account number being set up please refer to the User Guide script ‘Delivery Address for alternative delivery’. On the Delivery address tab under Item details. The processes for entering alternative delivery addresses. Secondly where departments order from a vendor with which they have a specific account number that must be printed on the purchase order.14 Entering an alternative delivery address/Customer a/c # with vendor. enter information as explained below: The delivery address functionality of SAP is being utilised Zeiss to fulfill two functions.

Click on the ‘Enter’ button to carry out the search. • Place the cursor in the ‘Address’ field • Click once on the ‘Matchcode’ button to the right of the field • A selection criteria tab will appear. It will not insert the selected delivery address for subsequent line items that have already been entered. Click on the record number in the ‘Delivery Address’ tab. If this is not known carry out a search as follows. Click on the button to switch off the selected delivery address from being automatically inserted against subsequent line items that are to be entered. The following options are now available to you. Click on the ‘Enter’ button to validate the screen and to default in the address you have selected. 1.15 Saving the purchase order or adding further line items If this form has directed you to this section then you now have the choice of doing the following: 24 . in the Address field enter the master record number of the intended delivery address. The results of the search will be displayed. ‘Enter’ button to place the address’s • 2. Click on the ‘Enter’ button to accept the delivery address for the selected line item. Click once to place the cursor somewhere on the lines of the delivery address required. Proceed to another section to enter further information or to save the purchase order go to Section 1.15 below. under Item details.5.4 and 1. Remember the sort terms A & B follow a convention set out in the delivery address create Business Process Procedures 1.1. Once the required data above has been entered click on ‘Enter’ to proceed. 3. Enter any criteria that may narrow your search or leave blank for a generic search. Click on the button to automatically insert the selected delivery address for subsequent line items that are to be entered. In the ‘Delivery Address’ tab.

4 above. Alternatively. (Transaction code: .ME21N) 25 .Save the PO. Do this by clicking on the ‘Save’ button. Enter further line items. Upon saving. Do this as explained from 1. the system will assign a PO number at the foot of the screen.Logistics> Materials Management> Purchasing> Purchase order> Create> Vendor/supplying Plant known. review and change details entered before saving the PO.0 Quick reference guide to create a Purchase Order Path: . 2.

enter the Account assignment category. If required. entering information in the Item Overview fields. Order or Sales Order number. In the Org. Net price and Material Group. In the Account assignment tab. enter any further information for the line item. In the Item Overview fields. check the correct Purchasing Group has defaulted in. Enter. in the Account assignment tab and Invoice tab. If required. PO quantity. select the required vendor. Enter. enter the G/L account and either the Cost center.In the fields next to the shopping trolley. Save. data Header tab. as above. In the Vendor field. Order Unit. the short text. 26 . Enter. enter further line items. check the correct Purchasing Document type has defaulted in. Enter.

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