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

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 vendors 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

2.0

Quick reference guide to create a Purchase Order

1.1

Required Fields:

The fields that require an entry when raising a purchase order are:

Input - Required Fields

Field Value / Comments

Purchase Order Type

Should be defined as a personnel setting by the user to default in the purchase

order document type for each department.

Vendor

Vendor number

Purchase order date

Purchase Order date. Should default.

Purchasing Organization

Should be defined as a personnel setting by the user to default in as 7002.

Purchasing Group

Should be defined as a personnel setting by the user to default to the department

or area for whom the Buyer is purchasing.

Delivery date category

Daily, weekly, or monthly

Delivery date

The expected delivery date can be entered.

Material

Material number if material master exists, leave blank if it doesnt.

Short text

Defaults from material master if a material master exists. If there is no material

master record, enter a description of the material. If a pack size needs to be
defined this should be entered at the beginning of the description eg 10g sodium
chloride, 25g sodium chloride.

Material group

Account Assignment category

Defaults from material master if a material master exists. If there is no material

master record, enter the Material group code.
The type of account, eg K - Cost center, F- Order, E or M - 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.

Quantity
Unit of Measure

Eg Each, Box, bin etc

Net price

Net Price per unit of the material

Plant

Will default in as 7002.

Storage location

If the item being ordered is to go into a stores as a stores stock item, enter the
relevant store.

Vendor material

Supplier catalogue number.

Tax code

Not mandatory, do not maintain with Z5A Order type

General Ledger account

Defaults from material master if a material master exists. If there is no material

master record, enter the relevant G/L account here

Account Assignment code

The Cost center, Sales Order or project code, 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.

Individual

Unloading point/Goods recipient

If you require to identify the requisitioner of each line item, 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. These will
not be printed on to the hard copy of the purchase order. They will be visible to
the store person during the goods receipt process.

1.2

Accessing the Create Purchase Order screen:

To access 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.

1.3

Entering Header Information:

On the Create Purchase Order screen, in the Header fields next to the shopping trolley, enter
information as specified in the table below:

Field Name
Order type
(Purchasing)

Description
Purchase order document type

R/O/C
R

Purchasing
document
number
Vendor

Purchase Order Number

Vendor number

User Action and Values

Should default in the purchase order
document type for each department,
as defined in Personal setting.
Number will be internally assigned

Comments
To define your personal
setting see User Guide

From the drop down menu that

appears when you place the cursor in

Where a vendor has a

Head Office and a

Leave blank

this field, enter the code of the

relevant Vendor required.
Doc date

Purchase order date

Purchase Ordering
Address, first select the
Head Office Address.

Date PO created defaults to todays

date

Once all the required data mentioned above is entered click on either the
proceed.

or Enter to

On the Org. data Header tab enter information as specified in the table below:

Field Name
Purchasing
Organization
Purchasing
Group
Company code

Description
Purchasing Organization code

R/O/C
R

Purchasing Group Code

Company code

User Action and Values

Should default in as 7002 as defined
in Personal setting.
Should default as defined in Personal
setting.
Should default in as 0284 as defined
in Personal setting.

Comments

1.4

Entering Item Overview information:

In the Item Overview fields, 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), sales
order (E), or Cost Center (K,J) to
charge costs

I (Item category)

Type of purchase

Will default in blank for Standard.

Field Name
Material

Description
Material number

R/O/C
R

User Action and Values

Enter the material number if a material
master record exists. Leave blank if a
material master does not exist

Short text

Description of the material

PO Quantity
OUn (Unit of
Measure)

Required units or quantity

Unit of Measure

R
R

The description is copied from the

material master if a material master
exists. If there is no material master,
you must enter a description of the
material you want to purchase. Where
there is a requirement to order a
particular pack size of a material (eg
2.5l, 500g etc) this should be entered
here, at the beginning of the short
text.
Enter qty. required
Enter the units the material is sold in

C (Delivery date
category)
Deliv. date

Indicates daily, weekly or monthly

Default is D for daily

Date material is required

Enter the expected delivery date or

leave blank for system default

Net Price

Vendors Price

Currency
Matl group

Currency
Code categorising the type of
purchase being made.

R
R

Vendors current price (excluding VAT)

should be entered here
Default is USD (US Dollars)
Select the appropriate code

Plnt

Plant to which delivery is to be made

Default is 7002 for Surgical .

Comments
Orders and cost centers
will have assigned
numbers. If an item is to
be placed in stock then
you would not enter an
account assignment
category. Instead a
storage location
mentioned below would
be entered.

Comments
If no material master is to
be entered then a short
text description and a
material group is
required.
Will default in from
Material Master if one is
entered.

Will default in from

Material Master if one is
entered.

Will default in as the

current days date if no
entry is made.
Will default in from Info
Record if one exists.
Will default in from
Material Master if one is
entered.

Stor Loc
(Storage
Location)

Where stock is stored

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.

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. This can then act
to navigate you through the entry process.
Once the above data as required is entered click on the
Enter to proceed with a basic order. If you
are taken to the Account Assignment tab go directly to 1.5 below. If you entered an Account assignment
category , go to Section 1.6

1.5

Entering information in the Item details tabs:

1.5a

Account assignment tab

On the Account assignment tab, enter information in fields as specified in the table below.
To reach the Individual field, click on the More icon.

Field Name

Description

R/O/C

User Action and Values

G/L account

General Ledger code

Cost center

Cost Centre

Unloading point

Any notes required in connection

with a line item may be entered
here. These will not be printed on to
the hard copy of the purchase order.
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. These will not be printed on to
the hard copy of the purchase order.
They will be visible to the store
person during the goods receipt
process.

Enter the appropriate G/L code for the

item being purchased. A search can
be carried out via the matchcode
button.
Enter the appropriate Cost centre
code for the item to be charged to. A
search can be carried out via the
matchcode button.
Describe destination of goods

Enter manually or use matchcode.

Goods recipient

Comments
Will default in from
Material Master if one
is entered.

If you wish to retain the account assignment entry for subsequent line items, click on the Account
Assignment on icon (looks like a match), shown below:

match off.bmp

Click on the

match on.bmp

Enter button to proceed to the Invoice tab.

1.5b

Invoice tab

On the Invoice tab, enter information in the tax field as specified in the table below:

Field Name
Jurisdict. Code
Tax code

Description
Used for tax determination with
Vertex
Tax status

Click on the

Enter button or press enter.

R/O/C
O

User Action and Values

Filled automatically

Identifies the ltems relevance for tax.

Comments

No entriy here, for

exception see
documentation for
repair process.

Then:
either, save the purchase order by proceeding to Section 1.15
or, continue to enter further lines on the purchase order, as in Sections 1.4 and 1.5 and then save
the purchase order by proceeding to Section 1.15

or, enter additional information about the item on the purchase order. Additional information may
be entered as follows:
To enter a vendors catalogue number
To enter a delivery schedule

, click on the Material data tab. See Section 1.7

, click on the Delivery schedule tab. See Section 1.8

To remove the requirement for goods receipt

, click on the Delivery tab. See Section 1.9

To enter a net discount for an item , click on the Conditions tab. See Section 1.10
To enter extended text for an item , click on the Texts tab. See Section 1.11
To enter a header text , click on the Texts Header tab. See Section 1.12
To enter an alternative delivery address

, click on the Delivery address tab. See Section 1.14

1.6 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.
(To reach the field to enter the Individual code: select the line you wish to make the entry for,
click on the Detail icon, click on the More button.)

10

Field Name
Distribution

Description
Whether the split of quantity/value
will be based on quantity or
percentage.
Based on the distribution indicator
set above enter here the quantity or
percentage split for the cost object.
Cost Centre/ Order/ WBS Element

R/O/C
R

User Action and Values

Select required data

Select/key in required data.

G/L account

General Ledger code

Unloading point

Any notes required in connection

with a line item may be entered
here. These will not be printed on to
the hard copy of the purchase order.
They will be visible to the store
person during the goods receipt
process.
Any notes required in connection

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. An explanation of the structure
of the G/L codes will be given during
training by Central Finance.
Enter the appropriate G/L codes for
the proportions of the item being
purchased. A search can be carried
out via the matchcode button. An
explanation of the structure of the G/L
codes will be given during training by
Central Finance.
Location of Goods Recipient

Fill in manually or via Matchcode

Qty./percent

Cost center/
Order/WBS
Element

Goods recipient

Comments

Will default in from

Material Master if one
is entered.

11

with a line item may be entered

here. These will not be printed on to
the hard copy of the purchase order.
They will be visible to the store
person during the goods receipt
process.

Once the required data above has been entered, Enter to go to the Invoice tab and return to Section
1.5b Invoice tab of this Guide.

1.7

Entering a vendors catalogue number:

On the Material data tab under Item details, enter information in the Vendor mat. no. field as
specified in the table below:

12

Field Name
Vend. mat.

Description
Vendor material number

R/O/C
O

Once the required data above has been entered click on

User Action and Values

The product code of the material with
the vendor.

Comments
May default in if
entered in the info-rec.

Enter to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.
1.8 Entering a delivery schedule:
On the Delivery schedule data tab under Item details, enter in the required delivery quantities line by line
down the schedule table as specified in the table below:

13

Field Name
Delivery date
category
Delivery date

Description
Indicates daily, weekly or monthly

R/O/C
R

User Action and Values

Default is D for daily

Entered manually

Scheduled qty.

Date expected for delivery of

material
Scheduled quantity

R/O

StatDelD

Statistical Delivery Date

The proportional quantity of the total

ordered to be delivered at the date
specified for that line in the schedule.
Used for vendor evaluation. Day of
goods receipt stat. del. Date will
give a value for vendor evaluation.

Comments

Once the required data above has been entered click on

Enter to proceed.
Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.
1.9 Removing the requirement for goods receipt:
On the Delivery tab under Item details, remove the requirement for goods receipt by clicking on the ticks
in the Goods receipt and GR non-valuated to remove them.

14

Once the required entry above has been made click on

Enter to proceed.

Please note, that removing the requirement for goods receipt resulted, that you dont have to book
goods received for that item. At Zeiss it is common, that another person acknowledges that the goods
were delivered.
Setting the GR non-valuated means, that GR will not be posted in FI. It will be posted with the invoice
later.
Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.

1.10

Entering net discount for an item

15

On the Conditions tab under Item details, 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.

Rate

Rate/ Price/ Percentage/ Value

Enter this value in the format dictated

by the condition type.

Comments
Those already present
on the screen are
mandatory. Although
changeable the
rate/price entered for
PBXX must be
maintained.

Once the required data above has been entered click on

Enter to proceed.
Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.
1.11
Entering extended text for an item

Select the Texts tab under Item details:

16

On this tab one can enter extended text messages to appear against the line item. These texts will
appear on the PO between each line item. Select Item texts and type in the required text message in the
blank field.
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.

Double-click in the text window . Than a text editor appears.

There are two text-editors available, one is the so-called line-editor, the other continuous-text-editor.
Example for line-editor :

17

Same Text in the other editor:

18

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
1.15 below.
1.12

Entering PO header text messages

Select the Texts tab, under the Header:

19

On this tab one can enter extended text messages to appear against the line item. These texts will
appear on the PO at the bottom.
Select Header text and type in the required message in the blank field.
Once the required text has been entered click on

Enter to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section 1.15
below.

1.13

PO vendor address details

To view the vendor address, select the Address tab under Header and the address will be displayed.

20

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

21

22

1.14

Entering an alternative delivery address/Customer a/c # with vendor.

On the Delivery address tab under Item details, enter information as explained below:

The delivery address functionality of SAP is being utilised Zeiss to fulfill two functions. Firstly it is being
used for its true purpose which is to enter alternative delivery addresses on to the purchase order.
Secondly where departments order from a vendor with which they have a specific account number that
must be printed on the purchase order, 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.
Delivery addresss are master data and thus need to be set up. 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.
The processes for entering alternative delivery addresses, be it for a customer account number or
standard delivery address, is virtually the same and will therefore be described in one process as follows:
23

1. In the Delivery Address tab, under Item details, in the Address field enter the master record number
of the intended delivery address. If this is not known carry out a search as follows,
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. Enter any criteria that may narrow your search or leave blank
for a generic search. Click on the
Enter button to carry out the search. Remember the sort
terms A & B follow a convention set out in the delivery address create Business Process
Procedures 1.4 and 1.5.
The results of the search will be displayed. Click once to place the cursor somewhere on the
lines of the delivery address required. Click on the
record number in the Delivery Address tab.

Enter button to place the addresss

2. Click on the
Enter button to validate the screen and to default in the address you have selected.
3. The following options are now available to you,
Click on the

Enter button to accept the delivery address for the selected line item.

Click on the
button to automatically insert the selected delivery address for
subsequent line items that are to be entered. It will not insert the selected delivery address for
subsequent line items that have already been entered.
Click on the
button to switch off the selected delivery address from being
automatically inserted against subsequent line items that are to be entered.

Once the required data above has been entered click on

Enter to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.

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

Save the PO. Do this by clicking on the Save button. Upon saving, the system will assign a PO
number at the foot of the screen.
Enter further line items. Do this as explained from 1.4 above.
Alternatively, review and change details entered before saving the PO.

2.0

Quick reference guide to create a Purchase Order

Path: - Logistics> Materials Management> Purchasing> Purchase order> Create> Vendor/supplying Plant
known.
(Transaction code: - ME21N)

25

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

26

27