PROCUREMENT PROCESS

The procurement process refers to the identification and

implementation of certain steps by businesses to ensure
they can acquire goods and services to meet their
requirements and achieve their objectives. A procurement
process is important because it has a direct impact on
how much a business can save.

Henry Harvin. ® All rights reserved

DETAIL UNDERSTANDING OF PROCUREMENT CYCLE
PURCHASE REQUISITION
CREATION OF REQUEST FOR QUOTATION
RFQ can also be created with reference to purchase
requisition by following the steps given below −
● On the home screen of RFQ, select Reference to PReq
tab.
● Enter the requisition number for which you want to create
an RFQ. Click on Save. A new Request for Quotation will
be created with reference to Purchase Requisition.
QUOTATION MAINTENANCE
 PRICE COMPARISON
In transaction ME49, Enter
● Purchasing organization
● Collective RFQ
● Execute the transaction.
● Check all the boxes in the Price Calculations section.
● Execute the transaction.

After comparing the prices/conditions, you can decide which offers

to accept and which ones to reject.
 CREATION OF OUTLINE AGREEMENTS
An outline agreement is a long-term purchasing agreement with a
vendor containing terms and conditions regarding the material that
is to be supplied by the vendor.The terms of an outline agreement
are valid up to a certain period of time and cover a certain
predefined quantity or value.
An outline agreement can be of the following two types −
● Contract
● Scheduling Agreement
 CONTRACTS
Path to Create Contract
Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒
Contract ⇒ Create
TCode: ME31K
● On the SAP Menu screen, select the Create execute icon by following
the above path.
● Provide the name of the vendor, type of contract, purchasing
organization, purchasing group, and plant along with the agreement
date.
● Fill in all the necessary details such as the agreement validity start date,
end date, and pay terms
● Provide material number along with the target quantity. Click on Save. A
new Contract will be created.
 SCHEDULING AGREEMENTS
Path to Create Scheduling Agreement
Logistics ⇒ Materials Management ⇒ Purchasing ⇒ Outline Agreement ⇒
Scheduling Agreement ⇒ Create ⇒ Vendor Known
TCode: ME31L
● On the SAP Menu screen, select the Create execute icon by
following the above path.
● Provide the name of the vendor, agreement type (LP for scheduling
agreement), purchasing organization, purchasing group, plant along
with agreement date.
● Fill in all the necessary details such as the agreement validity start
date, end date, and pay terms
● Provide material number along with the target quantity, net price,
currency, and material group. Click on Save. A new Scheduling
 PURCHASE ORDER FOR STOCK
Before stock can be added, a purchase order (PO) must first be
created. Stock can then be added to a purchase order per stock or
per item.
● Select {Add} under Stocks then select {Add Per Stock} from
the drop-down. An Add Stocks modal will open.
● Select stock by checking boxes on the left-hand side. Check
box above Stock column to select all stocks.
● Select {Add}. The added stock will now appear under Stocks
section.
PURCHASE ORDER FOR CONSUMABLE MATERIALS
PURCHASE ORDER FOR EXTERNAL
SERVICES
 DOCUMENT TYPES

● Purchase Requisition
● RFQ / Quotation
● Purchase Order
● Contract
● Scheduling Agreement
DEFINE NUMBER RANGES FOR DOCUMENT TYPES
DEFINE SCREEN LAYOUT AT DOCUMENT LEVEL