Creating a Purchase Order with SAP ERP

A Purchase Order can be created from another purchase document such as a purchase requisition or quotation. It can be also created without referencing another document.

In addition, the Purchase Order can be created knowing or not knowing the vendor in advance:

  • PO with vendor known, use transacions ME21N or ME21
  • PO with vendor unknown, use transaction ME25. In the last step, the SAP system must assign a vendor.

Each line in a PO can be assigned to an account or accounts.

The account assignment is implemented by selecting an Account Assignment Category.
For example the P code is assigned to the account assignment category “Project”. It could require a General Ledger (GL) account, a Business Area and a Project number.
The K code is for the account assignment category: “Cost center” and it could require a cost center number.


In a PO is possible to implement a Vendor Confirmation procedure by defining the Confirmation Categories.
IMG > Materials management > Purchasing > Confirmations > Define External Confirmation Categories


  • The Pricing Procedures are used to arrive to the net and effective price in a PO.
    They are based in Purchasing Information Records that are entered using the transaction ME11. If there is not pricing records procedures for a vendor-material combination it will be possible to manually enter the price in the PO.
  • Messages are documents in output format (printed, mail, EDI) for communication to vendors. Ther are created within the PO transaction.
  • It is possible to generate PO Lists and Reports using many criteria.


  • To change the Purchasing Order use transaction ME22N or ME22. With these transacions it is also possible to block or cancel a line in a PO.
  • Release procedures are approval procedures that are needed before the document can be processed further. They are defined in the SAP IMG. The releases can be:
    • Individual Release: Transaction ME29N
    • Collective Release: Transaction ME28


    Create a standard PO to the vendor 1011 (SKF Americas).

    Additional Data:

    • Purchasing Organization 1000 (IDES Deutschland); Purchasing Group: 026 (M. Sanchez).
    • The materials will be delivered to the plant IDES 1000 Plant (1000).
    • Payments terms: Within 10 days 5% cash discount, Within 20 days 2% cash discount (ZN10).
    • Account assigment category will be C (sales order).
    • Confirmations: An Advance Shipping Nofification (ASN) is necessary according to the Purchasing Information Record.

    The materials will be:

    • 20 pieces of Ball bearings (400-510); Delivery date (DD): June 19, 2012.
    • 32 mains adaptors 100-240 V (100-431); DD: June 28, 2012.
    • 26 Cover Plates (KR117182); DD: June 22, 2012.
    • There are conditions records only for the materials 400-510 and KR117182.


    1. Enter the transaction ME21N
    2. In the initial screen select standard PO and enter the vendor number.
    3. In the organization Data tab (Org. Data) of the header enter the Purchase Organization and Group Numbers.

    Image4.In the Delivery Invoice tab of the header enter the Payment terms number code (ZN10)

    5.In the items part enter the material code, the quantity ordered, and the plant for each material.


    6.There is a purchasing info record for two materials. Consequently their Net Price will be automatically included in the PO. For the other material, the price must be manually added.

    7.Save and create the document.

    8.To preview the document use the “Print Preview” option.



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