Purchase Order In SAP MM

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Published Date

22nd September, 2020




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Purchase Order

It is an outgoing document. It is an ultimate document

It is a legal document

A purchase order is a request to a vendor to supply certain goods or services under the stated conditions.

It is confirmation from the company regarding Materials, Quantities, and Delivery details

You can create Purchase Order

  • Manually
  • With respect to PR, RFQ, Contract, another Purchase Order
  • With respect to PR, RFQ, contract, and other PO at a time

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You can change the price and quantities here even though we agreed for earlier at the time of negotiations

The Standard Document Types for Purchase Order are:

  • NB – Standard PO
  • FO – Framework order (Blanket PO/Limit PO)
  • DO – Dummy PO
  • EC – Electronic Commerce (for SRM applications)

The Purchase Order in SAP screen is divided into three sections

Header: Does this section contain information applicable to all line items contained on the purchase order like:? Purchase org, Purchase Group, Company code Details

Item Overview: This section contains information on the materials and/or services to be delivered or rendered. ? Material No, Description, Quantity, Delivery Plant and StorageLocation, etc.

Item details: This section contains information that will be applicable to a particular line item in the purchase order. ? Material description, Material group, quantity, etc.

Purchase Order having ‘N’ Transaction also.


Note: When you enter the purchase order data the system suggests default values. For example:

It suggests the ordering address, as well as the terms of payment and freight (incoterms) from the vendor master record.

If you have maintained a material master for a given material in the R/3 System, the system suggests the material short text or the material group,

If a purchasing info record already exists in the system, the system copies a price proposal to the purchase order.

Related Article: SAP MM Tutorial

IMG settings - Purchase Orders

Purchase Orders

Purchase Orders IMG settings

Define Number range Define Document type of Purchase Orders Assign number range to document type Set tolerance for price variance (PE, SE)

Release Procedure for PO

  • Edit Characteristics (CT04)
  • Edit Classes (CL02)
  • Define Release Procedure for PO (SPRO)
  • Check Release Strategies (OMGSCK)

Automatic Conversion of PR to PO


  1. Material Master purchasing view tick automatic PO checkbox
  2. The vendor master purchasing view ticks the automatic PO checkbox.
  3. Maintain Source list for Vendor & Material. (ME01)
  4. Maintain Purchase Info Record. (ME11)
  5. Create a Purchase Requisition. (ME51)
  6. Note: During the creation of PR, select checkbox of Source Determination in
  7. 1st screen of ME51 /ME51N 8. Use Code: ME59 & execute for PR for the vendor, it creates an automatic PO.

Enter the document type field in case if you want to create the PO with your document type.


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