Explain the difference between a purchase requisition and a purchase order in SAP MM.

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Understanding the Difference Between Purchase Requisition and Purchase Order in SAP MM

When it comes to procurement processes in SAP MM, it's crucial to differentiate between a purchase requisition and a purchase order. The focus keyword for this discussion is "purchase requisition vs. purchase order in SAP MM."

Purchase Requisition

A purchase requisition is a formal request made by a department or user within an organization for the procurement of goods or services. It serves as an internal document that initiates the purchasing process. The focus of a purchase requisition is to outline the need for a particular item and request approval to purchase it.

Purchase Order

On the other hand, a purchase order is a document issued by a buyer to a seller that confirms the specific details of the goods or services to be purchased. It is a legally binding agreement that outlines the terms of the purchase, including quantities, prices, delivery dates, and payment terms. The focus of a purchase order is to formalize the transaction and facilitate the delivery of the requested items.

Key Differences

The main difference between a purchase requisition and a purchase order lies in their purpose and stage within the procurement process. A purchase requisition is an internal request for goods or services, while a purchase order is an external document that authorizes the purchase from a vendor.

By understanding and effectively managing the distinction between purchase requisitions and purchase orders in SAP MM, organizations can streamline their procurement processes and ensure compliance with their purchasing policies.

For more information on the nuances of purchase requisitions and purchase orders in SAP MM, contact our experts today!