suresh Types of Procurement Processes in SAP MM
Procurement processes in SAP MM involve various stages and methods to acquire goods and services. There are several types of procurement processes in SAP MM, each serving a specific purpose.
1. Purchase Requisition (PR)
A purchase requisition is a formal request for the procurement of goods or services. It initiates the procurement process and contains details such as the item description, quantity, required delivery date, and the requesting department.
2. Purchase Order (PO)
A purchase order is a legal document issued by a buyer to a seller, indicating the products or services to be purchased, terms and conditions, pricing, and delivery schedule. It formalizes the procurement contract between the buyer and the seller.
3. Request for Quotation (RFQ)
An RFQ is a document sent to potential suppliers to request pricing and delivery information for specific products or services. It helps in comparing supplier offers and selecting the best value proposition.
4. Vendor Evaluation
Vendor evaluation involves assessing and comparing potential suppliers based on criteria such as quality, price, delivery time, and reliability. It helps in selecting the most suitable suppliers for procurement needs.
These are some of the key procurement processes in SAP MM that play a crucial role in efficiently managing the purchasing activities within an organization.
Focus Keyword: procurement processes in SAP MM
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