Key Differences Between Purchase Order and Purchase Requisition in SAP MM

A Purchase Order in SAP MM is a formal request to a vendor to supply goods or services at a specified price, quantity, and delivery date. It is a legally binding document that outlines the terms and conditions of the purchase agreement.

On the other hand, a Purchase Requisition in SAP MM is an internal document created by a user or department requesting the purchase of goods or services. It is a preliminary step in the procurement process and serves as a notification to the purchasing department that goods or services are needed.

Key Differences:

• Purchase Order is a formal request to a vendor, while Purchase Requisition is an internal document.
• Purchase Order is a legally binding document, while Purchase Requisition is a request for procurement.
• Purchase Order specifies the terms of the purchase agreement, while Purchase Requisition initiates the procurement process.

Relationship in the Procurement Process:

In the procurement process, a Purchase Requisition serves as the starting point where the need for goods or services is identified. The purchasing department reviews the Purchase Requisition and converts it into a Purchase Order once approved. The Purchase Order is then sent to the vendor to fulfill the request.