What is the difference between purchase requisition and purchase order in SAP MM?

In SAP MM, a purchase requisition is a document created by a user to inform the purchasing department of the materials or services that are required. It is an internal document that initiates the procurement process. A purchase requisition contains information such as the material or service required, quantity, required delivery date, and the cost center responsible for the requisition.

On the other hand, a purchase order is a formal document issued by the purchasing department to a vendor requesting the delivery of specific materials or services at an agreed-upon price. A purchase order is a legally binding document that outlines the terms and conditions of the purchase, including the quantity of materials or services, pricing, delivery date, and payment terms.

Therefore, the key difference between a purchase requisition and a purchase order in SAP MM is that a purchase requisition is an internal document used to request materials or services, while a purchase order is an external document sent to a vendor to place an order for the required materials or services.