Purchase Cycle – PR>PO>GR>IR

Overview of SAP Best Practices for the SAP MM Purchasing Process – Purchase Cycle:

Definition

Purchase Cycle in SAP MM is a series of steps that manage the procurement of goods and services. It begins with identifying a need and ends with the payment for the purchased goods or services.

Purpose

The purpose of the Purchase Cycle is to streamline and automate the procurement process, ensure timely and cost-effective purchasing, and maintain accurate records of transactions.

Process Flow

1. Requirement Identification: Identify the need for goods or services.
2. Create Purchase Requisition (PR): Generate a document that specifies the required goods or services.
3. Source Determination: Identify potential vendors for the required goods or services.
4. Create Request for Quotation (RFQ): Request quotes from vendors.
5. Vendor Quotation: Receive and evaluate vendor quotations.
6. Create Purchase Order (PO): Formalize the order with the selected vendor.
7. Goods Receipt (GR): Receive and inspect the goods.
8. Invoice Verification: Verify the invoice against the PO and GR.
9. Payment Processing: Process payment to the vendor.

Tables

• EKKO: Purchasing Document Header
• EKPO: Purchasing Document Item
• EBAN: Purchase Requisition
• EKBE: History per Purchasing Document
• EORD: Purchasing Info Record

Configuration

1. Define Document Types: Configure document types for Purchase Requisitions, Purchase Orders, and Invoices.
2. Maintain Vendor Master Data: Ensure accurate and up-to-date vendor information.
3. Set Up Purchasing Info Records: Maintain records with information about the material and vendor.
4. Configure Release Procedures: Define approval processes for Purchase Requisitions and Purchase Orders.
5. Define Tolerances: Set tolerance limits for invoice verification.
6. Set Up Account Assignment: Configure account assignment categories for purchase requisitions and orders.

Integration

• MM and SD Integration: Ensure seamless flow of information between Material Management and Sales and Distribution.
• MM and FI Integration: Integration with Financial Accounting for invoice processing and payment.
• MM and PP Integration: Coordination with Production Planning for material requirements.

Testing

1. Unit Testing: Test each component of the Purchase Cycle in isolation to ensure it functions correctly.
2. Integration Testing: Test the entire Purchase Cycle to ensure all components work together as expected.
3. User Acceptance Testing (UAT): Validate the Purchase Cycle process with end-users to ensure it meets business needs.
4. Performance Testing: Assess the performance of the Purchase Cycle under various conditions.

Detailed Examples and Test Data

Example 1: Creating a Purchase Requisition

• PR Number: 12345
• Material: Laptop
• Quantity: 10
• Delivery Date: 2024-09-15

Example 2: Vendor Quotation

• Vendor: ABC Corp
• Quotation Number: Q1001
• Material: Laptop
• Price: $500 each

Example 3: Purchase Order

• PO Number: 67890
• Vendor: ABC Corp
• Material: Laptop
• Quantity: 10
• Price: $500 each

Example 4: Goods Receipt

• GR Number: GR2024
• PO Number: 67890
• Material: Laptop
• Quantity Received: 10

Example 5: Invoice Verification

• Invoice Number: INV1001
• PO Number: 67890
• Amount: $5000