Procurement Activities

Procurement Activities

Procurement activities flow is given as below table:

Procurement Activities	Description
Requirement Determination	It is the logical subdivision where it is determined that what material or services are required to company, and which supplier can fulfill the requirement. Outside the system
Creating Purchase Requisition	It is the phase in which purchasing department is informed about the requirement of items or services required for business purpose. A requisition is a internal document. Tcode: ME54N (Create PR)
Creating Purchase Order	It is the phase when order is created from requisition and it is approved and assigned to a supplier. Tcode: ME21N (Create PO)
Goods receipt/ Invoice Received	The material is received by the company and the condition and quality are verified. In this phase Invoice is received from the vendor. Tcode: MIGO (Goods receipt)
Invoice verification	The reconciliation of the invoice and PO is accomplished to confirm they are matching. After verification, the invoice document is created in SAP and locked for the payment process. Tcode: MIRO (with PO reference), FB60 (not related to PO), F-43
Invoice payment	There are many methods to perform a vendor payment in SAP. One method is to post Outgoing Payment with Tcode F-53. Tcode: F-53, F-44, F110

Last updated by Phu Dang, 20 Oct 2017