Overview of SAP Purchase Order

Overview of SAP Purchase Order

Definition of the SAP purchase Order                                                                                                                          

Formal instruction or request made by a buying organisation to a plant or a seller to provide or supply a specific quantity of services or goods in a stipulated span of time. Purchase orders can be utilised for a lot of procedures in procurement. They may be utilised for interior procurement that is from a plan to plant, or exterior procurement of supplies that is stock or direct consumption plus services. It is as well capable of utilising for third-party, subcontracting, and consignment processes. Purchase orders may be produced in line with a purchase requisition, sales order, contract, one more purchase order, quotation, or RFQ.


An SAP purchase order table is made up of a document header plus a quantity of items. The information provided in the header pertains to the whole of the purchase order, such as the terms relating to payment plus the terms concerning the delivery are well-classified in the header.

A procurement type happens to be classified for every document item. You come across the below –given procurement types:

Standard, subcontracting, consignment, stock transfer, and external service

The total volume of services to be carried out and materials to be supplied that is mentioned in your purchase order item may as well be further divided within the schedule lines into different quantities bearing the germane delivery dates.

For purchase order or PO, items need to be provided by subcontractors; you may indicate the required input components or materials that tend to be made available to the subcontractor for processing or assembly in relation to every delivery date fixed.

An item relating to the procurement type like ‘external service’ encloses a defined set pertaining to service specifications. Outline levels make-up the service lines and service specifications establish the quantity ordered. Value limits may be specified in place of service lines meant for work or services which at first may not be specified accurately.

In case services encompassed by any already existing deal or contract may be released that can be ordered or cancelled; the purchase order may enclose a value limit pertaining to the contract in hand.


Conditions hold god at different levels:

1-In relation to the whole of the purchase order

2- As regards the set of services specified for services if any, to item level or to the material that ought to be provided

3- Activities or tasks – at the level of service line meant for individual services

4- Simply account assignment

5- Costs may be allocated amid different controlling objects by making use of the account assignment

Vendor Confirmations

Vendors are capable of issuing confirmations to the germane buying organisation confirming their non-compliance or conformity to the set delivery dates.

Purchase order history

The deals following-on from any PO may be documented within the purchase order history depending on the item specified.

Partner Roles

In place of the seller being the order receiver, various other business partners may perform varied partner roles such as creating invoice or supply goods.

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