sap purchase requisition account assignment category determination

Creating Purchase Requisitions

After completing this lesson, you will be able to create a Purchase Requisition for Stock Item and Consumable Material .

Purchase Requisitions

As a long-term SAP user, you want to understand the usage of purchase requisitions in the purchase to pay business process as well as the usage of document types, item categories and account assignment for consumable items.

A purchase requisition is an internal document that the purchasing department uses to procure a particular quantity of a material or a service for a particular date.

A purchase requisition can be created directly or indirectly.

Directly means that a purchase requisition is created manually in the department that has the need. Whoever creates the purchase requisition determines which material or service in which quantity, and for which date have to be ordered.

Material requirement planning (MRP)

Maintenance orders

Planned orders

You can also initiate purchase requisitions from SAP Ariba.

When you create a purchase requisition for materials that have a material master record, the system transfers the data in the material master record to the purchase requisition. You also have the option to select items from a web-based catalog.

You can convert purchase requisitions into requests for quotations (RFQs), purchase orders (POs), or outline agreements.

Purchase Requisition Processing

Account assignment objects.

If you buy material, you procure it either for stock or for direct consumption.

You need to enter an account assignment for an item under the following circumstances:

If you order a material that is not subject to value-based inventory management and post its value directly to consumption (pure consumable material)

If you order an article that does not have a material master record

If you order a service

If you want to procure a material as a consumable, you must specify an account assignment category and other account assignment data in the document item of the purchase requisition or purchasing document.

The account assignment category determines the account assignment object category that is to be charged. You must provide the account assignment data. The accounts are debited when the goods receipt or invoice is posted.

The following are the examples of account assignment objects:

The account assignment object cost center (account assignment category K): When you make an account assignment to a cost center, you must enter the general ledger (G/L) account number of the consumption account. You must also enter the cost center for which the material will be procured on the account assignment data screen. You can specify that the system automatically proposes the number of the GL account to be charged in Customizing.

The account assignment object asset (account assignment category A): If you use account assignment category A, you have to enter the asset number on the account assignment data screen. The system automatically determines the G/L account to charge based on the asset number you cannot enter manually.

Procurement for Consumption

When you procure a material directly for consumption, no material master record is necessary.

The characteristics of consumable materials with a master record are as follows:

There is no value-based inventory management.

The system automatically updates consumption in the material master record.

In SAP S/4HANA, the term "consumable material" is any material subject to procurement whose value is settled using cost element accounts or asset accounts. Therefore, a consumable material is procured directly for an account assignment object.

When procuring a consumable material without a material master record, you have to enter a short description, a material group, and a purchase order unit in the document manually. You have to do this because you cannot fetch this data from a master record. This is not true for a material with a master record. For these materials, the material type controls whether inventory management takes place on a value basis.

Procurement for Consumable Materials

When you procure a consumable material, a material master record is not required, but can be used.

You can procure stock material for consumption. In all cases, you must specify an account assignment category and other dependent account assignment data, such as an account assignment object and a G/L account (consumption account). At the time of goods receipt or invoice receipt, the system debits the consumption account the purchase order specifies with the procurement value. Additionally, the system posts the amount to the account assignment object.

The Procure to Pay business process integrates with many different SAP application modules.

A purchase requisition can be created from a MRP run.  If a purchase requisition line item is a consumable for a cost object, then upon saving the purchase requisition, a commitment in Management Accounting is created. Please note: Commitment Management within Management Accounting needs to be activated.

 If a purchase order line item is a consumable for a cost object, then upon saving the purchase order, a commitment in Management Accounting is created. Please note: Commitment Management within Management Accounting needs to be activated.

When you save a goods receipt for stock materials, on hand inventory is increased.

If a change in material valuation occurred, then the system creates an accounting document in Financial Accounting.

If the purchase order was for consumable materials, the system not only creates an accounting document in Financial Accounting, but also creates a controlling document in Management Accounting and creates a document to update the Material Ledger.

If the organization is using Warehouse Management, then the system creates a transfer requirement.

Lastly, the system updates the purchase order history.

When an invoice is posted, the system creates an accounting document, in Financial Accounting to record the liability owed to the vendor.  The system, also creates an open item against the vendor’s account.

If the purchase order was for consumable materials, and the invoice amount differs from the purchase order amount, then the system creates a controlling document, in Management Accounting.

Create a Purchase Requisition for a Stock Item and a Consumable Material

Log in to track your progress & complete quizzes

3486240 - Custom Account Assignment Category Not Considered for PR Replication in Central Requisitioning

In Central Procurement, Purchase Requisition is created with custom account assignment category in Hub system, but the account assignment category is not considered when the PR is replicated to the Connected system.

Environment

• Materials Management (MM)
• Central Procurement
• SAP S/4HANA

1XI, PurchaseRequisitionReplicationRequest_In, AccountingCodingBlockTypeCode, custom defined account assignment category, accounting category, non-standard account assignment category, not supported, not transferred, not considered, not replicated, not respected, not taken into consideration , KBA , MM-PUR-HUB-REQ , Self-Service Requisition for Central Procurement , MM-PUR-HUB-PR , Processing Purchase Requisitions centrally , Problem

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ERProof » SAP MM » SAP MM Training » SAP Purchase Requisition

SAP Purchase Requisition

SAP Purchase Requisition is a document created by SAP ERP during the requirement determination phase. To understand the meaning and the use of SAP Purchase Requisition, it is essential to understand the Procure to Pay business process and SAP ERP Materials Management functionality.

Companies acquire goods and/or services in order to meet their needs by purchasing them. These purchases are happening in a series of activities named Purchase to Pay business process .

SAP has introduced SAP ERP software that is assisting companies in managing their daily work including the Purchase to Pay process. SAP has therefore designed functionality to cover this entire Purchase to Pay process and called it Materials Management .

The Purchase to Pay process in Materials Management is based around a general cycle of actions called the procurement cycle, which comprises a series of eight steps known as:

• Determination of Requirement
• Determination of Supplier Source
• Vendor Selection
• Purchase Order Processing
• Purchase Order Monitoring
• Goods Receipt
• Invoice Verification
• Payment processing

The Determination of Requirement is the first phase of the procurement cycle and the phase where SAP generates a document called SAP Purchase Requisition .

SAP Purchase Requisition – Introduction

As depicted on the figure below, the determination of requirement step starts the procurement cycle. It is a step at which users or departments determine materials requirements manually or automatically using materials planning and control. SAP Purchase Requisition can be defined as a procedural method by which users or departments can request the purchase of goods or services, and it will contain information such as the material or service to be procured, a required date of delivery, and a quantity. SAP Purchase Requisition is either manually created (directly created) or automatically created (indirectly created).

Create SAP Purchase Requisition Manually

This part describes the steps how a requisitioner will generate SAP purchase requisition by manually creating it.

In order to do that, one can type the transaction code ME51N in command field.

Alternatively, one can navigate to the following SAP menu path:

Logistics > Materials Management > Purchasing > Purchase Requisition > Create

A purchase requisition can be created with a material master record or without it.

Created SAP Purchase Requisition with a Material Master Record

SAP business processes use master data on a long-term basis. Centrally created, all applications and authorized users can utilize it. It is therefore a common way to purchase a product or service that already has a material master record.

SAP purchase requisition for a material having a material master record will require a requisitioner to enter the following information:

• The material number of item or service (e.g., R-B209)
• The quantity to be procured (e.g., 20)
• Date of delivery of the material (e.g., today date + 3 days)
• Plant location of the delivery (e.g., 1100)

Moreover, after entering the above information and pressing on Enter button, the requisition process will fill up by default the information into some of the blank fields.

Let us explore some of the information requested by the purchase requisition screen. We will not explain all of them but I am inviting you to use the F1 and F4 button to learn more about each field you want to know. The important fields are:

The account assignment category , which determines what type of accounting assignment data is required for purchase requisition. It can be a cost center, a cost object, a general ledger account, and an asset

The plan and storage location that are entered whether the location where the materials are to be shipped to is known.

Created SAP Purchase Requisition without a Material Master Record

This kind of requisition is created the same way as the requisition with a master record. However, as there is no material master record for the good or service the following information will have to be entered:

• Account assignment category (e.g., U)
• Short text for description (e.g., Laptop Lenovo with an i3 processor)
• Quantity to be Supplied (e.g., 3)
• The unit of measure (e.g., PC)
• The delivery date (e.g., today date + 3)
• Material group (e.g., 0020010)
• The plan (e.g., 1100)
• The purchasing group (e.g., 001)

In this case, it is essential to enter an account assignment category to direct the cost to a specific account. We will be using U , which will direct the requisition to an unknown account. There are also other options:

• A for Asset and sub number
• F for production order number
• K for cost center and general ledger account number
• C for sales order and general ledger account number
• P for project number and general ledger account number

After pressing Enter button, an error message in the form of a red mark on the item line (in the column Status ) will appear.

On the SAP status bar, an error message will be asking you to enter a valuation price under the valuation tab.

The valuation tab is appearing in a form under the following Item button.

It is important to notice that during the creation of SAP purchase requisition with a material master record a similar form was appearing and it was listing the item master record information on various tabs. In this case, there is no valuation price.

Enter the following information and press Enter button:

• Valuation price (e.g., 1000)

The error message will disappear and the purchase requisition process will ready for the next step.

Create SAP Purchase Requisition Automatically

SAP purchase requisition is created automatically when it is generated by other SAP processes that include:

Production Order

Plan maintenance order, project system.

• Material Planning

Let us briefly describe how SAP purchase requisition will be created in each of these processes.

SAP routing and the bill of materials (BOM) are determining how the production order is working. SAP routing is a sequence of the operation that take place and the bill of materials (BOM) is the recipe leading to the production of the final material. In the routing, an operation may need a material to be sent out for external processing service and the bill of materials may call for a material that is a non-stock item. For both cases, SAP purchase requisition will be created.

Maintenance order is created for plant maintenance operations on equipment at the plant. A maintenance order has a list of operations that has to be performed. The operations give the maintenance user a systematic list of what need to be done and the materials needed for each step. In the operation, they may be a need for a non-stock material and the maintenance order may need an external operation. For both cases, SAP purchase requisition will be created.

In SAP project system, the network is an object consisting of a set of instructions that tell the project users what tasks need to be performed, in what order, and by what date. A network will create SAP purchase requisition(s) for non-stock materials and external services, if it is configured to allow creation of SAP purchase requisition as soon as it has been released.

Materials Planning

The consumption-based planning module can create SAP purchase requisition based on its calculations.

SAP Purchase Requisition Transactions

SAP purchase requisition can be changed, displayed, closed or followed on by a function. The transaction codes allowing this processing are:

• ME52N to change the purchase requisition
• ME53N to display a purchase requisition
• ME5A to display a list of purchase requisition following specific criterias
• MELB to display a selected purchase requisition based on its tracking number.
• ME52N to select an item line you wish to close in the purchase requisition form. This operation is executed as follows: Select the item line, then click on Edit on the menu bar, then on Delete .
• ME56 to allow a selected range of purchase requisitions to have a source assigned which is a follow-on function.

SAP Purchase Requisition allows organizations to fulfill the following business processes:

• Identify where goods and/or services are needed
• Explore vendors discount and favorable terms offered by them
• Create the best purchase order for each vendor

Without it, end users would be responsible for purchasing decision which can it turn lead a company to non-optimal procurement.

Did you like this SAP MM tutorial? Have any questions or comments? We would love to hear your feedback in the comments section below. It’d be a big help for us, and hopefully it’s something we can address for you in improvement of our free SAP MM tutorials.

Navigation Links

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11 thoughts on “SAP Purchase Requisition”

Really intetresting But in the field “SAP Purchase Requisition Transactions” of this tutorial, it is mentioned ME54N as t-code to display purchase requisition. But isn’t it ME53N to display purchase requisition and ME54N to release PR?.

You’re right! Thank you for reporting this typo!

Kindly share a process for Purchase Requisition > For Raw Material to Finished Product at Venor’s work. Which Material is to be enter in Purchase Requisition, Raw Material or Finished Product Material.

For A Material which is going to be sent for vendor works for Some Activities (i.e Machining, Testing, etc.) then how this is to be process?

Do you mean subcontracting process ?

Nice explanation at all..

Agreed…Yes it is..

Interesting. Given thorough process. Sill some screen shot would more help full.

Thank you…great explanation

Want to know more about background setting on display IMG..

Please share the full workflow configuration for Purchase Requisition through SWDD…..

This was really helpful for me

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