Purchase Order

Let us see how to create a purchase order using a transaction code ME21N. Now this is the screen which we’ll get when we enter the purchase order.

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Now here we’ll have the purchasing organization, the purchasing group and the company code details. Now after this, on the next tab we have the additional data details like validity start date and validity end date for that particular purchase order.

After this we’ll have to maintain the item details under that purchase order. So here we’ll check the account assignment details.

Here we have the general ledger account, the controlling area, and the order number which is created for this purchase order.

So here we’ll have the invoice details like invoice receipt, then GR based invoice and tax code details for taxes.

Now after this we’ll have to maintain the condition details for this particular purchase order and we’ll click on the save button.

So once we click on the save button, we’ll get a message that purchase order for this particular created purchase order, that is capital item slash asset is created under the number this. So this is how we create a purchase order. So once we enter the purchase order all these details will be automatically entered and we only have to check for the details, and we’ll click on the save button. And once we click on the save button, we’ll get the message stating that purchase order is created.

 

Next, we’ll see how to release a purchase order. So for releasing the purchase order, we’ll use a transaction code ME29N. So here under ME29N we have to provide the PO number, which needs to be released.

So we’ll release the PO number, we’ll have to check under the Release Strategy tab for the release indicator. So here the release indicator is set as B, that is blocked for this particular PO. So in order to release this indicator we need to change it to R. So we click on the change icon and we’ll change the release indicator to R. So once we click on the R release indicator, the indicator will be released.

The status will be under green color. So here the purchase order is released through the vendor, and we can receive the material so that we can go to the goods received. So once we get the material from the vendor, we can proceed to the goods received part. So this is how we create a purchase order and we release the purchase order. So once we release the purchase order to the vendor, the vendor then provides us the material details so that we can create a goods receipt for that material.