Procurement to Stock
Application Area – MM
Overview
Process Procurement to Stock is one scenario building block in SAP Best Practices Baseline Package (U.S.). Technical name is V3E (Procurement to Stock – From Quotation to Stock Procurement).
In this process, a purchase requisition is either generated by MRP or manually from a requester. A buyer will validate the requisition assign a source of supply. A purchase order will be created based on purchase requisition. The purchase order is subject to approval based on a predefined dollar amount prior to being issued to a vendor.
Goods are shipped from the vendor and received into a location based on fixed parameters proposed from the material master that can be changed at time of transactional data capture that is Purchase Order creation or goods receipt.
The invoice is received from the vendor. Invoices are entered with reference to a purchase order and item. If there are any variances between invoice and purchase order value, the invoive will be blocked and forwarded to buyer for approval. The payment process can be refered in another scenario building block V1C (Fin. Acctg. – AP – Outgoing Payment).
Company roles involved in process flows: Requisitioner, Buyer, Purchasing Manager, Warehouse Clerk and Accounts Payable.
Business Process Procedure
1. Create purchase requisition
The purchase requsition is either generated by MRP or manually from a requester. Go to transaction ME51N and enter material number, quantity, delivery date and plant.
2. Display list of Purchase requisitions to be Assigned
Go to transaction ME57 and choose the Execution button. It will display all the unassigned pruchase requisitions. Choose the line you want to assign source of supply and click Assign Source of Supply button.
Expand Assignments and select the line to be converted into a purchase order. In the Create Purchase Order screen, choose Document overview on button if the document overview button is off. On the Document Overview panel, select the purchase requisition document you wanted to convert. Highlight the Purchase Requisition number and choose 
Adopt. Choose save.
3. Approval of purchase order – optional
The purchase order is subject to approval based on a predefined dollar amount prior to being issued to a vendor. Go to transaction ME28, enter a release code and execute the report. Select the PO lines you want to release and choose Release possible button.
After the PO is released, you will notice the PO status changed from In Release to Release completed. Once the last person has released the PO, the buyer/planner can output (print, fax, EDI) the PO as necessary.
4. Print Purchase Order
Go to transaction ME9F and enter necessary information to print or reprint PO forms.
5. Receive Goods from Vendor
Go to transaction MIGO. On the initial screen, ensure that the Goods Receipt and PO number are selected in the fields on the top of the screen. Enter purchase order number and press Enter. It information will be adopted from PO and material master data automatically. Choose save and corresponding material document is created. Remember to click Item OK flag before posting. document.
Go to transaction MMBE to check whether the stock has been updated.
6. Receive Invoice from Vendor
The invoice verification is done here. Go to transaction MIRO. Select transaction Invoice and enter Invoice date, Amount, PO reference. 5. When ready, choose Simulate to test for errors. The system will show deviations of price, quantity and out of balance conditions.
Save the invoice and a message appears that will confirm posting and also advise if it is blocked for payment. If the invoice is blocked for payment, You can display the blocking reasons for each invoice item using the transaction MIR4.
In this example, X represents the invloce is blocked due to delivery date difference reason. You can release the blocked using transaction MRBR.
7. Outgoing Payment
This activity can be found in SAP Best Practises Scenario Building Block V1C (Outgoing Payment).