Procurement
What is Purchase Order (PO)?
A formal request to a supplier to deliver goods or services under specified conditions.
POs carry account assignment, prices, and delivery dates and are the reference for goods receipt and invoice verification. Approval uses release strategy or flexible workflow. PO output is sent by print, email, or EDI.
Related transaction codes
Related terms
Purchase Requisition
An internal request to procure goods or services, created manually or by MRP.
Goods Receipt
The goods movement recording receipt of goods from a supplier or production, increasing stock.
Logistics Invoice Verification
The MM process for entering and checking supplier invoices against purchase orders and goods receipts.
Release Strategy
Classic configuration for approving purchase requisitions and orders based on characteristics such as value and plant.
Procure to Pay
The end-to-end purchasing process from requisition through purchase order, goods receipt, invoice, and payment.
Account Assignment Category
A key on purchase order items that defines the cost object to charge, such as K for cost center or A for asset.
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