Question Re: Difference between SC and PO in Spend Management Q&A

Difference between SC and PO

Former Member — Tue, 06 Jul 2010 11:15:16 GMT

Hi All,

I have a very basic question,

What is the basic difference between SC and PO.Becasue after approval the SC will automatically converted to PO.

and PO also needs approval.

So both SC and PO needs approval ,then what is the difference between these.

Regards

Re: Difference between SC and PO

Former Member — Tue, 06 Jul 2010 11:49:55 GMT

Hello,

SC = internal document and consists of the (consolidated) requirements one employee needs. A SC is very similar to a Purchase Requisition (R/3 documenttype).

PO = internal (contains costs and reservation information) but also fullfils an external funtion. The PO document is send to the vendor via various possible output methods (E-mail / print / fax / xml). After receiving the PO document the vendor will process the order and eventually deliver the ordered goods contained in the purchase order.

Hope this helps, your question is very high-level though.

Kind regards,

Tim

Re: Difference between SC and PO

Former Member — Tue, 06 Jul 2010 11:55:33 GMT

Hello Tim,

Thanks a lot for your valuable reply,but my dout is

"Why don't we use only PO ,what is the need of SC"

Regards

Re: Difference between SC and PO

Former Member — Tue, 06 Jul 2010 12:02:46 GMT

We require the SC for the Employee Self Service scenario to be able to operate. SC (scenario) reduces the effort for the complete purchasing function. In addition it is required to have somekind of a requirement; As developers need input to be able to build/code anything (specifications) purchasers need input on what their clients requirements are before they can actually source/purchase it.

Kind regards,

Tim

Re: Difference between SC and PO

Former Member — Tue, 06 Jul 2010 12:09:44 GMT

Hello Tim,

sorry for troubling you, but what if we give the PO creation directly to employee via ESS.here aslo he can use catalogues right?

Regards

Re: Difference between SC and PO

Former Member — Tue, 06 Jul 2010 12:15:13 GMT

Hello,

That's a technical possibility yes. Catalogue functionality is indeed available in the 'create purchase order' transaction aswell.

Kind regards,

Tim

Re: Difference between SC and PO

Former Member — Wed, 07 Jul 2010 07:19:12 GMT

Channappa

The answers provided by the other forum members above are quite correct.

I would like to add the following though:

One of the major advantages of using a SC is that a Purchase Order can only be raised for one supplier while a Shopping Cart can be raised for goods/services from multiple suppliers and after approval will produce multiple purchase orders, one for each supplier in the shopping cart.

Some shoppers take some time to change their procurement methods to realise the advantages of being able to shop for all their requirements in one shopping cart instead of raising seperate Purchase orders for each supplier. This is one of the major benefits of shopping carts and is a great time saver.

Hope this helps

Allen

Re: Difference between SC and PO

Former Member — Mon, 02 Aug 2010 06:50:36 GMT

thanks for your answers