
Understanding the Types of Purchase Requisitions in SAP MM
In SAP Materials Management (MM), the purchase requisition is a critical document in the procurement process. It is essentially an internal request to procure goods or services, initiated by users within an organization, which is then reviewed, approved, and processed by the purchasing department. The type of purchase requisition determines how it is processed within SAP MM, and understanding the different types is crucial for effective procurement management. In this blog, we’ll dive into the various types of purchase requisitions in SAP MM and when they should be used.
A Purchase Requisition (PR) in SAP MM is a formal request to the purchasing department to acquire materials or services. It contains information such as material type, quantity, delivery date, and cost center. The purchase requisition is the first step in the procurement cycle and acts as a request for the purchase order (PO), which is ultimately sent to suppliers.
Once a purchase requisition is created, it undergoes approval workflows, and the purchase order is created either manually or automatically depending on configuration settings and system functionality.
SAP MM offers different types of purchase requisitions, each serving distinct business needs. The classification of these types plays a significant role in defining how the PRs are processed and routed within the system.
This is the most common type of purchase requisition used for regular procurement needs. It is created manually by users who require goods or services. Typically, this PR is associated with a specific material or service, and users can specify details like quantity, delivery date, and account assignment.
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A consignment purchase requisition is used when materials are delivered to the company but remain the property of the supplier until consumed. This type of purchase requisition is typically used for stock that is held in consignment inventory, meaning the organization doesn't own it until it is used.
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Subcontracting PRs are created when the company needs to send raw materials or components to a third-party vendor for further processing, manufacturing, or assembly. The subcontractor performs the work and then returns the finished goods to the organization. This process is managed through a subcontracting PR in SAP.
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This type of PR is used when goods are being transferred from one plant to another within the same organization. In SAP, stock transfer requisitions are used to move stock between storage locations or plants, without involving external vendors.
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Framework agreements are long-term procurement contracts between an organization and a vendor. Purchase requisitions created against these agreements are typically tied to specific terms such as pricing, quantity, and delivery dates over an extended period.
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A services PR is used when an organization requires services rather than tangible goods. This PR type is specifically created for services such as maintenance work, consulting, or any other service-related procurement.
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This PR type is used when the request is for non-material goods, such as services or consumables that don't need to be tracked in inventory. These PRs are often used for internal purposes like spare parts, office supplies, or administrative items.
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In SAP MM, purchase requisitions are vital for streamlining the procurement process. By understanding the different types of purchase requisitions, businesses can tailor their processes to fit their specific procurement needs. Whether it’s for standard materials, subcontracting, or long-term agreements, each PR type ensures the right goods and services are sourced in the most efficient manner.
As businesses grow and procurement becomes more complex, utilizing the right type of purchase requisition can help increase operational efficiency, reduce procurement cycle times, and improve supplier relationships. Configuring and managing PRs correctly in SAP MM is therefore key to ensuring a smooth and responsive procurement process.
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