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Purchase Order Flow

Former Member
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Hello All,

Good Morning,

We are implementing SAP. In our home grown ERP we have the following flow for creating a Purchase Order

PR Generation-->RFQ Generation-->Quotation Entries-->Comparison-->Proposal Generation for the selected Vendor-->PO Generation.

Now SAP consultant tell us the standard SAP flow is

PR Generation-->RFQ Generation-->Quotation Entries-->Comparison-->PO Generation.

Now we want to have proposal generation process as we can select any vendor after the comparison. One more thing is these proposals are generated in system and then are being approved by Management Level on web. After the approval of this proposal we are able to generate the Purchase Order with reference to that particular Proposal.

So now as per our consultant we will not be having proposal generation. however he told us that we can take it as a new development.

So just want to know whether it can be done with standard SAP or we have to go for development. What are the alternatives?

I am new to this community, so apologies for the mistakes.

Thanks in Advance.

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Answers (3)

Answers (3)

Former Member
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Hello Tinks,

Is your current system designed such that it does not need PO approval as step of 'Propsoal Generation' is already taken care by higher authorities?

As SAP has got document approval after creation of PO, this step becomes redundant in new system, but, still the reason why they have kept it at a previous stage in older ERP needs to be  further questioned. It needs to be clear whether they are fine with releasing PO (which becomes post event now)? or they want to continue with this step to avoid creation of junk documents with improper sources.

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Look like RFQ Release strategy/Indenting (Similar Proposal Generation) will suite your requirement.



Active Contributor
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You get a new system, new systems work eventually/likely differently to your legacy system, but the decision is made and can't be changed.

Instead of trying to adopt each legacy system feature into the new system you should first try to understand the new system and how intelligent the pieces work together as a whole.

Of course this requires changes to your well known work processes, and it may even make here some positions obsolete and may add more work in other areas.

If I would do a fit gap analysis, then we had added your "Proposal Generation for the selected Vendor" into a list of gaps. But then this has to be analyzed further. I would show you on a test system how the SAP process looks and you would eventually show me how your process is in your legacy system (even looking into the legacy system is usually not wanted by the managers)

So we are at least two person who build together a knowledge pool that is able to identify if that part of your proposal generation is just somewhere else in the SAP process and we can judge if that is really needed 1:1 or covered somewhere else in the SAP process and you only have a small mental and organizational change.

From your post I have currently no real idea what your "Proposal Generation for the selected Vendor" actually does. I also think that a box in the SAP process is missing, as the quotation comparison is not the source assignment step which comes prior to PO creation, but this just depends what detail is in each box of the flow chart.

Without knowing details I am not able to tell with what it can be compared in SAP.

From the place where it is in your flow it could eventually be the source list and info record and the ME57 transaction to assign the requisition to a source(vendor). An approval that it is the best source out of 3 sources is not there in SAP. (what is the best source? if the cheapest vendor is not able to deliver when you need the goods, then it is not the best source)  But you can take a screenshot from ME57 where you select the source as evidence and send it to your approver by email.

Former Member
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Hi Jürgen L,

Thanks for replying!!!!!

Proposal Generation is a process which will purchasing group will select the vendor, after comparison, which will supply the goods and purchase order will be raised to that vendor.

For Example:

I had to order material M1


Vendors quations are as follows

V1 can provide at 50

V2 can provide at 80

V3 can provide at 100

Now as per comparison order should go to V1 vendor.

but due to some reason order given to V2. Now this proposal must be approved by senior management.

So we are sending all the comparison report (automatically) to Head of Company, where he can approve or reject the proposal.

If he accepts or approve then PO can be raised.

I hope you have understood my point. This is the requirement of management i.e. before raising any purchase order what was the comparison and why we are giving order to selected vendor. It should be available to Head of company.

I know our legacy processes will be missed in Standard SAP, but just want to clear whether there is any alternative available or not...

Active Contributor
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You can go for following option


Create PR--- Create Contract- ---Create PO



Create PR---- Create RFQ- ---Create Contract ------- Create PO 

Former Member
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Hi Bijay,

Thanks for replying.

Can you please tell me whether we can have different level of authorisation for the contracts?

Active Contributor
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Contract has its own  approval  but I do not see where a contract could solve your problem.

There is nothing is SAP that tells your boss automatically that you had 3 more or less competitive choices and you want buy from the second and want his approval.

You just select the second as  source, create your PO and if you have a release process customized then your boss approves the PO and then you can send the PO to your vendor,  that is it.

IF you really need to show your boss the 3 sources then this is a gap and you have to find a solution (probably own tables and programs)  to close this design gap.

Former Member
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got it.. so it will be a gap which need to be discussed and developed.

Thanks guys