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Chapter 4
Planned order release
and receipt dates
Option to convert
104 planned order to
purchase requisition
Source Line: SAP AG.

FIGURE 4-20 Conversion of a planned order to a purchase requisition

From this window, the planner can create a purchase requisition or review the
planned order and make changes before creating the requisition. SAP ERP also provides
the ability to mass-process planned orders by converting groups of planned orders to
purchase orders simultaneously. The materials requirements planning process can also be
configured to automatically create purchase requisitions; for example, all planned orders
created within one week of the MRP calculation could be automatically converted to
purchase requisitions.
Once a purchase requisition is created, an employee in the Purchasing department
must turn it into a purchase order. One of the important steps in creating a purchase
order is choosing the best vendor to supply the material. An integrated information system
such as SAP can facilitate this process. Figure 4-21 shows the Source Overview screen,
which provides access to information that can help the Purchasing employee select
the vendor.

Options to evaluate
vendors

Source Line: SAP AG.
FIGURE 4-21 Source Overview screen for supplier selection

From this screen, the Purchasing employee can view information about each vendor,
simulate the price (the SAP system estimates the price from each vendor, which might
include quantity discounts and transportation costs), and look at the vendor evaluation—
the company’s rating of the vendor. The SAP ERP system can be configured to rate
vendors based on a number of performance criteria, including quality of goods provided

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