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Process 109

Outcomes
The main document created in this step is the purchase order. If the purchase
order includes data from reference documents, then multiple documents can be
used to generate one order. Conversely, a single reference document can
be used to create multiple orders. Thus, as you can see in Figure 4-19, one or
more requisitions can generate one or more purchase orders. For example,
consider the following scenarios. A purchasing manager receives many req-
uisitions for the same materials and decides to consolidate them into a single
purchase order and send the order to one vendor, perhaps to take advantage
of volume discounts. Alternatively, the requisitions may include a number of
different materials that must be purchased from different vendors. In this case,
the purchasing manager creates a different purchase order for each vendor
that includes the relevant materials.

Figure 4-19: Purchase requisition to purchase order

Purchase requisitions are updated to refl ect the purchase order number(s)
assigned to them. This process enables the requisitioner to easily determine
the status of each requisition. He or she can also click on the PO document
number now referenced on the purchase requisition to view the purchase
order and its status.
Although the purchase order is an obligation to acquire materials from
a vendor, no fi nancial accounting documents are created because this step has
no impact on the fi nancial condition of the organization. (Despite the commit-
ment to purchase, no money or goods have been exchanged.) Recall, however,
our note concerning commitments in management accounting in the case of
a requisition for consumable materials. If a purchase order is created without
reference to a requisition, then a commitment is created when the purchase
order is created. In addition, no material documents are created because no
goods movement (goods receipt) has occurred.
Once the purchase order is created, it must be communicated to the ven-
dor. This communication is accomplished using the messaging capabilities of SAP
ERP, as depicted in Figure 4-20. SAP ERP utilizes a variety of media, includ-
ing print, e-mail, EDI, Web services, and fax. Companies also use the messaging
capabilities of the system to send reminders and to request that deliveries be sped
up. In turn, the vendor uses these capabilities either to accept or reject the order.

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