Procurement from a Vendor


This scenario describes the procurement and management of articles from an external vendor for a store or distribution center.

The following R/3 components are used:

R/3 component



Carrying out forecasts

Consumption-based planning

Carrying out requirement planning and replenishment


Creating purchase requisitions

Creating and sending purchase orders, contract release orders, and delivery schedules

Optimizing purchase orders

Allocating articles

Settling subsequent conditions

Warehouse management/Inventory management

Receiving articles, placing them in stock, managing and valuating them

Carrying out physical inventory

Invoice verification

Verifying and posting invoices, authorizing payment

Process Flow

Requirements planning/purchase requisition

  1. The first step in the process of article procurement is the creation of a purchase requisition.
  2. – In requirements planning, the system can create the purchase requisition automatically. If the source of supply for an article is unique, it is assigned to the article.

    In replenishment, purchase orders can be created at this stage if the source of supply is unique and the appropriate settings have been made in Customizing.

    – If the article is required in other areas of the company, you must create the purchase requisition manually.


    Purchase requisitions

  3. You can convert a purchase requisition that contains a source of supply into a purchase order, contract release order, or delivery schedule
  4. – automatically

    – or manually

    In the case of a purchase requisition that does not contain a source of supply, you must assign a source of supply manually before you convert it into a purchase order.


  5. During allocation you can centrally distribute merchandise among a large number of recipients (for example, stores). Using allocation tables, you can plan the distribution of this merchandise and then trigger the purchase orders.
  6. Order optimizing

  7. The system can optimize purchase orders by taking account of vendor restrictions (such as the minimum purchase quantity).
  8. Purchase order

  9. You monitor the purchase order. The system can print reminders automatically if required, and you can then send these reminders to the vendors.
  10. Goods receipt

  11. As soon as the ordered goods arrive in the company you post a goods receipt.
  12. The goods receipt triggers the following activities:

    – Placement in stock

    – Evaluated receipt settlement

    Invoice verification

  13. When you receive an invoice from the vendor you carry out invoice verification either
  14. – automatically in the background or

    – on-line

    with reference to the purchase order or goods receipt and release the invoice once any discrepancies have been clarified.

    Subsequent (end-of-period) settlement

  15. You can agree with your vendor conditions that require subsequent settlement. Unlike conditions that are due immediately for the vendor invoice, conditions that require subsequent settlement are due at the end of a settlement period.
  16. Physical inventory

  17. Preparation
  18. You create physical inventory documents manually (if you have few articles) or via batch input sessions.

    You print and distribute the physical inventory documents.

  19. Physical inventory analysis

You enter the results of the stock count in the system. Once the difference list has been analyzed, you can authorize a recount if you think that errors have been made in the stock count. New physical inventory documents are created. Once the results of the recount are entered, you close physical inventory and post any physical inventory differences that still exist.