Training Documents

TrainingPurchaseOrder

Standard Purchase
Process Description:

A purchase order is a legal document used to record an individual purchase (negotiated terms, conditions
and pricing) with the vendor or arrange for a delivery based on prior agreement. It also provides the
vendor with a reference document to link to shipping (goods receipt) and invoicing (invoice verification)
processes.

The purchase order is a commitment to a vendor for a given material, in a specified quantity at a
predetermined price and delivery date.

Purchase orders can be created for materials that have a material master or for materials that do not
have a material master.

The purchase order can be printed out (User Guide MM 5.1) and posted or faxed to the vendor.

Contents:

This document will take you through the core processes required to create a basic purchase order
by following steps 1.2 through 1.5.

Steps 1.6 onwards provide details of further enhancements that can be carried out to the PO if
desired.

Section Contents:

1.1 Required Fields

1.2 Accessing the Create Purchase Order screen
1.3 Entering Header Information
1.4 Entering Item Overview information
1.5 Entering information in the ‘Item details’ tabs:
1.5a Account assignment tab
1.5b Invoice tab
1.6 Entering the account assignment for split charging
1.7 Entering a vendor’s catalogue number
1.8 Entering a delivery schedule
1.9 Removing the requirement for goods receipt
1.10 Entering net discount for an item
1.11 Entering extended text for an item
1.12 Entering PO header text messages
1.13 PO vendor address details
1.14 Entering an alternative delivery address/Customer a/c # with vendor
1.15 Saving the purchase order or adding further line items

2.0 Quick reference guide to create a Purchase Order

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1.1 Required Fields:

The fields that require an entry when raising a purchase order are:

Input - Required Fields Field Value / Comments

Purchase Order Type Should be defined as a personnel setting by the user to default in the purchase
order document type for each department.

Vendor Vendor number

Purchase order date Purchase Order date. Should default.
Purchasing Organization Should be defined as a personnel setting by the user to default in as 7002.
Purchasing Group Should be defined as a personnel setting by the user to default to the department
or area for whom the Buyer is purchasing.
Delivery date category Daily, weekly, or monthly
Delivery date The expected delivery date can be entered.
Material Material number if material master exists, leave blank if it doesn’t.
Short text Defaults from material master if a material master exists. If there is no material
master record, enter a description of the material. If a pack size needs to be
defined this should be entered at the beginning of the description eg 10g sodium
chloride, 25g sodium chloride.
Material group Defaults from material master if a material master exists. If there is no material
master record, enter the Material group code.
Account Assignment category The type of account, eg K - Cost center, F- Order, E or M - Sales Order or I-
Invest Account assignment must be entered if there is no material master record
or if the material master record is being used to purchase a frequently ordered
item.
Quantity
Unit of Measure Eg Each, Box, bin etc
Net price Net Price per unit of the material
Plant Will default in as 7002.
Storage location If the item being ordered is to go into a stores as a stores stock item, enter the
relevant store.
Vendor material Supplier catalogue number.
Tax code Not mandatory, do not maintain with Z5A Order type
General Ledger account Defaults from material master if a material master exists. If there is no material
master record, enter the relevant G/L account here
Account Assignment code The Cost center, Sales Order or project code, must be entered if there is no
material master record or if the material master record is being used to purchase
a frequently ordered item.
Individual If you require to identify the requisitioner of each line item, enter the code for this
individual by selecting from the drop down box.
Unloading point/Goods recipient Any notes required in connection with a line item may be entered here. These will
not be printed on to the hard copy of the purchase order. They will be visible to
the store person during the goods receipt process.

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1.2 Accessing the Create Purchase Order screen:

To access the ‘Create Purchase Order’ screen, follow the menu path: Logistics>Materials
management>Purchasing>Purchase order> Create>Vendor/supplying Plant known or use
transaction code ME21N.

1.3 Entering Header Information:

On the “Create Purchase Order” screen, in the Header fields next to the shopping trolley, enter
information as specified in the table below:

Field Name Description R/O/C User Action and Values Comments

Order type Purchase order document type R Should default in the purchase order To define your personal
(Purchasing) document type for each department, setting see User Guide
as defined in ‘Personal setting’.
Purchasing Purchase Order Number C Number will be internally assigned Leave blank
document
number
Vendor Vendor number R From the drop down menu that Where a vendor has a
appears when you place the cursor in Head Office and a

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 this field, enter the code of the Purchase Ordering
relevant Vendor required. Address, first select the
Head Office Address.
Doc date Purchase order date R Date PO created defaults to today’s
date

Once all the required data mentioned above is entered click on either the or ‘Enter’ to
proceed.

On the ‘Org. data’ Header tab enter information as specified in the table below:

Field Name Description R/O/C User Action and Values Comments

Purchasing Purchasing Organization code R Should default in as 7002 as defined
Organization in ‘Personal setting’.
Purchasing Purchasing Group Code R Should default as defined in ‘Personal
Group setting’.
Company code Company code R Should default in as 0284 as defined
in ‘Personal setting’.

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1.4 Entering Item Overview information:

In the Item Overview fields, enter the information as specified in the table below:

Field Name Description R/O/C User Action and Values Comments

Item The number of the item R Will default in when item entered
A (Account Type of account where costs are O Choose either internal Order (F), sales Orders and cost centers
assignment allocated order (E), or Cost Center (K,J) to will have assigned
category) charge costs numbers. If an item is to
be placed in stock then
you would not enter an
account assignment
category. Instead a
storage location
mentioned below would
be entered.
I (Item category) Type of purchase C Will default in blank for Standard.

Field Name Description R/O/C User Action and Values Comments

Material Material number R Enter the material number if a material If no material master is to
master record exists. Leave blank if a be entered then a short
material master does not exist text description and a
material group is
required.
Short text Description of the material R The description is copied from the Will default in from
material master if a material master Material Master if one is
exists. If there is no material master, entered.
you must enter a description of the
material you want to purchase. Where
there is a requirement to order a
particular pack size of a material (eg
2.5l, 500g etc) this should be entered
here, at the beginning of the short
text.
PO Quantity Required units or quantity R Enter qty. required
OUn (Unit of Unit of Measure R Enter the units the material is sold in Will default in from
Measure) Material Master if one is
entered.
C (Delivery date Indicates daily, weekly or monthly O Default is “D” for daily
category)
Deliv. date Date material is required R Enter the expected delivery date or Will default in as the
leave blank for system default current day’s date if no
entry is made.
Net Price Vendors Price R Vendors current price (excluding VAT) Will default in from Info
should be entered here Record if one exists.
Currency Currency R Default is USD (US Dollars)
Matl group Code categorising the type of R Select the appropriate code Will default in from
purchase being made. Material Master if one is
entered.
Plnt Plant to which delivery is to be made R Default is 7002 for Surgical .

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Stor Loc Where stock is stored O Select stores if item ordered is to go If an item is to be placed
(Storage into stock in stock then you would
Location) not enter an account
assignment category
mentioned above.

TIP: When entering the data described above one can press ‘Enter’ after each field is entered which will
have the effect of automatically placing the cursor in the field of the next required entry. This can then act
to navigate you through the entry process.

Once the above data as required is entered click on the ‘Enter’ to proceed with a basic order. If you
are taken to the ‘Account Assignment’ tab go directly to 1.5 below. If you entered an ‘Account assignment
category ‘, go to Section 1.6

1.5 Entering information in the ‘Item details’ tabs:

1.5a Account assignment tab

On the Account assignment tab, enter information in fields as specified in the table below.
To reach the ‘Individual’ field, click on the ‘More’ icon.

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 Field Name Description R/O/C User Action and Values Comments
G/L account General Ledger code R Enter the appropriate G/L code for the Will default in from
item being purchased. A search can Material Master if one
be carried out via the matchcode is entered.
button.
Cost center Cost Centre R Enter the appropriate Cost centre
code for the item to be charged to. A
search can be carried out via the
matchcode button.
Unloading point Any notes required in connection R Describe destination of goods
with a line item may be entered
here. These will not be printed on to
the hard copy of the purchase order.
They will be visible to the store
person during the goods receipt
process.
Goods recipient Any notes required in connection R Enter manually or use matchcode.
with a line item may be entered
here. These will not be printed on to
the hard copy of the purchase order.
They will be visible to the store
person during the goods receipt
process.

If you wish to retain the account assignment entry for subsequent line items, click on the ‘Account
Assignment on’ icon (looks like a match), shown below:

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 match off.bmp match on.bmp

Click on the ‘Enter’ button to proceed to the Invoice tab.

1.5b Invoice tab

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On the Invoice tab, enter information in the tax field as specified in the table below:

Field Name Description R/O/C User Action and Values Comments

Jurisdict. Code Used for tax determination with O Filled automatically
Vertex
Tax code Tax status O Identifies the ltem’s relevance for tax. No entriy here, for
exception see
documentation for
repair process.

Click on the ‘Enter’ button or press enter.

Then:

either, save the purchase order by proceeding to Section 1.15

or, continue to enter further lines on the purchase order, as in Sections 1.4 and 1.5 and then save
the purchase order by proceeding to Section 1.15

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 or, enter additional information about the item on the purchase order. Additional information may
be entered as follows:

To enter a vendor’s catalogue number, click on the ‘Material data’ tab. See Section 1.7

To enter a delivery schedule, click on the ‘Delivery schedule’ tab. See Section 1.8

To remove the requirement for goods receipt, click on the ‘Delivery’ tab. See Section 1.9

To enter a net discount for an item, click on the ‘Conditions’ tab. See Section 1.10

To enter extended text for an item , click on the ‘Texts’ tab. See Section 1.11

To enter a header text, click on the ‘Texts’ Header tab. See Section 1.12

To enter an alternative delivery address, click on the ‘Delivery address’ tab. See Section 1.14

1.6 Entering the account assignment for split charging

If the screen below is reached due to the entry of an account assignment key ‘Y’ then enter the
information as specified in the table below.

(To reach the field to enter the ‘Individual’ code: select the line you wish to make the entry for,
click on the ‘Detail’ icon, click on the ‘More’ button.)

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 Field Name Description
Distribution Whether the split of quantity/value
will be based on quantity or
percentage.
Qty./percent Based on the distribution indicator
set above enter here the quantity or
percentage split for the cost object.
Cost center/ Cost Centre/ Order/ WBS Element
Order/WBS
Element
G/L account General Ledger code
Unloading point Any notes required in connection
with a line item may be entered
here. These will not be printed on to
the hard copy of the purchase order.
They will be visible to the store
person during the goods receipt
process.
Goods recipient Any notes required in connection
R/O/C User Action and Values Comments
R Select required data
R Select/key in required data.
R Enter the appropriate Cost object
code for a portion of the cost or the
item to be charged to. A search can
be carried out via the matchcode
button. An explanation of the structure
of the G/L codes will be given during
training by Central Finance.
R Enter the appropriate G/L codes for Will default in from
the proportions of the item being Material Master if one
purchased. A search can be carried is entered.
out via the matchcode button. An
explanation of the structure of the G/L
codes will be given during training by
Central Finance.
R Location of Goods Recipient
R Fill in manually or via Matchcode
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 with a line item may be entered
here. These will not be printed on to
the hard copy of the purchase order.
They will be visible to the store
person during the goods receipt
process.

Once the required data above has been entered, ‘Enter‘ to go to the ‘Invoice’ tab’ and return to Section
1.5b Invoice tab of this Guide.

1.7 Entering a vendor’s catalogue number:

On the Material data tab under Item details, enter information in the Vendor mat. no. field as
specified in the table below:

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 Field Name Description R/O/C User Action and Values Comments
Vend. mat. Vendor material number O The product code of the material with May default in if
the vendor. entered in the info-rec.

Once the required data above has been entered click on ‘Enter’ to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.
1.8 Entering a delivery schedule:

On the Delivery schedule data tab under Item details, enter in the required delivery quantities line by line
down the schedule table as specified in the table below:

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 Field Name Description R/O/C User Action and Values Comments
Delivery date Indicates daily, weekly or monthly R Default is “D” for daily
category
Delivery date Date expected for delivery of R Entered manually
material
Scheduled qty. Scheduled quantity R/O The proportional quantity of the total
ordered to be delivered at the date
specified for that line in the schedule.
StatDelD Statistical Delivery Date C Used for vendor evaluation. Day of
goods receipt – stat. del. Date will
give a value for vendor evaluation.

Once the required data above has been entered click on ‘Enter’ to proceed.
Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.

1.9 Removing the requirement for goods receipt:

On the Delivery tab under Item details, remove the requirement for goods receipt by clicking on the ticks
in the ‘Goods receipt’ and ‘GR non-valuated’ to remove them.

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Once the required entry above has been made click on ‘Enter’ to proceed.

Please note, that removing the requirement for goods receipt resulted, that you don’t have to book
goods received for that item. At Zeiss it is common, that another person acknowledges that the goods
were delivered.

Setting the GR non-valuated means, that GR will not be posted in FI. It will be posted with the invoice
later.

Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.

1.10 Entering net discount for an item

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On the Conditions tab under Item details, enter information as specified in the table below:

Field Name Description R/O/C User Action and Values Comments

CnTy Condition Type O Enter in the relevant condition type. Those already present
This could be a discount or surcharge. on the screen are
mandatory. Although
changeable the
rate/price entered for
PBXX must be
maintained.
Rate Rate/ Price/ Percentage/ Value O Enter this value in the format dictated
by the condition type.

Once the required data above has been entered click on ‘Enter’ to proceed.
Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.
1.11 Entering extended text for an item

Select the Texts tab under Item details:

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On this tab one can enter extended text messages to appear against the line item. These texts will
appear on the PO between each line item. Select ‘Item texts’ and type in the required text message in the
blank field.

Certain texts can be defaulted in from other master data records such as the ‘Info record PO text’ and the
‘Material PO text’

Once the required text has been entered click on ‘Enter’ to proceed.

Double-click in the text window . Than a text editor appears.

There are two text-editors available, one is the so-called line-editor, the other continuous-text-editor.

Example for line-editor :

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Same Text in the other editor:

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Go Back to PO with the Back-Button

Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.

1.12 Entering PO header text messages

Select the Texts tab, under the Header:

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On this tab one can enter extended text messages to appear against the line item. These texts will
appear on the PO at the bottom.

Select ‘Header text’ and type in the required message in the blank field.

Once the required text has been entered click on ‘Enter’ to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section 1.15
below.

1.13 PO vendor address details

To view the vendor address, select the ‘Address’ tab under Header and the address will be displayed.

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If the vendor has a different purchase ordering address, to view the purchase ordering address select the
‘Partners’ tab under Header. Select the ‘Ordering Address’ line and click on the ‘Details’ icon.

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1.14 Entering an alternative delivery address/Customer a/c # with vendor.

On the Delivery address tab under Item details, enter information as explained below:

The delivery address functionality of SAP is being utilised Zeiss to fulfill two functions. Firstly it is being
used for its true purpose which is to enter alternative delivery addresses on to the purchase order.
Secondly where departments order from a vendor with which they have a specific account number that
must be printed on the purchase order, the delivery address functionality will be used to provide all of the
possible delivery addresses these vendors might deliver too but also include in the account number.

Delivery address’s are master data and thus need to be set up. If you require either a delivery address or
one with an account number being set up please refer to the User Guide script ‘Delivery Address for
alternative delivery’.

The processes for entering alternative delivery addresses, be it for a customer account number or
standard delivery address, is virtually the same and will therefore be described in one process as follows:

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1. In the ‘Delivery Address’ tab, under Item details, in the Address field enter the master record number
of the intended delivery address. If this is not known carry out a search as follows,
• Place the cursor in the ‘Address’ field
• Click once on the ‘Matchcode’ button to the right of the field
• A selection criteria tab will appear. Enter any criteria that may narrow your search or leave blank
for a generic search. Click on the ‘Enter’ button to carry out the search. Remember the sort
terms A & B follow a convention set out in the delivery address create Business Process
Procedures 1.4 and 1.5.
• The results of the search will be displayed. Click once to place the cursor somewhere on the
lines of the delivery address required. Click on the ‘Enter’ button to place the address’s
record number in the ‘Delivery Address’ tab.
2. Click on the ‘Enter’ button to validate the screen and to default in the address you have selected.
3. The following options are now available to you,

Click on the ‘Enter’ button to accept the delivery address for the selected line item.

Click on the button to automatically insert the selected delivery address for
subsequent line items that are to be entered. It will not insert the selected delivery address for
subsequent line items that have already been entered.

Click on the button to switch off the selected delivery address from being
automatically inserted against subsequent line items that are to be entered.

Once the required data above has been entered click on ‘Enter’ to proceed.

Proceed to another section to enter further information or to save the purchase order go to Section
1.15 below.

1.15 Saving the purchase order or adding further line items

If this form has directed you to this section then you now have the choice of doing the following:

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 Save the PO. Do this by clicking on the ‘Save’ button. Upon saving, the system will assign a PO
number at the foot of the screen.

Enter further line items. Do this as explained from 1.4 above.

Alternatively, review and change details entered before saving the PO.

2.0 Quick reference guide to create a Purchase Order

Path: - Logistics> Materials Management> Purchasing> Purchase order> Create> Vendor/supplying Plant
known.

(Transaction code: - ME21N)

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In the fields next to the shopping trolley, check the correct Purchasing Document type has defaulted in.
In the Vendor field, select the required vendor.
Enter.

In the Org. data Header tab, check the correct Purchasing Group has defaulted in.
Enter.

In the Item Overview fields, enter the Account assignment category, the short text, PO quantity, Order
Unit, Net price and Material Group.
Enter.

In the Account assignment tab, enter the G/L account and either the Cost center, Order or Sales Order
number.
Enter.

If required, enter any further information for the line item.

If required, enter further line items, entering information in the Item Overview fields, in the Account
assignment tab and Invoice tab, as above.

Save.

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