SAP Create PO from Outline Agreement: A Step-By-Step Guide

If you`re using the SAP ERP system, you`ll likely be familiar with the creation of Purchase Orders (POs). POs are an important aspect of the procurement process, providing a clear overview of all the items that have been ordered, the quantities required, and the due dates for delivery. However, creating a PO from an Outline Agreement can be a bit more complex.

What is an Outline Agreement?

An Outline Agreement is a document that outlines the terms and conditions for the procurement of goods or services between two parties. This document is often used in situations where there is a long-term business relationship between the two parties, and they agree on a fixed set of terms for future transactions.

There are different types of Outline Agreements, such as Contracts and Scheduling Agreements. Once an Outline Agreement is created, it becomes the reference document for future procurement transactions.

Why Create a PO from an Outline Agreement?

Creating a PO from an Outline Agreement can save time and effort, as many of the details required for the PO are already included in the Outline Agreement. This way, you don`t have to spend time entering the same information twice.

How to Create a PO from an Outline Agreement

Creating a PO from an Outline Agreement in SAP ERP is straightforward. Here`s how you can do it:

Step 1: Transaction ME21N

Open the SAP ERP system and navigate to the ME21N transaction code. This code is used for creating new POs.

Step 2: Header Data

In the PO creation screen, enter the relevant header data, such as the vendor, delivery date, and PO number.

Step 3: Item Data

Under the “Item Overview” tab, enter the item details. Here, the “Outline Agreement Number” field should be filled with the relevant agreement number. Once the system detects that an Outline Agreement is linked to this PO, the “Gross Price” and “Net Price” fields will be filled in automatically.

Step 4: Confirm the PO

Once you`ve entered all the required details, save the PO. The system will then create a new PO number and link it to the Outline Agreement.

Conclusion

Creating a PO from an Outline Agreement can streamline the procurement process, saving time and effort. The process is straightforward in SAP ERP, and the system will automatically fill in many of the details from the Outline Agreement. So, next time you need to create a PO, consider using an Outline Agreement as a starting point.