How to create all purchase order types step by step

Subcontracting Purchase Order:-

Subcontracting is one of the manufacturing strategy by which a company decides to outsource some or all of its production operations to a vendor. This process is considered better than a complete external procurement as there can be a tighter control on the product quality.

In a typical subcontracting process, a manufacturing company provides raw materials / components (say material A and B) to a subcontracting vendor. The vendor in turn processes these materials to turn them into an end product (say material C). This product (if not a finished product) is then used by the manufacturing company to carry out the rest of the operations to turn it into a finished product. To achieve this, a subcontracting purchase order for material C is created. Material A and B which constitute the Bill of Material (BOM) of material C are then delivered to the subcontracting vendor. You can enter the components manually or determine the components using BOM explosion.

TCode to create Purchase Order: ME21N

Subcontracting Item Category: (L)

Step 1:-Execute the t code Me21n. and click on the job work PO & select the L subcontracting in the I field.

Consignment Purchase Order:-

Follow the steps given below to create a consignment purchase order.

TCode to create Purchase Order: ME21N

Consignment Item Category: (K)

Step 1 :- Provide the TCode in the command field.In the I filed type K as a consignment.K is the customized we can manage it accordingly.

Step 2 :- It will take you to the purchase order screen.

Step 3 :-Provide all the necessary details such as the name of the vendor, item category, name of material, plant for which material is procured, and the date of delivery.

Step 4 :- Click on Save. Consignment Purchase order will be created.

Stock Transfer Purchase Order:- In stock transfer process goods are procured and supplied within a company. One plant orders the goods internally from another plant (receiving plant/issuing plant). The goods are procured with a special type of purchase order known as the stock transport order.

Follow the steps given below to create a stock transfer purchase order.

TCode to create Purchase Order: ME21N

Stock Transfer Item Category: (U)

Step 1:-Provide the TCode in the command field.

Step 2:-It will take you to the purchase order screen

Step 3:-Provide all the necessary details such as the name of the vendor, item category, name of material, plant for which material is procured, and the date of delivery.

Step 4:-Click on Save. lick on Save. Stock Transfer Purchase order will be created.

Service Purchase Order:-Service purchase order or a service order is a formal document from a buyer organization to a supplier to procure services provided by the supplier. Service orders provide a basic process to procure services that can have a planned or unplanned nature of work.

Service Item Category: (D)

Step 1:-Provide the TCode in the command field

Step 2:-It will take you to the purchase order screen

Step 3:-Provide all the necessary details such as the name of the vendor, item category, name of material, plant for which material is procured, and the date of delivery.

Step 4:-Click on Save. Service Purchase order will be created.