The Associated Cement Companies Limited

Purchase Order
PO04– Purchase Order
Process
ACC Mumbai,11 JULY 2006
[email protected]

Classified: INTERNAL USE ONLY Not to be quoted or reproduced without written permission
 Agenda

 Objectives
 Procurement Process Overview
 Introduction and Concept
 PO Process Flow
 PO with Source Determination
 System Walkthrough
 Question & Answer

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The Associated Cement Companies Ltd. 24.09.20/TRG
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 Objectives

 To understand the available options for

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The Associated Cement Companies Ltd. 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission
 Procurement Process Overview
MRP Unplanned

Determination
of Outline Agreement
requirements Determination
Payment of source of Source List
supply
Info Record

Invoice
RFQ
Verification

Purchase
Goods to
Receipt/ Pay Cycle Quotation
Services Entry
Entry Sheet

Order Vendor
Monitoring Selection

PurchaseOrd
Contract
er
Processing
Processing
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The Associated Cement Companies Ltd. 24.09.20/TRG
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 Introduction and Concept
 A Purchase Order (PO) is a formal request or instruction from a
Procurement department to a vendor or a plant to supply or provide
a certain quantity of goods or services at or by a certain point in
time
 A Purchase Order is also a legal document to record an individual
purchase (negotiated terms, conditions and pricing) with the vendor
or arrange for a delivery based on prior agreement. Furthermore,
it provides the purchaser a reference document to link to goods
receipt and invoicing (Logistic Invoice Verification) processes (PO
history). The Purchase Order is a commitment to the vendor for a
given material in a specified quantity at the predetermined price
and delivery date
 All items on a purchase order must belong to the same company
code.

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 Process Flow: Purchase Order

1. Create PO 2. Online Approval 3. Print out PO form

5. Send to vendor 4. Approve and sign off

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 Process Flow: PO with Source
Determination

Requested
Items (PR)

Automatic Manual

Allocate Source
of Supply

Purchase
• Process PO via PR assignment list
Order • Automatic PO

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 System Walkthrough (1)
 Maintain PO with reference to PR (ME21N)
 Maintain PO with reference to RFQ (ME21N)
 Maintain PO with reference to outline agreement
 Automatic creation of PO from assigned PR
(ME59)
 On-line release of PO (ME28)
 PO release program
 Print PO (ME9F)

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 Q&A

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 We…

Know the way, show the way, go the way

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The Associated Cement Companies Ltd. 24.09.20/TRG
Classified: INTERNAL USE ONLY Module Not to be quoted or reproduced without written permission