Create Po from Scheduling Agreement

Creating a PO (Purchase Order) from a scheduling agreement is a crucial process in the procurement of goods and services for any business. By following the right steps in creating PO from a scheduling agreement, businesses can ensure that their suppliers deliver the right goods and services, at the right time and cost. In this article, we will discuss everything you need to know about creating PO from scheduling agreements.

What is a Scheduling Agreement?

A Scheduling Agreement is a long-term agreement between a purchasing organization and a supplier. It outlines the details of the goods or services to be acquired over a specific period and the delivery schedule. The agreement can be scheduled for weeks, months, or even years. It’s a legally binding document that helps to solidify the relationship between the supplier and the purchasing organization.

What is a Purchase Order (PO)?

A Purchase Order (PO) is a document issued by a company to a supplier, indicating the goods or services to be delivered on a specified date. It includes details such as the quantity of goods or services, the price, and the delivery date. A PO is an essential tool that helps businesses to manage their procurement process and provides a clear record of transactions.

Why Create a PO from a Scheduling Agreement?

A PO is created from a scheduling agreement to indicate the specific goods or services that are required on a particular day. A scheduling agreement outlines the general requirements over a period, while a PO specifies the actual order needed at a specific time. It is crucial to create a PO from a scheduling agreement to ensure that the supplier delivers the right goods and services as per the agreement.

Steps to Create PO from Scheduling Agreement:

1. Check the materials to be procured

To create a PO from a scheduling agreement, start by checking the materials to be procured. This involves reviewing the scheduling agreement to ensure that all details, such as the material number, price, and the quantity required, are correct.

2. Create a Purchase Order

Once you have confirmed the materials to be procured, the next step is to create a PO. To create a PO, navigate to the SAP Easy Access Menu and click on Logistics>Materials Management>Purchase Order> Create>Vendor/Supplying Plant Known.

3. Enter Vendor Information

Enter the vendor information such as the vendor code, supplier name, and address. Check the terms of delivery, payment, and any other conditions specified in the scheduling agreement.

4. Enter Material Information

Enter material details such as the material number, the quantity to be procured, and the price specified in the scheduling agreement.

5. Release the Purchase Order

Once you have entered all details, it’s time to release the PO. This involves reviewing and approving the PO, which triggers the procurement process. The supplier receives the PO, and they can start working on the order as per the delivery date specified.

Conclusion

Creating a PO from a scheduling agreement is a crucial process in managing the procurement process for any business. It helps to ensure that the supplier delivers the right goods and services at the right time and cost. By following the above steps, businesses can streamline their procurement process and ensure that they receive the right goods and services as per the agreement.