Procurement Cycle: 5. Purchase Order (PO) Monitoring




After the PO has been sent to the vendor, the buyer or other responsible person must monitor the status of the PO. He must monitor whether the vendor has delivered the material/service at the right time on the right place. He can monitor whether the material/service has been received by the person responsible (such as the warehouse man) with PO history function in the PO document. If the warehouse man or anyone else has received the material/service and posted the Goods Receipt/Service acceptance document, the PO history will be updated in a real-time basis.
SAP ERP can also has a functionality to give the reminder to the buyer if the PO item has not been GR in the specified period in respect of the delivery date agreed with vendors.

The responsible person must also monitor whether the invoice for the PO item has been received or not. He can also monitor it with PO history function in the PO document. Once the invoice received from the vendor, the responsible person (usually in the accounting department) will post the invoice receipt document which will update the PO history in a real-time basis. The invoice from the vendor will trigger the payment processing.

PO History

PO history can be seen in the item detail part of the PO document in SAP enjoy screen (ME23N t-code). PO history tab will only appear if only the follow-on document exists for the PO item. The follow-on document can be a material document (from Goods Receipt transaction) and or invoice document (from Invoice Receipt transaction).

On the PO history tab, the material document and invoice document number are shown up along with other data such as the goods receipt/invoice receipt quantity and value, the goods receipt/invoice receipt date, etc. We can display the material/invoice document by clicking the material/invoice document number.

PO Report

SAP ERP also provide some standard reports for PO document, such as ME2N, ME2L, ME2K, etc. On those reports we can display list of PO based on several criteria, such as PO number, vendor, material number, PO document date, Purchasing group, Plant, etc. In term of PO monitoring, we can also generate report of PO list that based on its status by choosing the “Selection Parameters” on the field selection screen of the report. The possible entries are:

  • WE101 – Open Goods Receipt: will display list of POs that have not been fully GR (with movement type 101) yet.
  • WE102 – Goods Receipt Exists: will display list of POs that have been GR (with movement type 101, which can be canceled with 102 movement type).
  • RECHNUNG – Open Invoices: will display list of POs that have not been fully invoiced yet.
  • GUTSCHRIFT – Invoice Exists: will display list of POs that have been invoiced.

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