Key Takeaways
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Clear understanding of what Purchase Requisition (PR) and Purchase Order (PO) are
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Difference between internal request (PR) and external order (PO)
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How PR helps control internal purchasing needs
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How PO works as a legal document for vendor communication
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Real SAP T-Codes to create and manage PRs and POs
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Why both documents are critical for smooth procurement operations
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Benefits of approval workflows and audit-friendly documentation
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Real-world examples explained in simple terms
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Practical insights to avoid errors in procurement cycles
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How SAP MM helps streamline buying in Indian business environments
Managing procurement in SAP MM can feel like a maze—especially when you hear terms like Purchase Requisition (PR) and Purchase Order (PO). Don’t worry, we’re here to break it down for you in plain English.Let’s say your warehouse runs low on stock. Someone from the department notices it and says, “Hey, we need to buy this item!” That’s a Purchase Requisition. Then, once that request is approved, your purchasing team sends the actual buying document to the vendor—that’s your Purchase Order. Still confused? No worries. Let’s go step-by-step.
What is a Purchase Requisition (PR)?
Think of a PR as an internal request. It’s the document someone inside the company raises to say,
“We need to buy this item.”
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It doesn’t go to the vendor.
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It may need approval.
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It helps keep track of what people need.
Example: Your plant maintenance team needs new tools. They raise a PR for screwdrivers and gloves.
What is a Purchase Order (PO)?
A PO is the official order sent to a supplier. It’s what actually initiates the purchase process with the vendor.
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It includes price, quantity, delivery dates, terms, etc.
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It’s legally binding.
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It is based on the approved PR or created directly if no PR is needed.
Example: After approving the PR, the procurement team creates a PO and emails it to the tool supplier.
Purchase Requisition vs Purchase Order – Clear Comparison in SAP MM
| Feature | Purchase Requisition (PR) | Purchase Order (PO) |
|---|---|---|
| Purpose | Internal request to buy materials/services | Formal document to vendor for purchasing |
| Created By | User/department needing the material | Purchasing or procurement team |
| Sent To | Not sent to vendor | Sent to vendor |
| Legally Binding? | No | Yes |
| T-Code | ME51N (Create), ME52N (Change) | ME21N (Create), ME22N (Change) |
The table breaks down the key differences between a Purchase Requisition (PR) and a Purchase Order (PO) in SAP MM. Here’s what each row means:
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Purpose:
A PR is an internal request to buy something. A PO is the final document sent to a vendor to actually make the purchase. -
Created By:
PRs are usually created by staff or departments who need the material. POs are created by the purchasing team who buy the material. -
Sent To:
PRs stay within the company. POs are shared with external vendors to place orders. -
Legally Binding?
A PR is not legally binding—it’s just a request. A PO is legally binding, which means the vendor expects payment once they fulfill the order. -
T-Code:
SAP has specific transaction codes:-
PR: ME51N to create, ME52N to edit
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PO: ME21N to create, ME22N to edit
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Key Benefits of Knowing the Difference
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Clear separation of who requests vs. who buys
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Better tracking and approval of spend
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Helps avoid duplicate or unauthorized purchases
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Makes audits and vendor communications smoother
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Saves time and avoids confusion in your SAP workflow
Top 7 FAQs – Answered Simply
1. Do I always need a PR before creating a PO?
Not always. You can create a PO directly, but using a PR is helpful for control and documentation.
2. Can I convert a PR into a PO automatically in SAP?
Yes! SAP lets you adopt PR data while creating a PO, saving time and errors.
3. Who usually creates PRs?
The department or end-user who needs the item—like maintenance, production, or admin teams.
4. Can I cancel a PR after creating it?
Yes, if the PO hasn’t been created yet. Use transaction ME52N to change or delete it.
5. Is a PR visible to the vendor?
No. It’s for internal use only.
6. What happens after a PO is created?
It’s sent to the vendor, and goods/services are expected as per the terms defined.
7. Do PRs require approval workflows?
Yes, many companies set up approval levels before the PR can move to PO.
PR and PO may sound similar, but they play very different roles in the SAP MM process. Once you understand how they work together, managing procurement becomes faster, cleaner, and way more efficient—especially in large organizations or complex warehouse setups.
Want to master SAP MM the practical way?
Join our hands-on training program at Ageis Technova and learn real-world SAP workflows.
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