Professional Documents
Culture Documents
PTP cycle starts with the first step- determination of requirements. This is nothing but the creation of
PR. PR is the document that is created by the material handler to the buyer stating the details of the
requirement- Quantity of material/services that needs to be procured. PR can be created automatically
via MRP or manually via the t code ME51N.
Next step is the determination of source of supply. Buyer will investigate into the market and find the
potential suppliers. This involves the creation of vendor master XK01/MK01 and source list ME01.
RFQ ME41
RFQ is the formal request given by the buyer to the vendor for asking the quote(price) for the quantity
of material/service. Buyer will be creating multiple RFQ with the vendors.
In this step, buyer will be comparing the quotations to find the least cost one (T code ME49.).
Once the comparison is done, the rejection indicator is set for the quotations having higher price and
buyer will send the acceptance letter to the successful bidder and rejection letter to the rest of the
vendors.
Outline agreements are long terms contracts maintained between the buyer and vendor so as to reduce
risk and for a consistent source of supply.
1. Contracts ME31K
2. Scheduling agreements ME31L
Scheduling agreement:
Scheduling agreement is a long term outline agreement between vendor and ordering party over a
predefined material or service which are procured on predetermined dates over a framework of time.
Scheduling agreement can be created by following two steps:
Creation of PO ME21N
PO is the official document given by the buyer to the vendor for the supply of goods and service.
PO release ME29N
Once the PO is created by the buyer, it may be approved by different stake holders.
In this step, the buyer will follow up with the vendor for the supply of goods.
Buyer will be sending the reminder letters to the vendor (based on the purchasing value key in the MMR
and PO)
Once the shipment has been completed from the vendor’s premises, we can have created the inbound
delivery (VL31N) or ASN if the buyer has given the access to the vendor. This helps in planning for the
inventory controller. This gives an idea when and how much quantity of goods are going to be received
on a particular date.
Material document will have movement type to indicate the nature of the movement of the material.
101- Goods receipt against PO, 102- reversal of 101
Accounting document is created simultaneously once the material document is posted. This is done via
MM-FI integration.
This step is a 3-way match process where the quantity and value mentioned in the PO is compared with
the Goods receipt quantity against price and quantity mentioned in the physical copy of invoice given by
the vendor. IV will be done by the accounts payable department.
This is the final step in PTP cycle. This is done by the accounts payable department/ banking
department.