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SAP MM · Lesson

Procurement

Quick answer

Procurement integrates with inventory (stock updates), FI (liabilities and inventory value), and CO (consumables to cost objects).

Key takeaways

  • Procurement covers stock materials (into inventory), consumables (directly to a cost center/order), services, and…
  • Purchase Requisition: an internal request to buy.
  • Purchase Order: the formal order to a vendor.
  • Watch out: Skipping the three-way match control.

The procure-to-pay cycle

  • Purchase Requisition: an internal request to buy.
  • Purchase Order: the formal order to a vendor.
  • Goods Receipt: receiving the goods (updates stock and GR/IR).
  • Invoice Verification: matching the invoice to PO and receipt.
  • Payment: paying the vendor (FI-AP).

Types of procurement

Procurement covers stock materials (into inventory), consumables (directly to a cost center/order), services, and subcontracting/special procurement. The process and account determination differ by type, so understanding which applies is important.

Integration and control

Procurement integrates with inventory (stock updates), FI (liabilities and inventory value), and CO (consumables to cost objects). Controls like release strategies (approval workflows) and the three-way match (PO, receipt, invoice) ensure spend is authorised and correct.

Common pitfalls

  • Skipping the three-way match control.
  • Wrong procurement type, incorrect postings.
  • No release strategy on high-value POs.

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Check your understanding

  1. Which statement is true of Procurement?

    • A. A good SAP learning path takes you from business and system fundamentals, through a chosen specialisation, to…
    • B. The process and account determination differ by type, so understanding which applies is important.
    • C. FB50 is the SAP transaction code for Post G/L Document (FI).
    Show answer

    B. The process and account determination differ by type, so understanding which applies is important.

    Covered in the “Types of procurement” section of this lesson.

  2. Which of these also applies to Procurement?

    • A. Wrong API for the job (e.g. synchronous where async is needed).
    • B. Controls like release strategies (approval workflows) and the three-way match (PO, receipt, invoice) ensure…
    • C. Too many dynamic tiles loading the backend.
    Show answer

    B. Controls like release strategies (approval workflows) and the three-way match (PO, receipt, invoice) ensure…

    Covered in the “Integration and control” section of this lesson.

  3. Which part of the Learn SAP curriculum covers Procurement?

    • A. SAP MM
    • B. SAP examples
    • C. SAP HANA
    Show answer

    A. SAP MM

    This lesson sits in the SAP MM section of the Learn SAP course.

Frequently asked questions

What does the term Procurement refer to in SAP?

Procurement in SAP MM is the end-to-end process of acquiring goods and services, from identifying a need to paying the vendor, the procure-to-pay cycle. It is the backbone of the MM module.

What is another point to note about Procurement?

Procurement integrates with inventory (stock updates), FI (liabilities and inventory value), and CO (consumables to cost objects).

What else is worth knowing about Procurement?

Procurement covers stock materials (into inventory), consumables (directly to a cost center/order), services, and subcontracting/special procurement.

What tends to go wrong with Procurement?

Skipping the three-way match control. Wrong procurement type, incorrect postings. No release strategy on high-value POs.
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