Creating a PO from a Contract in SAP: A Step-by-Step Guide

SAP, or Systems, Applications and Products, is a software system used by many corporations worldwide for managing their business processes. One of the most common processes in SAP is creating a Purchase Order (PO) from a Contract. This process can be complicated, but with the right steps, it can be easy to execute.

Here is a step-by-step guide on how to create a PO from a Contract in SAP:

Step 1: Go to the SAP Portal

The first step is to login to the SAP Portal. Once logged in, navigate to the “Procurement” module.

Step 2: Select Contract

Next, select the Contract that you want to create a PO from. You can do this by entering the Contract number or by selecting it from a list of Contracts.

Step 3: Check Contract Details

Once you have selected the Contract, ensure that the Contract details are correct. This includes ensuring that the vendor, payment terms, and other important details are accurate.

Step 4: Create Purchase Order from Contract

After you have checked the Contract details, you can create the PO from the Contract. To do this, select the “Create PO from Contract” option. This will open up a new screen where you can enter the details of the PO that you want to create.

Step 5: Enter PO Details

Now, you need to enter the details of the PO that you want to create. This includes the material or service that you are purchasing, the quantity, the unit of measure, and the price. Ensure that all of these details are entered accurately.

Step 6: Assign Account Assignment

Next, you need to assign an account assignment to the PO. This is the cost center or project that the expense will be charged to. This is an important step in the process, as it is required for proper tracking of expenses.

Step 7: Save and Submit the PO

Finally, you need to save and submit the PO. Once you have entered all the required details of the PO, save it, and then submit it for approval. The PO will be routed to the appropriate approver for review and approval.

In conclusion, creating a PO from a Contract in SAP can be a complex process, but with the right steps, it can be done quickly and accurately. By following this step-by-step guide, you can ensure that your PO is correct and submitted for review and approval.