Purchasing Items Training

In this topic, we will perform the basic steps for purchasing items. As we go through the process, we will explain the consequences of each process step on inventory and accounting.

Summary: 

1. The purchase order (PO) specifies to the vendor which items or services you want to purchase, including agreed-to quantities and prices.  It represents your commitment to the vendor to purchase the items.No value-based changes are posted in accounting for a purchase order. However, the order quantities are listed in inventory management.  You can view the ordered quantities in reports and the item master data.
2. The goods receipt PO denotes the delivery of goods from a vendor to a company. It is used to update the inventory quantities and values.  When you enter a goods receipt PO the goods are accepted into the warehouse and the quantities are updated. If your company runs a perpetual inventory system, SAP Business one creates the relevant postings to update the stock values.
3. The A/P invoice contains the vendor’s invoice information and sets up the payment. When an incoming invoice is posted, the vendor account is updated in Accounting.
4. The final step of the purchasing process is the outgoing payment.  This function is done in the accounting module.

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