Purchase Requisition in SAP S/4HANA [SAP MM]

What Is a Purchase Requisition in SAP S/4HANA [SAP MM] ?

A Purchase Requisition in SAP S/4HANA is an internal document created to request the purchase of materials or services. It is not sent to a vendor and does not create any financial liability.

It is a formal request raised within the organization, asking the purchasing team to procure something.

For example:

• A production team needs raw material

• An IT team needs laptops

• A maintenance team needs external services

It is Basically determination of Requirement – what is required, [raw materials or services], for that we create PR in system.

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Why Do We Need a Purchase Requisition?

Many people think: Why can’t we directly create a Purchase Order in SAP system ?

The answer is control and governance.

A PR helps the organization:

• Validate actual business need

• Ensure budget availability

• Follow approval and compliance rules

• Avoid unauthorized or maverick buying

In short, it ensures that money is spent only after proper justification and approval.

Who Creates a Purchase Requisition?

Unlike Purchase Orders, which are usually created by the procurement team, Purchase Requisitions can be created by multiple sources:

• End users from business departments

• Automatically through MRP runs

• From Production Orders or Maintenance Orders

• From Project Systems (WBS-based requirements)

This flexibility makes PRs a central object connecting planning, operations, and procurement.

How Is a Purchase Requisition Created in S/4HANA?

In SAP S/4HANA, PRs can be created in two main ways:

1. Manual Creation

• Classic SAP GUI transaction: ME51N

• SAP Fiori App: Create Purchase Requisition

Fiori apps make the process much simpler and user-friendly, especially for non-SAP users.

2. Automatic Creation

• Via MRP based on stock shortages

• From production, maintenance, or project demands

In real projects, most PRs are actually created automatically rather than manually.

Types of Purchase Requisitions :-

Depending on the business scenario, PRs can be of different types:

• Stock PR – Materials procured into inventory

• Consumption PR – Materials directly consumed (Cost Center, Internal Order, WBS)

• Service PR – External services like consulting, maintenance, manpower

• Subcontracting PR – When materials are sent to vendors for processing

Each type drives different follow-up processes in procurement and finance.

Approval Process – The Real Power of PRs

Before PR is converted to PO it needs to be Approved by the senior management to ensure whether Requirement is Genuine and appropriate. One of the biggest advantages of Purchase Requisitions in S/4HANA is the approval workflow.

Approvals can be configured based on:

• Value of the PR

• Material group

• Plant or company code

• Cost center or project

With SAP Fiori, approvals are:

• Role-based

• Mobile-friendly

• Fully auditable

This makes the PR approval process faster and more transparent compared to older ECC-style release strategies.

Purchase Requisition vs Purchase Order – Not the Same Thing

This is a very common confusion, especially for beginners.

Purchase Requisition	Purchase Order
Internal document	External legal document
No vendor involved	Vendor is mandatory
Requests approval	Confirms purchase
No financial commitment	Creates liability

A PR only requests procurement. A PO actually commits the organization to spend money.

How PR Fits into the End-to-End P2P Process

In a typical Procure-to-Pay (P2P) cycle, the flow looks like this:

Purchase Requisition → Purchase Order → Goods Receipt → Invoice Receipt → Payment

In SAP S/4HANA, the Purchase Requisition is the backbone of procurement. So if the PR is wrong or poorly created, the entire downstream process suffers. If you want procurement to run smoothly in S/4HANA, you must get the Purchase Requisition process right.

How to create Purchase Requisition in SAP S/4HANA [GUI]

PATH: SAP EASY ACCESS --> LOGISTICS --> PURCHASING --> PURCHASE REQUISITION T CODE: [ME51N]

PATH to create Purchase Requisition

Steps:

1. Enter transaction code ME51N

2. Select PR document type (e.g. NB) [standard by default]

3. Enter:

   • Material which is required to be purchased

   • Quantity required and delivery date

   • Plant and storage location where materials are required

   • Account assignment (if consumption-based)

4. Enter purchasing group [Team responsible for purchasing]

5. Save the document → PR number is generated

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