This process flow image depicts the procurement cycle in SAP, a sequential process for acquiring goods or services from a vendor.

1. Determination of Requirements (ME51N): A requisition is generated outlining the business needs. This requisition specifies the required items, quantity, and expected delivery date (ME51N).
2. Determination of Source of Supply (RFQ Flow): Potential vendors are identified. Requests for Quotation (RFQs) are typically sent, detailing the required product or service, quantity, and desired delivery timeframe. Vendors respond with quotes including pricing and delivery terms (RFQ Flow).
3. Vendor Selection: Offers are compared, and the vendor that best aligns with the requirements is chosen. Factors such as pricing, quality, delivery time, and payment terms are all considered.
4. Purchase Order Processing (ME21N): A purchase order (PO) is formally created (ME21N). This PO documents the agreement between the purchaser and the vendor. It details the specific items or services being ordered, the agreed-upon price, quantity, and delivery date.
5. PO Monitoring: The purchase order status is monitored to ensure adherence to the agreed-upon delivery timeline.
6. Goods Receipt (MIGO): Upon receiving the ordered goods, a goods receipt is performed (MIGO). This process verifies the quantity and condition of the received goods against the details mentioned in the purchase order.
7. Invoice Verification (MIRO): A vendor invoice is created for processing (MIRO). This invoice details the amount payable to the vendor based on the agreed-upon price and quantity outlined in the purchase order.
8. Payment Processing: After verifying the invoice, the vendor is paid for the delivered goods or services.