This flowchart illustrates a sample “To-Be” process for creating a Purchase Requisition (PR) in SAP as part of the Procure-to-Pay (P2P) cycle, detailing the necessary steps and data requirements. Here’s a step-by-step explanation of the flowchart:
- Material/Service Requirement Identification: The requestor starts the process by identifying the material or service needed.
- Quotation Attachment: The requestor attaches vendor quotations, if available, which will support the purchase requisition.
- Creation of Purchase Requisition:
- Branch-wise PR Creation: The requestor is instructed to create branch-wise PRs under a decentralized model, allowing for specific management and tracking per location.
- Mandatory Fields for PR: During PR creation, several mandatory fields need to be captured to comply with regulatory and internal requirements:
- Place of Supply (POS)
- GSTIN of the company’s location where POS falls
- HSN/SAC Code of goods/services
- Quantity
- Required Delivery Date
- Approval and Release of PR:
- Approval of PR: The PR must be approved according to a defined authority matrix, which ensures that the appropriate levels of internal control are maintained over procurement activities.
- PR Release: The PR is formally released in SAP for further processing.
- Process Completion: The process concludes once the PR is approved, allowing for subsequent steps in the procurement cycle, such as the conversion of PR to Purchase Order (PO), vendor selection, and the fulfillment of goods or services.
