Introduction: Understanding the PR to PO Workflow in SAP
In SAP Materials Management (MM), procurement efficiency
hinges on how well you can convert a Purchase Requisition (PR) into a Purchase
Order (PO)—especially when referencing a Contract.
Can You Create a PR Directly From a Contract?
No, SAP does not allow the direct creation of a PR using
a contract as a reference document. However, the contract can still serve
as a Source of Supply during PR creation. This makes it possible to link
the contract indirectly for pricing and vendor agreement purposes.
Manual Creation of Purchase Requisition with Contract Reference
(ME51N)
To manually create a PR and reference a contract:
1. Go to Transaction ME51N.
2. Fill in all required fields:
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Material
-
Quantity
-
Plant
-
Purchase Group
3. Under Item Details → Source of Supply, enter the Contract
Number.
4. Save your PR.
This way, the contract is associated as a source for the
PR without being the origin document.
PR Creation via MRP Using a Contract
If you're using MRP (Material Requirements Planning) to generate
PRs that reference a contract, follow these steps:
1. Go to ME01 to maintain the Source List.
2. Add your Contract Number in the source entry.
3. Set the MRP Indicator to "1" (Fixed) or "2" (Not Fixed).
4. Run MRP (MD02) for your plant/material.
5. Post-MRP run, verify the PRs in the system. The Source
of Supply tab will contain the Contract Number.
Steps to Manually Assign Contract in PR for PO Creation
Once your PR is created and associated with a contract, follow
these steps to process it into a PO:
1. Navigate to the Assignment Screen
-
Go to:
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Logistics → Materials Management → Purchasing → Purchase
Requisition → Follow-on Functions → Assign and Process
-
Or simply use transaction ME57.
2. Execute Search and Select Requisition
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Tick the Assigned Purchase Requisitions checkbox if needed.
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Click Execute.
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On the next screen, select relevant Requisition Lines.
3. Manually Assign Source of Supply
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Choose Assign Manually.
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In the Assign Source of Supply Manually popup:
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Agreement Number (e.g., 46XXXXX)
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Agreement Item (e.g., 10)
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Click Assign Source of Supply.
You can also use Assign Automatically, if MRP hasn't already
done so. If multiple sources exist, choose your contract manually in the
Source Overview screen.
Processing and Creating the Purchase Order
4. Review Assignments and Select Line Items
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Click Assignments Overview (Shortcut: SHIFT+F5).
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Select the Vendor line, then choose Process Assignment.
5. Confirm Order Type and Organizational Data
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In the Process Assignment: Create PO screen:
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Confirm Order Type (NB)
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Check Purchasing Group and Purchasing Organization
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Press Enter to proceed.
6. Adopt PR into PO
In the Create Purchase Order screen:
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From Document Overview, select the PR.
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Click Adopt to bring the PR into the PO.
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Click Save.
Your PO is now created with reference to the PR and contract!
FAQs: How to Create PO From PR With Ref to Contract
Q1. Can I reference a contract directly while creating
a PR?
No. Contracts cannot be direct reference documents for PRs.
You must use them as a source of supply.
Q2. How do I use a contract in MRP to generate PRs?
Maintain the source list (ME01) with the contract and run
MRP (MD02). PRs will carry the contract as the source.
Q3. What transaction is used to assign and process PRs?
Use ME57 or navigate via the logistics path for PR assignment
and PO creation.
Q4. Can I assign the contract automatically to PRs?
Yes, if it's listed in the source list and not already assigned
by MRP.
Q5. What if multiple sources are available in the source
list?
You must manually select the correct contract from the source
overview during assignment.
Q6. What is the role of the “Source of Supply” tab
in PR?
It defines where the material should be procured from—including
any valid contract, scheduling agreement, or info record.
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