Material Management Flow

• Purchase Requisition (ME51n): 

1. The inventory department create one purchase requisition with the required materials and sends to purchasing department.

• Request for Quotation (ME41 ) : 

1. The purchasing department request for the quotation with different vendors for the requested materials of warehouse department.

• Quotation ( ME47 ):

1. Against RFQ the vendor sends the quotation to purchasing department.

• Purchase Order ( ME21n) : 

1. After receiving the quotations from the vendors . The purchasing department compares the quotations based on the price and quality parameters and identify the best vendor .
2. The purchasing department create the purchase order sends to best vendor.

• Goods Receipt (GR)  : 

1. Against the purchase order , the warehouse department create the GR with 101 movement type.
2. if the warehouse people create the GR incorrectly or wrongly . Then cancel the GR with movement type 102.
3. If the material is not quality product(material ) . Then the return the material to vendor with movement type 122.

• Invoice Receipt (IR) :Against GR the finance team physically verify the stock and prepares the IR document.
• Account Payable's :Against invoice receipt , the AP team pay the amount to Vendor.  

Note

1. Pending purchase requiting = PR quantity – PO quantity .
2. Pending PO = PO quantity – GR quantity.