How to Create a Purchase Order in SAP (ME21N Guide)

How to Create a Purchase Order in SAP: Quick Answer

To create a purchase order in SAP, run transaction ME21N, choose the document type (standard PO), enter the vendor number, fill in line items with material, quantity, price, plant, and storage location, check for errors, and click Save. The system assigns a PO number and the PO routes for release if a release strategy is configured.

Transaction ME21N: Step by Step

Follow these steps to create a purchase order in SAP MM using ME21N:

Open ME21N - the Create Purchase Order transaction.
Select document type - standard PO (NB) for normal purchases.
Enter the vendor - vendor number in the header Vendor field.
Fill in header data - purchasing organization, purchasing group, company code, currency, and payment terms.
Add line items - for each: material number, short text, quantity, unit, price, plant, storage location, and delivery date.
Check - click Check to validate for errors (missing data, price issues).
Save - click Save. SAP assigns a PO number and routes the PO for release if a release strategy applies.

SAP PO Document Types

SAP supports several PO document types, each for a different purchase situation:

NB - Standard PO for normal goods purchases
NBU - Stock transfer between plants
UB - Stock transport order with delivery
Framework orders (blanket/contract) for recurring purchases

Most SMB-to-mid-market purchasing uses the standard PO (NB). Framework orders cover recurring needs against a single agreement, similar to a blanket purchase order.

SAP PO Release (Approval)

If a release strategy is configured, the PO routes for approval before it can be sent to the supplier. Release groups, release codes, and release points define who approves POs above certain values. Once released, the PO can be output (printed, emailed, or sent via EDI) to the supplier.

SAP PO Numbering

SAP assigns PO numbers from number ranges configured per document type and purchasing organization. Each PO number is unique within the client. For invoice matching, the PO number links the order to the goods receipt and the invoice for three-way matching.

A Simpler Alternative for SMBs

SAP MM is powerful but requires an SAP license, configuration, and training - overkill for occasional POs or small teams. For SMBs, the free AuraVMS purchase order generator creates a print-ready PO in under 2 minutes with no signup, and the full AuraVMS product automates RFQ-to-PO workflows from $4.99/month. Use SAP for enterprise ERP; use AuraVMS for lean purchasing.

Frequently Asked Questions

What transaction code is used to create a purchase order in SAP?

Use transaction ME21N to create a purchase order in SAP MM. It opens the Create Purchase Order screen where you select the document type, enter the vendor, add line items, check for errors, and save. Related transactions: ME22N (change), ME23N (display), ME21 (legacy create).

What are the steps to create a PO in SAP?

In ME21N: select document type (NB), enter the vendor, fill in header data (purchasing org, group, company code, currency, payment terms), add line items (material, quantity, price, plant, delivery date), click Check, then Save. SAP assigns a PO number and routes the PO for release if a release strategy is configured.

What is a document type in SAP purchase orders?

A document type classifies the PO by purpose. Standard PO is NB (normal goods purchase). NBU is stock transfer between plants. UB is stock transport order with delivery. Framework orders (blanket/contract) cover recurring purchases. Most purchases use the standard NB document type.

How does PO approval work in SAP?

SAP uses a release strategy for PO approval: release groups, release codes, and release points define who must approve a PO before it can be sent to the supplier. Approval is triggered by PO value or other criteria. Once released, the PO can be output (printed, emailed, or sent via EDI) to the supplier.

Is there a simpler way to create purchase orders than SAP?

Yes. For SMBs or teams without SAP, the free AuraVMS purchase order generator creates a professional PO and downloads a PDF in under 2 minutes, with no SAP license or training needed. For ongoing RFQ-to-PO automation, the full AuraVMS product starts at $4.99/month.