What Is SAP ME21N (Create Purchase Order)?
Also known as: ME21N, SAP purchase order, ME22N, ME23N
Definition
ME21N is the SAP MM transaction for creating a purchase order. A PO captures vendor, material, quantity, price, plant and delivery date, and becomes the reference for goods receipt (MIGO) and invoice verification (MIRO).
SAP ME21N (Create Purchase Order) Explained
ME21N opens the enjoy purchase order screen with a header (vendor, purchasing organization, purchasing group, company code, payment terms, currency) and an item overview (material, short text, quantity, delivery date, net price, plant, storage location). ME22N changes a PO and ME23N displays it. The document type, usually NB for a standard PO, controls number ranges and field selection.
Item category and account assignment category shape downstream behavior. A standard item for a stocked material updates inventory on receipt. Account assignment K charges a cost center directly, and category F charges an internal order. Item category L is subcontracting, where components are provisioned to the vendor and consumed on receipt, which matters for outside processing in manufacturing.
Prices come from the info record (ME11) or a contract or scheduling agreement, resolved through the pricing procedure and condition type PB00 or PBXX. Source determination can use the source list. Purchase requisitions from MRP (converted through ME57 or ME58) can be carried into ME21N, which preserves the link between demand and the order.
Release strategies (configured on characteristics such as total value and purchasing group, then approved in ME28 or ME29N) hold a PO until the right approvers release it. Output is determined through message conditions and sent by print, email or EDI (ORDERS IDoc). The PO history tab shows goods receipts and invoices, which is where three-way match is verified.
Why It Matters
- The PO is the commitment record, so open PO value drives cash forecasts and accruals.
- Wrong item category or account assignment on a PO posts cost to the wrong place and is painful to correct after receipt.
- Release strategy design decides how fast buyers can move versus how much spend control the company has.
- ME21N is the usual target for automation: BAPI_PO_CREATE1 and EDI ORDERS are how external systems and agents create POs.
In Practice
A buyer converts requisition 10045 for 1,000 fasteners into a PO at 0.42 USD each, total 420 USD. A release strategy keyed to value under 5,000 USD auto-releases it. A second PO for 80,000 USD of castings triggers a two-level release in ME29N, and the vendor does not see the order until both approvers release.
Frequently Asked Questions
What is the difference between ME21N, ME22N and ME23N?
ME21N creates a purchase order, ME22N changes an existing one and ME23N displays it. All three use the same enjoy screen with different modes.
Why is my SAP purchase order blocked from being sent?
The most common cause is a release strategy that still needs approval in ME28 or ME29N. Check the release status on the header, and also check output determination if the PO is released but not transmitted.
How can systems create POs without ME21N?
Use BAPI_PO_CREATE1 through RFC or an integration layer, or send an ORDERS IDoc inbound. Both still run the same pricing, release and validation logic.
Related Terms
Purchase Requisition
A purchase requisition is an internal request to procure goods or services, routed for approval against budget and authority limits before a buyer sources it and converts it into a purchase order sent to a supplier.
Three-Way Match
A three-way match is the accounts payable control that compares the purchase order, the goods receipt, and the supplier invoice on quantity and price before releasing payment, ensuring a company pays only for what it ordered and actually received.
EDI 850 Purchase Order
The EDI 850 is the ANSI X12 transaction set used to transmit a purchase order electronically from a buyer to a supplier, carrying header terms, ship-to and bill-to parties, and line item details such as quantity, price, and product identifiers.
SAP MIGO (Goods Movement)
MIGO is the SAP transaction that posts goods movements in one screen: goods receipts against purchase orders, goods issues to production orders or cost centers, stock transfers and returns. Each posting creates a material document and an accounting document.
Goods Received Not Invoiced (GRNI)
Goods received not invoiced, also called GRNI or GR/IR, is the accrued liability for items received into stock for which the supplier invoice has not yet been matched or posted. It is cleared when the invoice is verified.
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