How to Create a Purchase Order in SAP: Step-by-Step Tutorial

Creating a purchase order in SAP is one of the most frequent operations in any purchasing department. Whether you're just starting with SAP or want to solidify your skills, this complete tutorial walks you through transaction ME21N step by step — the central tool for creating purchase orders in SAP MM.

By the end of this tutorial, you will know how to create an SAP purchase order from start to finish: selecting the document type, entering the vendor, adding line items, entering prices and account assignments, and saving the order to trigger the procurement process.

Why Use ME21N to Create a Purchase Order in SAP?

Transaction ME21N (ME = Materials Management module, 21 = create order, N = new screen version) is the standard transaction for creating purchase orders in SAP. It replaced the older ME21 transaction and offers a more user-friendly tab-based interface.

ME21N is used for:

• Standard goods purchase orders (document type NB)
• Subcontracting orders (type UB)
• Service orders (with service lines)
• Contract release orders (call-offs against ME31K contracts)

This is the transaction every SAP buyer must master. It centralizes all key order data and triggers the full procure-to-pay flow.

Prerequisites Before Creating an SAP Purchase Order

Before opening ME21N, make sure you have the following information ready:

1. Vendor number (or enough details to look it up)
2. Purchasing organization associated with your entity
3. Purchasing group you belong to
4. Material number (or a description if working without a material master)
5. Quantity to order
6. Expected unit price
7. Required delivery date
8. Account assignment: cost center, internal order, or G/L account depending on your setup

Without these details, SAP may block order creation or generate validation errors. Prepare this data before you start.

Step 1: Open Transaction ME21N

To create a purchase order in SAP with ME21N:

1. Log in to SAP
2. In the command bar at the top left, type /nME21N (or simply ME21N if you're on an empty screen)
3. Press Enter

The purchase order creation screen opens. You will see three main areas:

• The header (vendor, purchasing organization, general conditions)
• The line items table (materials or services to order)
• Detail tabs that vary depending on the selected line item

Step 2: Select the Purchase Order Type

In the Document type field at the top of the screen, select the order type that matches your scenario:

Type	Description
NB	Standard purchase order
FO	Contract release order
UB	Stock transfer order between plants
ZXXX	Custom types created by your organization

For the vast majority of everyday purchases, you'll use document type NB (Normalbestellung in German = standard order).

Step 3: Fill in the Header Data

The order header contains information that applies to the entire document.

Vendor

Enter the vendor number in the Vendor field. If you don't know the number, press F4 to open the search window. You can search by name, city, country, or tax number.

After entering the vendor, SAP automatically populates several fields from the vendor master: currency, payment terms, delivery address.

Purchasing Organization and Purchasing Group

• Purchasing Organization: identifies the entity responsible for purchasing. Example: 1000 for France.
• Purchasing Group: identifies the team or individual responsible. Example: 001 for general purchasing.

Both fields are mandatory and must match your SAP authorization profile.

Order Date

The order date is automatically filled with today's date. You can modify it if needed.

Step 4: Enter the Order Line Items

Line items correspond to the materials or services you want to order. For each line item:

Material Number

Enter the material number in the Material column. If you know the exact number, type it directly. Otherwise, use F4 to search by description or characteristics.

Special case: if you're ordering without a material master (text item), leave the Material field empty and type a description in the Short text column.

Order Quantity

Enter the quantity in the corresponding column. The unit of measure is automatically retrieved from the material master (e.g., PC for piece, KG for kilogram, M for meter).

Net Price

Enter the agreed net unit price with the vendor. SAP may also automatically suggest a price if a vendor-material info record (ME11) exists.

Delivery Date

Enter the expected delivery date for this line item. SAP can calculate it automatically from a delivery lead time configured in the info record.

Plant and Storage Location

• Plant: identifies the factory or site where goods will be delivered
• Storage Location: identifies the storage area within the plant

These two fields determine where the goods will be received and stored in SAP.

Step 5: Enter the Account Assignment

The account assignment tells SAP where to post the costs of this purchase in FI/CO. It is mandatory for certain purchase types (services, capital expenditures, consumables without stock management).

In the Acct. Assgt. tab (or by entering the account assignment category directly):

Category	Description	Example
K	Cost center	4100
F	Internal order	100234
P	WBS element	P-2024-001
A	Fixed asset	100001-0

If the account assignment category is K (cost center), you must also enter:

• The cost center where costs will be charged
• The G/L account (general ledger) on which the expense will be posted

Step 6: Review Delivery Conditions (Header Tab)

In the Conditions tab of the header, review:

• Payment terms (e.g., 30 days net, 2% discount at 10 days)
• Currency of the order
• Incoterms if applicable (EXW, CIF, DDP, etc.)

This data is usually filled automatically from the vendor master, but you can modify it for this specific order.

Step 7: Save and Confirm the Order

Once all information is filled in:

1. Check the warning messages at the bottom of the screen (yellow or red icons)
2. Correct any errors before saving
3. Click Save (disk icon) or press Ctrl+S

SAP automatically assigns a purchase order number (typically in the range 45XXXXXXXX). This number appears in the status bar at the bottom of the screen.

Note this number — it will be needed for the goods receipt in MIGO and for invoice verification in MIRO.

Step 8: Print or Send the Order to the Vendor

After saving, you can send the order to the vendor:

1. Open the order in ME23N
2. Go to the Messages menu → Display messages (or access the corresponding tab)
3. If a print message is configured, SAP can send it by email, fax, or EDI automatically
4. You can also print manually via Print in the menu

Message configuration depends on your organization's setup (message schema, output condition, medium).

Common Errors When Creating an SAP Purchase Order

Error	Probable Cause	Solution
"Vendor unknown"	Vendor number doesn't exist or is blocked	Check XK03, contact master data team
"Material not stock-managed"	Incompatible material type	Use account assignment category
"Plant not valid"	Plant not authorized for this purchasing org	Check authorizations with SAP admin
"Price missing"	No info record or manual price	Enter price manually or create ME11
"Incorrect account assignment"	Non-existent or blocked cost center	Verify in management accounting

What Happens After Creating the Purchase Order

Once your SAP purchase order is created, here are the next steps in the P2P cycle:

1. Approval (if a workflow is configured): the order is sent for approval based on defined thresholds
2. Send to vendor: by email, EDI, or vendor portal
3. Vendor confirmation: order acknowledgment with confirmed delivery date in ME22N
4. Goods receipt (MIGO, movement type 101): when goods physically arrive
5. Invoice verification (MIRO): three-way match of PO/GR/invoice
6. Payment: processed via F110 in SAP FI

Conclusion

Creating a purchase order in SAP with ME21N is straightforward once you understand the screen structure and required data. This step-by-step tutorial has walked you through every stage: opening the transaction, selecting the vendor, entering line items, assigning account codes, and saving the order.

To go further with hands-on exercises, detailed screenshots of all SAP screens, and complete procure-to-pay scenarios, download our SAP MM purchasing PDF guide.

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Master the complete SAP purchasing cycle

Our SAP MM PDF guide covers ME21N, MIGO, MIRO, and all P2P transactions with screenshots, practical exercises, and real-world scenarios.

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