Purchase Order Processing fulfills direct procurement requirements through conversion from demands to purchase orders, issuance, and confirmation of purchase orders. This includes dedicated processes for the purchasing of direct materials, indirect materials, and services. Via Reciept Confirmation other Departmenst will be informed about the received and accepted quantity of ordered goods. Invoice Verification Process helps to receive, enter and check vendors invoice for correctness. The selection of suppliers via Strategic Sourcing is important to guarantee the availability of raw materials and components for production and delivery. Strategic plans indicate the requirements. Possible vendors can be identified and evaluated based on their historical performance. Contracts are created and transferred to all applications to be considered during planning and execution. This includes special relationships such as scheduling agreements or outsourcing production steps

See also: mySAP Supplier Relationship Management Application Map