SAP Procurement for Dummies Buying Assets with a Purchase Requisition! 🛒🏢

SAP Procurement for Dummies: Buying Assets with a Purchase Requisition! 🛒🏢
Sometimes, when you buy something for your company, it's not just a simple office supply or raw material for production. It might be a new piece of machinery, furniture, or equipment – something that will be a long-term Fixed Asset!

How do you kick off the purchase process for such items in SAP S/4HANA, linking it correctly to your Asset Accounting records?

You start with a Purchase Requisition (PR), but with a special twist: Account Assignment Category 'A' (Asset)!

Here’s the simple idea when creating a PR for an asset using a Fiori app like 'Create Purchase Requisition - Advanced' (which often looks similar to the classic ME51N transaction):

Start the PR: Log in as a Purchaser and open the PR creation app.
Identify it as an Asset Purchase: On the item line, select Account Assignment Category 'A'. This is the signal to SAP that this purchase is destined for a fixed asset, not consumption or stock.
Link it to the Asset: Once you select 'A', SAP needs to know which asset this purchase is for! On the Account Assignment tab for that item, you enter the specific Asset Number you (or the Asset Accountant) would have created earlier in Asset Accounting.
Add Item Details: Fill in the usual details like a short description of the item, quantity, unit, material group, and potentially your desired vendor, plant, and purchasing organization/group.
Valuation & Activation: Enter the price of the item. SAP uses flags like 'Goods Receipt' and 'Invoice Receipt' to determine when the asset's value gets updated and activated in Asset Accounting.
Check and Save: Use the 'Check' function to ensure everything is correctly entered, and then 'Save' your Purchase Requisition!
By using Account Assignment 'A' and linking it to the Asset Number on your Purchase Requisition, you correctly tie the procurement process directly to Asset Accounting right from the start. This ensures the item is capitalized correctly when it's eventually received and invoiced!

Connecting the dots between MM and FI-AA in SAP S/4HANA is simpler with the right steps!

Have you used Account Assignment 'A' before? What other account assignments are you curious about? Let me know! 👇

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