How does a PO consume a PR?

How does a PO consume a PR?

PO Consumption of PR refers to the process of a Purchase Order (PO) using one or more Purchase Requisitions (PR) during its creation. Here’s how it works:

  1. One PO can consume multiple PRs:
    A single PO can fully or partially consume multiple PRs, depending on the items and requirements listed in the PRs.

  2. Multiple POs can consume one PR:
    A PR can be consumed by several POs, especially when the items or quantities in the PR are divided across different orders.

Item Categorization:

  • Goods: For items marked as goods in the item master, consumption is tracked based on quantity (e.g., number of units).

  • Services: For items marked as services, consumption is tracked based on amount (e.g., cost of service rendered).

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