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purchase order with vendor in different country supply to another country


There is a scenario as below:-

1. Goods Manufacturing in China

2. PO should be raised by Sweden as Sweden is the owner of china unit

3. Delivery wrt PO should be done at Singapore

Can you advise which process shall fit this scenario in SAP MM.

Shall PO will treat China as vendor?

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5 Answers

  • Sep 04, 2017 at 12:24 PM

    There are some gaps, which is often the case if complex scenarios are just described with a few words.

    Is this China manufacturer a plant in your system?

    the Singapore sentence needs to be explained with other words, is this a customer or another vendor or just your office that created deliveries? And why should a delivery be done with referencing the PO?

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  • Sep 04, 2017 at 12:55 PM


    This business scenario is based on import procurement of materials from a vendor which is a mfg plant of your company in china.You have to create china plant as a vendor by xk01 in your SAP ERP system.Assign china currency and schema group - vendor in xk01 master data.Now create import PO by Sweden plant under a company code for vendor china plant.Assign storage location in PO as a Singapore location.After Import PO ,outbound delivery doc will be created at china plant. At Singapore,inbound delivery doc shall be created in SAP system.Inventory will update in Sweden plant for Singapore storage location.for import pricing,a pricing schema to be configured.

    Kindly test the process scenario in QA client before prod client transaction.

    Hope you will get the results.

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    • Can we keep currency as USD and schema group as Standard schema vendor.

      Also storage location is Singapore in this case,does it mean delivery address will be maintained manually in PO delivery address tab.

  • Sep 04, 2017 at 01:58 PM

    Whoever creates the purchase order and whereever he is located does not really matter.

    This is intercompany business, and a relation is always 1:1

    China plant to Singapore plant, China vendor to Singapore customer.

    Swedish plant to Singapore plant, Swedish vendor to Singapore customer.

    The Singpore plant is the ordering plant, and the China plant is the supplying plant. And exact this needs to be setup in your stock transport order customizing, like you did it for deliveries coming from Sweden to Singapore.

    In STO's is the delivery address not really a different party, how should Singapore plant receive the goods if the ordering plant would be Sweden in your PO and only the delivery address was Singapore? After the receipt the goods would be under the Swedish plant.

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  • Sep 04, 2017 at 12:59 PM

    Apology for not being so specific in my question.

    Here is brief description:-

    We have to set STO process between Sweden and Singapore as the range of products shall be moved from Sweden to Singapore and at Singapore it will be sold in sales order.

    In this process there is a special scenario where for some products manufactured in china, purchase orders will be placed by Sweden office but direct delivery to Singapore office is required. How shall this case be handled.

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  • Sep 05, 2017 at 05:59 AM


    This process scenario related to procurement of trading goods .All materials which are procured from china plant as a vendor to be maintain as a trading goods in SAP ERP system under Sweden plant.Pricing procedure to be configured for import pricing.Delivery details for Singapore location can be entered during creation of Import PO.But incoterms as CIF;Singapore to be entered in Import PO transaction code ME21n.


    Jayant Garg

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    • He said yesterday it is a stock transfer, your scenario does not work for stock transfers from China to Singapore - at least you did not explain how you can increase the stock in Singapore.