What is preliminary purchase order in SAP MM-PUR - Purchasing?

SAP Term: preliminary purchase order

• Component: MM-PUR

• Component Name: Purchasing

• Description: A purchase order created from within a network and assigned to a project or sales order independently of the bill of material. The preliminary order is sent to in the form of a purchase requisition.

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• Key Concepts: 
  A preliminary purchase order is a document used in the Materials Management (MM) Purchasing component of SAP. It is a non-binding request for goods or services that is sent to a vendor prior to the creation of a binding purchase order. The preliminary purchase order allows the vendor to provide an estimated delivery date and cost for the requested goods or services. 
  
  How to Use it: 
  A preliminary purchase order can be created in SAP by navigating to Logistics > Materials Management > Purchasing > Purchase Order > Create > Preliminary Purchase Order. The user will then enter the vendor, material, quantity, and delivery date information. Once the preliminary purchase order is saved, it can be sent to the vendor for review. 
  
  Tips & Tricks: 
  It is important to note that a preliminary purchase order does not commit the buyer to purchasing the requested goods or services. The buyer must still create a binding purchase order in order to complete the transaction. Additionally, it is recommended that buyers use preliminary purchase orders when requesting quotes from multiple vendors in order to compare prices and delivery dates. 
  
  Related Information: 
  For more information on creating and managing preliminary purchase orders in SAP, please refer to the SAP Help Portal (https://help.sap.com/viewer/). Additionally, there are many online resources available that provide step-by-step instructions on how to use SAP MM Purchasing components.