# Purchase orders for S/4HANA

S/4HANA has purchase orders built in. Pulsify matches each supplier invoice to the purchase order you raised in S/4HANA and shows what is left to bill.

A purchase order is the written order you send a supplier before they deliver, so the bill can be checked against it later.

## What S/4HANA does on its own

Purchase orders are created in Manage Purchase Orders or Create Purchase Order (ME21N). A release strategy can hold the order until the person with the release code approves it in ME29N. Flexible workflow for purchase orders is a second route.

## What you need in S/4HANA

- Purchasing authorisation
- A release strategy defined in Customizing for Purchasing or flexible workflow for purchase orders

## Setting it up in S/4HANA

Where to find it: Manage Purchase Orders, or Create Purchase Order (ME21N); release in Release Purchase Order (ME29N)

1. Enter the supplier, items and prices.
2. Save. If a release strategy applies, the PO waits for release.
3. The person with the release code opens ME29N.
4. On the Release Strategy tab choose Release or Reject.
5. A rejected PO goes back to the buyer, who cancels the rejection in ME22N.

## Good to know in S/4HANA

- A release strategy must be defined in Customizing for Purchasing before it applies.
- Flexible workflow for purchase orders is set up in Manage Workflows for Purchase Orders.
- A PO does not change the accounts for stock items until goods are received.

## How to do it in S/4HANA

### How to raise a purchase order and get it approved in S/4HANA

In S/4HANA, create a purchase order with the supplier, lines and prices. Submit it for approval and send it to the supplier only after it is approved. Full guide: https://www.pulsify.tech/how-to/raise-a-po-and-get-it-approved-in-sap-s4hana/

### How to match a supplier invoice to a purchase order in S/4HANA

In S/4HANA, open the purchase order, compare each supplier invoice line to the purchase order line on quantity and unit price and query any difference before you approve. Full guide: https://www.pulsify.tech/how-to/match-a-bill-to-a-purchase-order-in-sap-s4hana/

### How to handle a partial delivery against a purchase order in S/4HANA

In S/4HANA, keep the purchase order open, check each supplier invoice against what has been billed so far and close the purchase order only when the last delivery is invoiced. Full guide: https://www.pulsify.tech/how-to/handle-a-partial-delivery-against-a-po-in-sap-s4hana/

## What Pulsify adds

1. Raise and approve the purchase order in S/4HANA as you do now.
2. Open purchase orders come into Pulsify from S/4HANA.
3. When the supplier invoice arrives, Pulsify matches it to the purchase order line by line and flags differences.
4. A panel shows how much of the purchase order has been billed and what is left.

Pulsify connects to S/4HANA. We set up the connection for you.

What Pulsify does not do:

- Raising purchase orders in Pulsify is for Xero only. In S/4HANA you raise them in S/4HANA.

## Common questions

### Can S/4HANA hold a PO until a manager approves it?

Yes. A release strategy holds the PO until the person with the release code releases it in ME29N. Flexible workflow for purchase orders is another route.

### What happens when a PO is rejected?

It goes back to the buyer. The buyer cancels the rejection in ME22N and can change the order and send it again.

### Who defines the release strategy?

An administrator defines it in Customizing for Purchasing. AP users do not set it up.

### Should every purchase have a purchase order?

Most teams set a dollar amount or a supplier list. Regular small bills such as power often skip a PO and go through approval instead.

## Sources

- https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/af9ef57f504840d2b81be8667206d485/ef7db65334e6b54ce10000000a174cb4.html
- https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/af9ef57f504840d2b81be8667206d485/b33a97f3014f43c488ec798633824081.html

Source: https://www.pulsify.tech/purchase-orders-for-sap-s4hana/ (last checked 2026-10-19)