Short Note: Purchase Requisition through Planned Order OR Direct Purchase Requisition in MRP Run

The type of procurement proposal to be created automatically in the planning run depends on the procurement type of the material. In case of external procurement, the MRP controller can choose between a planned order and a purchase requisition. If the MRP controller chooses a planned order, it then has to be converted into a purchase requisition in a separate step so that it is made available to Purchasing.

The advantage of creating a planned order is that the MRP controller has more control over the procurement proposals. The purchasing department cannot order the material until the MRP controller has checked and converted the order proposal. If a purchase requisition is created, it is immediately available to the purchasing department which then takes over the responsibility for material availability and warehouse stocks.

So, it is the standard process to create planned order then convert them to purchase requisition.