What is the difference between Purchase Requisition and Purchase Order in SAP ?

SAP MM Training

Purchase Requisition ( PR ) Purchase Order ( PO )
Internal Document. Doesn’t leave the company. Informal. Goes out to the vendor. Formal/Legal document.
Represents an internal requirement for goods or services. Ex., the legal department needs 10 new chairs. Represents a legally binding document that is sent to the vendor for goods or services. Ex., A PO is sent out to a vendor – “ABC Furniture” for 10 new chairs.
Typically automatically created via MRP. Ex., MRP run in Toyota creates PRs for tires for the next batch of cars. Typically created manually either with reference to a PR or with reference to a contract. Ex., somebody in the Purchasing department of Toyota looks at all the requests for tires, and sends them to a Vendor – say Bridgestone tires.
Purchase Requisition typically doesn’t bother too much about vendors. Ex., when creating the PR for new chairs, you don’t need to specify the vendor. PO is always created with a particular vendor. Ex., when creating a PO for the chairs, you should be sure whom ( vendor ) it should be sent to.