How to close the Purchase Requisition which was created from Make To Order (MTO) Sales Order?

How to close the Purchase Requisition which was created from Make To Order Sales Order?

Make to Order business Process flow:

Create MTO Sales Order – VA01
System creates Purchase Requisition automatically – ME53N
Create Purchase Order – ME21N/ME59N
Post Goods Receipt – MIGO
Post Vendor Invoice – MIRO
Payment to Vendor – F110
Create Outbound Delivery against MTO Sales Order – VL01N
Post Goods Issue – VL02N
Create Billing Document – VF01
Clear Customer balances – F-28

Here is the end-to-end SAP Make-To-Order (MTO) process flow structured across business domains, showing document linkages, transaction codes, and financial/inventory impacts:

Phase	Step	SAP T-Code	Document Created / Action	Key Business Impact
Sales & Demand	1. Create Sales Order	VA01	Sales Order (SO)	Captures customer demand; requirement type triggers procurement with special stock indicator E (Sales Order Stock).
	2. Purchase Requisition	ME53N (Display)	Purchase Requisition (PR)	Automatically generated by the system with account assignment category E/M pointing directly to the Sales Order item.
Procurement	3. Create Purchase Order	ME21N / ME59N	Purchase Order (PO)	Converts the PR to PO manually (ME21N) or via batch conversion (ME59N). PO references the specific SO line.
	4. Post Goods Receipt	MIGO	Material & Accounting Doc	Receives goods into restricted Sales Order Stock (E). Dr. Inventory (SO Stock) / Cr. GR/IR.
Vendor Settlement	5. Post Vendor Invoice	MIRO	Invoice Document	Performs 3-way match (PO, GR, Invoice). Dr. GR/IR / Cr. Vendor AP.
	6. Vendor Payment	F110	Payment Run	Executes electronic transfer or check to vendor. Dr. Vendor AP / Cr. Bank Clearing.
Fulfillment	7. Create Outbound Delivery	VL01N	Delivery Document	Initiates picking against the reserved sales order stock.
	8. Post Goods Issue	VL02N	Material & Accounting Doc	Relieves customer-reserved inventory and marks shipment. Dr. Cost of Goods Sold (COGS) / Cr. Inventory (SO Stock).
Customer Settlement	9. Customer Billing	VF01	Customer Invoice	Posts revenue and creates receivable. Dr. Customer AR / Cr. Revenue.
	10. Incoming Payment	F-28	Accounting Document	Clears customer balance against the open invoice. Dr. Bank Account / Cr. Customer AR.

1.Order Entry & Auto-Requisition:SD-MM Integration.

VA01 -> Automatic PR Generation

Enter customer order using standard MTO item categories (such as TAC or customized variant).
Upon saving, the requirement class generates a linked Purchase Requisition immediately, viewable in ME53N or directly in the Sales Order Schedule Lines tab.

2.Procurement Execution:Purchasing & Goods Receipt.

ME21N/ME59N -> MIGO (Movement Type 101 E)

Create the Purchase Order referencing the generated PR. The PO inherits the Sales Order reference in the Account Assignment tab.
Post Goods Receipt via MIGO. The inventory posts strictly into valuated/non-valuated Sales Order Stock (E), meaning it cannot be issued to any other delivery or order.

3.Vendor Financial Settlement:Accounts Payable (AP).

MIRO -> F110

Post supplier invoice via MIRO to clear the GR/IR clearing account and post to the vendor liability.
Run the automatic payment program via F110 (or manual outgoing payment via F-53) to clear vendor balances.

4.Outbound Logistics:Shipping & Inventory Relief.

VL01N -> VL02N (Movement Type 601 E)

Create the outbound delivery with reference to the original Sales Order.
Pick and pack the stock tied to special stock E.
Execute Post Goods Issue (VL02N), generating an accounting document that debits COGS and credits Sales Order Stock.

5.Billing & Accounts Receivable:SD-FI Integration.

VF01 -> F-28

Generate the customer billing document via VF01, debiting Customer AR and crediting Sales Revenue.
Post incoming payment from the customer in F-28 to clear the open AR item.

If the business has sufficient stock in normal stock, they will proceed with below steps without procuring from the vendor. Below step will avoid the steps 3 to 6 in the above flow.

Create MTO Sales Order – VA01
Update the block indicator in PR – ME52N
Transfer normal stock to Sales Order Stock with 413 Movement type – MIGO
Create Outbound Delivery against MTO Sales Order – VL01N
Post Goods Issue – VL02N
Create Billing Document – VF01
Clear Customer balances – F-28

This variant represents an MTO Fulfillment via Stock Transfer, where existing unrestricted company stock is redirected to satisfy the sales order demand rather than procuring from an external vendor.

Phase	Step	SAP T-Code	Document / Action	Key Business Impact
Sales & Demand	1. Create MTO Sales Order	VA01	Sales Order (SO)	Captures customer demand with MTO requirement class; system automatically triggers a background Purchase Requisition.
Demand Adjustment	2. Block/Close Auto-PR	ME52N	Purchase Requisition (PR)	Set the Block Indicator (or deletion indicator) on the auto-generated PR to prevent unauthorized purchasing or PO conversion via ME59N/ME21N.
Inventory Allocation	3. Transfer Posting to SO Stock	MIGO	Material Doc (Movement Type 413* / 413 E)*	Reallocates unrestricted own stock into Sales Order Stock (Special Stock E) tied specifically to the SO number and line item.
Outbound Fulfillment	4. Create Outbound Delivery	VL01N	Delivery Document	Initiates the shipping process; picking is restricted to the reserved special stock E.
	5. Post Goods Issue (PGI)	VL02N	Material & Accounting Doc (Movement Type 601 E)	Relieves customer-reserved inventory. Dr. Cost of Goods Sold (COGS) / Cr. Inventory (Sales Order Stock).
Customer Settlement	6. Create Billing Document	VF01	Customer Invoice	Generates invoice and posts revenue receivable. Dr. Customer AR / Cr. Sales Revenue.
	7. Incoming Payment	F-28	Accounting Document	Clears customer open item against received bank funds. Dr. Bank Account / Cr. Customer AR.

1.Demand Capture:Sales Order Entry.

VA01 -> Auto PR Generation

Create the customer order using the configured MTO item category.
The requirement class triggers an automatic Purchase Requisition in the background, visible in the Schedule Line data.

2.Prevent Procurement Run:Purchasing Control.

ME52N (PR Modification)

Open the generated PR in ME52N.
Flag the Blocking Indicator (or set the deletion indicator) on the line item.
This prevents buyers or automated batch jobs (ME59N) from converting the PR into an external Purchase Order, avoiding double inventory intake.

3.Stock Transfer to Sales Order Stock:Inventory Reallocation.

MIGO (Transfer Posting – Movement Type 413)

Navigate to MIGO -> Transfer Posting -> Other.
Enter movement type 413 (or 413 E depending on valuation setup).
Provide the material, plant, storage location, and reference the specific Sales Order Number and Line Item.
This transfers unrestricted stock into customer-specific Special Stock E, locking it from being issued to other orders.

4.Picking & Goods Issue:Logistics Execution.

VL01N -> VL02N (Movement Type 601 E)

Create the outbound delivery with reference to the Sales Order (VL01N).
Complete picking from special stock E and post goods issue (VL02N).
Inventory is relieved and the corresponding COGS entry is posted.

5.Billing & Customer Clearing:Financial Realization.

VF01 -> F-28

Generate customer invoice (VF01) based on the delivery document.
Process incoming payment (F-28) against the customer account to balance the open receivable.

Requirement: Business has sufficient stock in normal unrestricted stock, so they want to close the Purchase Requisition which was created automatically from MTO Sales order to avoid additional procurement.

Solution: You can’t delete or Close the PR items manually with ME52N as those are created from Sales Orders. For this case, you need to follow the block ID solution to inactivate the PR. The PRs with block IDs are not considered by ME59N during auto PO creation.