Automatic PO Creation Process

Creating automatic purchase orders (PO) in SAP MM (Material management) is a process that helps to simplify procurement by reducing manual interference. This process can be configured to automatically create purchase orders from purchase requisitions, scheduling agreements, or even directly from stock requirements. Learn the steps involved in the Automatic PO Creation Process in SAP, streamlining procurement by reducing manual efforts and enhancing efficiency.

The steps involved in setting up automatic purchase order creation are as follows

1. Master Data Setup

• Material master: The material master record must be configured for automatic PO creation. This consists of setting the purchasing data (e.g. purchasing group, purchasing value key) and material type that allows for automatic PO creation process.
• Vendor master: You should ensure that the vendor master data is correctly set up with relevant purchasing organization, company code, and plant details.

 

2. Automatic PO Configuration in Vendor Master

• Go to vendor master (Transaction Code: XK02 or MK02).
• You can navigate to the purchasing data section.
• You should ensure the Automatic PO indicator is selected. This enables automatic purchase orders for this vendor.

 

3. Automatic PO Configuration in Material Master

• Go to material master (Transaction Code: MM02).
• You can navigate to the purchasing view.
• Check the Automatic PO indicator in the material master purchasing data.

 

4. MRP (Material requirements planning) Setup

• You can ensure that the MRP process is configured correctly. During MRP runs (Transaction Code: MD01 or MD02), the system can automatically generate purchase requisitions or directly create purchase orders based on the planning results.
• In MRP settings, you can ensure that the procurement type for materials is set correctly (i.e. external procurement).

 

5. Purchase Requisition Creation

• Purchase requisitions can be generated automatically through MRP or manually (Transaction Code: ME51N).
• When purchasing requisition creation manually, you can ensure the requisition is complete with vendor and material data.

 

For Free, Demo classes Call:  020-71173116

Registration Link: SAP Classes in Pune!

 

6. Automatic PO Creation

• After purchase requisitions are generated, automatic POs can be created using Transaction Code: ME59 (Automatic generation of purchase orders).
• Alternatively, if you want POs to be generated directly from stock/requirements lists, you can ensure MRP is configured to create POs automatically.

 

7. Checking the Process

• After successfully running the process, you can review the automatically generated purchase orders using Transaction Code: ME23N (Display purchase order).

 

8. Error Handling

• If any errors occur during the automatic creation of purchase orders, they will be logged and can be easily reviewed in Transaction Code: ME59N (Automatic PO creation with error handling).

 

9. Batch Jobs for Automation

• For full automation, you can set up batch jobs to run the MRP and automatic PO creation processes at scheduled intervals.

 

By precisely configuring these above settings, SAP MM can automatically generate purchase orders by reducing manual effort and improving procurement efficiency.

 

Do visit our channel to know more: Click Here

 

Author:-

Prahlad Pawar

Call the Trainer and Book your free demo Class for SAP now!!!

© Copyright 2021 | SevenMentor Pvt Ltd.