SAP MM: Automating Purchase Orders for Efficiency
Hello everyone! We are going to talk about automatic purchase orders based on purchase requisitions in SAP MM. Let’s explore how to automate the creation of purchase orders based on those requisitions.
📝 The Scenario
Let’s start with an example to help illustrate the concept. Imagine a company that needs a constant supply of raw materials from the same vendor, whether they have a contract or not. The purchasing department is responsible for creating multiple manual purchase orders based on these requirements, which can be a time-consuming task.
So, the idea behind automating purchase orders is to leverage the power of SAP MM to streamline the process and save time. SAP MM will create the purchase orders automatically based on the purchase requisitions generated by MRP. This way, the purchasing department can focus on analyzing the automatic purchase orders instead of manually creating them.
🔧 Making the Necessary Adjustments
Before we can start automating purchase orders, there are a few adjustments we need to make in SAP MM. Let’s walk through them step by step:
1. Check the Automatic Purchase Order Setting
In the purchasing view of the material master records, we need to check the automatic purchase order flag. To do this, navigate to the transaction code MM02 (Change Material) and go to the purchasing view. Here, you’ll find the automatic purchase order field. Make sure it is checked to enable automatic purchase order creation for this material.
2. Adjust the Vendor Master Records
In the vendor master records, we also need to check the automatic purchase order setting. Use the transaction code XK02 (Change Vendor) and go to the purchasing view. Check the automatic purchase order field here as well to allow automatic creation of purchase orders for this vendor.
3. Create Info Records for Price and Tax Codes
Info records are essential for storing important information required to create purchase orders, such as prices and tax codes. To create an info record, use the transaction code ME11 (Create Info Record) and enter the relevant details, such as the vendor, material, purchasing organization, and plant. Make sure to enter the net price and tax code for accurate purchase order creation.
4. Define Source List for the Vendor
Next, we need to define a source list to specify that the vendor is our fixed supplier. Use the transaction code ME01 (Create Source List) and enter the material and vendor details. Also, indicate that this record is relevant to MRP. By doing this, the system will consider this vendor for automatic purchase order creation.
5. Create a Purchase Requisition
Now that we have made all the necessary adjustments, we can proceed with creating a purchase requisition. Use the transaction code ME51N (Create Purchase Requisition) and enter the required details, such as the material, quantity, and delivery date. Make sure to save the purchase requisition for further processing.
🚀 Generating Automatic Purchase Orders
With everything set up, we can now generate automatic purchase orders based on the purchase requisitions. Use the transaction code ME59N (Automatic Purchase Order Generation) and enter the relevant criteria, such as the purchasing organization and vendor. You can choose to create a new purchase order for each purchase requisition or combine them into a single purchase order. It’s up to you to decide based on your specific requirements.
Once you run the report, SAP MM will automatically create the purchase orders based on the purchase requisitions. You can choose to save the purchase orders or review them before saving. It’s also a good practice to set the purchasing position as closed once the purchase orders are created to avoid any further modifications.
✅ Final Thoughts
Automating purchase orders in SAP MM can significantly improve efficiency and save time for the purchasing department. By leveraging the power of MRP and SAP MM’s automatic purchase order creation functionality, companies can streamline their purchasing processes and focus on more strategic tasks. Remember to make the necessary adjustments in the material and vendor master records, create info records, and define the source list before generating automatic purchase orders. With these steps in place, you can enjoy the benefits of automated purchase order creation in SAP MM.
Thank you for reading, and I hope you found this tip helpful. Stay tuned for more SAP MM tips in our next blog post!
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