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ADocumentOnAutoPO
process
June11,2013 | 667Views |
raghavendrasai
morebythisauthor

MM(MaterialsManagement)
SAPERP | enterpriseresourceplanning | saperplogisticsmaterials
management

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1ABriefProcessIntroduction:

ThisprocesswillenablesystemtocreatethePurchaseOrders
automaticallyfromthePurchaseRequisitionscreatedinthesystem,
withoutmanualintervention,andatregularintervalsoftimewith
predeterminedmasterdatasetupandwithapredefinedjobscheduleto
runatregularintervalsoftime.Inthisprocesssystemwillconvertthe
RequirementscreatedintheformofPurchaseRequisitionscreated
throughMRPorcreatedmanually.AutoPOprocessonceintroducedin
thesystemwillmakeanOptimizedPurchasinginthesystem.Priorto
GoingintotheDetailsoftheAUTOPOprocessaBriefoverviewofthe
PurchasingProcess.

PurchasingProcessinSAPanIllustration:

InOrdertogetfulfilledwiththeAutoPOprocess,therearecertain
prerequisitestogetexistedinthesystem.

2.Prerequisites:

InordertoseethatthePOstogetcreatedautomatically,therearesome
prerequisitestobedefinedinthesystem.

2.1MaterialMasterData:

a)MaterialMaster(MM01).Propermaterialmasterneededto
getcreatedforthematerialwithalltherelevantdatafor
PurchasingandMRPtogetfilled.

b)AcheckBoxforAutoPOinthePurchasingViewtobe
checked.
2.2VendorMasterData:

a)VendorMaster(XK01)neededtobecreatedforthe
companycodeoftheplantbywhichthePOistobecreated
andtobecreatedforthePurchaseOrganizationbywhichthe
POisgoingtobecreated.

b)TheAutoPOcheckBoxinthePurchasingviewneededto
bechecked.

2.3OutlineAgreement:

OutlineAgreement(ME31K)isaninternalPurchasingdocument
whichwillbecreatedwiththevendorandtheplantforthe
materialsforwhichthevendortosupplyforanagreedprice.This
actsasavalidsourceforthePurchaseRequisiontogetcreated
withavendorassigned.ForaPOtogetcreatedautomacally,it
isamusttoassignavendor.

2.3SourceList:

Avalidsourcelist(ME01)whichisfixedforavendor
needtogetexistedinthesystem

ItisaListcreatedinthesystemunderaplantforamaterial
whichlinkstopossiblevendorsforthematerialsupply.
Furthermorethesourcelistwillhavevalidityandavendor
canbefixedinthesystemforsupply.
 2.5InfoRecord:

AvalidInforecordmustexistinthesystem.InfoRecordisarecord
createdinthesystemforavendorandmaterialforthepurchase
OrganizationandPlantthroughwhichthePOisgoingtobecreated.
ThiscanbecreatedattheTransactioncodeME11.

2.6.ConditionRecordsforOutputtype:

AConditionRecordisarecordwhichwillbecreatedfortheOutputType
whichistobeusedforassigninganoutputtypeautomaticallytothe
PO,whichinturneitherprints,orFaxorEmailthePOtothevendor.
ThesecanbecreatedatMN04.

3.ProcessInvolvedfortheAutoPOcreation:

1.1PurchaseRequisitionCreationthroughMRP/orthroughME51N
screen.IfMRPrunismadescheduledtorunatregularintervalsoftime
PurchaseRequisitionswillgetcreatedautomatically.

2.AssignasourceofSupply:DuringthecreationofthePR,system
needstoassignavalidsourceofsupplytothePurchaseRequisitions.
Meanssystemisdecidingaboutthevendorwhohastosupplythe
requirementattheRequirementgenerationonly.InOrdertohappen
thismasterdatawhichhasbeendefinedearlierwillservethepurposein
theorderOutlineAgreementorInfoRecordorSourcelist.Withthisstep,
systemgeneratesthePurchaseRequisitionswithavendorassigned..

1.ProcesstheAssignedRequisitions:

a)a)AssignedPurchaseRequisitionswillneedtogetprocessedto
convertintoPurchaseOrders.TherunoftheTransactionME59Nforthe
requiredinputcriteriawillconverttheablePurchaseRequisitionsinto
PurchaseOrdersautomaticitywithoutanymanualintervention.Inthis
 stepiftheME59Ntransactionisscheduledtorunatregularintervalsof
timeforthepredefinedinputcriteria,withoutanyManual
intervention,PurchaseOrderswillgetcreatedautomatically.

b)IfthereexistsProperconditionrecordfortheoutputtype,systemwill
picktheconditionrecordassignedforthecombinationofthePurchase
GroupandthemodeofTransmission,andassignstothePOscreated
andsendtovendorautomatically.

1.4.NormalProcess

1.Manually/AutoRunoftheprogramRMMRP000fortheMRPeitherfor
thesinglematerialMD02orfortheplant

2.CreatethePRsthroughMRPforthosematerialswhichareon
MaterialsRequirementsPlanning.

3.CreatethePurchaseRequisitionsmanuallyfortherequirementsfor
thosematerialswhicharenotonMRPorbasedupontheindependent
requirements.

4.Assignthesource/vendortothePurchaseRequisition.Ifthevendor
stillnotknownduringtherequirementgenerationleavingthePRas
such.

5.Enquireforthebestsource/vendor

6.CreatePOusingME21NreferringthePurchaseRequisitionby
assigningavendororcreatethePOwithoutreferringtotherequirement
 (APOneednotalwayspreferredtobereferredwitharequirement.

7.RepeattheprocesstocreatethePOsmanuallyforallthematerials
andforalltherequirements

5.ObstaclesinattainingtheOptimalityinPurchasingCycle:

1.BuyersneedalwaystofindoutthePurchaseRequisitionswhichare
neededtogetexecutedforprocurement.Normallythisisatime
consumingprocess.

2.Buyersneedalwaystofindthecorrectvendortosupplythematerial.
Thisalsoinvolveswithadditionaltime.

3.Buyersneedtoquantifytherequirementsfromdependentand
independentrequirementsandtheirexpeditingfortheactualexecution.
EspeciallywhentheBusinessactivitiesforsalesandformanufacturing
arehuge,thisactivitywillbecometimeconsumingleavingbehind
inefficienciesincopinguptherequirementsandsupplyoftheraw
materials.

4.DoingthecycleofPurchasingtransactionsinSAPlikethePRs,
Findingoutthesources,AssigningthevendorstothePRs,Processing
thePRstoconvertthemintoSAPPOandoutputthemtothevendorfor
ahighvolumebasedplantislengthyandinvolvewithadditional
resourcesandtime.
Conclusion:

NormallyanyAutoprocesswillreducethecycletimeinvolvedin
thatparticularprocessenablingreduceduserintervention.The
CycleTimereductionwillsavetimetakenfortheBuyertofall
backonthetransactionsinSAPincreatingthedocumentsrather
hecanspendupontheanalysisforhispurchasesandfor
expendingthepurchasesandcansavethecostinvolvedin
purchasingtherebymeetingtherequirementflowintimeand
canmeetthePurchasingBudget.Alsothesourcingteamwillget
reducedinacourseoftimemakingthepurchasingcycle
optimized.

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6Comments

NileshKshatriya

June12,2013at8:54am

Goodexplanation..
Keepitup.

SyamKumarDodda

July8,2013at8:04pm

NiceDocument.
RavindraDevarapalli

July9,2013at2:13am

Greatjob.Verynicedocument..keepitup.

ShivaVasireddy

March5,2014at12:12pm

Thankyouforsharing

ZafarValsal

September6,2016at12:03pm

DearRaghavendra,
Thanksforsharingthedocument.
Ihaveonequestioninthisregards.
CanyoupleaseletusknowifwecanusethisprocessforAutoPOcreation
usinganAgreement,whereplantisnotspecifiedormaintained.(asinthatcase,
wecannotcreatesourcelist).Examplewouldbeforacentrallyagreedcontract,
whichisvalidforallplants.

raghavendrasai Postauthor

September7,2016at11:02am

Hi,Thankyou.Theabovedocumentwillletallknowthattheauto
poprocessConvertingaPRintoPOautomatically.Herethemajor
processisassigningasource.Throughthequota/OA/
SLIST/INFOrecord.Buthoweverthecentrallyaggreedcontractwill
haveplantlevelconditions.
https://help.sap.com/saphelp_erp60_sp/helpdata/en/75/ee0f0c55c8
11d189900000e8322d00/content.htmRegards,
 AddComment

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