Automatic Purchase Order (PO) creation in SAP MM can be set up using source determination and material requirements planning (MRP). Here’s a step-by-step process
Automatic Purchase Order (PO) creation in SAP MM
1.Maintain Source List
- Go to T-code: ME01
- Enter the material and plant.
- Define the valid vendor and purchasing organization.
- Mark the source as Fixed Source (if applicable) and Relevant for MRP (check the box).
2. Create a Purchase Info Record
- Go to T-code: ME11
- Enter the material, vendor, and purchasing organization.
- Define the price, lead time, and other purchasing data.
3. Maintain Material Master Data
- Go to T-code: MM01 (if creating a new material) or MM02 (for existing material).
- In the Purchasing View and MRP View:
- Maintain MRP Type (e.g., PD for MRP)
- Set Lot Size, Reorder Point, and Procurement Type (F for External Procurement)
- Ensure the Source List Requirement flag is set (if applicable).
4. Run MRP to Trigger PO Creation
- Go to T-code: MD02 or MD03 (single material MRP run)
- Enter the material, plant, and processing key (e.g., NETCH for regenerative planning).
- Set the Create Purchase Requisition option as 1 (Direct creation of POs if the source list is fixed).
5. Set Up Automatic PO Creation Settings
- In Vendor Master (T-code: XK02):
- In the Purchasing Data tab, check Automatic PO indicator.
- In Material Master:
- In the Purchasing View, check Automatic PO indicator.
6. Generate Automatic PO from Purchase Requisition
- Go to T-code: ME59N
- Set the selection parameters (e.g., plant, document type).
- Execute the transaction to convert the PR into an automatic PO.
7. Monitor POs
- Go to T-code: ME2N to display created POs.
- Use filters to track automatic POs.
Also Read: How to Perform Goods Receipt in SAP MM – Step-by-Step Guide
Tip
- Ensure that the vendor and material master are properly maintained with correct pricing and validity periods.
- Automatic PO creation works best when the source list and purchase info record are accurately maintained.
Q-What is an Automatic Purchase Order (PO)?
Ans- Automatic Purchase Order is a PO that is created automatically by the system based on predefined criteria such as material requirements, vendor selection, and source lists without manual intervention
Q- What are the key prerequisites for automatic PO creation?
Ans- A valid source list with a fixed vendor.
A maintained purchase info record for the vendor and material.
The automatic PO indicator set in both the material master and vendor master.
Proper MRP settings in the material master.
Q- What transaction codes are used for automatic PO creation
Ans- ME01 – Maintain Source List
ME11 – Create Purchase Info Record
MM01/MM02 – Create/Change Material Master
XK02 – Change Vendor Master
MD02/MD03 – MRP Run
ME59N – Convert PR to PO Automatically