AUTOMATIC PO CREATION
Introduction:-
This process will enable system to create the Purchase Orders automatically from the Purchase Requisitions created in the system, without manual intervention, and at regular intervals of time with predetermined master data set up and with a predefined job schedule to run at regular intervals of time.
In this process system will convert the Requirements created in the form of Purchase Requisitions created through MRP or created manually. Auto PO process once introduced in the system will
make an Optimized Purchasing in the system. Prior to Going into the Details of the AUTO PO process a Brief overview of the
Purchasing Process.
In Order to get fulfilled with the Auto PO process, there are certain prerequisites to get existed in the system.
Prerequisites :-
In order to see that the POs to get created automatically, there are some prerequisites to be defined in the system.
1.Material Master Data:-
a. Material Master (MM01). Proper material master needed to get created for the material with all the relevant data for
Purchasing and MRP to get filled.
b. A check Box for Auto PO in the Purchasing View to be checked.
2. Vendor Master Data:-
a. Vendor Master (XK01) needed to be created for the company code of the plant by which the PO is to be created and to
be created for the Purchase Organization by which the PO is going to be created.
b. The Auto PO check Box in the Purchasing view needed to be checked.
Vendor 0000102035 created.
3.Outline Agreement :
Outline Agreement ( ME31K) is an internal Purchasing document which will be created with the vendor and the plant for the
materials for which the vendor to supply for an agreed price .This acts as a valid source for the Purchase Requisition to get
created with a vendor assigned . For a PO to get created automatically, it is a must to assign a vendor.
4. Source List :
A valid source list (ME01) which is fixed for a vendor need to get existed in the system.It is a List created in the system under
a plant for a material which links to possible vendors for the material supply. Furthermore the source list will have validity
and a vendor can be fixed in the system for supply.
5.Info Record:
A valid Info record must exist in the system. Info Record is a record created in the system for a vendor and material for the
purchase Organization and Plant through which the PO is going to be created. This can be created at the Transaction code
ME11.
6. Condition Records for Output type:
A Condition Record is a record which will be created for the Output Type which is to be used for assigning an output type
automatically to the PO, which in turn either prints, or Fax or Email the PO to the vendor. These can be created at MN04.
Process involved for auto PO creation:-
1. Purchase Requisition Creation through MRP / or through ME51N screen. If MRP run is made scheduled to run at regular
intervals of time Purchase Requisitions will get created automatically.
2. Assign a source of Supply: During the creation of the PR, system needs to assign a valid source of supply to the Purchase
Requisitions. Means system is deciding about the vendor who has to supply the requirement at the Requirement generation
only. In Order to happen this master data which has been defined earlier will serve the purpose in the order Outline Agreement
or Info Record or Source list. With this step, system generates the Purchase Requisitions with a vendor assigned..
Purchase requisition 0010000134 and 0010000136 created through T-code ME51N
Process the Assigned Requisitions:
a) Assigned Purchase Requisitions will need to get processed to convert into Purchase Orders. The run of the Transaction
ME59N for the required input criteria will convert the able Purchase Requisitions into Purchase Orders automaticity
without any manual intervention. In this step if the ME59N transaction is scheduled to run at regular intervals of time for
the pre-defined input criteria, without any Manual intervention, Purchase Orders will get created automatically.
b) If there exists Proper condition record for the output type, system will pick the condition record assigned for the
combination of the Purchase Group and the mode of Transmission, and assigns to the POs created and send to vendor
automatically. Automatic PO created using T-code ME59N:-
ME59N run to create auto POs
and send to vendor
Conclusion:
Normally any Auto process will reduce the cycle time involved in that particular process enabling reduced user intervention.
The Cycle Time reduction will save time taken for the Buyer to fall back on the transactions in SAP in creating the documents
rather he can spend upon the analysis for his purchases and for expending the purchases and can save the cost involved in
purchasing there by meeting the requirement flow in time and can meet the Purchasing Budget . Also the sourcing team will
get reduced in a course of time making the purchasing cycle optimized.
Thank you
SAP-MM4U
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