Generating Purchase Orders Automatically

Objective

After completing this lesson, you will be able to automatically convert purchase requisitions into purchase orders

Introduction

The following video introduces the second step in an automated stock procurement process: the automatic generation of purchase orders.

Prerequisites for Automatic Purchase Order Generation

The second automation step is the automatic generation of a purchase order. You can automatically convert a purchase requisition item into a purchase order if a source of supply is assigned to the requisition item. Possible sources of supply for externally procured materials are purchasing info records and outline agreement items.

  • A purchasing info record contains data about a specific material and a supplier that provides the material. Purchasing info records can contain conditions, delivery data, and specific texts.

  • An outline agreement (for example, a scheduling agreement) is a longer-term agreement with a supplier for the delivery of materials or the provision of services at fixed conditions. These agreements are valid for a specified period of time and for a specified total purchase quantity or value.

The figure shows the prerequisites for enabling the automatic conversion of purchase requisitions into purchase orders.

The following prerequisites must be fulfilled for the automatic conversion of a purchase requisition item into a purchase order:

  • The Automatic Purchase Order indicator must be set in the material master record (purchasing data).

  • The Automatic Purchase Order indicator must be set in the supplier master record (purchasing data).

  • A valid source of supply must be assigned to the purchase requisition item.

  • During conversion, no additional entries may be necessary, such as the tax code for automatic goods receipt settlement.

In the following demo, we will show you where in the master data to set the required indicators for automatic purchase order generation.

DemoStart Demo

Automatic Conversion of Purchase Requisitions into Purchase Orders

In the following demo, you will learn how to use the Schedule Purchasing Jobs app to automatically convert purchase requisitions into purchase orders. 

DemoStart Demo

Create a Purchase Order Automatically

Note

To perform this exercise, use the S4HANA T41 Fiori Launchpad.

If a value in the exercise contains ##, replace the ## characters with the number assigned to you.

For material F500-##, purchase requisitions to which supplier S4515-2## has been assigned as a fixed vendor are to be converted automatically into purchase orders.

Prerequisites

Prerequisite for this exercise: A purchase requisition was created according to exercise 11 "Run MRP using the Check Material Coverage App".

Task 1: Check Prerequisites for Automatic Purchase Order Generation

If you want to convert purchase requisitions for a material into a purchase order automatically, certain prerequisites must be fulfilled. Check whether the relevant indicators are set for material F500-## and supplier S4515-2##.

Steps

  1. Make sure that the indicator for automatic purchase order generation is set in the supplier master record S4515-2## for purchasing organization 101C. To do so, use the Manage Supplier Master Data app.

    1. On the SAP Fiori launchpad, choose the Supplier and BP tile group, and start the Manage Supplier Master Data app.

    2. In the filter section (header section) enter S4515-2## in the Business Partner field and choose Go.

      A row with the supplier is displayed.

    3. To display the supplier master record, choose the arrow at the right of the row.

    4. On the Supplier window, choose the Purchasing Organizations tab page.

    5. In the row for purchasing organization 101C, choose the arrow at the right of the row.

    6. On the Purchasing Organization window, choose the Purchasing tab page.

      Here you can see that the flag Automatic Purchasing Order is set (value Yes).

    7. To leave the app, choose (Navigate to Home).

  2. Make sure that the indicator for automatic purchase order generation is set in the material master record F500-## for plant 1010.

    1. On the SAP Fiori launchpad, choose the Material Master tile group, and start the Display Material app.

    2. On the Display Material (Initial Screen) window, enter your material F500-## and choose Continue.

    3. In the Select View(s) dialog window, select the Purchasing view and choose Org. Levels.

    4. In the Organizational Levels dialog window, enter 1010 in the Plant field and choose (Continue).

    5. In the General Data section, you can see that the Autom. PO indicator is set.

    6. To leave the app, choose (Navigate to Home).

Task 2: Create a purchase order automatically from a purchase requisition

Once you have ensured that all necessary indicators are set, create a job for the automatic conversion of purchase requisitions into purchase orders.

Steps

  1. Convert your purchase requisition created by MRP automatically to a purchase order using the Schedule Purchasing Jobs – Advanced app.

    Create a new job with the following data:

    • Job template: Automatic Creation of Purchase Orders from Requisitions
    • Job name: Group ##
    • The job should run immediately and without regular repetition.
    • Parameters for selection: purchasing organization 101C, fixed vendor S4515-2##
    • Parameter for new purchase order: per purchasing group

    Do not leave the Schedule Purchasing Jobs – Advanced app after you scheduled the new job.

    1. On the SAP Fiori launchpad, choose the Purchase Order Processing tile group, and start the Schedule Purchasing Jobs – Advanced app.

    2. On the Application Job window, choose Create.

    3. On the New Job: Automatic ... window, if necessary select Automatic Creation of Purchase Orders from Requisitions as Job Template and enter Group ## in the Job Name field.

    4. Choose Step 2.

      In the Scheduling Options section, you do not need to enter anything. All values are proposed correctly.

      • Start Immediately: checkbox is marked
      • Recurrence Pattern: Single Run

    5. Choose Step 3.

    6. In the Parameters section, enter the following values:

      FieldValue
      Purch. Organization101C
      Fixed VendorS4515-2##
      Per Purchasing Groupmark checkbox

    7. Choose Schedule.

      After you scheduled your new job, the systems goes back to the Application Jobs window.

    8. Do not leave the Schedule Purchasing Jobs – Advanced app after you scheduled the new job.

  2. After your job is finished, display the job results.

    Was a purchase order created successfully?

    If yes, make a note of the PO number.

    1. On the Application Jobs window, enter Group ## in the Search field and choose Go

      The job list should now only show your job. Check, if the Status for the job is Finished.

    2. To display the Results of the job, choose (Navigate to the job results).

      In the job result you should see, that a purchase order was successfully created from the requisition. Note the number of the created purchase order.

    3. To leave the app, choose (Navigate to Home).

  3. Display the stock/requirements list for material F500-## again.

    What MRP elements are now displayed?

    1. On the SAP Fiori launchpad, choose the MRP tile group, and start the Check Material Coverage app.

    2. In the Find Material dialog window enter MaterialF500-## and press Enter.

      The Plant and the Shortage Definition are then proposed automatically.

    3. Choose OK.

      On the Stock/Requirements List tab page, in addition to the Stock element, the automatically created purchase order is displayed instead of the purchase requisition.

    4. To leave the app, choose (Navigate to Home).

Learning

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