Automatic Generation of POs from Requisitions (SAP Library

Automatic Generation of POs from Requisitions

Use

The SAP System can automatically convert requisitions that have been assigned to sources into purchase orders.

You can perform this function either online or in the background.

During conversion, the system attempts to consolidate as many requisition items as possible to form one purchase order. Usually, one PO whose contents can be regarded as belonging together is created for each purchasing organization, vendor, and contract.

Example

A PC, a printer, and software are requested in several requisition items. Purchasing organization A is responsible for buying this equipment. The system determines contract 10 with vendor Smith as the source, and all requisition items are covered by one release order issued against contract 10.

When processing in the background, by making the appropriate pre-settings you can ensure that items from different purchase requisitions are consolidated to form a single purchase order (e.g. one purchase order per vendor and receiving plant in each case).

If the system is unable to complete the source determination and further processing functions for all items (e.g. due to missing data or the absence of unique sources), it generates a list of unprocessed items for you to process manually.

Recommendation

Automatic processing is recommended if you have a well-maintained system in which it is likely that the majority of requisition items can be converted into follow-on documents without manual intervention. Preconditions for successful automatic processing are a) sources are available for all items and b) the system can identify just one source for the requested materials or services out of several possible ones (e.g. on the basis of source list entries, designation of "regular vendors", and use of quota arrangements).

If you only have a few sources in your system, manual processing is advisable.

Prerequisites

The system selects only those requisitions for automatic PO generation for which the indicator Automatic purchase order has been set for both the material and the vendor.

It can only generate purchase orders from requisitions to which a unique source of supply has already been assigned.

Activities

You have purchase requisitions with assigned sources in your system.
To generate purchase orders from these requisitions automatically, proceed as follows:

Choose Requisition ® Follow-on functions ® Create purchase order ® Automat. via requisitions. The initial screen appears.

In the upper part of the screen, enter your organizational selection criteria (for example, the responsible purchasing group and the plant). In the lower part of the screen, enter the criteria for the selection of requisitions (for example, a number interval, a certain material or a date interval for requisitions released within this period).

In the middle part of the screen, specify the cases in which a separate purchase order is to be created for a requisition item. (If requisitions for different plants are not to be included in the same purchase order, for example.)

If necessary, set the indicator Omit faulty items.

You can also perform the function as a test. To do so, set the Test run indicator. You can then see, for example, how many purchase orders are generated from the list of requisitions.

Set the indicator Detailed log if you wish to perform and log the function in the background. The log shows which purchase orders have been generated, and which of them are faulty. It also provides detailed information on the error source for each faulty requisition item.

(If you perform the function online, you can obtain detailed information on faulty items by double-clicking on the relevant line.)

Invoke the function via

– Program ® Execute,

– Program ® Execute + print, or

– Execute in background.

If you execute the program in the background, you will get a dialog box in which you must specify and save the print parameters before the function is started.

Possible Error Situations and How the System Reacts to Errors

This section discusses possible error situations and the way the system reacts to them.

A requisition item cannot be converted into a purchase order in the following circumstances:

If the master data is faulty or incomplete
Example: The vendor is locked or the current purchase order price is not available.

If input data is missing (for example, unknown account assignment)

Omit Faulty Items

If you have specified that faulty items are to be omitted, and you have a requisition containing ten items, one of which is faulty, the system generates one PO with nine items. The PO can be transmitted (perhaps automatically) to the vendor. The error is logged and the faulty item must be reprocessed.

Advantage:
Minimal reprocessing effort:
You must reprocess one item.

Disadvantage:
The requisition items, which actually belong together, are not covered by a single PO (purchase order 1: 1 PC; purchase order 2 PC software). You have a greater communication effort with your vendor.

Do Not Omit Faulty Items If you have specified that faulty items are not to be omitted, the system will not create a purchase order at all.

Advantages:
Requisition items that logically belong together remain together in the PO. (Purchase order 1 has two items: item 1 for a PC, item 2 for PC software.) Minimum order values per PO are better taken into account. You have a decreased communication effort with your vendor.

Disadvantage:
Greater reprocessing effort.
You have to reprocess all ten items.

Manual Reprocessing

All requisitions for which the system was unable to generate POs (because the vendor was blocked in the source list after the requisition was created, or because no price exists for the material, for instance) are listed in a log. You must reprocess these requisitions before you can convert them into POs.