Automatically Generate PO at the Time of Goods Receipts

Create Purchase Order Automatically in Purchasing

For creation of purchase Order automatically from Purchase Requisitions we need to do the following additional settings in addition to our standard ones.
Activate ‘auto PO’ indicator for material master
Activate ‘auto PO’ indicator for vendor master
Create Purchase Requisitions using T Code ME51 or ME51N
Use T. Code ME59 or ME59N for auto conversion of PR into purchase order
Create Purchase Order Automatically in Inventory Management

For creation of purchase Order automatically in Inventory Management we need to do the following settings which are independent of the setting what we do in
Purchasing for creation of automatic PO from PR.
Define one of the purchase organizations as Standard Purchase Organization
Assign your plant to Standard Purchase Organization
Maintain purchasing information record with price
Maintain the indicator for movement types 101 & 161
Define Default Values (MB01) for Document Type
Now you can enter a goods receipt without entering the purchase order number, a purchase order will be created automatically when you post the goods
receipt. All such goods receipt will be valuated at the price maintained in the purchasing information record.
First you can try this with T. Code MB01 if it is working then try with T. Code MIGO, if you face any error or functionality is not working check with your basis
consultant some authorization or some patches may be missing. Ask him to apply all relevant patches.

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As the name suggests, Open Purchase Order Quantity is the total quantity yet to be received on a purchase order in SAP MM. Thus, if a PO purchase order
was made for 100 numbers of a particular material. Let us suppose, there were two goods receipt for this purchase order say of 20 numbers and 45 numbers.
Now the open purchase order quantity for this order would be 35 (100-20-45). Open purchase order quantity is nothing but the difference between the quantity
ordered and quantity delivered till date.

SAP MM material management automatically updates the open order purchase quantity when goods are received on a purchase order or when a PO is altered.
When a user makes an entry for goods receipt, SAP proposes the open purchase order quantity as the quantity received. SAP MM calculates underdeliveries or
overdeliveries based on the goods receipt and the open purchase order quantity.

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Automatically Generate PO at the

Time of Goods Receipts

Applies to:
SAP 4.6x and ECC 6.0. For more information, visit the Supply Chain Management homepage.

Summary
This article illustrates one of the Important functionalities offered by SAP R/3 in Goods receipts procedure in
Material Management . This article will demonstrate the process of creation of Automatic Purchase Order at
the time of Goods receipts. It shows the settings in the IMG Guide and the master data maintenance to
achieve Automatic purchase Order Generation on Goods receipt
Author: Vikrant Choudhary
Company: Infosys Technologies Limited
Created on: 18 March 2009

Table of Contents
 Automatically Generate PO at the Time of Goods Receipts
Business Requirement...................................................................................................................................... 3
Prerequisites in Customizing........................................................................................................................ 3
Prerequisite in Application............................................................................................................................................. 4
Goods receipt with Movement Type 101........................................................................................................... 6
Purchase order created.................................................................................................................................... 6
Related Content................................................................................................................................................ 8
Disclaimer and Liability Notice........................................................................................................................... 9

Business Requirement
During Business process it is possible that you receive delivery of material for which their is no Purchase
order in the system
You have the option of creating Purchase order automatically during goods receipt
• One of the benefits of using this feature is that you are taking delivery of the raw materials which are
delivered by trucks and since it is not possible to capture the actual receipted quantity at the time of
PO creation.
• reduce the workload of purchasing department for the case of consignment process.

Prerequisites in Customizing

1.Plant for which goods receipt is entered must be assigned

to a Standard Purchase Organization

Default Document type for the Purchase order must be specified for the Goods receipt
 Automatically Generate PO at the Time of Goods Receipts

3. Automatic Po generation for Movement type must be specified in customizing.

Note:

Prerequisite in Application
1. Material must be Valuated
2. Purchasing Info record must exist for the material and Vendor and Standard Purchasing Organization
Combination. Conditions of the info record must be valid
 Automatically Generate PO at the Time of Goods Receipts

3. Purchase group must be maintained in Material Master Record.

 Automatically Generate PO at the Time of Goods Receipts

Goods receipt with Movement Type 101

Purchase order created

 Automatically Generate PO at the Time of Goods Receipts

Important
1 Automatic generation of Po is only possible for receipts in the warehouse and not for
consumption ( eg 101 and 161 Movement types)
2 Any movement to GR blocked stocks cannot be booked with this function

The system will determine the data for the auto po generation as following
1. Purchasing orgn =std purchasing orgnization
for the plant 2.Purchase group=purchase group
from material master reocrd
3.The Material , vendor, quantity plant and storage location = manual entry during Goods receipt