The Auto PO process in SAP enables the system to automatically create Purchase Orders (POs) directly from existing Purchase Requisitions (PRs).
Understanding the Auto PO Process
Based on the reference provided, the core function of the Auto PO process in SAP is automation within the procurement cycle:
"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 simpler terms, instead of a buyer manually creating a Purchase Order for every approved Purchase Requisition, the SAP system can handle this task automatically.
Key Characteristics
The auto PO process is defined by several key characteristics:
- Automatic Creation: The system initiates and creates the Purchase Order document itself.
- Source Document: The process originates from and requires existing Purchase Requisitions (PRs).
- Reduced Manual Effort: It operates "without manual intervention," significantly streamlining the procurement process by removing the need for a person to manually generate the PO from the PR.
- Master Data Driven: The automation relies on "predetermined master data set up." This includes crucial information like vendor details, purchasing organization, material information, and linking vendors to materials and plants to enable automatic source determination.
- Scheduled Execution: The process runs based on a "predefined job schedule to run at regular intervals of time." This means the system checks for eligible PRs and creates POs in batches, rather than instantaneously as PRs are created.
How it Works (Simplified)
While the reference doesn't detail the internal steps, the process typically follows this flow:
- A Purchase Requisition is created and approved in the system.
- Relevant Master Data (Vendor, Material, Source List, Info Record) is correctly maintained to allow automatic sourcing for the material/vendor combination specified or implied in the PR.
- A Background Job is scheduled to run at regular intervals (e.g., daily, hourly).
- When the job runs, it identifies eligible Purchase Requisitions that meet the criteria for automatic PO creation (e.g., approved, correct master data exists).
- The system then automatically creates the Purchase Orders based on the selected Purchase Requisitions and the defined master data.
Benefits
Implementing the auto PO process can lead to several advantages:
- Increased Efficiency: Automates a repetitive manual task.
- Faster Processing: Accelerates the conversion of PRs to POs.
- Reduced Errors: Minimizes human errors associated with manual data entry.
- Improved Compliance: Ensures PO creation follows predefined rules and master data.
Prerequisites for Auto PO
For the Auto PO process to function correctly, certain prerequisites must be met in the SAP system's master data and configuration:
- Material Master: Must be flagged for automatic PO creation.
- Vendor Master: Must be flagged for automatic PO creation.
- Purchasing Info Record: Must exist and be valid for the material and vendor combination in the purchasing organization.
- Source List: A valid source list entry may be required for the material and plant, specifying the preferred vendor.
- Purchase Requisition: Must be created and approved, often requiring the desired vendor to be specified or determined automatically.
- Batch Job: A background job must be scheduled to execute the automatic PO creation program regularly.
By fulfilling these prerequisites and setting up the scheduled job, organizations can leverage SAP's Auto PO functionality to automate a significant part of their purchasing workflow.
