Automatic Generation of Purchase Order –

Requisition items to which you have already assigned a source of supply can
also be automatically converted into purchase orders in an SAP system. You
can run this transaction either online or in the background.
In automatic purchase order generation, the system can convert only those
requisition items that satisfy the following conditions:

 You must have set the Automatic purchase order indicator in the plant-

specific purchasing data of the material master record.
 You must have set the Automatic purchase order indicator in the
purchasing data of the vendor master record.
 You must be able to determine valid conditions for the source assigned (for
example, from an outline agreement item, an info record, or the last
document).
You can also automatically generate purchase orders for items without a
material master record. This requires, together with the Automatic purchase
order indicator in the vendor master record, a valuation price in the purchase
requisition item. This valuation price is then adopted for the purchase order.
The following menu paths on the SAP Easy Access Screen enable you to
automatically create purchase orders:
Choose Logistics --- > Materials Management --- > Purchasing --- > Purchase
order --- > Create --- > Automatically via Purchase Requisitions (ME59N)
Or Choose Logistics --- > Materials Management --- > Purchasing --- >
Purchase Requisition --- > Create Purchase Order --- > Automatically via
Purchase Requisitions (ME59N).

Business 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.
Method 1 -

Step 1: Create Material – MM01

Step 2: Create Vendor – XK01

Step 3: Info Record – ME11
Step 4: Maintain Source List – ME01

Step 5: Create PR – ME51N

Step 6: Automatic Creation of PO – ME59N
Step 7: GRN – MIGO.

Method 2 -

Generation of Automatic Purchase Order at GRN (MIGO)

Step 1: Create Material – MM01

Step 2: Create Vendor – XK01
Step 3: Info Record – ME11
Step 4: Configuration – OLMB
Step 5: Create GRN – MIGO
Display MIGO

PO Displayed