Some Business Processes require Automatic creation of Purchase Requisition from Sales Order. This would arise especially if the Customer Orders Goods for which we create a Sales Order and Pass on the Customer Requirement to our Vendor by creating a Purchase Order. The Purchase Order created is linked with the Sales Order in the ERP System.
The Purchase Order Created can be of Two Types depending on the System configuration:
1. Individual Purchase order: This is a Purchase order in which we are asking the Vendor to Deliver the Goods to us, instead of the Customer. Goods Receipt is Mandatory against the Purchase Order. On Goods Receipt, the Stock is available in our System as Sales Order Stock and can be delivered only against the Sales Order Linked to the Purchase order
2. Third Party Purchase Order: This is a Purchase order in which we are asking the Vendor to Deliver the Goods directly to the Customer. Goods Receipt is not mandatory against the Purchase Order. On Goods Receipt the Warehouse Stock is not updated in System.
The Purchase Order is always created with reference to the Purchase Requisition which is created automatically from the Sales Order/ Sales quotation.
We will not go into details of the differentiation between the above two types of Purchase Orders.
We will here just look into how a Purchase Requisition is created automatically from a Sales Order/Sales quotation Item. The prerequisites required in terms of Master Data and Customization in achieving the Automatic PR creation from Sales Order/ Sales quotation item.
So, let’s begin…..
Configuration done to achieve it:
The Main Element which defines the Parameters of The Requisition that is created from the Sales Quotation/Sales Order is the Schedule Line Category of the Sales Order.
Let’s see its configuration in below SPRO Node.
I have created below highlighted Schedule Line Categories. Let’s see the Configuration behind Schedule Line Category “ZZ” and “ZQ”
As can be seen in above Screenshot, The Schedule Line Category has different Fields in it.
Important among them are:
The Order Type Field which is the Document Type of the Purchase Requisition that will be created automatically.
The Item Category Field which is the Item Category of the Purchase Requisition that will be created automatically.
The Account Assignment Category Field which is the Account assignment Category of the Purchase Requisition that will be created automatically.
The Other Fields are also of significant importance but not relevant for Our Case.
Now let’s see how this Schedule Line Category is determined for a given Sales Order/Quotation
As can be seen in above Screenshot the Schedule Line Category is determined from the Sales Order/Quotation Item Category and MRP Type of the Sales Order Material.
In below Screenshot we will see how the Item Category for a Sales order/Quotation is determined.
As can be seen the Item Category of the Sales Order is determined from the combination of Sales Document Type and the Item category Group of the Material Master.
Apart from the above Configuration which is done from the Sales and Distribution End, additional Configuration from Material Management End too is required.
As can be seen in below Screenshot, the valid Combination between Item category and Account Assignment Category too for a Purchasing Document also needs to be maintained.
This is illustrated in below Screenshots:
Lets Illustrate the above scenario for Automatic Purchase Requisition creation with an Example:
Consider below Purchase Info Record (PIR) for Master Data: Material: 703581050 and Vendor: 1030321. I have created both Standard and Subcontracting PIR for the Material Vendor combination.
Let’s see the material with below settings:
Now, we go on to Create Sales Quotation for the Subcon Material as below:
We can now see, the PR created automatically has Item Category ‘L’. Also the Source of Supply is determined automatically.
Now we Change the Material MRP Type to PD and go on Creating Sales Quotation
As seen, Item Category of PR is Blank which denotes Standard Purchase Reqsn.