What are the prerequisites for automatic purchase order processing? Note: There are 2 correct answers to this question.

Question

Options

• AThe indicator for automatic PO must be set in the Material Master.
• BThe indicator for automatic PO must be set in the Purchasing Info Record.
• CThe indicator for automatic PO must be set in the Purchase Requisition.
• DThe indicator for automatic PO must be set in the Supplier Master.

• A
  92% (34)
• B
  3% (1)
• C
  5% (2)

Explanation

For automatic purchase order (PO) creation in SAP MM, the system needs confirmation from both the material and supplier sides before it can automatically convert a purchase requisition into a PO. The Material Master (Purchasing view) must have the "Auto PO" indicator enabled (A), signaling that this material is eligible for automated ordering. The Supplier/Vendor Master (Purchasing data) must also have the indicator set (D), confirming that the supplier is approved for automated transactions without manual intervention.

Why the distractors are wrong:

• B (Purchasing Info Record): This record holds price/conditions data but does not contain or require an Auto PO indicator - it's a common trap because it is used during PO creation.
• C (Purchase Requisition): The requisition itself is the trigger for automatic PO conversion, not a configuration prerequisite - you don't set an auto-PO flag on the requisition.

Memory tip: Think of it as needing a "handshake" from both parties - the Material says "I can be auto-ordered" and the Supplier says "I can receive auto-orders." Both gates must be open or the automation stops. Associate Material + Supplier = Mutual Signoff for auto PO.

No community discussion yet for this question.