Goods reciept without any PO

[Former Member]

Dear Friends

I received goods (MIGO) without any PO (mvt 501) in two plants of a company. The system did not ask me about the purchase group or purchase organization. Even name of the vendor was not asked. However the materials entered are maintained in the material master.

My queries are

Is the procedure mentioned above is correct.

Do we need to generate PO for making payment to the vendor.

If so, how we will generate Purchase order for this receipt of material and how we we will make payment for this transaction.

Thanking you

Regards

Sanjeev

[former_member184627]

Hi Sanjeev,

During initial implementation in a company the exisitng stock needs to be taken into account in SAP. Hence for this movement type 501 (Others) can be used.

After implementation purchase orders are created as normal process & then GR is done through 101 & other movements wrt to purchase order.

Regards,

Senthilkumar

[Former Member]

This is not quite correct. For initial inventory load, you should use mov 561. that will post manual inventory account to automatic inventory account.

The procurement process may include 501 movement and automatic po creation triggered from the GR.

It's true that normal process and probably "best practice" includes a PO before the GR posting. But in some cases, the business need may deviate from Ideal processes.

[former_member184627]

Hi GS,

Thanks for the information. I was informed that 501 movment is also used for this purpose.

Regards,

Senthilkumar

[Former Member]

Hi,

Here is the process:

Auto PO creation During GR Posting :

In the movement type config - there is an auto PO creation flag, which allows the system to automatically create PO in the background from within the GR posting transaction. Has anyone used this feature -please share your experience. We are on 46c, and I don't see any existing movement type in the system which has this flag turned on.

For business process control purpose, I suggest avoiding auto PO from GR unless it is really necessary. Instead, use "traditional" PR-PO-GR process.

Actually what is the rational of using a automatic PO function, what is the benefit and what is the disadvantages of using this function? and under what business practise is best suit to use this function?

Sometimes the SAP help portal give you a lot of technical but didn't explain thoroughly from the business perspective point of view.

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. Other benefits is to reduce the workload of purchasing department for the case of consignment process.

How to create AUTO PO during MIGO :

Check in customizing whether you have maintained creation of automatic PO during good receipt.

Menu path : MM -> Inventory Management -> Goods Receipt -> Create Purchase order Automatically -> Activate Auto PO creation for Mvt type.

Hope this will help you..

Thanks,

Kumar Arcot

[Former Member]

Hi,

If your vendor visits your company. Fills up missing stock.

You can check the vendors fill up list. Post 501 with auto PO.

In this case invoice can be paid. PO is equal to what is delivered.

This can be an example when it is use full.

Sharing your business case would be nice.

Thank you,

Eric.

[Former Member]

We also have a requirement to create a PO from a goods receipt. This relates to a subcontracting process where the subcontractor may produce an off-spec product we want to inventory. Rather than manually create another subcontracting PO we would rather just create the PO as part of the receipt process.

I modified config for the 501 movement type to allow for auto PO.

In testing I can successfully create the goods receipt. It warns me that it will automatically create a PO (a good thing). It creates the material document and accounting document (GR/IR, etc.) and adds the inventory at the current inventory value (not the PIR value). However, I see no PO number anywhere and I cannot detemine how to pay the vendor for the material (and resolve the GR/IR).

I must be missing something.

Any help would be appreciated.

[Former Member]

I think that there are a lot of different procurement procedures, and the only way to say if its correct, is by analyzing the business needs, requirements, background etc. It's a valid procedure, but you need to analyze the context.

If you want to create a PO (automatic generated from the GR), you may implement that process. There is a lot of documentation in the forum, so if you search for automatic PO, you will find the step by step process.

If not, you may also post invoices in FI, post payments, without having any link with the material valuation. In that case material will be manage at the value set in material master without any influence of price differences, etc.