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In this lesson, we will explore the process of automatic Purchase Requisition (PR) creation via Reorder Point Planning (ROP). ROP is a method used in SAP MM to determine when to create PRs based on predefined stock levels. When the stock reaches a certain level, the system automatically generates a PR to replenish the stock. This automated process helps streamline the procurement process, ensuring that materials are available when needed without manual intervention. For example, if a company's safety stock level for a particular material is set at 100 units, once the stock falls below this level, a PR will be automatically triggered to maintain the stock level.

Next, we will delve into the concept of automatic PR to Purchase Order (PO) conversion. Once a PR is created, it can be automatically converted into a PO in SAP MM. This conversion eliminates the need for manual creation of POs, saving time and reducing errors. The system can be configured to convert PRs to POs based on predefined rules such as vendor assignment, pricing conditions, and delivery dates. For instance, if a PR is generated for a material with a specific vendor already assigned in the system, the system can automatically create a PO with the vendor details and other relevant information.

Lastly, we will explore the process of automatic Invoice creation using the FIORI App. FIORI is a user-friendly interface that allows users to perform various tasks in SAP applications. With the FIORI App for Invoice creation, users can generate invoices automatically based on POs and goods receipt data. This automation reduces manual effort, minimizes errors, and speeds up the invoicing process. For example, once the goods are received and the PO is marked as completed, the system can automatically create an invoice using the FIORI App, eliminating the need for manual data entry and reconciliation.