Where can you set the automatic purchase order indicator in SAP Material Management?

The automatic purchase order indicator can be set in both the vendor master and the material master in SAP Material Management. This indicator is crucial as it determines if and when purchase orders can be generated automatically based on various criteria defined within the system.

In the vendor master, the automatic purchase order setting enables the system to automatically create purchase orders when certain conditions are met, streamlining the procurement process for that specific vendor. This ensures that replenishment orders can be generated without manual intervention, saving time for procurement professionals and reducing the risk of errors.

Similarly, in the material master, the automatic purchase order indicator allows for the automated creation of purchase orders specifically for that material. This feature supports the manageable procurement and inventory policies for that material, improving operational efficiency.

Both the vendor master and material master settings are integrated in the purchasing module, allowing for flexible configuration tailored to the organization's procurement processes. Since the indicator can be set in both locations, marking the correct answer as including both selections reflects a comprehensive understanding of its application across different master data domains within the SAP system.