SAP S/4HANA does not support automatic split purchase order by WBS code / storage location

[silambarasan_RS]

Dear Experts,

We are currently working with SAP S/4HANA Private Cloud 2023  in a company that operates under a centralized purchasing model.

In SAP Business One, when creating a Purchase Order, if the items belong to different warehouses, the system automatically splits the PO into multiple purchase orders (one per warehouse). This is very useful for companies with centralized procurement but distributed warehouses/divisions, as it simplifies receiving and accounting at the warehouse level.

In SAP S/4HANA, I have observed that this functionality is not available by default. Instead, the system allows one PO to contain items for multiple plants/warehouses, and the logistics are handled separately.

👉 My questions are:

1. Is there a standard option/configuration in S/4HANA to achieve automatic PO split by warehouse/plant (similar to SAP Business One)?

2. If not standard, what is the recommended best practice for centralized purchasing with bulk discounts and later distribution to different warehouses/divisions?

3. Is the solution to use Stock Transport Orders (STO) or Central Procurement Hub after creating one bulk PO at the head office?

4. Has anyone implemented a custom BAdI enhancement (e.g., ME_PROCESS_PO_CUST) to mimic this B1 functionality in S/4HANA?

This is a critical requirement for us since our business negotiates bulk discounts with suppliers and then distributes materials to multiple warehouses.

Any guidance, best practices, or experience sharing will be highly appreciated.

Thanks & Regards,

silambarasan RS

[Lakshmipathi · Accepted solution]

Yes in S/4HANA, the expected option is not available. This behavior is by design, as S/4HANA assumes centralized PO management with decentralized logistics handled via delivery and goods receipt processes. If this auto-split is critical for your operations, explore custom enhancement via BAdI ME_PROCESS_PO_CUST