Setting Up Purchase Order Release Strategy _ SCN

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16/01/2014 Setting up Purchase Order Release Strategy | SCN

scn.sap.com/docs/DOC-46564

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created byAmit Tunaraon 18-Sep-2013 11:25, last modified byAmit Tunaraon 15-Oct-2013 06:08

Purpose of the Release StrategyThe procurement department of a company consists of many buyers who are responsible for

buying goods from the market. There is a hierarchy of people like the operator or the buyer

who creates the order and purchasing managers to supervise and control the procurement

process. Since purchase order is a legal document and it goes outside the company to the

vendor, it is very much important to control the process to avoid any errors or unauthorized

transaction. When the Purchase order is processed further for goods receipt and invoice

verifications, there will be accounting entries generate and it creates Accounts Payable entries(AP).

Because of this reason and legal implications of Purchase orders, it is very much required to control

the procurement process by introducing approvals. For the same, SAP has provided a concept of

release strategy. In release strategy, there are different released codes which are used for

designated users. The release code is a two character ID allowing a person to release (clear, or

approve) a purchase requisition or an external purchasing document. The release codes are basically

controlled via a system of authorizations (authorization object M_EINK_FRG). The user with specific

release code assigned can perform a respective release in a purchase order. For example, the user

who creates the purchase order is assigned the lowest level release code. When the purchase order

is saved or checked, system will trigger the Release Strategy for that document depending on the

defined criteria. In the purchase order which is required to be released bya higherleveluser, there

will be a Release Strategy tab on header of the PO document. In this tab, system shows all the

levels of release codes who are involved in approving the purchase order. Following practical

example will demonstrate the purpose o f release s trategy and its implementation in SAP.

A company where there is following approval mechanism used in procurement department needs to

have a release strategy in SAP.

If the value of Purchase order is less than 500.00 USD, it can be approved by a Purchase

Manager and then can be processed further.

When the Purchase o rder value exceeds 10000.00 USD, in addition to the purchase manager, it

requires an additional approval of Head of Department.

If the value of PO is more than 50000.00 USD, then it needs an approval of Vice President once

it is approved by the Manager and then by HoD.

To achieve this, there w ill be four release codes created in the system.

Code 10: For Initial Status when the PO is created

Code 20: For Purchase Manager

Code 30: For Head o f Department

Code 40: Vice Pres ident

Now with this requirement, following release code w ill be attached to each document depending on

the value of the PO.

A Purchase order o f value 345.00 USD will have only two release codes 10 & 20. First it needs to

be released by user who is assigned release code 10 and then further release is required by

the Purchase manager who has release code 20.

A Purchase order o f value 12500.00 USD will have 10, 20 and 30 release codes. First release will

be user with release code 10; second release will be by user with release code 20 and then

final release by HoD who has release code 30.

Similarly a purchase o rder of 75500.00 USD, it requires 4 level of release.

Preparation of required objects for Release Strategy in

SAP

Setting up Purchase Order Release Strategy

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scn.sap.com/docs/DOC-46564 2

Before we start configuring release strategy in SAP, we need to define the combination of

parameters to trigger the release. This triggering criterion can be a combination of Document type

and Purchasing organization along with value depending on which the number of release codes are

assigned when the document is created. In SAP we have a run time structure with name CEKKO

(Communication Release Strategy Determination Purch. Document) which provides all the possible list

of fields using which a release s trategy can be configured. To view all this fields of the structure you

can use transaction code SE12. In SE12 screen, in the database field provide the structure name

CEKKO and click on Display button.

Configuration of Release Strategy for Purchase Order

Creating Characteristics of each attribute of Selectioncriterion

Let us assume that we want to configure the release strategy based on the combination of three

fields. These fields are Document Type (CEKKO- BSART), Purchasing Organization (CEKKO-

EKORG) and Purchase order total value (CEKKO- GNETW). We need to create individual

characteristic for each of this field and then group them into a release class. Please follow the

steps given below to create characteristics.

SPRO Menu Path: SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for

Purchase Orders -> Edit Characteristic

Transaction code:CT04Provide the characteristic name and click on Create button to create the characteristic. Give

appropriate and meaningful name for each characteristic so that they become easy to identify in

further process.

In Basic Data of characteristic screen, provide appropriate description. If you want to configure the

release strategy for single document type, you need to select Single Values in Value Assignment

block and if it is required for multiple document type then select Multiple Values radio button.
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Now, the fields are to be referred from CEKKO structure, we need to provide the reference to this

structure and corresponding field. Since this characteristic is created for document type, please

specify the structure and field name given in the below screen.

As soon as you enter the structure name and fie ld name, system will generate a warning mes sage Format data

aken from Data Dictionary (press enter). This warning mess age indicates that the data type of the characteristic

will be taken from the data dictionary of this structure in SAP.

Now navigate to Values tab and provide the document types which are required in this release

strategy. For this example, we are taking document type NBwhich is Standard PO. Please see

below screen shot.


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Please note that in the characteristic values tab, these values are not available as a F4 selection.

So they must be typed correctly and it should match exactly with the document types used.

We need to make sure that these characteristics are used only in class which is made up for

Purchase order release. For this purpose we need to provide the restriction in characteristic.

Provide class type 032in the restriction tab to achieve this.

If the system is used in multiple languages and if it is required to maintained the characteristic

description in multiple languages, then the same can be done from the description tab. Pleasenavigate to Description tab and for each language and save your characteristic.

Finally Save the characteristic.

Using the sam e m ethod creates another characteristic BP_PURORG for Purchasing Organization.

For third characteristic which is Purchase order Net value, we need follow the s ame s teps except the below points:

When you mentioned the Structure name CEKKO and field GNETW for purchase order net

value, system will ask for the currency since this field is related to numbers and net value of

purchase order. Please mention USD as a currency for the characteristic.

If you have multiple criteria for different range of values, the same has to be provided in Values

tab with a Multiple Value radio button tick in Basic data.
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Since there will be intervals in the purchase order values, you have to configure the

characteristic to allow the values in intervals. For the same please tick the check box Interval

Vals allowed in Value assignment block in Basic data tab.

For this characteristic, the values are to be defined in intervals as given in below s creen.

So this way we have created the following characteristics for our release strategy.

BP_DOCTYPE for Docum ent Type NB

BP_PURORG for Purchasing Organization BP01

BP_NETVAL for Net Value below 100.00 USD and above 100.00 USD

Creating Class for Purchase order Release

Once we have all the characteristics ready with us, we need to group them into a class. Please see the below

procedure to create the clas s.

SPRO Menu Path: SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for

Purchase Orders -> Edit Class

Transaction code:CL02.

In main screen of CL02 transaction, provide appropriate Class Name and click on Create button.

Make sure that the class type must be 032.


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In main screen of CL02 transaction, provide appropriate Class Name and click on Create button.

Make sure that the class type must be 032.

In the detailed screen, provide appropriate description. In Same classification block please select

Do not Check radio button.

Now the next step is to assign the earlier characteristics to this class. Please note that those

characteristics are restricted to be used only in class type 032 which type this class is to be

created.

Finally save the class. This concludes the first step for setting up the release strategy.

Define Release Strategy for Purchase Order

After the class is ready, the next is to configure the elements required in release strategy. Following

elements are required.

Release Groups

Release Codes
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Release Indicator

Release Strategies

Workflow

Configure Release Groups

Use following SPRO path for configuring these elements of release s trategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Define

Release Procedure for Purchase Orders.

When you click on this option, system will give sub options to proceed further. Please s elect Release Group. Keep the

cursor on Release Group and click on Choose button.

Click on New Entry button to create new Release Group. In new record, give appropriate Release

Group name as BP, in Class field give our Class name which we have created in above step. Click

on Save button to save your entry.

Configure Release Codes

Use following SPRO path for configuring these elements of release strategy.



When you click on this option, system w ill give sub options to proceed further. Please s elect Release Codes . Keep

the cursor on Release Codes and click on Choose button.
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Click on New Entries to create the Release codes for our release strategy. Number of releasecodes depends on number of approval levels. Here only two release codes are created which are

10 and 20 for Buyer and Manager respectively. Please note that these release codes are to be

created under the same release group which we have configured in previous tab. Click on Save to

save your entries.

Configure Release Indicator




When you click on this option, system will give sub options to proceed further. Please select

Release Indicator. Keep the cursor on Release Indicator and click on Choose button.

This screen indicates release id for initial and released status. Release ID 0 indicates Blocked

status and with release ID 1 it is Released status. The field Changeable contains the parameter

which will define how the system reacts if a purchasing document is changed after the start of the

release procedure. Means once the order is released, we can still change the values in purchase

order which will trigger a new release status. If the field is allowed to change, we can define the %

of change allowed.

Configure Release Strategies




When you click on this option, system will give sub options to proceed further. Please select Release Strategies.

Keep the cursor on Releas e Strategies and click on Choos e button.

Click on New Entries button and give your release group. After giving the release group, provide

appropriate Release strategy and description.

Now suppose you want to keep only one level of approval for all PO below 100.00 USD and 2 level of approvals for PO

greater than or equal to 100. To achieve this we need to have two release strategies. First release strategy will have

only 1 release code and only value less than 100.00 USD is to be selected from characteristic BP_NETVAL. For the

Purchase order having value greater than or equal to 100.00 USD, we will create another release strategy which will

have both the release codes as we need two level approvals in this case. The following steps are dem onstration of

second releas e s trategy (with 2 approvals). The sam e s teps needs to be followed for another s trategy.

In the given space give all your Release codes.
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Now click on Release prerequisites button. In prerequisites screen, select prerequisites for each

release code. In the given screen shot, we are saying there is not prerequisite for release code 10

and for release code 20 it is required that release id 10 has to be there. Once done, click on

Continue button to save the settings.

The next step is Release statuses. Click on Release Statuses button. Here we are attaching the

release ids for each operational step. From the below screen it is clear that when the document is

created when both the release status are at initial condition.


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When the first level of release is done means when it is released by a user having release code 10, the overall status

is s till Blocked. When the document is releas ed by a higher level us er having release code 20, the documents overall

status will be Released. Once it is done click on Continue button.

Next step is to select the classification values for the selected characteristics in release class.

Click on Classification button to proceed.

Here it is required to select all the values from all the characteristics. If you have multiple values in characteristic, you

have to select the values which you want to involve in the release strategy. Select a characteristic row and click on

Choose button bottom.

Please note it is also possible to directly mention the values here provided Additional Values option

is enabled in your characteristic.

Configure Workflow

Use following SPRO path for configuring workflow for the above configured release strategy.



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When you click on this option, system will give sub options to proceed further. Please select

Workflow. Keep the cursor on Workflow and click on Choose button.

Click on New Entries button to create records for involved users. Specify the Release group, appropriate release code

and User ID in Agent ID column. Please make sure the us er ids are specified with Agent type US which indicates that

mentioned agent name is a User id of SAP. You have to create each line for each users who are involved in this

process and s hould be attached to an appropriate release code.

This is the end of release strategy configuration. With this configuration, we are set to create a purchase order to test

our release strategy.

Please note that if the purchase order is not released, buyers will not be able to print the Purchase Order. Also in

Goods Receipts will be shown with Message no. ME 390 - Purchasing document XXXXXXX not yet released

Purchase Order with Release Strategy has tabs at the end of the Header. This allowed the buyers to check the

release s tatus of the Purchase Order.

The person with the release authorization has to use ME28 to release the Purchase Order.

-----End of Document ------

3692 View s Categories: Retail Blogs Tags: retail, sap_retail, sap_mm, purchase_release

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9Comments

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Jrgen L14-Oct-2013 20:40

which mean ing shal l this value of = 100.00 in your strategy have?

it just says that any value lower than a hundred and any value greater equal 100 will control that this

strategy is valid.

You already explain " For the same we need to have two release strategies."

Why do you show it then as example?

This is just mis leading the freshers

Amit Tunara15-Oct-2013 06:09 (in response to Jrgen L)

Hi,

Thanks for your comment. I have also mentioned the reason for two strategies. Not

because of difference in value but I want to attach 2 release code for the PO greater then

100.00.
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Like (1)

I have corrected the document with more easy explanation.

Thanks for highlighting this and helping to enhance the usability of the document.

Regards,

Amit

Like (0)

yagnesh acharya17-Oct-2013 10:20

Dear Amit ,Good document which explain in details about the release strategy

for the Procurement Process.

Like (1)

Mohsin Abbas i24-Oct-2013 07:01

Hi Amit,

It's a nice document, that explain each and every step of Release strategy configuration. You have

done in such a nice manner.

Best Regards

Mohsin abbas i

Like (1)

Amit Tunara24-Oct-2013 09:19 (in response to Mohsin Abbasi)

Hi Mohsin,

Thanks for your words.

Regards,

Amit

Like (0)

Pradeep Mani05-Nov-2013 13:31

Good work Amit.

Like (0)

XINHUA FAN09-Jan-2014 09:37

hi Amit

I have a problem about the release strategyIn our SAP, sometime the PO will have not any release strategy if the PO amount is out of all

strategies, and means this PO won't to be got the approval,

How to fix this and is there any settings we m iss ed, thanks.

Like (0)

Amit Tunara09-Jan-2014 10:34 (in response to XINHUA FAN)

Hi,

Please make sure that your characteristic BP_NETVAL (used above) have the value of all

larger value beyond a certain number. Here I have taken last value as >= 100 means all

values beyond 100 will be considered for release strategy.

So check in your characteristics for Values.

Regards,

Amit

Like (0)

XINHUA FAN09-Jan-2014 17:02 (in response to Amit Tunara)

Hi Amit

Thanks for your reply, I'll test in our QA system, thanks again.
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