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Setting up Purchase Order Release Strategy

September 18, 2013 | 117,829 Views |

Former Member
Retail
 @sap retailpurchase releaseretailsap mm

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Purpose of the Release Strategy

The 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 by a higher level user, 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 of release strategy 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 order 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 will 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 of Department
 Code 40: Vice President

Now with this requirement, following release code will be attached to each document
depending on the value of the PO.

 A Purchase order of 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 of 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 order of 75500.00 USD, it requires 4 level of release.

Preparation of required objects for Release Strategy

in SAP
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
strategy 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 Selection
criterion
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: CT04
Provide 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.

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 field name, system will generate a warning message
“Format data taken from Data Dictionary (press enter)”.  This warning message 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 NB which is Standard PO. Please see
below screen shot.
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 032 in 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. Please
navigate to Description tab and for each language and save your characteristic.

Finally Save the characteristic.

Using the same method creates another characteristic BP_PURORG for Purchasing Organization.
For third characteristic which is Purchase order Net value, we need follow the same steps 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.
 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 screen.
 

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

    

 BP_DOCTYPE for Document 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 class.

   

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.
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
 Release Indicator
 Release Strategies
 Workflow

Configure Release Groups

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

   

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 select 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.
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 select Release
Codes. Keep the cursor on Release Codes and click on Choose button.

Click on New Entries to create the Release codes for our release strategy. Number of release
codes 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
Use following SPRO path for configuring these elements of release strategy.

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

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 select Release
Strategies. Keep the cursor on Release Strategies and click on Choose 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 demonstration of second
release strategy (with 2 approvals). The same steps needs to be followed for another strategy.

In the given space give all your Release codes.

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

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 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 user 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 should 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 status of the Purchase Order.

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

—–End of Document ——
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84 Comments
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1. Former MemberApril 12, 2018 at 8:34 am

Hi Amit,

Superb explanation. Thanks for the info.

Regards,

Shiva V
 like (0) 

2. Former MemberApril 25, 2018 at 10:06 am

Your explanation is very clear & screenshot are added advantage.

Thank You!

like (0) 

3. Sambhaji BarseMay 7, 2018 at 11:07 am

Really nice document…

like (0) 

4. Daniel BrennanJune 25, 2018 at 5:14 pm

First, great article.  Very clear and walks the user step-by-step through the process.   I have one
question though…we would like a single level of approval, and we’d like anyone in our production
team to be able to release any PO.   From my understanding, in the workflow configuration, only one
username can be specified for each combination of  Group, Code, and User Type.   Is there a way to
do this at a less granular level?

Thanks,

Dan

like (0) 

5. Pepe SanchezOctober 15, 2018 at 3:46 pm

Hi,

great explanation, Does any know if it is possible to have two buyers, meaning one or the other
could approve the first level?

like (0) 
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