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SettingupPurchaseOrderReleaseStrategy
September18,2013 | 19,171Views |
AmitTunara
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Purpose of the Release Strategy

The procurement department of a company consists of many buyers who are responsible for
buyinggoodsfromthemarket.Thereisahierarchyofpeopleliketheoperatororthebuyer
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,therewillbeaccountingentriesgenerateanditcreatesAccountsPayableentries
(AP).
BecauseofthisreasonandlegalimplicationsofPurchaseorders,itisverymuchrequired
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
codeswhichareusedfordesignatedusers.ThereleasecodeisatwocharacterIDallowing
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
savedorchecked,systemwilltriggertheReleaseStrategyforthatdocumentdepending
onthedefinedcriteria.Inthepurchaseorderwhichisrequiredtobereleasedbyahigher
leveluser,therewillbeaReleaseStrategytabonheaderofthePOdocument.Inthistab,
system shows all the levels of release codes who are involved in approving the purchase
order.Followingpracticalexamplewilldemonstratethepurposeofreleasestrategyandits
implementationinSAP.
Acompanywherethereisfollowingapprovalmechanismusedinprocurementdepartment
needstohaveareleasestrategyinSAP.
IfthevalueofPurchaseorderislessthan500.00USD,itcanbeapprovedbya
PurchaseManagerandthencanbeprocessedfurther.
WhenthePurchaseordervalueexceeds10000.00USD,inadditiontothepurchase
manager,itrequiresanadditionalapprovalofHeadofDepartment.
 IfthevalueofPOismorethan50000.00USD,thenitneedsanapprovalofVice
PresidentonceitisapprovedbytheManagerandthenbyHoD.

Toachievethis,therewillbefourreleasecodescreatedinthesystem.
Code10:ForInitialStatuswhenthePOiscreated
Code20:ForPurchaseManager
Code30:ForHeadofDepartment
Code40:VicePresident

Nowwiththisrequirement,followingreleasecodewillbeattachedtoeachdocument
dependingonthevalueofthePO.
APurchaseorderofvalue345.00USDwillhaveonlytworeleasecodes10&20.
Firstitneedstobereleasedbyuserwhoisassignedreleasecode10andthen
furtherreleaseisrequiredbythePurchasemanagerwhohasreleasecode20.
APurchaseorderofvalue12500.00USDwillhave10,20and30releasecodes.First
releasewillbeuserwithreleasecode10secondreleasewillbebyuserwithrelease
code20andthenfinalreleasebyHoDwhohasreleasecode30.
Similarlyapurchaseorderof75500.00USD,itrequires4levelofrelease.

Preparation of required objects for Release Strategy in

SAP

BeforewestartconfiguringreleasestrategyinSAP,weneedtodefinethecombinationof
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
strategycanbeconfigured.Toviewallthisfieldsofthestructureyoucanusetransaction
codeSE12.InSE12screen,inthedatabasefieldprovidethestructurenameCEKKOand
clickonDisplaybutton.

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
characteristicforeachofthisfieldandthengroupthemintoareleaseclass.Pleasefollowthesteps
givenbelowtocreatecharacteristics.

SPRO Menu Path: SPRO: Material Management > Purchasing > Purchase Order > Release
ProcedureforPurchaseOrders>EditCharacteristic
Transactioncode: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
furtherprocess.

InBasicDataofcharacteristicscreen,provideappropriatedescription.Ifyouwanttoconfigurethe
release strategy for single document type, you need to select Single Values in Value Assignment
blockandifitisrequiredformultipledocumenttypethenselectMultipleValuesradiobutton.

Now,thefieldsaretobereferredfromCEKKOstructure,weneedtoprovidethereferencetothis
structure and corresponding field. Since this characteristic is created for document type, please
specifythestructureandfieldnamegiveninthebelowscreen.

Assoonasyouenterthestructurenameandfieldname,systemwillgenerateawarningmessage
FormatdatatakenfromDataDictionary(pressenter).Thiswarningmessageindicatesthatthe
datatypeofthecharacteristicwillbetakenfromthedatadictionaryofthisstructureinSAP.
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
belowscreenshot.
Pleasenotethatinthecharacteristicvaluestab,thesevaluesarenotavailableasaF4selection.So
theymustbetypedcorrectlyanditshouldmatchexactlywiththedocumenttypesused.
We need to make sure that these characteristics are used only in class which is made up for
Purchaseorderrelease.Forthispurposeweneedtoprovidetherestrictionincharacteristic.Provide
classtype032intherestrictiontabtoachievethis.

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
navigatetoDescriptiontabandforeachlanguageandsaveyourcharacteristic.

FinallySavethecharacteristic.
UsingthesamemethodcreatesanothercharacteristicBP_PURORGforPurchasingOrganization.
ForthirdcharacteristicwhichisPurchaseorderNetvalue,weneedfollowthesamestepsexceptthe
belowpoints:

WhenyoumentionedtheStructurenameCEKKOandfieldGNETWforpurchaseordernet
value,systemwillaskforthecurrencysincethisfieldisrelatedtonumbersandnetvalueof
purchaseorder.PleasementionUSDasacurrencyforthecharacteristic.
Ifyouhavemultiplecriteriafordifferentrangeofvalues,thesamehastobeprovidedin
ValuestabwithaMultipleValueradiobuttontickinBasicdata.
Sincetherewillbeintervalsinthepurchaseordervalues,youhavetoconfigurethe
characteristictoallowthevaluesinintervals.ForthesamepleasetickthecheckboxInterval
ValsallowedinValueassignmentblockinBasicdatatab.
 Forthischaracteristic,thevaluesaretobedefinedinintervalsasgiveninbelowscreen.

Sothiswaywehavecreatedthefollowingcharacteristicsforourreleasestrategy.

BP_DOCTYPEforDocumentTypeNB
BP_PURORGforPurchasingOrganizationBP01
BP_NETVALforNetValuebelow100.00USDandabove100.00USD

Creating Class for Purchase order Release

Oncewehaveallthecharacteristicsreadywithus,weneedtogroupthemintoaclass.Pleasesee
thebelowproceduretocreatetheclass.

SPRO Menu Path: SPRO: Material Management > Purchasing > Purchase Order > Release
ProcedureforPurchaseOrders>EditClass

Transactioncode:CL02.

In main screen of CL02 transaction, provide appropriate Class Name and click on Create button.
Makesurethattheclasstypemustbe032.
In main screen of CL02 transaction, provide appropriate Class Name and click on Create button.
Makesurethattheclasstypemustbe032.

Inthedetailedscreen,provideappropriatedescription.InSameclassificationblockpleaseselectDo
notCheckradiobutton.

Now the next step is to assign the earlier characteristics to this class. Please note that those
characteristicsarerestrictedtobeusedonlyinclasstype032whichtypethisclassistobecreated.

Finallysavetheclass.Thisconcludesthefirststepforsettingupthereleasestrategy.

Define Release Strategy for Purchase Order

Aftertheclassisready,thenextistoconfiguretheelementsrequiredinreleasestrategy.Following
elementsarerequired.

ReleaseGroups
ReleaseCodes
ReleaseIndicator
ReleaseStrategies
Workflow

Configure Release Groups

UsefollowingSPROpathforconfiguringtheseelementsofreleasestrategy.

SPRO:MaterialsManagement>Purchasing>PurchaseOrder>ReleaseProcedureforPurchase
Orders>DefineReleaseProcedureforPurchaseOrders.

Whenyouclickonthisoption,systemwillgivesuboptionstoproceedfurther.PleaseselectRelease
Group.KeepthecursoronReleaseGroupandclickonChoosebutton.

ClickonNewEntrybuttontocreatenewReleaseGroup.Innewrecord,giveappropriateRelease
GroupnameasBP,inClassfieldgiveourClassnamewhichwehavecreatedinabovestep.Click
onSavebuttontosaveyourentry.

Configure Release Codes

UsefollowingSPROpathforconfiguringtheseelementsofreleasestrategy.

SPRO:MaterialsManagement>Purchasing>PurchaseOrder>ReleaseProcedureforPurchase
Orders>DefineReleaseProcedureforPurchaseOrders.

Whenyouclickonthisoption,systemwillgivesuboptionstoproceedfurther.PleaseselectRelease
Codes.KeepthecursoronReleaseCodesandclickonChoosebutton.

ClickonNewEntriestocreatetheReleasecodesforourreleasestrategy.Numberofreleasecodes
dependsonnumberofapprovallevels.Hereonlytworeleasecodesarecreatedwhichare10and
20 for Buyer and Manager respectively. Please note that these release codes are to be created
underthesamereleasegroupwhichwehaveconfiguredinprevioustab.ClickonSavetosaveyour
entries.

Configure Release Indicator

UsefollowingSPROpathforconfiguringtheseelementsofreleasestrategy.

SPRO:MaterialsManagement>Purchasing>PurchaseOrder>ReleaseProcedureforPurchase
Orders>DefineReleaseProcedureforPurchaseOrders.

Whenyouclickonthisoption,systemwillgivesuboptionstoproceedfurther.PleaseselectRelease
Indicator.KeepthecursoronReleaseIndicatorandclickonChoosebutton.

Thisscreenindicatesreleaseidforinitialandreleasedstatus.ReleaseID0indicatesBlockedstatus
andwithreleaseID1itisReleasedstatus.ThefieldChangeablecontainstheparameterwhichwill
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
changeallowed.

Configure Release Strategies

UsefollowingSPROpathforconfiguringtheseelementsofreleasestrategy.

SPRO:MaterialsManagement>Purchasing>PurchaseOrder>ReleaseProcedureforPurchase
Orders>DefineReleaseProcedureforPurchaseOrders.

Whenyouclickonthisoption,systemwillgivesuboptionstoproceedfurther.PleaseselectRelease
Strategies.KeepthecursoronReleaseStrategiesandclickonChoosebutton.

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

NowsupposeyouwanttokeeponlyonelevelofapprovalforallPObelow100.00USDand2levelof
approvals for PO greater than or equal to 100. To achieve this we need to have two release
strategies.Firstreleasestrategywillhaveonly1releasecodeandonlyvaluelessthan100.00USD
istobeselectedfromcharacteristicBP_NETVAL.ForthePurchaseorderhavingvaluegreaterthan
or equal to 100.00 USD, we will create another release strategy which will have both the release
codesasweneedtwolevelapprovalsinthiscase.Thefollowingstepsaredemonstrationofsecond
releasestrategy(with2approvals).Thesamestepsneedstobefollowedforanotherstrategy.

InthegivenspacegiveallyourReleasecodes.
Now click on Release prerequisites button. In prerequisites screen, select prerequisites for each
releasecode.Inthegivenscreenshot,wearesayingthereisnotprerequisiteforreleasecode10
and for release code 20 it is required that release id 10 has to be there. Once done, click on
Continuebuttontosavethesettings.

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

Whenthefirstlevelofreleaseisdonemeanswhenitisreleasedbyauserhavingreleasecode10,
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.
Nextstepistoselecttheclassificationvaluesfortheselectedcharacteristicsinreleaseclass.Click
onClassificationbuttontoproceed.

Hereitisrequiredtoselectallthevaluesfromallthecharacteristics.Ifyouhavemultiplevaluesin
characteristic,youhavetoselectthevalueswhichyouwanttoinvolveinthereleasestrategy.Select
acharacteristicrowandclickonChoosebuttonbottom.

PleasenoteitisalsopossibletodirectlymentionthevalueshereprovidedAdditionalValuesoptionis
enabledinyourcharacteristic.

Configure Workflow

UsefollowingSPROpathforconfiguringworkflowfortheaboveconfiguredreleasestrategy.

SPRO:MaterialsManagement>Purchasing>PurchaseOrder>ReleaseProcedureforPurchase
Orders>DefineReleaseProcedureforPurchaseOrders.

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

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
havetocreateeachlineforeachuserswhoareinvolvedinthisprocessandshouldbeattachedto
anappropriatereleasecode.

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

Pleasenotethatifthepurchaseorderisnotreleased,buyerswillnotbeabletoprintthePurchase
Order. Also in Goods Receipts will be shown with Message no. ME 390 Purchasing document
XXXXXXXnotyetreleased

PurchaseOrderwithReleaseStrategyhastabsattheendoftheHeader.Thisallowedthebuyersto
checkthereleasestatusofthePurchaseOrder.

ThepersonwiththereleaseauthorizationhastouseME28toreleasethePurchaseOrder.

EndofDocument

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74Comments
YoumustbeLoggedontocommentorreplytoapost.

JrgenL

October14,2013at6:40pm

whichmeaningshallthisvalueof<100.00and>=100.00inyourstrategyhave?
itjustsaysthatanyvaluelowerthanahundredandanyvaluegreaterequal100willcontrolthatthisstrategyisvalid.
YoualreadyexplainForthesameweneedtohavetworeleasestrategies.
Whydoyoushowitthenasexample?
Thisisjustmisleadingthefreshers

AmitTunara Postauthor

October15,2013at2:26am

Hi,

Thanksforyourcomment.Ihavealsomentionedthereasonfortwostrategies.Notbecauseofdifferencein
valuebutIwanttoattach2releasecodeforthePOgreaterthen100.00.

Ihavecorrectedthedocumentwithmoreeasyexplanation.

Thanksforhighlightingthisandhelpingtoenhancetheusabilityofthedocument.

Regards,
Amit

yagneshacharya

October17,2013at8:20am

DearAmit,

Gooddocumentwhichexplainindetailsaboutthereleasestrategy
fortheProcurementProcess.

MohsinAbbasi

October24,2013at5:01am

HiAmit,