Purchase Order Release Strategies

Purchase Order Release Strategy

This blog will discuss the purchase order release strategy in SAP S/4HANA.

Overview

Release Procedures (approval) can be used for Purchase Orders (PO). The principle is the same for all. If you can master one, you will know them all.

Key terminology

• Release Codes - The different levels that the approval will go through.

• Release Groups - Grouping of strategies.

• Release Strategy - Unique, set of conditions, sequence, and levels of releases.

• Release Indicator / Status – Purchase Order status as it moves through the strategy. Example ‘Block’ (can’t create PO yet) or ‘Final Release’ (can create PO)

Here is a summary of the steps to follow to set up our example:

• Create Characteristics & link to comm. structure (CEKKO for PO)

• Create a Class & link to the characteristic

• Create Release Groups & link to the class

• Create Release Codes

• Release Indicator

• Set up strategies

  • Strategies & Codes

  • Pre-requirements

  • Status

  • Assign values for strategies

• Set overall / item for doc type

• Create and allocate authorization profiles

Detail Steps of Settings

1.     Create Characteristics and link to communication structure

1.1 Display CEKKO Table

Step 1: Enter Data Base Table CEKKO, and display

1.2 Define Characteristics

2. Define Class

Step 1: Enter Class. Description, and class type

3. Define Document Type for Purchase Order

   
   

   

4. Set Release Procedure

• Release Group

• Define codes

• Release indictor

• Release Strategy R1 -1 0.00 to 1000 USD

• Release Prerequisites

• Release Status

• Classification

• Release Simulation

• Simulate Release

• Release Strategy R2 >1001 USD

• Release Prerequisites

• Release status

• Classification

• Release Simulation

• Simulate Release

• Work flow

5. Testing Purchase Order Release Strategy R1- PO Price less than 1000 USD

5.1 Create Purchase Order

Step 1: Enter Vendor, Purchase Org., Purchase Group, Company Code

Step 2: Enter Material, Quantity, Plant, and Save

• Purchase Order 4500005939 Created

5.2 Release Purchase Order

Step 1: Click on Document, Enter the PO Number, and Execute

• PO Value is less than 1000 USD so R1 Release Strategy Triggered

Step 2: Release by Creator

Step 3: Click on Release by Purchase Officer

Step 4: Save

6. Testing Purchase Order Release Strategy R1- PO Price More than 1000 USD

6.1 Create Purchase Order

Step 1: Enter Vendor, Purchase Org, Purchasing Group, Company Code

Step 2: Enter Material, Quantity, Plant, and Save

• Purchase Order 4500005940 created

6.2 Release Purchase Order

Step 1: Click on Document, Enter PO Number, Execute

• Because PO Value is more than 1000 USD, so Release Strategy R2 Triggered, 3 level Approval required

Step 2: Release by Creator

Step 3: Release by Purchase Officer

Step 4: Release by Purchase Manager and save

Conclusion

Here we understand how the purchase order release strategy is configured in SAP S/4HANA.

 

Rajesh Sharma

SAP WM/EWM Functional Consultant

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