SAP MM: Purchase Order Release Strategy Configuration (PO Approval Procedure)

 

The release strategy defines the approval process for purchase requisitions, purchase order, RFQ, Contract or external purchasing documents. The strategy specifies the release codes necessary and the sequence in which releases have to be affected.

 

Preparation of required objects for Release Strategy:

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.

 

 

 1# SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Edit Characteristic

 

 Here, put the desired field name from the table CEKKO. In the restriction tab, insert class type 032 that is release strategy.

2# SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Edit Class

 

 Here, put the characteristics created in the previous step according to CEKKO table's field name. Class type is 032 as well.

3# SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders -> Define Release Procedure for Purchase Order

 

 

 Here, maintain the release group, release codes, release indicator, release strategies and if necessary workflow.

Created release group is as following;

Created release codes is as following;

 

Created release indicators is as following;

Release Strategies prerequisites set as following;

Release Statuses set as following;

Release strategies classification is as following.

Here we have to put the desired PO document type and intended company code value.

 

 

Now, if we create PO for the particular Order type and company code, the created strategies will apply for the PO in the tcode me29n, like the following screenshot. Eventually, the authorized person can approve/decline it according to business need.

This is the overall procedure needed to set desired approval procedure in the Purchase Order (PO).

Happy Learning

Short Note: Purchase Requisition through Planned Order OR Direct Purchase Requisition in MRP Run

The type of procurement proposal to be created automatically in the planning run depends on the procurement type of the material. In case of external procurement, the MRP controller can choose between a planned order and a purchase requisition. If the MRP controller chooses a planned order, it then has to be converted into a purchase requisition in a separate step so that it is made available to Purchasing.

The advantage of creating a planned order is that the MRP controller has more control over the procurement proposals. The purchasing department cannot order the material until the MRP controller has checked and converted the order proposal. If a purchase requisition is created, it is immediately available to the purchasing department which then takes over the responsibility for material availability and warehouse stocks.

So, it is the standard process to create planned order then convert them to purchase requisition.

Goods Receive without Inbound Delivery in WM (Inventory Management-IM through MM-WM)

Goods Receipt Without an Inbound Delivery
A goods receipt without an inbound delivery can occur when material arrives at the receiving dock without reference to an inbound delivery. The goods receipt occurs in IM, and a transfer requirement is created for the movement of the material into the warehouse.

Goods Receipt in IM
Goods receipts relevant to a warehouse management system can be produced by the arrival of material at the plant from a purchase order with a vendor. A goods receipt can be defined as a company’s formal acceptance that materials were received from a vendor against a purchase order. Once the material is received and the transaction completed, the value of the material is posted to the general ledger.

 

 Goods Receipt for Purchase Order in IM: Transaction MIGO

Reviewing the Material Documents
After all the relevant details such as storage location, batch number, and so on, have been added to the goods receipt transaction, the goods receipt can be posted. If the goods receipt does not return any error messages, the transaction will post and display the number of the material document for the movement of the material.

 

Display of Material Document Created by Goods Receipt for Purchase Order

 

Display of Accounting Document Created as Part of Goods Receipt of Purchase Order 

Reviewing Stock Levels after Goods Receipt
Once the goods receipt of the purchase order into inventory is complete, you can perform a stock overview to show the material in stock. To execute the stock overview, use Transaction MMBE.

 

Stock Overview of Material 1157 in All Stock Locations: Transaction MMBE

Displaying the Transfer Requirement
The goods receipt of the material from the purchase order has been receipted into stock, as shown by the material documents and the stock overview program. This information reflects the movement into the stock location relevant to IM, but not the movement relevant to WM.
When the movement into the storage location was made, a transfer requirement was created, as the storage location is warehouse managed. You can find the transfer requirement by using Transaction LB11, which allows for a search of the transfer requirements by material number. To find this transaction, follow the menu path; SAP Menu-Logistics-Logistics Execution-Internal Warehouse
Processes-Transfer Requirement-Display-For Material.

 

Display of Transfer Requirements for Single Material: Transaction LB11

 

Display of Transfer Requirement Resulting from Search Criteria: Transaction LB11

Now that we have identified the transfer requirement, we can convert it to a transfer order. There are two ways to do this. You can create a transfer order in the foreground or the background. 

To convert to a transfer order in the foreground, click the TO in Foreground button or press (Ctrl)+(Shift)+(F8). You can also create the transfer order by selecting Environment TO in Foreground.

 

Conversion of Transfer Requirement to Transfer Order: Transaction LB11

Once the transfer order has been posted, the system returns to the display of transfer requirements, as shown in Figure 5.16, and the transfer order number is displayed at the bottom of the screen.

 

Display of Transfer Order Created from Transfer Requirement

Displaying the Transfer Order
You can see the transfer order created by the conversion of the transfer requirement to a transfer order with Transaction LT21 if you know the transfer order number. If just know the material, use Transaction LT24 or follow the menu path; SAP Menu-Logistics-Logistics Execution-Internal Warehouse Processes-Stock Transfer-Display Transfer Order-For Material.

 

Initial Screen for Displaying a Transfer Order by Material Number: Transaction LT24

 

Display of Transfer Orders Available from Selection Criteria: Transaction LT24

Material being transferred from Source Bin to Destination Bin and the Transfer Order confirmed, finally.

[Document is created taking assistance from the SAP Press WM Book]