! " # $ & 3 ! " # $ % ! " % & ' ( ) ! * , - & ' $ ( ! , . ! $ ( / ' 0 . 1 " % & ' ( / ! * , - & ' $ ( , 2 3 $ 4 !

% 5 & 4
Chitika
Top Luxury Cars Best Checking Accounts
Best Rated Cars Best Cell Phone Plans
Free Website Builder Best Mutual Funds
Best Health Insurance Plans Free Resume Templates
High Yield Savings Account Best Dividend Paying Stocks
Fixed Income Funds Best CD Rates
Chitika | Opt out?
Wednesday, 4 January 2012
SAP MM Purchase Requisition (PR) Release Strategy
Purchase Requisition (PR) Release Strategy
Basic Concept
Purchase Requisition (PR) is an internal purchasing document in SAP ERP. A user creates a PR to
notify the
responsible department, usually the purchasing/procurement department, about his requirement of
materials and/or external services. In SAP ERP system, the user can track the status of the PR
whether it has been processed or not.
PR must contain information about quantity of a material or a service and the required date. It can be
created directly (manually, through ME51N T-code) by a person or indirectly by another SAP
component (such as material requirement planning/MRP, maintenance order of Plan Maintenance/PM
module, production order of Production Planning/PP module).
PR can be processed to be an external purchasing document (such as Purchase Order/PO) or
internal purchasing document (such as Stock Transport Order/STO).
In SAP ERP, PR can be processed directly to be PO/STO or must be approved /released before it
can be processed to be PO/STO.
If we want that PR must be approved /released before it can be processed to be PO/STO, we must
set up a release procedure for that PR.
The first thing to do in setting up a release procedure for a PR is to decide whether we will
approve/release that PR for:
Overall PR
If we release a PR, all items in that PR will be released and then can be processed to be PO/STO. If
we dont release it, none of its item will be released nor can be processed to be PO/STO.
Or,
Item-wise
We must release item per item of a PR in order to make them ready to be processed to be PO/STO. If
we dont release some of PR items, the other items can be released and processed to be PO/STO.
Page 1 of 8 SAP: SAP MM Purchase Requisition (PR) Release Strategy
6/3/2014 mhtml:file://D:\SAP SAP MM Purchase Requisition (PR) Release Strategy.mht
In an SAP ERP client, all PRs with a particular PR Document Type can use just one of the above
options. If we have more than one PR Document Type, we can set some of them use Overall PR
release procedure and others use Itemwise release procedure, depends on our business process
needs.
We can set the option in the process Define Document Type of Purchase Requisition that can be
accessed by OMEB T-code or through menu paths of SPRO T-code: Materials Management
Purchasing Purchase Requisition Define Document Type, as per below image
If we want a PR Document Type uses Overall PR release procedure, we must tick the Overall
release of purchase requisitions (OverReqRel) indicator. If we dont tick that indicator, it means that
PR Document Type will be released with Item-wise procedure.
The next thing to do is to determine the PR criteria/parameters that must be approved / released by
specific person. For example:
PR of raw material that has value less than USD 50,000.00 can be released by operational manager.
PR of that item that has value USD 50,000 or more must be approved by operational manager and
operational director. PR for production equipment must be approved by Asset Manager and
operational director, whatever its cost.
In SAP ERP there are two release procedures that we
can choose:
1. Release Procedure without classification
This procedure can only be used for item-wise. It cant be used for Overall PR. The criteria that can
be used with this procedure to distinct the PR approval processes are limited to: PR item value,
material group, account assignment, and plant. We cant use this procedure if we want to distinct the
PR approval process by other criteria such as Purchasing group, document type, storage location, or
something else.
The only reason we should use this procedure is its simplicity. But if we want more flexibility in
determining the PR release procedure we should use the other option. In this article we wont explain
the Release Procedure without classification in details. We will explain the other option (Release
Procedure with classification) in details.
2. Release Procedure with classification
With this procedure, we can choose whether we want to release the PR for Overall PR or item-
wise. And the main reason why we should use this procedure is because we can choose more
criteria to distinct the PR approval process. The criteria are not limited to PR item value, material
group, account assignment, and plant only.
SAP ERP has provided a communication structure CEBAN that we can use to define
criteria/parameters to determine the PR approval process. Each field in CEBAN can be used as
criteria/parameter. These parameters must be defined in SAP ERP as a Characteristic. Some
characteristics, that are used as parameters to determine a release condition for a release strategy,
are grouped to a Classification.
Step by step guide to configure SAP PR Release
Strategy
Case study scenario
A company has four plants (A000, B000, C000, and D000). Each plant has a stock controller and
plant manager. Each plant produces specific sub-assembly and products, and they can be transferred
from one plant to another. A000 also acts as the Head Office where Asset Manager and Operational
Director perform their tasks.
Page 2 of 8 SAP: SAP MM Purchase Requisition (PR) Release Strategy
6/3/2014 mhtml:file://D:\SAP SAP MM Purchase Requisition (PR) Release Strategy.mht
All PRs created need to be released/approved by
specific person according to the following
conditions:
1. Because they usually create a Stock transfer request/STR (PR with item category U: Stock
Transfer)
that contains a lot of items, they decide that STR needs to be approved by its supplying-plant stock-
controller with overall PR procedure (header level).
To make this procedure runs well, the company has an internal policy that an STR can contain only
items
with same supplying plant. If someone needs STR from two supplying plant, he/she must create two
different PR. They also have created a PR document type that specific for STR. That document type
only
allows U: Stock Transfer item category.
2. PR for external procurement (PR with item category other than U: Stock Transfer) needs to be
approved with item-wise procedure (item level). They created another PR document type that does
not
allow U item category. The release strategy of the PR depends on the account assignment and the
total
item value.
o Item with standard (inventory) account assignment that has total value less than USD 10,000
needs to
be approved by its stock controller.
o Item with standard (inventory) account assignment that has total value USD 10,000 or more needs
to be
approved by its stock controller and plant manager.
o Item with Asset account assignment needs to be approved by Asset Manager whatever its total
value
and wherever its requested.
o Item with Cost Center account assignment that has total value less than USD 5,000 needs to be
approved by plant manager.
o Item with Cost Center account assignment that has total value USD 5,000 or more needs to be
approved by plant manager and operation director.
Based on the above scenario we are asked to
configure the PR release procedure.
PR Release Strategies Matrix
From the above scenario we know that we have to use both Overall PR and item-wise procedures.
We also know the criteria/parameters that determine the release strategy (who has the authorization
to release/approve PR). To make it easier to understand, we can make a release strategy matrix like
the following tables:
Page 3 of 8 SAP: SAP MM Purchase Requisition (PR) Release Strategy
6/3/2014 mhtml:file://D:\SAP SAP MM Purchase Requisition (PR) Release Strategy.mht
Each row in the above Release Strategies tables is a release condition, which if a PR meets its
criteria then that PR will be assigned its associated release strategy. For instance, if a PR meets
criteria at the first row of Release Strategies table for item-wise release procedure, then that PR
needs to be approved by Stock Controller A.
The one thing that must be carefully considered in PR release procedure configuration is to ensure
that all possibilities of PR parameters value combinations (all release conditions) have been
anticipated by PR release strategies. Once we determine the release conditions, if there are PRs
which dont meet any conditions, then that PRs will be considered that they dont need any
approval/release processes. So, they will be available to be processed to the next step (to become a
PO or STO).
If we dont want that happen (if we want all PRs needs to be approved), we have to ensure that each
PR created must meet one of the release conditions. In our scenario, we can ensure that, for
example, by creating a PR document type for STR that only allows U: Stock Transfer item category;
and another PR document type that does not allowed U item category and only allows Standard,
A: Asset, and K: Cost center account assignment to each item category.
Prerequisites
Because we use both Overall PR and item-wise release procedure, we must distinct the document
type of PR for each of them. So, we must create a PR document type for Overall PR release
procedure, such as ZST, and another PR document type for item-wise release procedure, such as
ZNB. We can create PR document type by copying from SAP standard PR document type (NB) with
OMEB T-code or through menu from SPRO T-code: Material management Purchasing
Purchase Requisition Define Document Type. We must tick the Overall release of purchase
requisitions indicator for ZST document type.
SAP PR Release Strategy configuration
Edit characteristics
Characteristics are criteria/parameters that determine the release condition of release strategies of
PR. If a release condition is satisfied, the associated release strategy is assigned to the PR.
We can create characteristics from fields that have been provided by SAP in CEBAN communication
structure that has been explained in the chapter 1.
From the matrix that has been created before at the 2.2 section, we know that characteristics that
qualified for our needs are:
Item category (for Overall PR release)
Supplying plant (for Overall PR release)
Account Assignment (for Item-wise release)
Total item value (for Item-wise release)
Plant (for Item-wise release)
Page 4 of 8 SAP: SAP MM Purchase Requisition (PR) Release Strategy
6/3/2014 mhtml:file://D:\SAP SAP MM Purchase Requisition (PR) Release Strategy.mht
The corresponding fields of CEBAN are:
PSTYP: Item category in purchasing document
RESWK: Supplying (issuing) plant in case of stock transport order
KNTTP: Account assignment category
GSWRT: Total value of item
WERKS: Plant
We can create characteristics: ZCEBAN_ PSTYP, ZCEBAN_ RESWK, ZCEBAN_ KNTTP , CEBAN_
GSWRT , ZCEBAN_ WERKS (or anything else name you like).
The following SAP screenshots show step by step how to create a characteristic:
Through CT04 T-code or menu from SPRO T-code: Material Management Purchasing
Purchase
Requisition Release Procedure Procedure with Classification Edit Characteristics
Input this field:
- Characteristic
Characteristic name: Name that uniquely identifies a characteristic.
We make these 5 characteristics one by one: ZCEBAN_ PSTYP, ZCEBAN_ RESWK, ZCEBAN_
KNTTP , ZCEBAN_ GSWRT , ZCEBAN_ WERKS.
Push the create button as pointed by red arrow on the above image.
Go to addnl data tab
Input these fields:
- Table name: CEBAN
Page 5 of 8 SAP: SAP MM Purchase Requisition (PR) Release Strategy
6/3/2014 mhtml:file://D:\SAP SAP MM Purchase Requisition (PR) Release Strategy.mht
- Field name: the corresponding field in CEBAN communication structure of the characteristic that
we want to create.
Go to Basic data tab.
Description and data type are copied from CEBAN communication structure.
Input these fields:
o Value assignment indicator: Multiple values if we want more than one value can be assigned to
a
characteristic in one release strategy (that will be explained later), or single-value if we want
only one
value can be assigned to this characteristic in one release strategy.
From the release strategy tables of the release strategy matrix weve defined before (in 2.2
section), it
seems that only plant column (parameter/characteristic) which have more than one values in a
row (in a
release strategy scenario). Its on the last row of the tables, the release strategy scenario of PR
item
with Asset account assignment from all plants (A000, B000, C000, D000) which needs to be
approved by Asset Manager.
So, we must choose Multiple values for ZCEBAN_WERKS (plant) characteristic, because we
must
assign all the plants as the values of the characteristic to that release strategy scenario. For other
characteristics, we can choose Single-value because we only assign one value to the
characteristic in
one release strategy scenario.
o Interval vals allowed: This indicator defines whether we can enter an interval as a value for a
numeric
characteristic. For total value of item/ZCEBAN_GSWRT characteristic we should tick this
indicator.
For other four characteristics we dont need this indicator as their data types are not
number/currency.
Go to Values tab.
Input the values of the characteristic we make. We have determined these values in PR Release
Strategies Matrix, but for some fields (such as PSTYP), we must map them to the values that store by
SAP and its table.
ZCEBAN_ PSTYP values: 0 (for standard item cat.); 7 (for U: Stock Transfer item cat.)
ZCEBAN_ RESWK values: A000; B000; C000; D000
ZCEBAN_ KNTTP values: A (Asset); K (Cost Center); blank (Standard)
ZCEBAN_ GSWRT values: >=0; <5000; >=5000; <10000; >=10000
ZCEBAN_ WERKS values: A000; B000; C000; D000
Page 6 of 8 SAP: SAP MM Purchase Requisition (PR) Release Strategy
6/3/2014 mhtml:file://D:\SAP SAP MM Purchase Requisition (PR) Release Strategy.mht
1.
Newer PostOlder PostHome
Subscribe to:Post Comments (Atom)
Posted by Pratik Jadejaat 11:19
Email ThisBlogThis!Share to TwitterShare to FacebookShare to Pinterest
Labels:MM,PR, Release strategy,SAP
1 comment:
1.
YekTek Online Training13 May 2014 23:28
Amazing blog thanks for sharing SAP MM Online Training
ReplyDelete
Add comment
Load more...

! !
Comment as:
! Select profile...
Publish Preview
Go to addnl data tab
Make sure that Not ready for input indicator is not selected.
Click the Save button, and make other characteristics.
Page 7 of 8 SAP: SAP MM Purchase Requisition (PR) Release Strategy
6/3/2014 mhtml:file://D:\SAP SAP MM Purchase Requisition (PR) Release Strategy.mht
Page 8 of 8 SAP: SAP MM Purchase Requisition (PR) Release Strategy
6/3/2014 mhtml:file://D:\SAP SAP MM Purchase Requisition (PR) Release Strategy.mht