sap materials management sample chapter purchase requisition release by erptips

Materials Management SAP ECC 6.0 Rev. 03/14/08 107 Purchasing (2)1.doc

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This excerpt covers Purchase Requisition Release procedures, and is included in our SAP Materials Management course. For more information on our training programs, please visit www.ERPtips.com/Training.asp.

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2 Rev. 03/14/08 Materials Management SAP ECC 6.0

Release Procedure The following four-step process leads you through the setup and implementation of the Release procedure. Each step offers tips so you can you tiptoe through the potential minefield of “gotchas.”

Step 1: Determine the Corporate Purchasing Approval Matrix This is actually a difficult step in any organization. SAPTip 1

Encourage purchasing policy makers to keep it simple.

The goal here is to make it easier for people who enter purchasing requisitions to know who must approve the requisition, not to make the implementer’s job easier. So many times I have agreed to implement a complex release strategy, only to go back later and simplify. Why? Because the user community complained that it was too difficult to know who was delaying requisitions from becoming purchase orders.

In my experience, most companies base purchasing approvals on cost centers. I have implemented purchasing groups to be synonymous with cost centers. This means cost center is not required on the purchase requisition. SAPTip 2

If you require the cost center on the requisition, you do not have to require the general ledger (G/L) account number; but you should, because most users do not know how to select the correct G/L account.

If you do not require the G/L account on the purchase requisition, it is not required on the purchase order (without a custom developed user/field exit).

If your purchasing agent forgets to add the G/L account, the receiving department gets an error when it tries to receive because SAP does not know how to post the material document.

The table below illustrates the example I will follow here. I determine the release strategy with two values:

1. Purchasing group

2. Overall value of purchase requisition

Department Position Approval Limits

901 – Operations Manager Up to $10K

901 – Operations Director Up to $50K

901 – Operations Vice President Up to $100K

901 – Operations Chief Financial Officer Everything over $100K

902 – Finance Manager Up to $5K

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Materials Management SAP ECC 6.0 Rev. 03/14/08 3

902 – Finance Controller Up to $200K

902 – Finance Chief Financial Officer Everything over $200K

Approval Matrix Example

The Release procedure example presented in this manual is for an Overall Release procedure, which means that someone approving the requisition approves the entire requisition, not each line. This simplifies the action required by the approver, who has only to approve once; however this does restrict you from allowing your users to combine purchase requisitions across departments.

Step 2: Configuration These 6 tasks are performed in configuring a release procedure:

1. Create characteristics

2. Create class (assigning characteristics to class)

3. Create release groups

4. Create release codes

5. Create release indicator

6. Create release strategies

7. Workflow: Assign release codes to a release point

The following sections guide you through each of these tasks.

Create Characteristics Earlier in Step 1: Determine the Corporate Purchasing Approval Matrix, you probably developed an approval matrix in Excel or on a napkin. Now you need to translate that release strategy. Ask, “What parameters determine who approves?”

In the scenario approval matrix table, the parameters that determine the approval person are:

• Department requesting the purchase • Overall amount of the purchase.

These two parameters equate to characteristics. The characteristics must be represented by values entered in the purchasing document. In this scenario, the characteristics are:

• Purchasing group (representing the department) • Overall value of requisition

The following numbered tasks will guide you through everything necessary to configure your release procedure.

1. To determine what parameters are available as characteristics, run transaction SE11 and view table CEBAN. This table stores the fields that are available in the release strategy determination. The Characteristics screen shows where to correlate the characteristic from the CEBAN table to the field used for determination.



SAPTip 3

If the field you want to use for the release strategy does not exist in the CEBAN communication structure (a custom field, for example), you can use the following user exits:

• M06B0003 – For item-wise release • M06B0005 – For overall release

2. Navigate to the IMG and follow the menu path:

Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Edit Characteristics

Or Transaction Code: CT04

3. Enter a name for the first characteristic in the Characteristic field and click

the Create icon:

4. Review the field definitions in the table below and enter the appropriate

information on the Basic Data tab as shown:



Field Value

Description Purchase Requisition Value

Data Type CURR

Number of Chars 15

Currency USD

Template (click enter and it will default)

Value assignment Select Single-value and Interval vals allowed

5. Click on the Addnl data tab and complete the following:

Field Value

Table Name CEBAN

Field Name GFWRT

The Reference to Table field is what links the fields on the Purchase Requisition to the characteristic value. This is the information you gathered when reviewing table CEBAN in transaction SE16 which is the Data Browser for SAP Tables. SAPTip 4

If you are working in a release Pre-ECC, notice that the box Not Ready for Input is checked in the Procedure for Value Assignment area. (I cannot tell you how many times this has stung me!) Make sure you deselect it. Otherwise, it stops assignment of a value to your characteristic causing your release strategy to fail!

Having the Not Ready for Input box checked does serve a purpose – when the value is inferred by object dependencies, which is only applicable in the Sales



and Distribution module when characteristics are used in Variant Configuration for configurable make-to-order materials.

Once you complete the Reference to Table Field entries, SAP imports the characteristic formats from the data dictionary (the SAP table/field definition). Click on the Basic Data tab to see the data format and value assignment pulled from the data dictionary field definitions. SAPTip 5

SAP carries over default values from the field definition in the CEBAN table to the value assignment portion (shown on the Basic Data tab). Pay close attention to whether SAP allows intervals (needed for a range of values, like value of requisition) and whether it allows multiple values (needed if you plan to use one release strategy for multiple departments or purchasing groups). Using one release strategy for multiple departments has many advantages, including easier configuration and security role setup.

6. Click to save the characteristic.

Repeat the same steps for all characteristics that you need to maintain for your release strategy. In this example, we repeated steps 1-6 to create characteristic PURCHASING_GROUP with Table Name CEBAN and Field Name EKGRP.

Create Class Now that you have created your characteristics, you must assign them to a class. To create the class, do the following:


Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Edit Classes

Or Transaction Code: CL02

2. Enter the following data on the Class screen and click the Create icon:

Field Value

Class purchase_release

Class type 032 – this is the class type for release strategies

3. Enter this data on the Basic Data tab:



Field Value

Description Purchase Requisition Release Strategy

Status 1 Released

4. Click on the Char. (Characteristics) tab and enter the following:

Field Value

Char. Enter the characteristics you have defined to be used for your release strategy

5. Click to save the class with the characteristic assignments.



Create Release Group In this step, you create a release group. A release group has the same release levels and strategy. The scenario illustrated in the table below needs two release groups because the approval interval values are different between the two departments. If there were a third department with the same approval interval values, it could share a release group and the release strategy would be for more than one department (or in this example, purchasing group).

Department Position Approval Limits

901 – Operations Manager Up to $10K

901 – Operations Director Up to $50K

901 – Operations Vice President Up to $100K

901 – Operations Chief Financial Officer Everything over $100K

902 – Finance Manager Up to $5K

902 – Finance Controller Up to $200K

902 – Finance Chief Financial Officer Everything over $200K


Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Set up Procedure with Classification

2. On the Choose Activity pop-up window, double click on Release Groups:

3. Click on

4. Enter the following data:



Field Value

Rel.Grp You can have multiple release groups utilizing the same class. Each release group can have different release strategies assigned to it.

Here, we entered G1 and G2 since we will have two release groups in our Release Strategy.

Rel.Obj. 1

OvRelPReq Check the OvRelPReq (Overall Release of Purchase Requisitions) box

Class Enter PURCHASE_RELEASE. This is the name of the class you created in the previous step.

Description You can use a generic description or a specific description here. In this example, I made a specific description of the department to which the Release Group applies – but release groups can be shared across departments.

5. Click to save the release groups. SAPTip 6

You can only have a single class per release type. Release type is defined as “overall release” or “item-wise release.” This can be quite limiting if you have a complex approval structure. You can have characteristics that are assigned to the class but not utilized in the release strategy.

Create Release Codes A release code is an identifier that is associated with the person responsible for approving the purchase requisition.

1. Navigate the IMG and follow the menu path:


2. On the Choose Activity pop-up window, double click on Release Groups:



3. Click on

4. Enter the following data:

Field Value

Grp This is the release group(s) created in the previous step.

Code This is the release code, which represents the 'level' of approval.

Workflow See SAPTip 7 below

Description Describe the level of the approver. You can make this description generic if the release strategy will be used across multiple departments.



SAPTip 7

You can utilize a customer user exit for purchase requisitions, M06B0001, to define the workflow and generate notification and work list objects for the person responsible for the approval.

5. Click to save the release codes.

Create Release Indicators A release indicator shows the release status of a purchase requisition. In the standard system, a purchase requisition release status is either “Blocked” or “RFQ/Purchase Order.” The RFQ/Purchase Order status indicates that the purchase requisition was fully released and now can be converted into an RFQ or purchase order. You can use the standard release indicators provided in your release strategy or perform the following to maintain the release indicators.



2. On the Choose Activity pop-up window, double click on Release indicator:

3. Select Release ID S, and click the Display icon:



4. Review the settings:

Field Value

Field Selection Key In the standard system, SAP will not allow changes to the quantity, unit of measure, or price when an approver is executing the release transaction. If you require that other fields, such as delivery date, plant, etc., not be modified via the release transaction, follow SAPTip 8.



Field Value

Changeabil.

It is possible to configure the release not to be restarted if the amounts have only changed a specified percentage. Option 4 allows the user to change the purchase requisition and requires any existing approvals to be re-approved only if the value change (maintained in the next field) exceeds a specified percentage change.

Value Change The acceptable percentage change to not

require re-release of the purchase requisition.

SAPTip 8

If you want to allow changes to certain fields during or after a release, you can modify the field selection key. To modify the Field Selection Key, follow the menu path in the IMG:

Materials Management Purchasing Purchase Requisition Define Screen Layout at Document level.

The standard field selection key is FZ01. You can copy it and maintain your changes. Once you create a custom field selection key, you should also create a custom release indicator by maintaining a new entry in the Create Release Indicators screen.

Create Release Strategies A Release Strategy is a combination of the Release Group and Release Code. The release group combines the release codes (think of them as release levels); each combination then is assigned a release strategy.

For each release code (or level), you define the prerequisites required to get to that release level, which includes the release status and the characteristic values that place the release into that release level.

To configure the Release Strategy:



2. On the Choose Activity pop-up window, double click on Release Strategies:



3. Click

4. Enter the following:

Field Value

Release Group Enter the identifier for the release group you configured in the Create Release Group section of this unit.

Release Strategy Enter a 2-digit code for your release strategy.



Field Value

Release codes List all the releases required for this level of release.

5. Click on

This level only has one release code, so the screen will look like this:

6. Click . When you have more than one Release Code, see the following note.

I have never experienced a business rule that allowed a higher level approver to approve a purchase requisition before or simultaneously with a lower level approver. In other words, I have not had a client that wanted the purchase requisition release to go to the approval queue of a director at the same time as the same approval request went to the manager. A director usually wants the manager to approve the expense before having to approve it. Completing the Release Prerequisites screen is easy even though it is confusing at first – I just check the boxes in the lower left corner to note the prerequisite approvals, as shown below:



7. Click on

Review the release statuses. If you configured a new status, change it here

and click .

8. Click . On the classification screen, you assign the values or ranges of values to the release strategy.



SAPTip 9

Be sure you entered the correct characteristics value assignments. You must allow an interval value for the Total value of requisition amount to enter a range in the characteristic value assignment.

9. Click to advance back to the Added Entries screen.

10. Click on .

There is nothing really to simulate here since there is only one level. The following screen shot shows a release strategy with 3 levels.



Clicking here returns the following screen:

Clicking on the first release code and then changes the release options for codes R1 and R2:

Clicking the button on the final release code (R4 here) returns this simulation screen:



11. Complete tasks 3 through 10 for each release strategy.

12. Click to save the release strategy.

Workflow: Assign Release Codes to Release Point Workflow is another component of SAP that allows you to assign tasks to users. Those tasks appear in the users workflow inbox and are executable items. A standard workflow exists in SAP to put a work item in the inbox to trigger the approver to approve a purchase requisition.

• Only perform this step if you wish to link this release procedure to Workflow and you are not using customer exit M06B0001.

The task flow for creating a workflow is:

1. When you save the purchase requisition, SAP determines which type of release is required for the document type. In this case, the document type is NB and it is flagged in configuration for Overall release.

2. Next, SAP determines what class to use for this type of release.

3. The characteristics assigned to the class are then associated to the values in the purchase requisition.

4. With the data up to this point, SAP determines which release strategy to invoke and then follows through with any workflow activities.

In the Release Codes section, you set the release code as relevant to Workflow. You set 1 to use standard SAP Workflow and 9 to use the User Exit provided for custom customer workflow.

Step 3: Security Security can be the most time consuming activity in developing release strategies, particularly if you have multiple characteristics defining your release strategies along with multiple release levels. Here is where our recurring theme “Keep it Simple” counts.

You may want the job security for your Basis Security Administrators, but you also want the change process to be simple so you can react quickly when that all too common company reorganization happens.



SAPTip 10

For Sarbanes-Oxley (SOx) compliance, do not use the * function which gives access to all objects, to define the roles in security. Using * may give approval authority to some folks who should not have it.

You should set up a role for each release group/release strategy combination. For greater security, include the restriction for other values that you have assigned as characteristics, such as purchasing group, when defining this role.

Step 4: Transport Classes and Characteristics This is the most overlooked step in the process. The transport you created in Step 3 in your “Gold” SAP Configuration client does not include the values you associated to the characteristics.

Transport classes are stored in characteristic value tables that must be moved through your SAP environments via the ALE (Application Link Enabling) function. SAPTip 11

Remember to request your ALE with your transport.

Here is a sample spreadsheet of transaction codes, which you can provide to your Basis team:

Object Transaction Check (Target)

Message Type (BD64)

Notes

Characteristics:

PURCHASING_GROUP

PR_VALUE

BD91 CT04 CHRMAS Don’t worry about IDOC error message “Object S2L3 (T16FS) not found”

Class:

PR_RELEASE

Class Type:

032

BD92 CL03 CLSMAS

Class:

PR_RELEASE

Class Type:

032

BD93 CL03 CLFMAS

In this unit, we laid the groundwork and provided some advanced tips to help a SAP MM Configurator’s journey to developing a purchasing approval solution.



Purchase requisition release strategies rank high on my list of ‘tricky’ configuration challenges. (Others are condition techniques and account assignments for Inventory Management).

sap materials management sample chapter purchase requisition release by erptips

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