Purchase Order Release Strategy 

In the SAP MM (Materials Management) module, the Release Strategy is a process used for the approval of certain purchasing documents (such as purchase orders) based on specific criteria. This strategy ensures that purchasing documents are released after passing through certain approval levels. This helps in effectively operating internal control mechanisms and managing costs.

Purposes of Using a Release Strategy:

1. Internal Control: Ensures purchasing documents are approved based on specific criteria.
2. Authority and Responsibility: Ensures that purchasing documents are approved by authorized personnel.
3. Transparency and Traceability: Makes the approval process transparent and traceable.
4. Risk Management: Minimizes potential errors and risks in purchasing processes.
5. Compliance: Ensures compliance with company policies and legal regulations.

Areas Where Release Strategy is Used:

• Purchase Orders
• Purchase Requisitions
• Contracts
• Scheduling Agreements

Scenario:

A company with:

• Purchase Organization: 1000
• Plant: 1200
• Company Code: 1000

The approval limits are:

• Purchase Specialist: Below 10,000 EUR
• Purchase Manager: 10,000 – 25,000 EUR
• Finance Manager: Above 25,000 EUR

Step 1: Define Characteristics

T-Code: CT04

1. Characteristic: Purchase Organization

• Name: Z1000_PURCORG
• Table Field: CEKKO-EKORG
• Values: 1000

2.Characteristic: Plant

• Name: Z1000_PLANT
• Table Field: CEKKO-WERKS
• Values: 1200

3.Characteristic: Company Code

• Name: Z1000_COMPANYCODE
• Table Field: CEKKO-BUKRS
• Values: 1000

4.Characteristic: Total Net Value

• Name: Z1000_POTOTALNETVALUE
• Table Field: CEKKO-GNETW
• Values: 0-10,000 EUR, 10,001-25,000 EUR, Above 25,000 EUR

Step 2: Define Class and Assign Characteristics

T-Code: CL02

1. Class: Purchase Order Release Strategy
   • Name: PO_RELEASE_STRTGY
   • Class Type: 032 (Release Strategy)
   • Characteristics: Z1000_PURCORG, Z1000_PLANT, Z1000_COMPANYCODE, Z1000_POTOTALNETVALUE

Step 3: Define Release Codes and Indicators

T-Code: SPRO

SPRO -> SAP Reference IMG -> Materials Management -> Purchasing -> Purchase Order -> Define Release Procedure for Purchase Orders

1. Release Group: Z1

2.Release Codes:

• A1: Purchase Specialist
• A2: Purchase Manager
• A3: Finance Manager

3.Release Indicators:

• A: Blocked
• B: Released

Step 4: Define Release Strategies

1. Release Strategy 1: Purchase Specialist (0-10,000 EUR)
   • Release Group: Z1
   • Release Strategy: Y1 – PO_RELEASE_PS
   • Release Code: A1
   • Release Indicator: A, B

2.Release Strategy 2: Purchase Manager (10,001-25,000 EUR)

• Release Group: Z1
• Release Strategy: Y2 – PO_RELEASE_PM
• Release Code: A2
• Release Indicator: A, A, B

3.Release Strategy 3: Finance Manager (Above 25,000 EUR)

• Release Group: Z1
• Release Strategy: Y3 – PO_RELEASE_FM
• Release Code: A3
• Release Indicator: A, A, A, B

Assign Object to Class SAP

T-Code : CL20N

Object List

T-Code : CL6BN

Step 5: Create and Release Purchase Order

1. T-Code: ME21N
   • Material: R-1270C
   • Quantity: 50 units
   • Vendor: 1015
   • Total Value: 5,000 EUR (This amount will require Purchase Specialist approval)

2.T-Code: ME21N

• Material: R-1270C
• Quantity: 100 units
• Vendor: 1015
• Total Value: 10,000 EUR (This amount will require Purchase Manager approval)

T-Code: ME21N

• Material: R-1270C
• Quantity: 300 units
• Vendor: 1015
• Total Value: 30,000 EUR (This amount will require Finance Manager approval)

Step 6: Release and Approve Purchase Order

1. T-Code: ME28
   • Purchase Order Number: 4300000788
   • Release Code: FM (Finance Manager approval)

Scenerio 2 :

Relevant SAP T-Codes:

• CT04: Define Characteristics
• CL02: Define Class and Assign Characteristics
• SPRO: SAP Configuration
• ME21N: Create Purchase Order
• ME29N: Release Purchase Order
• ME28: Release and Approve Purchase Order
• ME23N: Display Purchase Order (to check release status)

Conclusion

These steps outline how to define and implement a release strategy in SAP MM based on specific criteria and approval limits. This configuration ensures that purchase orders are reviewed and approved by the appropriate personnel, maintaining control and transparency in the purchasing process.

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