Release Strategy in Purchasing

Release Strategy

This is the component in the Purchasing to set up the approval procedures for Purchasing Document like Purchase Requisition, Purchase Order and other purchasing documents. Under this procedure, if the PR and external purchasing document fulfills certain condition, then it has to be approved by concern person like Department Head or Purchasing Manager, before it can be processed further. This process of approving (clearing, or giving the “green light”) is called Release Strategy in the SAP system.

Which Documents can be Released (Approved)?

Release Procedure can be defined for the following documents:

-          Purchase Requisition

-          External Purchasing Documents Purchase Order, Contract, Scheduling Agreement, Request for Quotation and Service Entry Sheet

Release Procedure for Purchase Requisition:

Two different procedures are available for Purchase Requisitions:

-          With Classification

With this procedure, requisitions can be released both at Item level (i.e. item-by-item) and in total. The latter approach is also termed as “Overall Release”

-          Without Classification

With this procedure, requisitions can only be released at item level.

Only one of the procedure can be used in the SAP, both cannot be use.

Release Procedure for External Purchasing Documents

External Purchasing Documents (i.e. purchasing documents other than requisitions) are released at header level. Item-by-item release is not possible. These documents can only be released using release procedure with classification.

Release Conditions

The release conditions determine the release strategy in accordance with which a purchase requisition or an external purchasing documents to be released.

Procedure without Classification (Requisition items only)

The condition can be based on one of the following item characteristics or a combination of these:

-          Account Assignment Category

-          Material Group

-          Plant

-          Total Value

Procedure with Classification (Requisition and External Purchasing document)

The precondition for this is that the characteristic are first created and then assigned to the class. To enable the release strategy to be assigned to it, a requisition or an external purchasing document must have one of the possible values of each characteristic.

Steps of Release Procedure with Classification:

-          Define Characteristic with Transaction Code – CT04. Define the characteristic for example – Document Type, Purchase Org. etc. provide the Description, Data Type, single and multiple values assignment in Basic Data tab. In Addln. Data tab maintain the table and field. Table CEKKO for Purchase Order and CEBAN for Purchase Requisition

-          Define Class with Transaction Code - CL02 using Class Type 032 – Release Strategy and assign the Characteristic with Class

-          Define Release Procedure:

o   Release Group – It contains one or more release strategies.

Here we define the Release Group and assign the Class with it. Only one class can be used for whole release procedure

Release Object 01 for Purchase Requisitions and 02 for Purchase Order

o   Release Codes – The release code is a two character ID allowing a person to release the Purchase Requisition or External Purchasing Documents

Here we define Release code and assign with the Release Group

o   Release Indicator – When a requisition or external purchasing document has been processed via release code, a release indicator is assigned to it.

Here we define the Release Indicator, Released, and Changeability during or after release.

Note that the values 1 to 4 apply to internal purchasing documents (purchase requisitions) and the values 1 to 6 to external purchasing documents.

1	Cannot be changed
2	Changeable, no new determination of strategy
3	Changeable, new release in case of new strategy
4	Changeable, new release in case of new strat. or val. change
5	Changeable, new release if new strategy/outputted
6	Changeable, new rel. if new strat. or value change/outputted
	Changeable, new release in case of new strategy

o   Release Strategies – This release strategy defines the approval process of PR/PO. The strategy specifies the necessary release codes and the sequence in which releases have to be affected. You can define maximum of 8 release codes.

The assignment of the release strategy to Purchase Requisition or External Purchasing Documents is based on the release conditions. The authorization object is M_EINK_FRG

Here we define the Release Strategy and assign Release Group with it.

§  Release Prerequisites

§  Release Statuses

§  Classification

§  Release Simulation