Purpose of the Release

Strategy
The procurement department of a company consists of many buyers who are responsible
for buying goods from the market. There is a hierarchy of people like the operator or the
buyer who creates the order and purchasing managers to supervise and control the
procurement process. Since purchase order is a legal document and it goes outside the
company to the vendor, it is very much important to control the process to avoid any
errors or unauthorized transaction. When the Purchase order is processed further for
goods receipt and invoice verifications, there will be accounting entries generate and it
creates Accounts Payable entries (AP).

Because of this reason and legal implications of Purchase orders, it is very

much required to control the procurement process by introducing
approvals. For the same, SAP has provided a concept of release strategy.
In release strategy, there are different released codes which are used for
designated users. The release code is a two character ID allowing a
person to release (clear, or approve) a purchase requisition or an external
purchasing document. The release codes are basically controlled via a
system of authorizations (authorization object M_EINK_FRG). The user
with specific release code assigned can perform a respective release in a
purchase order. For example, the user who creates the purchase order is
assigned the lowest level release code. When the purchase order is saved
or checked, system will trigger the Release Strategy for that document
depending on the defined criteria. In the purchase order which is required
to be released by a higher level user, there will be a Release Strategy tab
on header of the PO document. In this tab, system shows all the levels of
release codes who are involved in approving the purchase order. Following
practical example will demonstrate the purpose of release strategy and its
implementation in SAP.
A company where there is following approval mechanism used in
procurement department needs to have a release strategy in SAP.

If the value of Purchase order is less than 500.00 USD, it can be

approved by a Purchase Manager and then can be processed
further.

When the Purchase order value exceeds 10000.00 USD, in addition

to the purchase manager, it requires an additional approval of Head
of Department.

If the value of PO is more than 50000.00 USD, then it needs an

approval of Vice President once it is approved by the Manager and
then by HoD.

To achieve this, there will be four release codes created in the system.

Code 10: For Initial Status when the PO is created

Code 20: For Purchase Manager

Code 30: For Head of Department

Code 40: Vice President

Now with this requirement, following release code will be attached to each
document depending on the value of the PO.

A Purchase order of value 345.00 USD will have only two release
codes 10 & 20. First it needs to be released by user who is assigned
release code 10 and then further release is required by the
Purchase manager who has release code 20.

A Purchase order of value 12500.00 USD will have 10, 20 and 30

release codes. First release will be user with release code 10;
second release will be by user with release code 20 and then final
release by HoD who has release code 30.

Similarly a purchase order of 75500.00 USD, it requires 4 level of

release.

Preparation of required objects for Release

Strategy in SAP
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.

Configuration of Release Strategy for Purchase

Order
Creating Characteristics of each attribute of Selection
criterion
Let us assume that we want to configure the release strategy based on the
combination of three fields. These fields are Document Type (CEKKO- BSART),
Purchasing Organization (CEKKO- EKORG) and Purchase order total value (CEKKOGNETW). We need to create individual characteristic for each of this field and
then group them into a release class. Please follow the steps given below to
create characteristics.

SPRO Menu Path: SPRO: Material Management -> Purchasing -> Purchase Order ->
Release Procedure for Purchase Orders -> Edit Characteristic
Transaction code: CT04
Provide the characteristic name and click on Create button to create the
characteristic. Give appropriate and meaningful name for each characteristic so
that they become easy to identify in further process.

In Basic Data of characteristic screen, provide appropriate description. If you

want to configure the release strategy for single document type, you need to
select Single Values in Value Assignment block and if it is required for multiple
document type then select Multiple Values radio button.

Now, the fields are to be referred from CEKKO structure, we need to provide the
reference to this structure and corresponding field. Since this characteristic is
created for document type, please specify the structure and field name given in
the below screen.

As soon as you enter the structure name and field name, system will generate a warning
message Format data taken from Data Dictionary (press enter). This warning message
indicates that the data type of the characteristic will be taken from the data dictionary of this
structure in SAP.
Now navigate to Values tab and provide the document types which are required
in this release strategy. For this example, we are taking document type NB which
is Standard PO. Please see below screen shot.

Please note that in the characteristic values tab, these values are not available
as a F4 selection. So they must be typed correctly and it should match exactly
with the document types used.

We need to make sure that these characteristics are used only in class which is
made up for Purchase order release. For this purpose we need to provide the
restriction in characteristic. Provide class type 032 in the restriction tab to
achieve this.

If the system is used in multiple languages and if it is required to maintained the

characteristic description in multiple languages, then the same can be done from
the description tab. Please navigate to Description tab and for each language
and save your characteristic.

Finally Save the characteristic.

Using the same method creates another characteristic BP_PURORG for Purchasing
Organization.
For third characteristic which is Purchase order Net value, we need follow the same steps
except the below points:

When you mentioned the Structure name CEKKO and field GNETW for
purchase order net value, system will ask for the currency since this field
is related to numbers and net value of purchase order. Please mention
USD as a currency for the characteristic.

If you have multiple criteria for different range of values, the same has to
be provided in Values tab with a Multiple Value radio button tick in Basic
data.

Since there will be intervals in the purchase order values, you have to
configure the characteristic to allow the values in intervals. For the same
please tick the check box Interval Vals allowed in Value assignment
block in Basic data tab.

For this characteristic, the values are to be defined in intervals as given in below
screen.

So this way we have created the following characteristics for our release strategy.

BP_DOCTYPE for Document Type NB

BP_PURORG for Purchasing Organization BP01

BP_NETVAL for Net Value below 100.00 USD and above 100.00 USD

Creating Class for Purchase order Release

Once we have all the characteristics ready with us, we need to group them into a class. Please
see the below procedure to create the class.

SPRO Menu Path: SPRO: Material Management -> Purchasing -> Purchase Order ->
Release Procedure for Purchase Orders -> Edit Class
Transaction code: CL02.

In main screen of CL02 transaction, provide appropriate Class Name and click on
Create button. Make sure that the class type must be 032.

In main screen of CL02 transaction, provide appropriate Class Name and click on
Create button. Make sure that the class type must be 032.

In the detailed screen, provide appropriate description. In Same classification

block please select Do not Check radio button.

Now the next step is to assign the earlier characteristics to this class. Please note
that those characteristics are restricted to be used only in class type 032 which
type this class is to be created.

Finally save the class. This concludes the first step for setting up the release strategy.

Define Release Strategy for Purchase Order

After the class is ready, the next is to configure the elements required in release
strategy. Following elements are required.

Release Groups

Release Codes

Release Indicator

Release Strategies

Workflow

Configure Release Groups

Use following SPRO path for configuring these elements of release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for
Purchase Orders -> Define Release Procedure for Purchase Orders.

When you click on this option, system will give sub options to proceed further. Please select
Release Group. Keep the cursor on Release Group and click on Choose button.

Click on New Entry button to create new Release Group. In new record, give
appropriate Release Group name as BP, in Class field give our Class name which
we have created in above step. Click on Save button to save your entry.

Configure Release Codes

Use following SPRO path for configuring these elements of release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for
Purchase Orders -> Define Release Procedure for Purchase Orders.

When you click on this option, system will give sub options to proceed further. Please select
Release Codes. Keep the cursor on Release Codes and click on Choose button.

Click on New Entries to create the Release codes for our release strategy.
Number of release codes depends on number of approval levels. Here only two
release codes are created which are 10 and 20 for Buyer and Manager
respectively. Please note that these release codes are to be created under the
same release group which we have configured in previous tab. Click on Save to
save your entries.

Configure Release Indicator

Use following SPRO path for configuring these elements of release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for
Purchase Orders -> Define Release Procedure for Purchase Orders.

When you click on this option, system will give sub options to proceed further.
Please select Release Indicator. Keep the cursor on Release Indicator and click on
Choose button.

This screen indicates release id for initial and released status. Release ID 0
indicates Blocked status and with release ID 1 it is Released status. The field
Changeable contains the parameter which will define how the system reacts if a
purchasing document is changed after the start of the release procedure. Means
once the order is released, we can still change the values in purchase order
which will trigger a new release status. If the field is allowed to change, we can
define the % of change allowed.

Configure Release Strategies

Use following SPRO path for configuring these elements of release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for
Purchase Orders -> Define Release Procedure for Purchase Orders.

When you click on this option, system will give sub options to proceed further. Please select
Release Strategies. Keep the cursor on Release Strategies and click on Choose button.

Click on New Entries button and give your release group. After giving the release
group, provide appropriate Release strategy and description.

Now suppose you want to keep only one level of approval for all PO below 100.00 USD and
2 level of approvals for PO greater than or equal to 100. To achieve this we need to have two
release strategies. First release strategy will have only 1 release code and only value less than
100.00 USD is to be selected from characteristic BP_NETVAL. For the Purchase order
having value greater than or equal to 100.00 USD, we will create another release strategy
which will have both the release codes as we need two level approvals in this case. The
following steps are demonstration of second release strategy (with 2 approvals). The same
steps needs to be followed for another strategy.

In the given space give all your Release codes.

Now click on Release prerequisites button. In prerequisites screen, select

prerequisites for each release code. In the given screen shot, we are saying there
is not prerequisite for release code 10 and for release code 20 it is required that

release id 10 has to be there. Once done, click on Continue button to save the
settings.

The next step is Release statuses. Click on Release Statuses button. Here we are
attaching the release ids for each operational step. From the below screen it is
clear that when the document is created when both the release status are at
initial condition.

When the first level of release is done means when it is released by a user having release code
10, the overall status is still Blocked. When the document is released by a higher level user
having release code 20, the documents overall status will be Released. Once it is done click
on Continue button.

Next step is to select the classification values for the selected characteristics in
release class. Click on Classification button to proceed.

Here it is required to select all the values from all the characteristics. If you have multiple
values in characteristic, you have to select the values which you want to involve in the release
strategy. Select a characteristic row and click on Choose button bottom.

Please note it is also possible to directly mention the values here provided
Additional Values option is enabled in your characteristic.

Configure Workflow

Use following SPRO path for configuring workflow for the above configured release
strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for
Purchase Orders -> Define Release Procedure for Purchase Orders.

When you click on this option, system will give sub options to proceed further.
Please select Workflow. Keep the cursor on Workflow and click on Choose button.

Click on New Entries button to create records for involved users. Specify the Release group,
appropriate release code and User ID in Agent ID column. Please make sure the user ids are
specified with Agent type US which indicates that mentioned agent name is a User id of SAP.
You have to create each line for each users who are involved in this process and should be
attached to an appropriate release code.

This is the end of release strategy configuration. With this configuration, we are set to create
a purchase order to test our release strategy.

Please note that if the purchase order is not released, buyers will not be able to print the
Purchase Order. Also in Goods Receipts will be shown with Message no. ME 390 Purchasing document XXXXXXX not yet released

Purchase Order with Release Strategy has tabs at the end of the Header. This allowed the
buyers to check the release status of the Purchase Order.

The person with the release authorization has to use ME28 to release the Purchase Order.