12/9/2020 How to Configure SAP Purchase Order Release Strategy

SAP Purchase Order (PO) Release Strategy

Con guration

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purchase-order-release-strategy)
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10/28/2020 by Ashikul Alam Posted in SAP (/blog/sap)
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12/9/2020 How to Configure SAP Purchase Order Release Strategy

When we spend the company's money, we require the necessary approval from the
relevant approvers, even with paper-based purchasing. The same is true in SAP ERP.

A Purchase Order in SAP is a purchasing document that describes products or services

the company wants to purchase from a vendor at an agreed upon price, terms and
delivery dates. Typically, before a Purchase Order can be created in SAP, a Purchase
Requisition (PR) is created.

Once the PR is approved, it is converted to a PO which then is subject to a so-called

Release Strategy. The Release Strategy is a a series of steps to automatically route the PO
to speci c approvers based on various factors of the PO. Learn more about the SAP
Procure to Pay (https://www.michaelmanagement.com/sap-training-course/source-to-
invoice-in-sap) process ow.

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An approval strategy can be con gured with various steps in the purchasing process,
including a Request for Quotation (RFQ), Contract, Purchase Requisition (PR), Purchase
Order (PO). The strategy speci es the necessary release codes and the sequence in
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Purchase OrderAdd
(PO)
ToRelease Strategy Preparation 
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A PO release triggers based on one or more data combinations. As per the business
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requirements, this can be a combination of Document Type, Incoterms, Purchasing
Organization, or the total value of the PO.
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In SAP, we have a runtime structure named CEKKO (Communication Release Strategy

Determination Purch. Document), which provides the possible list of elds. The required
elds need to be con gured to de ne the release strategy. These elds can be viewed
using transaction code SE12, as shown in gure 1 below. 

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12/9/2020 How to Configure SAP Purchase Order Release Strategy

Fig1: Communication Release Strategy Determination Purch. Document

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Required Master Data and Con guration

Con guring the purchasing component in SAP, including the purchase order release
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(https://www.michaelmanagement.com/sap-training-course/sap-mm-purchasing-
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SPRO: Material Management -> Purchasing -> Purchase

Do not show this againOrder -> Release Procedure for
Purchase Orders -> Characteristic (T-code: CT04) 

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12/9/2020 How to Configure SAP Purchase Order Release Strategy

Fig2: PO Release Characteristics

In the Additional Data tab, we put the desired eld name from table CEKKO. In the
Restriction tab, insert class type 032 that is used for the release strategy.

De ne/Edit Class

SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for
Purchase Orders -> Class (CL02) 

 
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Fig3: PO Release Class

Here, enter the characteristics created in the previous step according to the eld name in
table CEKKO. The class type is 032, too.

De ne Release Procedure

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12/9/2020 How to Configure SAP Purchase Order Release Strategy

This is the main con guration needed for the Release Strategy to work correctly. Here,
we maintain the release group, release codes, release indicator, release strategies, and
work ow.

SPRO: Material Management -> Purchasing -> Purchase Order -> Release Procedure for
Purchase Orders -> De ne Release Procedure for Purchase Order 

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Fig4: De ne ReleaseAdd To Cart (/cart.asp?pid=469&code=HOLIDAY200)

Procedure

 
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Create Release Group

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Here we maintain di erent release groups, where the release codes are assigned. For
this example, a PO release group has been maintained, as shown below.

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12/9/2020 How to Configure SAP Purchase Order Release Strategy

Fig5: Create Release Group

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a $200
Release codes denote di Amazonwho
erent approvers, giftcancard on aus.
approve PO. Four release codes
have been de ned in the example below under the de ned release group. Essentially,
four release codes denote four approvers.
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Fig6: Create Release Code

Create release indicators

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12/9/2020 How to Configure SAP Purchase Order Release Strategy

Sometimes, we need to edit a Purchase Order. This con guration controls the PO release
activity based on the value change percentage. Finally, we assign these Release ID in the
strategy.

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Fig7: Set Release Indicator

 
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Release Strategies
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In this step, we combine the Release Group, Release Codes, Release ID, and eventually
Do codes
the Release Characteristics. Release not show
arethis
set again
in a sequence so that that relevant
approver can approve it accordingly. 

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12/9/2020 How to Configure SAP Purchase Order Release Strategy

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Fig8: Release Codes Sequence under the Release Group
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The Release Status is set as released, only after the nal approval. Below is the
maintained status at
Adddi To
erent
Cartstages of approval.
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Fig9: Release Status, PO will be Released after the Final Approval

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12/9/2020 How to Configure SAP Purchase Order Release Strategy

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Class/Characteristics subscription
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at Release Strategies

 
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Thus a full con guration gets completed for PO release procedures.

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Release/Decline PO
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Now, if we create a PO for a particular Order Type and Company Code, the strategies will
be applied. Eventually, the authorized person can approve/decline it according to the
business' needs. 

Fig11: PO Approve/Decline

 
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12/9/2020 How to Configure SAP Purchase Order Release Strategy

Lastly, we can add several approvers for releasing a PO. However, it is recommended to
keep it simple. Some industries use the total PO value to route it to the relevant
approvers. For example, if the total amount of a PO is more than $100K it can be
released only by a Director while a Manager can approve POs for less than $100K.

Thus, a proper system design helps an Organization to keep the transactions smoother
along with necessary control. 

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Ashikul Alam
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SAP Consultant and Business Analyst in Operational space, including Material Management (MM), Plant
Maintenance (PM), Production Planning (PP) and Warehouse Management (WM) Modules. Delivered SAP
projects in di erent countries, specially, in Asia Paci c and Middle East region. Always try to learn new
things, and love to share my expertise within the community.

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