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Amit Tunara
September 18, 2013 12 minute read

Setting up Purchase Order Release Strategy

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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.

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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.

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Configuration of Release Strategy for Purchase Order

Creating Characteristics of each attribute of Selection criterion

Let us assume that we want to con gure the release strategy based on the combination of three elds.
These elds are Document Type (CEKKO- BSART), Purchasing Organization (CEKKO- EKORG) and
Purchase order total value (CEKKO- GNETW). We need to create individual characteristic for each of this
eld 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 con gure 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.

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

 
As soon as you enter the structure name and eld 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.
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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.

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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 eld GNETW for purchase order net value, system
will ask for the currency since this eld 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 di erent 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 con gure 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.

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

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

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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 classi cation block please select Do not
Check radio button.

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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 rst step for setting up the release strategy.

Define Release Strategy for Purchase Order

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

Release Groups
Release Codes
Release Indicator
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Release Strategies
Work ow

Configure Release Groups

Use following SPRO path for con guring these elements of release strategy.

   

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders ->
De ne 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 eld give our Class name which we have created in above step. Click on Save button

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to save your entry.

Configure Release Codes

Use following SPRO path for con guring these elements of release strategy.

SPRO: Materials Management -> Purchasing -> Purchase Order -> Release Procedure for Purchase Orders ->
De ne 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 con gured in previous tab. Click on Save to save your entries.

Configure Release Indicator

Use following SPRO path for con guring these elements of release strategy.

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

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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 eld Changeable contains the parameter which will de ne 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 eld is allowed to change, we can de ne the % of change allowed.

Configure Release Strategies

Use following SPRO path for con guring these elements of release strategy.

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

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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.

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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 rst 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 classi cation values for the selected characteristics in release class. Click on
Classi cation button to proceed.

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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 con guring work ow for the above con gured release strategy.

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

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

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Alert Moderator

Assigned tags

Retail | @sap retail | purchase release | retail | sap mm |

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—–End of Document ——

90 Comments

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Former Member

April 12, 2018 at 8:34 am

Hi Amit,

Superb explanation. Thanks for the info.

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Regards,

Shiva V

Like(0)

PRIYANKA JAISWAL

April 25, 2018 at 10:06 am

Your explanation is very clear & screenshot are added advantage.

Thank You!

Like(0)

Sambhaji Barse

May 7, 2018 at 11:07 am

Really nice document…

Like(0)

Daniel Brennan

June 25, 2018 at 5:14 pm

First, great article.  Very clear and walks the user step-by-step through the process.   I have one question
though…we would like a single level of approval, and we’d like anyone in our production team to be able to
release any PO.   From my understanding, in the work ow con guration, only one username can be speci ed for
each combination of  Group, Code, and User Type.   Is there a way to do this at a less granular level?

Thanks,

Dan

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Vincent Jayet

January 6, 2020 at 2:05 pm

Hi Daniel,

I have the same question than you :

we would like a single level of approval, and we’d like anyone in our production team to be able to release any
PO.   From my understanding, in the work ow con guration, only one username can be speci ed for each
combination of  Group, Code, and User Type.   Is there a way to do this at a less granular level?

Were you able to save your problem and how ?

Thank you for your reply

Regards and happy new year

Vincent

Like(0)

Pepe Sanchez

October 15, 2018 at 3:46 pm

Hi,

great explanation, Does any know if it is possible to have two buyers, meaning one or the other could approve
the rst level?

Like(0)

David Ahaiwe

September 26, 2019 at 2:42 pm

Thanks Amit! The article was quite helpful.

Like(0)

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Former Member

February 18, 2020 at 7:57 am

Appreciate your e ort. Helpful article.

Like(0)

sunil patil

May 6, 2020 at 7:20 am

Thanks for sharing the document.

Like(0)

S Abinath

July 20, 2020 at 3:56 pm

Detailed step by step explanation…

Like(0)

Shashi Kumar

August 28, 2020 at 7:17 pm

Would you please help me with the Release strategy as I wanted to create it with vendor characteristic but when
I am adding vendor in Class, my release strategy doesn’t work otherwise it works with other characteristics.  I
added values on CL24N, CL20N, and it shows a green light when I check its consistency.

Any suggestions?

Thanks!

Like(0)

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