SAP Release Strategies for Procurement

Jocelyn Hayes Director, SAP Training and Consulting Klee Associates, www.ERPtips.com

[ GREGG MANLEY
ASU G I NST AL L AT IO N M EM BER M EM BER SI NC E: 19 97

[ RAJEEV KAPUR
ASU G I NST AL L AT IO N M EM BER

[ JILL MIKROS
ASU G I NST AL L AT IO N M EM BER M EM BER SI NC E: 20 03

M EM BER SI NC E: 20 03

Real-time Education and Networking Delivered to Your Desktop

[ Learning Points
During this session, we will cover a four step process to setting up release procedures for Procurement in SAP:
Step 1: Corporate Purchasing Approval Matrix Step 2: Configuration Step 3: Security Step 4: Transports

At the end of the session, you will walk away with some tips on working with your business owners on setting up the approval levels, configuration techniques, guidelines on security settings, and the requirements for transporting the configuration and classification objects.
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[ Step 1: Determine Corporate Purchasing Approval

Matrix
Determining the Corporate Purchasing Approval Matrix is a difficult step in any organization because many departments believe their approval process must be unique and is different. ERPtip: Keep it Simple
Encourage purchasing policy makers to keep it simple. Have a goal to make the approval process simple to make it easier for your requisistioners to know who must approve the requisition. Selling Point: If it is easy for the users, they will follow the policy. If you make it too complex, they will find a way to bypass the process and complain about how cumbersome SAP is.

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[ Step 1: Determine Corporate Purchasing Approval

Matrix
ERPtip: How to use Cost Center for approval determination
It is possible to require cost center on a purchase requisition, but not the General Ledger number by using configuration for the account assignment category. Be aware that if you do this configuration, you will not be requiring the G/L account on ALL of the purchasing documents, including the Purchase Order.
This may cause problems during the goods receipt if your buyers fail to enter the G/L number on the PO. When the receiving dock attempts the MIGO transaction, they will receive and account determination error.

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[ Step 1: Determine Corporate Purchasing Approval

Matrix
The table below represents the scenario we will be configuring for this demonstration:
Department Position Approval Limits

901 Operations 901 Operations 901 Operations 901 Operations 902 Finance 902 Finance 902 Finance

Manager Director Vice President Chief Financial Officer Manager Controller Chief Financial Officer

Up to $10K Up to $50K Up to $100K Everything over $100K Up to $5K Up to $200K Everything over $200K

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[ Step 1: Determine Corporate Purchasing Approval

Matrix
The release strategy has two key values that are used to determine the level of approval and who approves the requisition.
Purchasing group Overall value of purchase requisition
Department Position Approval Limits

901 Operations 901 Operations 901 Operations 901 Operations 902 Finance 902 Finance 902 Finance

Manager Director Vice President Chief Financial Officer Manager Controller Chief Financial Officer

Up to $10K Up to $50K Up to $100K Everything over $100K Up to $5K Up to $200K Everything over $200K

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[ Step 1: Determine Corporate Purchasing Approval

Matrix
The Release procedure example presented in this demonstration is for an Overall Release procedure, which means that the person approving the requisition approves the entire requisition, not each line.
This simplifies the action required by the approver, who has only to approve once; however, this does restrict you from allowing your users to combine purchase requisitions across departments.
Department Position Approval Limits

901 Operations 901 Operations 901 Operations 901 Operations 902 Finance 902 Finance 902 Finance

Manager Director Vice President Chief Financial Officer Manager Controller Chief Financial Officer

Up to $10K Up to $50K Up to $100K Everything over $100K Up to $5K Up to $200K Everything over $200K

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[ Step 2: Configuration
These 7 tasks are performed in configuring a release procedure:
1. Create characteristics 2. Create class (assigning characteristics to class) 3. Create release groups 4. Create release codes 5. Create release indicator 6. Create release strategies 7. Workflow: Assign release codes to a release point

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[ Step 2: Configuration
1. Create Characteristics

In Step 1: Determine the Corporate Purchasing Approval atrix, you could have developed your approval matrix in Excel or on a napkin. Now you need to translate that release strategy. Ask, What parameters determine who approves?

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[ Step 2: Configuration
1. Create Characteristics

In the approval matrix table scenario, the parameters that determine the approval person are:

Department requesting the purchase Overall amount of the purchase.

These two parameters equate to characteristics that must be represented by values entered in the purchasing document. In this scenario, the characteristics are:

Purchasing group (representing the department) Overall value of requisition

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[ Step 2: Configuration
1. Create Characteristics
To determine what parameters are available as characteristics, run transaction SE11 and view table CEBAN. This table stores the fields that are available in the release strategy determination. The Characteristics screen shows where to correlate the characteristic from the CEBAN table to the field used for determination. We will now demonstrate how to view this table.

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[ Step 2: Configuration
1. Create Characteristics

ERPtip: User Exits for Custom Release Strategy Fields If the field you want to use for the release strategy does not exist in the CEBAN communication structure (a custom field, example), you can use the following user exits:

M06B0003 For item-wise release M06B0005 For overall release

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[ Step 2: Configuration
1. Create Characteristics

Now that you have determined which fields will drive the release strategy, you need to create the characteristics. Navigate the create characteristics transaction using IMG menu path:

following

Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Edit Characteristics Or transaction code: CT04

We will now display the characteristics that have been created for this demonstration.

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[ Step 2: Configuration
1. Create Characteristics

Here are a couple ERPtips on creating characteristics:

If you are working in a release Pre-ECC, notice that the box Not Ready for Input is checked in the Procedure for Value Assignment area. If you do not de-select it, it stops assignment of a value to your characteristic causing your release strategy to fail! SAP carries over default values from the field definition in the CEBAN table to the value assignment portion (shown on the Basic Data tab). Pay close attention to whether SAP allows intervals (needed for a range of values, like value of requisition) and whether it allows multiple values (needed if you plan to use one release strategy for multiple departments or purchasing groups).

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[ Step 2: Configuration
2. Create Class

Now that you have created your characteristics, you must assign them to a class. To create a class, follow the menu path in the IMG:

Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Edit Classes Or Transaction Code: CL02.

We will now display the class that has been created for this demonstration.

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[ Step 2: Configuration
3. Create Release Group

A release group has the same release levels and strategy. The scenario illustrated in the table below needs two release group because the approval interval values are different between the two departments.
Department Position Approval Limits

901 Operations 901 Operations 901 Operations 901 Operations 902 Finance 902 Finance 902 Finance

Manager Director Vice President Chief Financial Officer Manager Controller Chief Financial Officer

Up to $10K Up to $50K Up to $100K Everything over $100K Up to $5K Up to $200K Everything over $200K

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[ Step 2: Configuration
3. Create Release Group

Navigate to the IMG and follow the menu path:

Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Set up Procedure with Classification

We will now display the release group that has been created for this demonstration.

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[ Step 2: Configuration
3. Create Release Group

ERPtip: One Class per Release Type

You can only have a single class per release type. Release type is defined as overall release or item-wise release. This can be quite limiting if you have a complex appro l structure. You can have characteristics that are assigned to the class but not utilized in the release strategy.

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[ Step 2: Configuration
4. Create Release Codes

A release code is an identifier that is associated with the person responsible for approving the purchase requisition. Navigate the IMG and follow the menu path:

Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Set up Procedure with Classification

We will now display the release codes that have been created for this demonstration.

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[ Step 2: Configuration
4. Create Release Codes

ERPtip: Generating Workflow Information for the Approver

You can utilize a customer user exit for purchase requisitions, M06B0001, to define the workflow and generate notification and work list objects for the person responsible for the approval.

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[ Step 2: Configuration
5. Create Release Indicator

A release indicator shows the release status of a purchase requisition. In the standard system, a purchase requisition release status is either Blocked or RFQ/Purchase Order. The RFQ/Purchase Order status indicates that the purchase requisition was fully released and now can be converted into an RFQ or purchase order. You can use the standard release indicators provided in your release strategy or perform the following to maintain the release indicators.

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[ Step 2: Configuration
5. Create Release Indicator

Navigate to the IMG and follow the menu path:

Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Set up Procedure with Classification

We will now display the release indicators that will be used for this demonstration.

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[ Step 2: Configuration
5. Create Release Indicator

ERPtip: Allow Changes after Release / Do Not Trigger New Release If you want to allow changes to certain fields during fter a release, you can modify the field selection key. To modify the Field Selection Key, follow the menu path in the IMG: Materials Management Purchasing Purchase Requisition Define Screen Layout at Document level. The standard field selection key is FZ01. You can copy it and maintain your changes. Once you create a custom field selection key, you should also create a custom release indicator by maintaining a new entry in the Create Release Indicators screen. In the standard system, SAP will not allow changes to quantity, unit of measure, or price when an approver is executing the release transaction. If you require that other fields, such as delivery date, plant, etc., not be modified via the release transaction, configure a custom field selection.

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[ Step 2: Configuration
6. Create Release Strategies

A Release Strategy is a combination of the Release Group and Release Code. The release group combines the release codes (think of them as release levels); each combination is then assigned a release strategy. For each release code (or level), you define the prerequisites required to get to that release level, which includes the release tus and the characteristic values that place the release into that release level.

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[ Step 2: Configuration
6. Create Release Strategies

To configure the Release Strategy, Navigate to the IMG menu path:

follow the

Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Set up Procedure with Classification.

We will now display the release strategies that have been configured for this demonstration.

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[ Step 2: Configuration
6. Create Release Strategies

ERPtip: Entering Correct Characteristics Value Assignments

Be sure you entered the correct characteristics value assignments. You must allow an interval value for the Total value of requisition amount to enter a range in the characteristic value assignment.

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[ Step 2: Configuration
7. Workflow: Assign Release Codes to Release Point

Workflow is another component of SAP that allows you to assign tasks to users. Those tasks appear in the user's workflow inbox are executable items. A standard workflow exists in SAP to put a work item in the inbox to trigger the approver to approve a purchase requisition. Only perform this step if you wish to link this release procedure to Workflow and you are not using customer exit M06B0001.

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[ Step 2: Configuration
7. Workflow: Assign Release Codes to Release Point

The task flow for creating a workflow is:

1. When you save the purchase requisition, SAP determines which type of release is required for the document type. In this case, the document type is NB and it is flagged in configuration for Overall release. 2. Next, SAP determines what class to use for this type of release. 3. The characteristics assigned to the class are then associated to the values in the purchase requisition. 4. With the data up to this point, SAP determines which release strategy to invoke and then follows through with any workflow activities.

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[ Step 3: Security
Security can be the most time consuming activity in developing release strategies, particularly if you have multiple characteristics defining your release strategies along with multiple release levels. Here is where our recurring theme Keep it Simple counts. You may want the job security for your Basis Security Administrators, but you also want the change process to be simple so you can react quickly when that all too common company reorganization happens.

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[ Step 3: Security
ERPtip: Sarbanes-Oxley (SOx) Compliance For Sarbanes-Oxley (SOx) compliance, do not use the * function, which gives access to all objects, to define the roles in security. Using * may give approval authority to some folks who should not have it. You should set up a role for each release group/release strategy combination. For greater security, include the restriction for other values that you have assigned as characteristics, such as purchasing group, when defining this role.

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[ Step 4: Transport Classes and Characteristics

This is the most overlooked step in the Release process. The transport you created in Step 3 in your Gold SAP Configuration client does not include the values you associated to the characteristics. Transport classes are stored in characteristic value tables that must be moved through your SAP environments via the Application Link Enabling (ALE) function.

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[ Step 4: Transport Classes and Characteristics

ERPtip: Move your Characteristics and Classes after your Configuration Transport Remember to request your ALE with your transport. Here is a sample spreadsheet of transaction codes, which you can provide to your Basis team.
Object Transaction Check (Target) Message Type (BD64) Notes

Characteristics: PURCHASING_GROUP PR_VALUE Class: PR_RELEASE Class Type: 032 Class: PR_RELEASE Class Type: 032

BD91

CT04

CHRMAS

Dont worry about IDOC error message Object S2L3 (T16FS) not found.

BD92

CL03

CLSMAS

BD93

CL03

CLFMAS

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[ Best Practices
This is easy! KEEP IT SIMPLE.

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[ Key Learnings
This presentation laid the groundwork and provided some good tips to SAP MM Configurators to use in their journeys to developing a purchasing approval solution. Purchase requisition release strategies rank high on my list of tricky configuration challenges.

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Thank you for participating.

Please remember to complete the event evaluation following the ASUG 2009 Virtual Education Summit. For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc

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