Klee Associates – Unlocking The Value Of Your SAP Investment
Release Strategies for Procurement Made Easy Content excerpted from our SAP Materials Management and Purchasing courses
Speaker Introduction - Jocelyn Hayes • Heads up our SAP consulting and training practice. • Brings almost 14 years of SAP experience, plus a great deal of passion and enthusiasm • Enjoys the challenge of solving problems creatively and collaboratively. • Worked for a big 4 consulting firm as a Sr. SAP Consultant and then moved into independent consulting. • Primarily involved with the Logistics modules of SAP and migrating clients to more business process oriented and integrated applications using SAP's most advanced solutions. • Jocelyn can be reached at
[email protected] or by phone at 1.855.ERPtips (377.8477) ext 122.
Release Strategies for Procurement Made Easy 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 requistioners 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.
Step 1: Determine Corporate Purchasing Approval Matrix • The table below represents the scenario we will be configuring for this demonstration: Department
Position
Approval Limits
101 – Operations
Manager
Up to $10K
101 – Operations
Director
Up to $50K
101 – Operations
Vice President
Up to $100K
101 – Operations
Chief Financial Officer
Everything over $100K
201 – Finance
Manager
Up to $5K
201 – Finance
Controller
Up to $200K
201 – Finance
Chief Financial Officer
Everything over $200K
Step 1: Determine Corporate Purchasing Approval Matrix • The release strategy has three key values that are used to determine the level of approval and who approves the requisition. – Purchasing group – Overall value of purchase requisition – Account Assignment Category (K – cost center for both departments) Department
Position
Approval Limits
901 – Operations
Manager
Up to $10K
901 – Operations
Director
Up to $50K
901 – Operations
Vice President
Up to $100K
901 – Operations
Chief Financial Officer
Everything over $100K
902 – Finance
Manager
Up to $5K
902 – Finance
Controller
Up to $200K
902 – Finance
Chief Financial Officer
Everything over $200K
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
Manager
Up to $10K
901 – Operations
Director
Up to $50K
901 – Operations
Vice President
Up to $100K
901 – Operations
Chief Financial Officer
Everything over $100K
902 – Finance
Manager
Up to $5K
902 – Finance
Controller
Up to $200K
902 – Finance
Chief Financial Officer
Everything over $200K
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 Note: In this demonstration, we are presenting PURCHASE REQUISITION release strategy configuration. The exact same steps can be used for any purchasing document type (Purchase Orders, Contracts, RFQs, Scheduling Agreements)
Step 2: Configuration 1. Create Characteristics
In Step 1: Determine the Corporate Purchasing Approval Matrix, 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?”
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 – Account Assignment Category
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These three 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 – Account Assignment category (representing the lines are for expense items, in this case, to a cost center)
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. Note: Use CEKKO for POs, and other Purchasing Document Types We will now demonstrate how to view this table.
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, for example), you can use the following user exits: – M06B0003 – For item-wise release – M06B0005 – For overall release
Step 2: Configuration 1. Create Characteristics 2. Now that you have determined which fields will drive the release strategy, you need to create the characteristics. 3. Navigate the create characteristics transaction using the following IMG menu path: – Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Edit Characteristics – Or transaction code: CT04
4. We will now display the characteristics that have been created for this demonstration.
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).
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.
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 groups because the approval interval values are different between the two departments. Department
Position
Approval Limits
901 – Operations
Manager
Up to $10K
901 – Operations
Director
Up to $50K
901 – Operations
Vice President
Up to $100K
901 – Operations
Chief Financial Officer
Everything over $100K
902 – Finance
Manager
Up to $5K
902 – Finance
Controller
Up to $200K
902 – Finance
Chief Financial Officer
Everything over $200K
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
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We will now display the release group that has been created for this demonstration.
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 approval structure. You can have characteristics that are assigned to the class but not utilized in the release strategy.
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.
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Navigate the IMG and follow the menu path: – Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Set up Procedure with Classification
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We will now display the release codes that have been created for this demonstration.
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.
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.
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
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We will now display the release indicators that will be used for this demonstration.
Step 2: Configuration 5. Create Release Indicator • •
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ERPtip: Allow Changes after Release / Do Not Trigger New Release If you want to allow changes to certain fields during or after 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 the 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.
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. –
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Release Group + Release Code = Release Strategy » Release Group = Department » Release Code = Level of approver
For each release code (or level), you define the prerequisites required to get to that release level, which includes the release status and the characteristic values that place the release into that release level.
Step 2: Configuration 6. Create Release Strategies •
To configure the Release Strategy, Navigate to the IMG and follow the menu path: – Materials Management Purchasing Purchase Requisition Release Procedure Procedure with Classification Set up Procedure with Classification.
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We will now display the release strategies that have been configured for this demonstration.
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.
Step 2: Configuration 7. Workflow: Assign Release Codes to Release Point •
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Workflow is another component of SAP that allows you to assign tasks to users. Those tasks appear in the user's workflow inbox and 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.
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. BONUS – if time, create a requisition for Release Group 99 and demonstrate workflow.
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.
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.
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.
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
BD91
CT04
CHRMAS
Don’t worry about IDOC error message “Object S2L3 (T16FS) not found.”
Class: PR_RELEASE Class Type: 032
BD92
CL03
CLSMAS
Class: PR_RELEASE Class Type: 032
BD93
CL03
CLFMAS
Best Practices • That was easy! (Compliments of the Staples button)
• KEEP IT SIMPLE.
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.
Other Learning Opportunities • • • • • •
Webcasts Public Workshops – onsite or virtual Onsite Workshops Journal Blog ASUG Annual Conference (May 16 – 19 in Orlando) – ERP Training Lifecycle and Customer Events – contact Jocelyn for more info
Want More Information? • • • •
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