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    SAP PR Release Strategy Concept and Configuration Guide: A Case Study
    SAP PR Release Strategy Concept and Configuration Guide: A Case Study
    SAP PR Release Strategy Concept and Configuration Guide: A Case Study
    Ebook96 pages53 minutes

    SAP PR Release Strategy Concept and Configuration Guide: A Case Study

    By Ahmad Rizki

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    About this ebook

    For most SAP MM end-users or SAP MM learners, Purchase Requisition (PR) release strategy is a 'black box' process. Many of them don't understand that topic and get frustrated because there is no good documentation about it.

    This book explains the basic concept of PR Release Strategy and step by step guide how to configure it on SAP ERP system. To make it more understandable, it is supplied with a case study and the screen shots of each configuration step.

    The book is written in a simple-to-understand way, so anyone can learn it easily. You don't need to have extensive SAP configuration skill or experience to be able to configure it.

    In addition, the book also contains extra section which explains in details about purchasing process (procurement cycle) in SAP ERP. It explains Determination of Requirements (SAP PR document in details), Determination of Source of Supply, Vendor Selection, Purchase Order (PO) Processing, and PO Monitoring processes.

    LanguageEnglish
    PublisherAhmad Rizki
    Release dateAug 11, 2010
    ISBN9781452343280
    SAP PR Release Strategy Concept and Configuration Guide: A Case Study
    Author

    Ahmad Rizki

    Ahmad Rizki is currently an ERP Business Analyst Manager and also a Senior SAP Specialist at a telecommunication company in Indonesia. He had worked at various companies from various industries such as Oil & Gas Services, Geothermal Energy, Financial Services, and Telecommunication. The main functions that he experienced are Inventory Management, Procurement, Internal Audit, Sales & Distribution, and IT.He also has some full-cycle SAP implementation projects experience in some SAP modules such as Material Management (MM), Sales & Distribution, and Project System (PS). He has deep understanding about the integration between MM, SD, PS, and other SAP modules such as FICO, Plant Maintenance (PM), etc.With his experience and his educational background as an Industrial Engineer, he has a clear vision about various business processes and how to use the best-practice of them to support company’s strategic and operational activities to achieve its target.He is the ERPCX Country Ambassador for Indonesia, a global provider of SAP knowledge and resources.He runs an SAP-related blog at www.SAPstudyMaterials.com where he writes several articles about various SAP concepts, configuration guide, etc.

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    Reviews for SAP PR Release Strategy Concept and Configuration Guide

    4/5

    6 ratings3 reviews

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    • 5/5
      PERFECT DOCUMENT FOR REFERENCE. THANKS A LOT FOR SHARING DOCUMENT
    • 5/5
      PERFECT DOCUMENT FOR REFERENCE. THANKS A LOT FOR SHARING DOCUMENT
    • 4/5
      very good implementation book

    Book preview

    SAP PR Release Strategy Concept and Configuration Guide - Ahmad Rizki

    SAP PR Release Strategy

    Concept and Configuration Guide

    - A Case Study -

    By:

    Ahmad Rizki

    Smashwords Edition

    ©Ahmad Rizki, www.SAPstudyMaterials.com 2011. All rights reserved

    All SAP product names at this article are trademarks of SAP AG.

    I am not affiliated with nor endorsed by SAP AG.

    Table of Contents

    Chapter 1 - Purchase Requisition (PR) Release Strategy – Basic Concept

    Chapter 2 – Step by step guide to configure SAP PR Release Strategy

    2.1 Case study scenario

    2.2 PR Release Strategies Matrix

    2.3 Prerequisites

    2.4 SAP PR Release Strategy configuration

    2.4.1 – Edit characteristics

    2.4.2 Step 2 – Edit Classes

    2.4.3 - Set Up Procedure with Classification

    2.4.3.1 Set Up Procedure with Classification – Define Release Group

    2.4.3.2 - Set Up Procedure with Classification – Define Release Code

    2.4.3.3 - Set Up Procedure with Classification – Define Release Indicator

    2.4.3.4- Set Up Procedure with Classification – Define Release Strategy

    Extra Contents

    SAP MM Purchasing Process

    Determination of Requirements

    Determination of the source of supply

    Vendor Selection

    Purchase Order (PO) Processing

    Purchase Order Monitoring

    Chapter 1 - Purchase Requisition (PR) Release Strategy – Basic Concept

    Purchase Requisition (PR) is an internal purchasing document in SAP ERP. A user creates a PR to notify the responsible department, usually the purchasing/procurement department, about his requirement of materials and/or external services. In SAP ERP system, the user can track the status of the PR whether it has been processed or not.

    PR must contain information about quantity of a material or a service and the required date. It can be created directly (manually, through ME51N T-code) by a person or indirectly by another SAP component (such as material requirement planning/MRP, maintenance order of Plan Maintenance/PM module, production order of Production Planning/PP module).

    PR can be processed to be an external purchasing document (such as Purchase Order/PO) or internal purchasing document (such as Stock Transport Order/STO).

    In SAP ERP, PR can be processed directly to be PO/STO or must be approved /released before it can be processed to be PO/STO.

    If we want that PR must be approved /released before it can be processed to be PO/STO, we must set up a release procedure for that PR.

    The first thing to do in setting up a release procedure for a PR is to decide whether we will approve/release that PR for:

    1. Overall PR

    If we release a PR, all items in that PR will be released and then can be processed to be PO/STO. If we don’t release it, none of its item will be released nor can be processed to be PO/STO.

    Or,

    2. Item-wise

    We must release item per item of a PR in order to make them ready to be processed to be PO/STO. If we don’t release some of PR items, the other items can be released and processed to be PO/STO.

    In an SAP ERP client, all PRs with a particular PR Document Type can use just one of the above options. If we have more than one PR Document Type, we can set some of them use Overall PR release procedure and others use Item-wise release procedure, depends on our business process needs.

    We can set the option in the process Define Document Type of Purchase Requisition that can be accessed by OMEB T-code or through menu paths of SPRO T-code: Materials Management – Purchasing – Purchase Requisition – Define Document Type, as per below image:

    The above image is © SAP AG 2011. All rights reserved

    If we want a PR Document Type uses Overall PR release procedure, we must tick the Overall release of purchase requisitions (OverReqRel) indicator. If we don’t tick that indicator, it means that PR Document Type will be released with Item-wise procedure.

    The next thing to do is to determine the PR criteria/parameters that must be approved / released by specific person. For example:

    PR of raw material that has value less than USD 50,000.00 can be released by operational manager. PR of that item that has value USD 50,000 or more must be approved by operational manager and operational director. PR for production equipment must be approved by Asset Manager and operational director, whatever its cost.

    In SAP ERP there are two release procedures that we can choose:

    1. Release Procedure without classification

    This procedure can only be used for item-wise. It can’t be used for Overall PR. The criteria that can be used with this procedure to distinct the PR approval processes are limited to: PR item value, material group, account assignment, and plant. We can’t use this procedure if we want

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