Limit the Purchase Order Dollar value

[Former Member]

Hi,

We have a requirement from the customer that they do not want the purchase order ( for high dollar values) created until it is approved.

I understand that one option for limiting the purchase order dollar value is implementing the release strategy with dollar range and assign it to purchase groups and in turn to the users via roles. The auth object that controls this activity would be M_EINK_FRG.

However, in this case the purchase order would already be created but not released. But the customer does not want the PO created as it impacts the G/L accounts. Can the PO be on hold until someone approves it for creation?

I do not see any authorization object that will restict the purchase order creation but to have it on HOLD.

Is this possible in SAP security?

Appreciate some suggestions..

Thanks

Siri

[jurjen_heeck]

Since we often approach things from a technical point of view in this forum, can you please tell us which transactions are in your scope?

[Former Member]

ME21N, ME22N (Create/change Purchase Order)

ME51n, ME52n (Create/change Purchase Requisition)

[morten_nielsen]

Hi Siri

It's not possible from a security point of view to "Hold" a purchase order without actually creating it. In all of the project I have been involved in we have created the purchase order with a Release Strategy. We then use a workflow to get it approved, and then released.

I'm not sure how it's effects the G/L Accounts, and I think there might be some legal implications here (I know that in Denmark we are required to take the Cost when it's likely to occur, but I'm not sure about the rules in your corner of the world).

If you do not want to create the PO this way, and if an approval is required, you might look at the purchase requisition functionality, but again this would not primarily a security issue, just plain MM configuration (and of-course some authorization for release )

Regards

Morten Nielsen

[Former Member]

Another popular way of dealing with this is via workflows or Adobe forms.

This can be usefull when (intentionally) anyone can request anything (purchase requisition!), but you only want the liability when approved by someone who has that delegation of authority in the company.

Via workflows and forms (possibly external to the SAP system) you have some more freedom, but you need to take a closer look at the security design of the application coding and integration then as well - so there is some complexity involved for a number of reasons.

But generally, people who are authorized to make PR's which will materially affect the balance sheet don't "click around" or "try their luck" by ordering stuff which is not agreed. They might make bigger (approved) mistakes or order jakuzzies to be delivered to their home addresses, but they don't order a Bentley GT Continental together with the Christmas party decorations - that goes through expenses

Hope that helps you a bit,

Julius

[Former Member]

Hi,

Firstly, I fail to understand that just by creation of a PO can affect the G/L accounts. Unless and until there is any good movement against this PO it does not affect the G/L account. yes, it does affect the open order qty in the stock overview but there are seperate ways of tackling it.

Also, although I am quite sure that there can be no ways in standard SAP that this could be handled by authorizations.

I would suggest that you implement that no PO can be created without a PR and the PR can be subject to release strategy. This can be impelmented by using user parameters, I think EVO is the parameter, I am not quiet sure.

Regards,

Subbu

[mohammed_anish]

Hello,

My understanding is, SAP gives two options to solve this. (2 is all i know )

One is, as you mentioned, release strategy for purchase order. And the other would be to create a "Purchase Requisition" using ME51N. Then once the requisition is approved (can have release strategy for purchase requisitions also which can be controlled), the requisition can be recalled in ME21N and can be saved as a "Purchase Order".

Hope that will help a bit.

Regards,

Anish