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This document is meant to share the experience related to the Purchasing Document Release with the multiple currencies. Audience will be P2P consultants who would like to understand the configurations and setting required for the release strategy with multiple currencies.  

Applies to: SAP ECC 6.0

Table of Contents

1. Executive Summary.


2. Business Requirement Analysis.

          2.1.  Current Business Process.

          2.2.   Business Requirement.


3. Purpose of Multiple currencies.

          3.1.   Purpose of Multiple currencies – Materials Management.


4. Purchasing Doc. Release with Multiple Currencies.

          4.1.   MM Configurations.

                    4.1.1. Creation of new characteristic for AED (new) currency.

                    4.1.2. Assignment of characteristic to PO class.

                    4.1.3. Assigning object to class.

                    4.1.4. Maintain Release Strategy.


          4.2.   Process flow: Releasing Purchasing Document.

                    4.2.1. PO Release with AED Currency.

                    4.2.2. PO release with INR Currency.

1. Executive Summary

When we have to procure external goods or services from a vendor, we have to place order on them so that they can provide the same to us. When we create the external purchasing document, depending upon the procurement policy of the individual organization, it goes for a release (approval) process. Here, we can have different levels of releaser (or approver). There could be situation where the operations of the organization could be on different geographical areas having different local currency. Under such a situation, we may like to have our orders & release process in the respective local currencies for ease.

Purchase orders can be subject to a release (approval) procedure. Control over the purchase order generation is very important for every organization. Therefore, SAP has introduced a functionality called release strategy for PO’s, where we can have different authorization levels/ steps to approve a purchase order. Based on the procurement policy of the organization, release procedures are defined. The purchase order can be released and then, sent to the vendor.

We have recommended the use of different release strategy with multiple currencies for their outside companies (abroad) that deals with their local (or different) currencies. This will ensure that all POs are properly released by the authorized person in the respective local currencies.

2.    Business Requirement Analysis

2.1.Current Business Process

      • Purchasing Documents are being released in the single currency (Company code currency) in all Organizational units (i.e.; Company code, plants etc).
      • When the local currency & the currency in release strategy differs, we need to maintain the release values limits as and when there is change in the exchange rates between the two.
      • There is dependency of Purchasing Doc. Release on the change in the exchange rate since it is not fix.

2.2.Business Requirement

      • Business doesn’t wants to maintain the release value if the exchange rates changes.
      • They want to use different currencies in their release approval procedure. For this, we need to create different release strategies and maintain it for every currency in their own characteristics.

3. Purpose of Multiple Currencies

3.1.Purpose of Multiple Currencies – Materials Management

            From a MM purchasing perspective:-

      • The currency at the header data of Purchasing Document is converted into local currency (Company code currency) and afterwards, the local currency is converted into the currency of the characteristics for Release.
      • Whenever there is change in the local currency & the currency in release strategy, we need to maintain the release values limits. There is dependency on the exchange rate value change.

4. Purchasing Doc. Release with Multiple Currencies

Business needs to configure Release for PO for different country with different currency and want to use different currencies in your release approval procedure you must create different release strategy and maintain for every currency own characteristics.

4.1. MM Configurations

Here, we are taking a scenario where our Company code currency is in INR. We have got one company in India (INR) and another Company at Dubai where AED is the local currency. Presently, the PO release is in INR only. So, every time there is change in the exchange rate between INR & AED, we need to change the release value for company at Dubai.

Therefore, we want to implement the addition of new currency i.e; AED in our PO Release Strategy.

MM configurations require the following procedures:-

        • Creation of new characteristic for AED (new) currency.
        • Assignment of characteristics to release class.
        • Assigning object to classes.
        • Maintain release strategies.

4.1.1.      Creation of new characteristic for AED (new) currency for PO Release

            Menu Path: IMG > Materials Management > Purchasing > Purchase Order > Release Procedure for Purchase Orders > Edit Characteristic

Tcode: – CT04


Create new characteristic for PO Release in AED currency.

              /wp-content/uploads/2013/09/1_276796.jpg

Now in Additional Data tab, assign table CEKKO & field GNETW to the new characteristic.

             /wp-content/uploads/2013/09/a1_276994.jpg

In PO release strategy one of the most used characteristics is the net order value. In values tab, we are defining the values of characteristic in AED currency.

4.1.2.      Assignment of Characteristic to PO Release Class

Menu Path: IMG > Materials Management > Purchasing > Purchase Order > Release Procedure for Purchase Orders > Edit Class

Tcode:- CL02

Add the newly created characteristic in the Char. Tab of PO Release class.

             /wp-content/uploads/2013/09/2_276848.jpg

4.1.3.      Assigning Object to Classes

Tcode:- CL20N

Select the value for the new characteristic for particular Release Strategy.

Since, the characteristic field can’t be blank so, we need to maintain some value for the characteristic for INR currency (1 AED = 16.20 INR). The currency can’t be negative so, to satisfy the INR characteristic, we just need to make it other currency (i.e.: INR) greater than or equal to ‘0’.

             /wp-content/uploads/2013/09/3_276849.jpg

Select the respective values (here: Plant, Order Type, Total Net order value) for individual characteristics that will trigger the release strategy for the Dubai company in AED currency. The same values needs to be removed from the characteristics value that is configured for the Indian company. Eg:- here plant ‘Jabel Ali Mfg Plant’ will be added to new release strategy J1 for Dubai Company (in AED) and the same will be removed from the release strategy 20 for the Indian Company (in INR)

For release strategies, where we want it to happen in INR currency, we need to maintain the positive value for AED characteristic as well (1 INR = 0.062 AED).

4.1.4.      Maintain Release Strategy

Menu Path: IMG > Materials Management > Purchasing > Purchase Order > Release Procedure for PO > Define Release Procedure for Purchase Orders

Select release strategies for Dubai Company (local currency is AED). Go to classification tab. In the Classification tab, we can check the values of all characteristics maintained for the particular release strategy & code. Via the Characteristics and their values, we specify the POs to which your release strategy is assigned by system when a PO is created or changed.

The value for INR is maintained to be equal or greater than ‘0’.

4.2. Process Flow: Releasing Purchasing Document

4.2.1.      PO creation with AED currency

Here, we have considered below PO release scenarios:-

For Dubai Company:

Rel Strategy

Release Value

J1

0-50000 AED

J2

50001-750000 AED

For Indian Company:

Rel Strategy

Release Value

20

0 – 1600000 INR

40

  1. 16000000.01 – 24000000 INR

The new release strategy is getting triggered for the AED value and not going for the conversion from AED to INR and then, going for INR value in characteristic of INR.

              /wp-content/uploads/2013/09/4_276850.jpg

Since, the total value of PO is in between 0-50000 AED so, the release strategy with ‘J1’ is getting triggered.

                  /wp-content/uploads/2013/09/5_276878.jpg

4.2.2. PO creation with INR currency

Similarly, we can do the scenario for the INR currency.

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