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Author's profile photo Caetano Almeida

SAP S/4HANA 2020: Hand Over Purchase Requisitions created by MRP

When MRP Live was created, one of the main simplifications introduced was related to the creation indicators. While in Classic MRP we can use a creation indicator to define if planned orders or purchase requisitions are created by MRP for materials procured externally, this option is no longer available in MRP Live. Purchase requisitions are always created for materials procured externally when MRP Live is executed.

Some Production Planners were used to review the planned orders created by MRP before converting them to purchase requisitions and handing over the procurement to the purchase department to start the procurement, so they missed this capability in MRP Live.

SAP S/4HANA 2020 brought a new feature called Hand Over Purchase Requisitions, which allows the Production Planner to choose exactly when the purchase requisitions will be handed over to the purchasing department. With this new feature the production planner will control when procurement will start, avoiding that the purchasing department starts the procurement of a purchase requisition that has not yet been reviewed.

This blog post will explain how this feature can be activated in SAP S/4HANA.

1 – Customizing Settings

We can activate the hand over of purchase requisitions in customizing at the MRP Group level. Since the MRP Group is assigned to the Material Master, we are able to control for which specific materials this feature will be activated.

The first step is to access the MRP Group customizing in transaction OPPR. Here, you can choose to create a new MRP Group or to change this setting under an existing MRP Group. Once you open the MRP Group, you will need to click button Scheduling/Document Type under section External Procurement.

 

You should find the setting Preq Handover and this flag should be set, in order to enable the hand over of purchase requisitions created by MRP. This is basically the only customizing setting to enable this feature in MRP.

 

Master Data

After activating the purchase requisition handover in the MRP Group customizing, we need to assign the MRP Group to all the materials for which this feature should be relevant. In the screenshot below, we are using the SAP GUI transaction MM02 and the MRP Group was assigned to the material in tab MRP 1.

 

Alternatively, the MRP Group can be assigned to the Material Master using the Fiori App Manage Product Master Data, under the section MRP Data, as shown in the screenshot below.

 

Handing Over Purchase Requisitions.

After assigning the MRP Group to the Material Master, we can run MRP and for the changed materials and check the newly created purchase requisitions.

We should run MRP with planning mode 3, in order to ensure that all the existing unfirmed requisitions will be recreated considering the new setting. We should also consider that this will not affect purchase requisitions that were already firmed before the MRP run.

In the screenshot below, MRP Live (transaction MD01N) was execute for our material to generate new purchase requisitions, but this feature also works in the Classic MRP transactions.

 

The MRP run will generate new purchase requisitions that should be relevant to the hand over process. Whenever we open a material assigned to a relevant MRP Group in one of the MRP cockpit Fiori Apps, we will have a button to hand over for each purchase requisition line. The screenshot below shows the app Manage Material Coverage, where we can see this button in column Actions.

Once we click the button, a popup will be displayed to confirm if we really want to hand over the purchase requisition. Once we confirm, we will observe that the icon shown before the purchase requisition will be changed, and a checkmark will indicate that the requisition has been handed over (see details in the screenshot below). The firming indicator is also set for the purchase requisition once it has been handed over, as we can also see the icon below.

The option to Hand Over purchase requisitions is available within the apps Manage Material Coverage (F0251), Manage External Requirements (F0250), Manage Internal Requirements (F0270), and Manage Production Orders or Process Orders (F0273). This option is not available in the SAP GUI transactions, such as MD04.

Besides the previously existing MRP Cockpit Fiori Apps, a new app called Hand Over Purchase Requisitions (F4795) was introduced in SAP S/4HANA 2020. This app will show a list of purchase requisitions that are ready to hand over, including additional information, such as date, quantity and supplier name. We can select one or more requisitions to be handed over and we also have the option to delete those requisitions.

If we select only one requisitions, we can use the option Quick Edit for a simple change in date or quantity, or Change Purchase Requisition to open the SAP GUI transaction, in order to change additional fields of the purchase requisition.

 

Helpful Links:

Additional details of this app can be found in the following links:

SAP Help – Handover Purchase Requisitions

Fiori Library – Hand Over Purchase Requisitions

 

Brought to you by the SAP S/4HANA RIG and Customer Care team.

 

 

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      2 Comments
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      Author's profile photo Sasibhushan Padmanabhan
      Sasibhushan Padmanabhan

      Hi Caetano,

      I was trying to get it working, but thanks a lot for your blog, it shall help me set it up. I had a question, does this feature work only when MRP live (or) only when MRP creates the purchase requisitions or for example if s4hana is integrated with IBP and IBP creates purchase requisitions can we use this feature?

      Author's profile photo Caetano Almeida
      Caetano Almeida
      Blog Post Author

      Hello Sasibhusan

      This feature also works for purchase requisitions created by Classic MRP.

      It was really a valuable question, so I'll edit the blog and include this information.

      Regards,
      Caetano