You should read this post (PR Release Strategy Basic Concept) before reading the following article.
All PRs created need to be released/approved by specific person according to the following conditions:
Because usually they create a Stock transfer request/STR (PR with item category “U: Stock Transfer”) that contains a lot of items, they decide that STR needs to be approved by its supplying-plant stock-controller with “overall PR” procedure (header level).
To make this procedure runs well, the company has an internal policy that an STR can contain only items with same supplying plant. If someone needs STR from two supplying plant, he/she must create two different PR. They also have created a PR document type that specific for STR. That document type only allows “U: Stock Transfer” item category.
PR for external procurement (PR with item category other than “U: Stock Transfer”) needs to be approved with “item-wise” procedure (item level). The release strategy of the PR depends on the account assignment and the total item value.
- Item with “standard (inventory)” account assignment that has total value less than USD 10,000 needs to be approved by its stock controller.
- Item with “standard (inventory)” account assignment that has total value USD 10,000 or more needs to be approved by its stock controller and plant manager.
- Item with “Asset” account assignment needs to be approved by Asset Manager whatever its total value and wherever it’s requested.
- Item with “Cost Center” account assignment that has total value less than USD 5,000 needs to be approved by plant manager.
- Item with “Cost Center” account assignment that has total value USD 5,000 or more needs to be approved by plant manager and operation director.
Based on the above scenario we are asked to configure the PR release procedure.
From the above scenario we know that we have to use both “Overall PR” and “item-wise” procedures. We also know the criteria/parameters that determine the release strategy (who has the authorization to release/approve PR). To make it easier to understand, we can make a release strategy matrix like the following tables: