The release strategy can be set up in the configuration that best suits the business needs of the company. With the release strategy in place, each approving supervisor or manager is assigned a release code, which is an ID that helps control the flow of procurement elements to the relevant releasing authorities. Only after the final maintenance manager's approval will the purchase requisition be available for approval by the general manager. The company's procurement policy specifies that the purchase requisition will need to be successively approved by three authorities, such as maintenance supervisors or maintenance managers, before the procurement manager is able to convert it into a purchase order to formally begin the procurement process. The estimated purchase value of these spare parts is $25,000.
For example, a maintenance engineer creates a purchase requisition for spare parts that are needed to keep equipment functioning properly. Setting up a release strategy in the SAP MM module establishes the business rules that the company must follow to approve purchase of a material or service.
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