Purchasing in SAP 

These slides come from a Concept Workshop presented in April 1998.

Why Do I Need to Know This?

Requisitioning Timeline

 Requisitioning Timeline

Key Requisitioning Decisions

Who Will Help Departments With This?

What Does SAP Requisitioning Look Like?

  Paper Requisition EREQ Requisition SAP Requisition
Ability to create a requisition
  • Std req book
  • Dept-designed requisitions
  • EREQ account
  • Signature authorization on file
  • Training
  • Dept "infrastructure" built in SAP
  • Kerberos ID/SAP account
  • SAP Profile w/ create req. authorization 
  • Training
Ability to approve a requisition Signature auth. in VAPS EREQ profile based on signature auth. file Approver auth. in SAP profile
Routing for approval Hand carry Electronic routing Electronic routing per predefined criteria selected from SAP options
Ability to create "DAPO" for <$2500? No Yes Alternatives currently being evaluated

Other Comparisons

  Paper Requisition EREQ Requisition SAP Requisition
Create commitment? Not until PO issued Not until PO issued Created as soon as requisition is saved
Accepted by Internal Providers? Yes Yes, for selected internal providers Phased rollout to internal providers planned
Check available funds before creating requisition? No No Yes, if SAP departmental budget and funds checking options implemented by department
Visibility of transaction in SAP When PO issued, it is visible via SAPweb (or SAP) lookup When PO issued, it is visible via SAPweb (or SAP) lookup Both SAP requisitions and PO's are visible in SAP.

Advantages of SAP Requisitioning:

Department Approval & Routing Options

  • Recommended options developed by authorizations focus group
  • Choice of 4 approval/routing options ("release strategies" in SAP)
  • Up to 2 levels of approval
  • Approval can be based on dollar amount and/or item being purchased
    Approval & Routing Options ("Release Strategies")

    1 No approvals required If you are authorized to create a requisition, it will be sent directly to Purchasing without review.
    2 Two approvals required for all requisitions Any requisition, regardless of dollar amount, has to have two levels of approval before going to Purchasing.
    3 Approval determined by dollar amount 
    -- Option A
    < $500 - no approval required 
    $500 - 2499 -- Level 1 approval 
    > $2500 -- Level 2 approval
    4 Approval determined by dollar amount 
    -- Option B
    < $2500 -- Level 1 approval 
    > $2500 -- Level 2 approval

    Approval & Routing Options - Requisition Flow 

    Approval Option 1:

     Approval Option 1

    Approval Option 2:

     Option Two

    Approval Option 3:

    Option Three

    Approval Option 4:

    Option Four

    Automatic Routing of Requisitions to Other MIT Offices

    Routing requisitions by commodity classification ("Material Group")

    Key SAP Concept: Line-item Orientation

    Requisitions are line-item oriented:

    SAPweb - Simplified Requisitioning Interface

    Future of Current Systems

    Other Purchasing Methods

    VIP Card - available now NECX/ECAT - in development

    Next Steps



    Appendix: SAP Requisitioning Terminology

    Workflow SAP's routing mechanism. Workflow routes requisitions for approval, sends approved requisitions to Purchasing, and returns a rejected requisition to the originator.
    Release Strategy A set of business rules used to evaluate a requisition line item to determine the types of approvals needed before it can be released to Purchasing. Release strategies "tell" workflow where to send a requisition. E.g., whether it requires approval or should be sent directly to Purchasing.
    Level 1 and Level 2 Approver A requisition can have up to two levels of approval (Level 1 being the lower). SAP users can be authorized as Level 1 or Level 2 approvers. Requisitions requiring approval are routed to the appropriate level of approver.
    Release a requisition In SAP, you approve a requisition by releasing it.
    Material Group Commodity classification of item being purchased, similar to object code. Material groups will be used for routing requisitions for radioactives, sensitive items, etc. 

     Edited on April 13, 1998 by Robert Murray