Multiple Currencies in Purchase Order Release Strategy

Multiple Currencies in Purchase Order Release Strategy

In PO release strategy one of the most used characteristics is the net order value. In case the company exists in multiple countries, we need to define the release strategy taking this into account.

Please note that the functionality of the release strategy for having multiple currency code is not available in the standard. You can use the user exit EXIT_SAPLEBND_001 to change the SAP standard behavior.

However, there is a workaround available. If you want to use different currencies in your release approval procedure you must create different release strategy and maintain for every currency own characteristics.

The header data currency is then converted into local currency (Company code currency) and afterwards the local currency is converted into the currency of the characteristics as explained in the SAP Note 493900 question 13:

13. Question :

How is the currency converted?

Answer :

The header currency is converted to local currency (company code currency) and then the local currency is converted to the characteristic currency.

In this blog, we will try to explain how to customize this.

Business scenario

Company 1000 exists in two countries. These countries have USD and EUR as local currency. 

We would like to define the release strategy with the following characteristics:

Plant:                          CEKKO-WERKS

Net order value :           CEKKO-GNETW

And for CEKKO-GNETW we would like to have the following release levels:

Level    USD                 EUR

Level1   0<1500           0<1000

Level2   > 1500             > 1000

Exchange rate:

1 USD = 0.69 EUR

Scenario 1:

Define one characteristic who uses CEKKO-GNETW:  PO_NET_ORDER_VALUE

Maintain values in USD as per the exchange rate conversion. 

Company Code	1000	2000
Currency	USD	EUR
Strategy 1	U1	E1
PO_NET_ORDER_VALUE	0<1500 USD	0<1032 USD
Strategy 2	U2	E2
PO_NET_ORDER_VALUE	>1501 USD	> 1032 USD

Advantages and Desadvantages:

(+) easy to mantain when you have a new company code

(-) if the exchange rate changes continuously, the values defined for the intervals, need to be maintained often.  

Scenario II:

We create characteristics for each currency involved:

PO_NET_ORDER_VALUE1  - USD

PO_NET_ORDER_VALUE 2 - EUR

It is necessary to define a value for any characteristic. There should not be a blank value.

Company Code	1000	1000
Currency	USD	EUR
Strategy	U1	E1
PO_NET_ORDER_VALUE1	0<1500 USD	>1 USD
PO_NET_ORDER_VALUE2	> 1 EUR	0<1000 EUR

 Advantages and Desadvantages:

(+) we do not need to maintain the release value if the exchange rates changes

(-) if you add a new country, the maintenance is more difficult

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