Article 48: How does the PR approval process work?
What is the PR approval process?
The PR approval process is a workflow system that routes purchase requisitions to authorized personnel for review and approval before procurement can proceed. This ensures spending control and proper authorization.
Why is approval necessary?
- Spending control - prevents unauthorized purchases
- Budget compliance - ensures expenses align with budgets
- Policy adherence - enforces company procurement rules
- Audit trail - documents who approved what and when
- Risk management - reviews high-value or sensitive purchases
How does the approval workflow work?
Approval Triggers
Automatic routing based on:
- Dollar value thresholds
- Material type or category
- Account assignment (cost center, project)
- Requesting person's authority level
- Document type settings
Approval Levels
Level 1 - Supervisor Approval:
- Lower value purchases (e.g., under $1,000)
- Direct supervisor of requesting person
- Routine materials and supplies
- Quick approval process
Level 2 - Department Manager:
- Medium value purchases (e.g., $1,000-$10,000)
- Department head approval required
- Cross-departmental impact items
- Budget verification needed
Level 3 - Executive Approval:
- High value purchases (e.g., over $10,000)
- Senior management involvement
- Strategic or sensitive procurements
- Board approval for very large amounts
How do approvers process PRs?
Individual PR Release (ME54N)
Steps for approvers:
- Access transaction ME54N
- Enter PR number to review
- Review details - material, quantity, justification
- Check budget and authorization
- Approve or reject with comments
- Save decision - PR status updates
Collective PR Release (ME55)
For processing multiple PRs:
- Use transaction ME55
- Enter selection criteria (date range, value, etc.)
- System displays all pending PRs
- Mass approve similar items
- Individual review for exceptions
Modern Approval (S/4HANA Fiori)
My Inbox App:
- Centralized inbox for all approvals
- Mobile-friendly interface
- Notification capabilities
- Delegation options for vacation coverage
What information do approvers see?
PR Details:
- Requestor information and justification
- Material/service specifications
- Quantities and delivery dates
- Cost estimates and budget impact
- Account assignment details
Supporting Information:
- Budget status and availability
- Vendor recommendations if available
- Previous purchase history for comparison
- Approval history and routing path
What decisions can approvers make?
Approval Options
Full Approval:
- Release entire PR for procurement
- All line items approved as requested
- Proceeds to purchasing team
Partial Approval:
- Approve some items while rejecting others
- Reduce quantities if budget limited
- Change delivery dates if needed
Rejection:
- Return to requestor with comments
- Request more information or justification
- Suggest alternatives or modifications
What happens after approval?
Next steps in process:
- PR status changes to "Released"
- Purchasing notification of approved PRs
- Source determination begins
- PO creation process starts
- Vendor communication initiated
How to handle approval delays?
Common causes:
- Approver unavailable (vacation, travel)
- Insufficient information in PR
- Budget questions needing clarification
- Policy compliance issues
Solutions:
- Delegation setup for backup approvers
- Clear justification in original PR
- Proactive communication with approvers
- Escalation procedures for urgent items