Use Authorization in Procurement

You can authorize a planned purchase order and a purchase order (PO).

Outcome

Based on the authorization level defined, the authorized users are enabled to release planned purchase orders and purchase order (PO).

The information is stored in Authorization Table (MPAUTD).

Authorization is provided to unauthorized users to place POs and limit the purchase amount on a specific order.

For example, a user can be authorized to place a purchase order for a maximum amount of money. If a user tries to place an order that exceeds the enabled amount, the purchase order is stopped. A user with higher authority must authorize the purchase order before processing continues.

The authorization list is reviewed in M3 based on the settings in (PPS235). The nearest manager with the authority to approve the PO is then notified. These conditions determine which user is verified in the M3 authorization table:
  • If the PO or PO proposal is created or changed manually, the authorization of the signed-in user who creates or updates the order is checked. If the signed-in user doesn’t have authority for the amount, the signed-in user’s nearest manager is notified to approve the order.
  • If the PO proposal is generated from MRP, the authorization of the buyer defined for the item is checked. If the buyer doesn’t have authority for the amount, the buyer’s nearest manager is notified to approve the order.

The manager is notified by email and by a message of type 126 in 'Application Message. Open' (CRS420). The manager’s email ID is read from 'e-mail Address. Open' (CRS111). If the manager doesn’t have authorization, the next manager in line is checked. If no manager is found who has authorization to approve the PO, the message is sent to the last manager in the (PPS235) setup.

The notification message is sent to the manager automatically after closing (PPS201). If PO lines are added or updated from an API, the notification message is triggered through 'Generate Approval Notification' (PPS236). The authorized user then receives a consolidated message type 129 in (CRS420). This message contains the PO that requires approval or is late.

The 'Authorization day limit' on (PPS235/E) defines the number of days enabled for approval. If the approver doesn’t approve the PO within the specified number of days, message type 129 includes a detailed message of type 127 or 133 after (PPS236) is run. Message types 127 and 133 indicate that the PO is late for authorization.

Therefore, message type 129 is used as a group message for authorization messages 126, 127, and 133.

Before you start

Settings for purchase order authorization must be defined. See Define Purchase Authorization for User.

Follow These Steps

Authorizing of Planned PO

  1. Start 'Planned Purchase Order. Open' (PPS170/B).
  2. Select the planned purchase order that requires authorization.

    The status of the purchase order must be 50 with the warning message code 'F'.

  3. Authorize the planned purchase order by entering the user signature on (PPS171/F).
  4. Press Enter to finish and return to (PPS170/B).

    The warning message code 'F' is not displayed now.

    You can release the planned PO by selecting Related Option 11=Release.

Authorizing of a PO

  1. Start 'Purchase Order. Open' (PPS200/B1).

    The PO status must be 12=Order stopped authorization required.

  2. Authorize the purchase order by entering the user signature on (PPS200/F). Press Enter.

    The purchase order now has status 15=Ready for printout. If the order is stopped because of accounting errors, the status is 13 or 14.

    The status of the PO is now 20=Document printed/sent.

Related topics