P2P
ME5A; MD04; ME53N
Hey, welcome back fellow SAP explorers, Martin here. And today we're going to be looking and exploring a feature in SAP that has a strong value proposition, but is often overlooked. What we're chatting about today is the importance of the release date in driving the procurement process. What drives your PO placement today? Do you run off the release date or the delivery date? So today, Kristie is with us, and I know you love the process cadence, so have at it. Tell us more about the value of release date in procurement. Cadence keeps the chaos at bay, Martin and yes, the release date is one of the many dates in the procurement process. And it is one that is often overlooked. But it really represents a critical milestone. It is what helps ensure we're setting our suppliers and ourselves up for success by smoothly running through key process steps with the right amount of time to get them done. Today I want to show you how the release date is calculated and where we can find it. Let's go in and take a look. I love making a Reveal TV video on something that I have done wrong in the past and have found so much value in once I learned what it was for. And I remember in the early days of setting all of this up not knowing exactly when I need to get a purchase order to my supplier and being really worried that I could be past you and passing that ball to them and then not set them up for success and not get what we need when we needed it. So enter math on the part of SAP and enter this lovely field called the start or the release date. The start date if it's production, it is the release date if it is purchase orders or purchase requisitions that need to be converted into purchase orders. It is the starting line for the procurement process. It lets us know when we need to start moving that purchase requisition onto the next stage in order to be able to get that purchase order delivered on time based on all the master data that we have maintained in the system. So if you cannot see this column right now in your stock requirements list, it is hiding from you. And there are a number of columns here that are sometimes missing. Sometimes you'll be missing opening date. Sometimes you'll miss start and release date, and sometimes you'll miss rescheduling date. It's fiddly, but you just have to hover over the fields until you can see you'll see actually a double line arrow appear and then you have to drag that out in order to be able to get theparticular column exposed But this is a good one. And so it lets us know when we need to release. So in order to have this purchase order here on time, we have to start the process or get that purchase requisition converted into a purchase order no later than 08/27/2024 in order for it to get here on September 23rd. Okay, and if I double click in here I can even get a little bit more information without even having to leave my stock requirements list. So I can see the goods receipt processing time for this is 3 days, so the date that it is planned to be available. So the material availability date is the 23rd of September. That means we have to receive it from the supplier so that it can go through all of its stock to stock activities, receiving, quality inspection, etc. We have to have it by the 18th of September, okay? So that means that we have a weekend in there because those are our working days, subject to our factory calendar, and in order to make all of that magic happen so that the supplier can be set up to deliver on time, in order to start our process and get through it, get the purchase order out the door and over to them on time, we have to release this by the 27th of August. And if we go into the purchase requisition, we can further look at those details and see the planned delivery time. Okay, so all of that math is happening for us, we don't have to look at a calendar, it's right here and then all along the way it's letting us know if we have any exception messages. So you can see this is some old housekeeping that needs to be taken care of because not only is my start date in the past, but also my finish date is in the past too. So we really missed the boat on that. So how do you make sure that that doesn't happen? Well, you go to List Display of Purchase Requisition. So you might be using any of the ME57, ME58, ME59 transactions to move through your procurement process. You may be working in ME21N and pulling a list of requisitions. This is another great place to look. This is ME5A, you can see right down here. And when I was coming in here previous life, I would run this based on delivery dates and then try to estimate my lead time offset. Don't need to do that. Come in here, put in the release date. This is everything that you would want to go and work on. So your release date up to whatever the date is that you're working with. So you know, today, tomorrow, if you're about to be out of the office for the holiday break, you might reach out a little bit further than that, but it should be very, very near term. And then you would go in and pull a list of purchase requisitions that were standing out there that needed to go through, be released, and converted into a purchase order. This should not be reaching far out into the future. When we release things to our suppliers early, we can no longer get a good read on their performance or their ability to deliver on time and in full. Because we've released it to them early, we're giving them more lead time than what they asked for. And we also are limiting our flexibility. So the one thing we know about demand is that it changes. And so if we have trouble being correct in terms of time or quantity, we want to make sure that we maintain that flexibility for as long as possible. If you're struggling with that and you're trying to give your supplier more visibility, so maybe you're releasing really early, like this case, this is way out into the future. We don't want to do that. We want to have our dates be nice and tight to what we should be working on today, tomorrow, this week. If you find that you're needing to do that, then chances are you need to explore other options in sourcing such as scheduling agreements or other ways to get a good forecast to your supplier. So make sure you check out some of those other Reveal TV videos and they'll help guide you through that. But this release date is here and it's present in many of our purchase requisition related transactions. Extremely helpful for helping us to produce a list of purchase requisitions that we need to go through and work and get out to our suppliers in purchase orders. So, release date. It's a very, very helpful field available to you in SAP. Welcome back from the demo. As we highlighted today, Release dates represent the date we need to act to give our suppliers the time they need to successfully deliver to us. They can be a leading indicator of process adherence, improvement, or challenge. We can work with them in variants and we can use them to select our requisitions and convert them into POs. And we no longer have to do the math around lead time to determine if it's time to cut that PO or not. And I totally used to do this. I had a calendar at my desk and I was figuring out if it was 63 or 91 days of lead time and what date I needed to release it. Now we even have Google and other tools to help us get better, but why use those when SAP is already doing this work for us? Time marches on Kristie, thank you so much. The release date sounds like an asset to the process that gets us the right signal at the right time. Win win. Thanks again. Hey folks, if you want to learn more about other particular topics related to procurement, we have a whole section on procurement that you can look into. And if you're struggling to find a video, feel free to use the AI chatbot.
