Flexible Workflows for Procurement in SAP S/4HANA

Flexible Workflows for Procurement in SAP S/4HANA

Part 1: Introduction to the Flexible Workflow

What is the Flexible Workflow?

In any business, spending needs to be controlled. Before a purchase requisition becomes a purchase order, or before a purchase order is sent to a supplier, it often needs approval. In traditional SAP systems, this was handled by a rigid, technically complex Release Strategy.

The

Flexible Workflow is the modern, powerful, and user-friendly solution in SAP S/4HANA. It allows companies to build robust, condition-based approval processes with ease. Instead of relying on developers, business process experts can now configure complex approval rules directly in SAP Fiori applications.

Key benefits include:

• Condition-Based: The workflow is triggered only when specific conditions are met, such as the total value of an order, the type of material being purchased, or the cost center it’s assigned to.
• Multi-Step Approvals: You can design simple one-step approvals or complex, sequential multi-step approval chains.
• Role-Based Approvers: Approvers can be assigned dynamically based on their role (e.g., “Manager of Workflow Initiator,” “Cost Center Responsible”) or can be specific users or teams.
• Fiori-Native: The entire process is managed through intuitive SAP Fiori apps, from configuration to the final approval, which can be done on any device using the My Inbox app.
• Transparency: Both the creator of the document and the approvers can easily track the approval status, see comments, and understand where the document is in the process.

Core Concepts Explained

Before we dive into the configuration, let’s clarify some key terms.

Part 2: Business Case & Master Data Setup

To make our guide practical, we will use a fictional company, Global Provisions Inc., and follow their journey in setting up and using flexible workflows.

The Business Scenario

Global Provisions Inc. wants to improve its procurement controls. They have defined the following requirements:

1. For Purchase Requisitions (PRs):
• Any PR created for IT hardware (Material Group: IT-HW) with a total value over €1,000 must be approved by the creator’s direct manager.
• If the value is over €5,000, it must also be approved by the manager’s manager (a two-step approval).
• All other PRs can be approved automatically.
2. For Purchase Orders (POs):
• Any PO sent to their primary raw material supplier (Supplier: 10300001) with a total net value over €10,000 must be approved by a specific Purchasing Manager, “John Manager”.
• All other POs are considered pre-approved (based on the approved PR) and should be processed automatically.

Prerequisite Master Data

Before we can build and test our workflows, a consultant or key user must ensure the following master data exists in the SAP S/4HANA system.

1. Users and Roles:

• Employee (End-User): EMPLOYEE_USER. This user will create the purchase requisition.

• Needs role:

Employee – Procurement (SAP_BR_EMPLOYEE_PROCUREMENT).

• Manager 1: MANAGER_1. This is the direct manager of EMPLOYEE_USER.

• Needs role:

Manager – Procurement (SAP_BR_MANAGER_PROCUREMENT).

• Manager 2: MANAGER_2. This is the manager of MANAGER_1.

• Needs role:

Manager – Procurement (SAP_BR_MANAGER_PROCUREMENT).

• Purchaser: PURCHASER_USER. This user creates purchase orders.

• Needs role:

Purchaser (SAP_BR_PURCHASER).

• Purchasing Manager: JOHN_MANAGER. A specific user who will approve high-value POs.

• Needs role:

Purchasing Manager (SAP_BR_PURCHASING_MANAGER).

• Configuration Expert: CONFIG_EXPERT.

• Needs role:

Configuration Expert – Business Process Configuration (SAP_BR_BPC_EXPERT).

Crucial Step: For the “Manager of…” roles to work, you must maintain the organizational structure. This is typically done in HR master data or by linking users in the Maintain Business User app, where you can specify a manager for each user.

1. Material Master Data:

• Fiori App: Manage Product Master Data
• Create two materials:

• High-End Laptop:

• Material Number: LAPTOP_PRO
• Material Type: ROH (Raw Material) or relevant type
• Description: High-End Business Laptop
• Material Group: IT-HW (This is critical for our PR scenario)
• Base Unit of Measure: EA (Each)
• Valuation Class: 3000 (or relevant)
• Purchasing Group: 001

• Material Number: OFFICESUPPLY
• Material Type: ROH
• Description: General Office Supplies
• Material Group: GEN-OFFICE
• Base Unit of Measure: BOX
• Valuation Class: 3000
• Purchasing Group: 001

1. Supplier Master Data:

• Fiori App: Manage Business Partner / Manage Supplier
• Create one supplier:

• Business Partner Number: 10300001
• Company Name: Global Raw Materials Inc.
• Role: Supplier
• Company Code Data: Create for your company code (e.g., 1010) with a reconciliation account.
• Purchasing Data: Create for your purchasing organization (e.g., 1010) with an order currency (e.g., EUR).

1. Cost Center Master Data:

• Fiori App: Manage Cost Centers
• Create one cost center for our scenario:

• Cost Center: CC_IT_DEPT
• Name: IT Department
• Responsible Person: MANAGER_1 (Assign the manager’s user ID)
• Cost Center Category: A (or relevant)
• Hierarchy Area: A standard area
• Company Code: 1010

Part 3: Configuring the Workflow for Purchase Requisitions

With our scenario and master data ready, the CONFIG_EXPERT user can now build the required approval process for PRs.

Customizing Point: Activating the PR Workflow

First, you must ensure the flexible workflow is active for the PR document types.

1. Fiori App: Manage Your Solution or Configure Your Solution (for cloud) or access SPRO (for on-premise).
2. Navigate to Sourcing and Procurement -> Requirements Processing. 3. Find the configuration step named

Activate Flexible Workflow for Purchase Requisitions.

1. Ensure that this is active for the document types you use, particularly

NB (Standard Purchase Requisition). You can choose whether the workflow should be for the overall document or at the item level. For our scenario, we will use

item-level release (Release of Purchase Requisition Item).

How-To Guide: Building the PR Workflow

Now we will use the main workflow configuration app to build the logic for Global Provisions Inc.

• Fiori App: Manage Workflows for Purchase Requisitions
• User: CONFIG_EXPERT

Step 1: Create the First Workflow for Manager Approval

1. In the app, select the workflow scenario Release of Purchase Requisition Item.
2. Click Add to create a new workflow.
3. Properties:
• Workflow Name: PR Approval for IT Hardware > 1000 EUR
• Description: Manager approval for IT hardware requisitions over €1,000.
4. Start Conditions: This is where we define when this workflow should trigger.
• Click Add to create a new condition.
• Select precondition: Total net amount of purchase requisition item is greater than. Enter 1000 and EUR.
• Click Add again.
• Select precondition: Material Group of purchase requisition item is. Enter IT-HW.
• The workflow will now only start if BOTH conditions are met.
5. Step Sequence: Now, we define who approves.
• Click Add under Step Sequence to create Step 1.
• Step Name: Manager Approval
• Step Type: Release of Reworkable PR Item (This allows the manager to send it back for changes).
• Recipients -> Assignment by: Select Role.
• Role: Select Manager of Workflow Initiator. This dynamically finds the manager of the person who created the PR.
• Leave Step Conditions blank for this step.
6. Click Save, then Activate the workflow.

Step 2: Create the Second Workflow for Senior Manager Approval

We need a separate workflow for the higher value threshold because the start conditions are different.

1. Back on the main screen of the Manage Workflows for Purchase Requisitions app, click Add again.
2. Properties:
• Workflow Name: PR Approval for IT Hardware > 5000 EUR
• Description: Two-level manager approval for high-value IT hardware.
3. Start Conditions:
• Add precondition: Total net amount of purchase requisition item is greater than. Enter 5000 and EUR.
• Add precondition: Material Group of purchase requisition item is. Enter IT-HW.
4. Step Sequence: This workflow will have two steps.
• Step 1: Manager Approval
• Step Name: Direct Manager Approval
• Step Type: Release of Reworkable PR Item
• Recipients -> Role: Manager of Workflow Initiator
5. Step 2: Senior Manager Approval
• Click Add again in the Step Sequence section.
• Step Name: Senior Manager Approval
• Step Type: Release of Reworkable PR Item
• Recipients -> Role: Manager of Workflow Initiator’s Manager. This looks up the manager of the manager.
6. Click Save, then Activate.

Step 3: Define the Order

You now have two active workflows. What happens if a PR is for €6,000? It meets the conditions for BOTH workflows. This is where you must define the order. The system checks the workflows in sequence and uses the

first one that matches.

1. On the main screen, click the Define Order button.
2. Ensure that the more specific workflow, PR Approval for IT Hardware > 5000 EUR, is set to Order 1.
3. Set the PR Approval for IT Hardware > 1000 EUR workflow to Order 2.
4. The default

Automatic Approval workflow should be last.

1. Click Save.

Now, if a PR for €6,000 is created, the system checks Order 1, finds a match, and triggers the two-step approval. It will not proceed to check Order 2. A PR for €2,000 will fail the check for Order 1, but match Order 2, triggering the single-step approval.

Part 4: Configuring the Workflow for Purchase Orders

Next, the CONFIG_EXPERT will set up the simpler PO approval process for Global Provisions Inc.

Customizing Point: Activating the PO Workflow

Similar to PRs, the PO workflow must be enabled first.

1. Fiori App: Manage Your Solution / Configure Your Solution
2. Navigate to Sourcing and Procurement -> Purchase Order Processing. 3. Find the configuration step

Activate Flexible Workflow for Purchase Orders and activate it. If this is not active, all POs will be approved automatically by default.

How-To Guide: Building the PO Workflow

• Fiori App: Manage Workflows for Purchase Orders
• User: CONFIG_EXPERT

Step 1: Create the Workflow for High-Value Supplier POs

1. In the app, click Add to create a new workflow.
2. Properties:
• Workflow Name: High-Value PO Approval for Global Raw Materials
• Description: Approval for any PO to Global Raw Materials Inc. over €10,000.
3. Start Conditions:
• Add precondition: Total net amount of purchase order is greater than. Enter 10000 and EUR.
• Add precondition: Supplier is. Enter 10300001.
4. Step Sequence:
• Click Add to create Step 1.
• Step Name: Purchasing Manager Approval
• Step Type: Release of Reworkable Purchase Order (This allows the manager to send it back for rework).
• Recipients -> Assignment by: Select User.
• User: Select JOHN_MANAGER. In this case, the approver is a specific person, not a dynamic role.
5. Click Save, then Activate the workflow.

Step 2: Check the Default Workflow

Ensure the

Automatic Release of Purchase Order workflow delivered by SAP is active and is the last in the order. This will act as a fallback to automatically approve any POs that do not meet the criteria for our new workflow.

Part 5: End-User Test Plan & Execution Guide

Now that the configuration is complete, we can test our scenarios from an end-user perspective.

Test Scenario 1: Purchase Requisition for a €2,500 Laptop

Objective: Test the single-step manager approval workflow for PRs.

Test Scenario 2: High-Value Purchase Order

Objective: Test the user-specific approval workflow for POs.

Part 6: Advanced Topics & Special Features

The flexible workflow engine is very powerful. Here are some advanced features mentioned in the source documents that you can explore.

Restarting Workflows After Changes

What if a PR is approved, but then the creator changes a critical field, like the quantity or price? You can configure the system to automatically restart the entire approval workflow if certain fields are changed.

• Customizing App: Manage Conditions to Restart Flexible Workflow.
• How it works: In this app, you see a list of fields (e.g., Price Unit, Quantity, Material Group). If the checkbox is ticked for a field, any change to that field on an already-approved document will reset the approval and re-trigger the workflow from the beginning. This ensures that all changes are properly vetted.
• BAdI for Complex Logic: For more complex rules (e.g., “only restart if the price increases by more than 10%”), you can use the BAdI Define Conditions to Restart Flexible Workflow (MM_PUR_S4_PR_WFL_RESTART) in the Custom Fields and Logic app to implement your own logic.

Deadline Monitoring

To prevent approvals from getting stuck, you can set deadlines for workflow steps.

• Configuration: When defining a step in the Manage Workflows for… apps, you can access the Deadlines section.
• Functionality: You can specify a time (e.g., 3 days) after which the work item is marked as Overdue. This is visible to both the approver in their

My Inbox and to others in the approval details log. You can also configure actions, such as sending a notification email once the deadline is passed.

• Workdays: The deadline can be based on calendar days or workdays. Workdays are determined by a factory calendar, which can be defined via the BAdI

Determination of Factory Calendar for Workflow Deadline for custom logic.

Optional Steps

Sometimes, an approver might not be found (e.g., a cost center has no responsible person assigned). By default, this would cause the workflow to error. However, you can mark a step as

optional.

• How it works: If a step is marked as optional and the system cannot determine an agent/approver, it will simply skip that step and move to the next one in the sequence. The workflow history will clearly log that the step was skipped. This builds resilience into your approval process.

Editing During Approval

In some cases, an approver may spot a small mistake and want to fix it directly instead of rejecting the whole document.

• Fiori App: My Inbox
• Functionality: The Edit and Approve Purchase Requisition feature allows an approver with the correct authorizations to edit certain fields (like account assignment details or the delivery date) directly within the My Inbox app before approving. This significantly improves process efficiency.

Part 7: Appendix – Key Roles and Fiori Apps

Here is a summary of the primary roles and applications involved in the flexible workflow process for procurement.

Business Roles

Fiori Applications

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