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In SAP MM, Purchase Requisition plays a vital role in the procurement process. When a department in a company needs goods or services, they create a Purchase Requisition to notify the purchasing department of their requirements. This document contains details such as the materials or services needed, quantity, required delivery date, and any specific instructions. By creating a Purchase Requisition, the requesting department initiates the procurement process, allowing for better coordination and planning within the organization. It serves as the foundation for creating Purchase Orders, which are sent to vendors for the actual procurement of goods or services.

Release Strategy SETUP in SAP MM allows companies to define a set of rules and approval levels that determine the release of Purchase Requisitions based on certain criteria. This setup helps organizations ensure that the purchase process follows the predefined guidelines and that proper authorization is obtained before proceeding with procurement. Companies can configure release strategies at the header level or item level, depending on their specific requirements. By implementing Release Strategies, companies can enforce control mechanisms, prevent unauthorized purchases, and streamline the approval process, leading to greater efficiency and compliance with internal policies.

At the item level, Release Strategy in SAP MM enables companies to set up specific criteria for the release of individual line items within a Purchase Requisition. For example, an organization may require different approval levels based on the value of each item, the purchasing department responsible, or the vendor selected. By defining release strategies at the item level, companies can fine-tune their approval processes, ensuring that each part of the Purchase Requisition undergoes the necessary scrutiny before moving forward. This level of control helps organizations manage costs, mitigate risks, and enhance transparency in their procurement operations.