Summary

This document helps SAP Procurement consultants to understand the requirement prioritization in
SAP.

Requirement Prioritization

This function helps to prioritize the requirements based on urgency in Logistics management. This
will reduce the lead time from planning to available.

Application

Purchase Requisitions

Requirement urgency can be assigned at item level when creating purchase requisitions manually.
The requirement priority will be determined based on requirement urgency. Requirement urgency
and requirement priority is interconnected in configuration.

If you change requirement urgency to next level or another level, requirement priority will also
change in accordance with requirement urgency.
Purchase order

Requirement priority can be assigned when creating automatic purchase order so that the
corresponding priority PRs will be selected for conversion. In case of STO, Conversion only takes
place if sufficient stock is determined at the issuing storage location in the course of the availability
check. When creating manual purchase order, requirement urgency can be assigned at item level.

Via Requisition Assignment List

Transaction code: ME58

Please refer to the below screenshot to know the selection screen for requisition assignment list
with requirement priority field.
Requirement priority “1” assigned Purchase requisitions will be displayed by executing the above
transaction (ME58). From there, you can create a purchase order.

Automatically via Purchase Requisitions

Transaction code: ME59N

Another way of creating creating purchase order automatically is via ME59N. Here on the selection
screen input the required priority to be selected and execute the transaction.

Please refer to the below screenshot to know the selection screen for Automatic creation of POs
with requirement priority field

Selected Priority “1” PRs are converted in to POs succesfully.

As explained previously, requirement priority can be assigned direcly while creating a purchase
order. Here, you assign a requirement urgency manually at line item level and the requirement
priority will be calculated based on configuration settings.

The following display shows requirement priority “1” and “4” assigned manually on the purchase
order at item level.
Reservation

Requriement urgency can be assgined to reservation at item level so that requirement priority is
determined automatically.

Via Picking List

Transaction code: MB26

Pick list is used to list down the reservations created for the particular material with reservation
quantity. if the reservation is created with the requirement priority then the corresponding
reservations will be picked according to the selection criteria (priority 1, etc).
Material requirements planning

The requirement priority is determined for purchasing and reservation documents is displayed in the
stock/requirements list, in the planning result, and in the MRP list.
Configuration Overview

Activate Requirement Prioritization

Menu Path:

IMG–>Materials Management–>General Settings for Materials Management–

>Requirement Prioritization–> Activate Requirement Prioritization

In this activity, the requirement priority is activated with the combination of requirement priority
and requirement urgency. The requirement priority and urgency shall be customized as per business
requirement.
Define Requirement Urgency Groups

Menu Path:

IMG–>Materials Management–> General Settings for Materials Management–>

Requirement Prioritization–> Define Requirement Urgency Groups

Here, urgencies are grouped and defined as requirement urgency groups. Urgency groups shall be
defined as low, medium, high. Either alphabetic or numeric shall be used for the definition. Later the
requirement urgency groups shall be assigned to the requirement urgency.
Define and Assign Requirement Urgencies

Menu path:

IMG–>Materials Management–> General Settings for Materials Management–>

Requirement Prioritization–> Define and Assign Requirement Urgencies

In this step, create requirement urgency and assign the same to urgency group created in the
previous step. Requirement urgency and urgency group have one to one relationship.

Define Organizational Priorities

Menu path:

IMG–>Materials Management–> General Settings for Materials Management–>

Requirement Prioritization–> Define Organizational Priorities
In this step, create organizational priorities. Later, the organizational priorities will be assigned to the
plant and storage location. The combination of requirement urgency group and organizational
priorities will be determined the required requirement priority.

Assign Plants and Storage Locations (Optional)

Menu path:

IMG–>Materials Management–> General Settings for Materials Management–> Requirement

Prioritization–> Assign Plants and Storage Locations

In this step, assignment of plant and storage location with organizational priority takes place. The
assigned organizational priority along with urgency group determined the required requirement
priority and defaulted for the plant and storage location. If you assign the organizational priority for
the plant and it will be applicable for all the storage location belongs to the plant. If you want to
default for a particular storage location, then assign plant and storage location combination for the
organizational priority.
Define Requirement Priorities

Menu path:

IMG–>Materials Management–>General Settings for Materials Management–

>Requirement Prioritization–> Define Requirement Priorities

It is the final determination of requirement priority based on the urgency group and the
organizational priority. Assignment of urgency group is mandatory here and the organizational
priority assignment is optional.

Assign Delivery Priorities

Menu path:

IMG–>Materials Management–>General Settings for Materials Management–

>Requirement Prioritization–>Assign Delivery Priorities

In this step, assign delivery priorities to the combination of requirement priority and requirement
urgency. based on this assignment, the requirement priority from the purchase order will be
converted in to delivery priority in deliveries. The same will be displayed at item level of the
purchase order.

Assign Order Priorities

Menu path:

IMG–>Materials Management–>General Settings for Materials Management–

>Requirement Prioritization–>Assign Order Priorities

In this step, assign the order type (like QM order, PM order) and the priorities to the requirement
urgency so that the requirement priority will be determined based on this configuration and used in
reservation for the QM, PM orders, etc..

Conclusion
How the requirement prioritization could be used in supply chain and the configuration part has
been explained in a simple and understandable way. Any suggestions towards this document will be
always welcome.