Creating a Purchase Order for Lean Services

Objective

After completing this lesson, you will be able to create a purchase order for lean services

Introduction

In this unit, you will learn how to complete the steps of a lean services procurement process consisting of a purchase order and a service entry sheet.  

The following video describes the process, focusing on the first step, a purchase order for a lean service.

Purchase Order Creation for Lean Services

As with the procurement of materials, a purchase order for lean services can be created manually or with reference to a purchase requisition. To create a purchase order for lean services, use the Manage Purchase Orders app. There is no specific app for ordering lean services. 

This graphic illustrates the text in this paragraph about creating a lean services purchase order.

When creating a purchase requisition or purchase order item for lean services, there are two options:

  1. Description of lean service at item level with a short text, which means that there is no material master record for the lean service.

  2. Use of a material master record for the lean service, which means that a specific material master record has been created for the lean service with the product type group Service (2).

    Note

    A master record for a material has the product type group Material (1).

The following screenshot shows the entries that must be made manually in a purchase order item for a lean service if no material master record exists for the lean service.  

The data required includes: 

  • Short text that describes the lean service

  • Material group

  • Product type group Service (2), which must always be used for the procurement of lean services

  • Account assignment category, as lean services can only be procured if the account assignment data is specified

As previously described, the screenshot shows which entries must be made manually in the details of a purchase order item for lean services if no material master record exists for the lean service.

If, on the other hand, a material master record exists for the lean service, the short text and the product type group Service (2) are automatically copied from the material master record to the corresponding purchase order item.

When you procure a material, you typically know exactly which material and in what quantity you need it. When you order a service, however, you do not always know in advance all the services to be performed. For example, when a machine is being maintained, you do not know whether the settings need to be adjusted or whether parts need to be replaced.

By specifying a limit for unplanned services in the purchase order, you can control the costs of unexpected and unplanned services. Without a limit, the provision of unplanned services cannot be entered in the service entry sheet.

The screenshot shows the details of a purchase order item for an enhanced limit. The required data highlighted in the screenshot is described in the text below.

The following information must be entered for a limit item for a lean service:

  • Short text

  • Material group

  • Product type group Services (2)

  • Account assignment category

  • Overall limit and expected value

In the following demo, you can see how to create a purchase order for lean services using the Manage Purchase Orders app.  

DemoStart Demo

Create a Purchase Order for Services

Note

To perform this exercise, use the S4HANA T41 Fiori Launchpad.

If a value in the exercise contains ##, replace the ## characters with the number assigned to you.

A printer in the Purchasing department is defective. Now the repair of the printer has to be ordered from supplier Nico Lexis SE (S520-3##). A limit for unexpected repair costs should also be included in the purchase order.

Steps

  1. Create a purchase order for supplier S520-3##. The purchase order is for purchasing organization 101C and purchasing group Z##. To create the purchase order, use the Manage Purchase Orders app.

    Create a first item for the service Printer ## Repair with the following values:

    FieldValue
    Short TextPrinter ## Repair
    Material GroupServices (007)
    Plant1010
    Order Quantity1 AU
    Net Order Price200
    Product Type GroupService (2)
    Account Assignment CategoryCost center (K)
    Cost Center10101201
    Performance Period<Today> until <Today + 1 Week>

    After you have entered all data for the item, stay on the Purchase Order window without saving, as another PO item has to be added in the next exercise step.

    1. On the SAP Fiori launchpad, choose the Purchase Order Processing tile group, and start the Manage Purchase Orders app.

    2. To add a new purchase order, choose Create.

    3. On the Purchase Order window, enter S520-3## in the Supplier field.

      The Purchasing Organization 101C is automatically proposed.

    4. In the Basic Data also enter Z## in the Purchasing Group field.

    5. In the Items section, choose Create.

      Caution

      Make sure to create a purchase order item in the Items section and not in the Limit Items section.

    6. Enter the following data for the item and after this, confirm you entries by pressing Enter:

      FieldValue
      Short TextPrinter ## Repair
      Material GroupServices (007)
      Plant1010
      Order Quantity1 AU
      Net Order Price200

    7. To enter the other item data, choose the arrow button on the right side of the item line to open the item details.

    8. On the Purchase Order Item window, in the Product Type Group field, select the entry Service (2) and in the Account Assignment Category field, select the entry Cost center (K).

    9. Choose the Schedule Lines tab page.

    10. In the Schedule Lines section, enter <Today> in the Start of Performance Period field and <Today + 1 Week> in the End of Performance Period field.

    11. Choose the Account Assignment tab page.

    12. In the Account Assignment section, enter 10101201 in the Cost Center field.

    13. To return to the PO overview, choose Apply.

    14. Stay on the Purchase Order window without saving, as another PO item has to be added in the next exercise step.

  2. Enhance the purchase order with a limit item for the unplanned repair costs.

    Create the limit item with the following values:

    FieldValue
    Short TextUnexpected Additional Repair Costs
    Expected Value100
    Overall Limit100
    Account Assignment CategoryCost center (K)
    Product Type GroupService (2)
    Plant1010
    Material GroupServices (007)
    Cost Center10101201
    Performance Period<Today> until <Today + 1 Week>

    After you have entered all data for the limit item, save your purchase order.

    1. On the Purchase Order window, choose Limit Items tab page.

    2. In the Limit Items section, choose Create.

      Caution

      Make sure to create a purchase order item in the Limit Items section and not in the Items section.

    3. Enter the following data for the limit item and after this, confirm you entries by pressing Enter:

      FieldValue
      Short TextUnexpected additional repair costs
      Expected Value100
      Overall Limit100
      Account Assignment CategoryCost center (K)
      Product Type GroupService (2)
      Plant1010

    4. To enter the other item data, choose the arrow button on the right side of the item line to open the item details.

    5. On the Purchase Order Item window, in the Material Group field, select the entry Services (007).

    6. Choose the Schedule Lines tab page.

    7. In the Schedule Lines section, enter <Today> in the Start of Performance Period field and <Today + 1 Week> in the End of Performance Period field.

    8. Choose the Account Assignment tab page.

    9. In the Account Assignment section, enter 10101201 in the Cost Center field.

    10. To return to the PO overview, choose Apply.

    11. Choose Order, so save the purchase order.

    12. Choose (Navigate to Home) to leave the app.

Learning

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