Introducing Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ)

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ)

Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ)

Introducing Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ)

To access scope item process flows, perform the following steps:

  1. Navigate to SAP Best Practices for SAP S/4HANA Cloud for Enterprise Management https://rapid.sap.com/bp/#/BP_CLD_ENTPR.

  2. Select a country from the Version dropdown list.

  3. Navigate to the Accelerators section.

  4. Select the SAP Best Practices content library.

  5. Select the relevant scope option checkboxes to filter information and locate scope item test scripts and process flows.

    Note

    Ignore the BPMN2 version of process flows.

Description

This scope item manages the end-to-end process when headquarters procures project-based services from a subsidiary.

Through SAP S/4HANA Cloud, on-premise, or an SAP ECC system, headquarters requests the subsidiary (using SAP S/4HANA Cloud) to provide project-based services through a purchase order. On a purchase order basis, the project execution is handled by the subsidiary. The purchase order created at the headquarters is used as a reference in the project sales order and invoices can be created. The customer invoice creation triggers the generation of the supplier invoice at the headquarters. The supplier invoice is settled by the headquarters, leading to subsidiary payment.

The scope item combines the scope items Customer Project Management (J11), Sales Order Processing (J14), and Integration of Sales with External Buyers (2EL) at the subsidiary, and requires scope items Service and Material Procurement (J13) or Procurement of Direct Materials (J45) and Integration of Procurement with External Suppliers (2EJ) at the headquarters (provided that the headquarters uses SAP S/4HANA Cloud).

Key Process Steps

Key process steps of Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ) include:

  • Create a purchase order with details such as delivery schedule or supplier at the headquarters.

  • Manage a customer project (in this scenario, headquarters) during the planning and execution phase at the subsidiary including:

    • Record times for the customer project-Maintain customer project billing-Create customer invoices.
    • (Optional) Maintain work package staffing of customer project-Procure external services for the customer project.
  • Generate supplier invoice at the headquarters.

  • Approve the supplier invoice.

  • Perform accounting and financial close activities at the HQ and Subsidiary.

Benefits

Benefits of Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ) include:

  • Implement projects effectively.

  • Get project visibility. This is managed in the subsidiary system (SAP S/4HANA Cloud).

  • Reduce manual intervention in the business process between headquarters and subsidiary.

  • Automate the invoicing process between subsidiary and headquarters in real-time.

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