Executing Procurement for Service Management (3NI) using SAP Fiori Apps

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

After completing this lesson, you will be able to:

  • Execute external procurement steps for service orders using SAP Fiori apps

SAP Fiori Apps for Procurement for Service Management (3NI)

Automatic creation of a purchase requisition

The SAP Fiori app called Manage Service Orders can be used to create a service order containing a service item that will be procured externally from a supplier. To use this app, the user must have been assigned a business role based on the template business role Customer Service Manager (SAP_BR_CUSTOMER_SRVC_MGR).

The system needs to know the procurement price for the material that is bought from the supplier. If this price is not knows, the error shown in the figure is triggered. This is an indication that there is no info record for the determined source of supply or that the user did not yet manually input a price for the non-stock material used in the service order. Another reason to not have a price just yet, is if the source of supply for the externally procured item is not yet known.

Releasing and saving the service order triggers the automatic creation of a purchase requisition. Once this is done, the number of the purchase requisition can be found in the transaction history of the service order.

Note
The service order shown in the above figure also already includes the number of the created purchase order. This document number is included as soon as the document is created (see next step).

Create Purchase Order

To be able to create a purchase order, the user needs to have a business role based on the template business role Purchaser (SAP_BR_PURCHASER) assigned. Either the Create Purchase Order – Advanced app or the Schedule Purchasing Job – Advanced app can be used to create a new purchase order. A business role based on the template business role Purchasing Manager (SAP_BR_PURCHASING_MANAGER) is required for anyone to approve the purchase order if a work flow for approval has been implemented.

In the app called Create Purchase Order - Advanced (see the above figure), the user can switch on the Document Overview and select the option Purchase Requisitions to start selecting the purchase requisition(s) to be converted into purchase orders.

Once all selection criteria have been entered based on which purchase requisitions are selected, the user chooses Execute. A list appears showing all purchase requisitions for the entered selection criteria.

To convert a purchase requisition into a purchase order, the user can either select the Adopt icon or drag and drop the purchase requisition onto the icon that looks like a shopping cart.

Select Create to start the creation of a background job that can be used to convert purchase requisitions into purchase orders. The correct job template also needs to be selected.

The job can be scheduled using various conditions like the account assignment category used, the purchasing organization, and so on.

Posting the goods receipt

Delivery of service parts must be confirmed by posting the goods receipt of the purchase order. To post a goods receipt, the user requires a business role based on the template business role Warehouse Clerk (SAP_BR_WAREHOUSE_CLERK) assigned. Use for example the SAP Fiori app called Post Goods Receipt for Purchasing Document to post a new goods receipt.

After selecting the purchase order for which the goods receipt needs to be posted:

  • The ordered line items appear in the goods receipt screen area.
  • The material description is the same as the one from the purchase order.
  • The goods receipt must be confirmed by selecting the OK checkbox.

After posting the goods receipt, the system shows the material document number in the success message (bottom part of the screen). The goods receipt posts the costs (supplier effective price for the parts) to the relevant accounting object, which has been passed on from the purchase order. In this case, the service order line item triggered the creation of the purchase requisition on which the purchase order is based.

Posting the supplier invoice

When the supplier sends an invoice for the ordered service parts, this invoice needs to be posted in SAP S/4HANA Cloud. To post a supplier invoice, the user responsible needs a business role based on the template business role Accounts Payable Account (SAP_BR_ AP_ACCOUNTANT) assigned. The SAP Fiori app called Create Supplier Invoice can for example be used to post an incoming invoice document.

After selecting the purchase order for which you want to create the supplier invoice:

  • The ordered line items appear automatically in the screen with default values for the amounts.
  • The material description is same as the one from the purchase order.
  • You must adapt the line item amount in the case of a deviation from the expected amount based on the PO.
  • You can trigger automatic tax calculation if required.

After posting the supplier invoice, the system issues the document number in as success message (bottom part of the screen). In case of a deviated from the costs posted during the goods receipt, the deviating (extra) costs for the invoice are posted again onto the service order as actual costs.

If the supplier invoice is available in the system at the point in time when the confirmation for the service order is created, the price from the supplier invoice is copied to the confirmation. Where the supplier invoice is created after the confirmation for the service order, which is often the case, the price for the service parts updates to the confirmation until the confirmation item is released for billing.

Integration with service order confirmations

The figure shows the update logic from procurement to a service confirmation after the supplier Invoice is received: the manual price (condition type Manual Price (PMP0)) gets updated with the price of the supplier invoice. Usually, the service technician starts to provide the service to the customer with the arrival of the service parts. The technician confirms service time and service parts consumed on the service order in SAP S/4HANA Cloud.

Once the service confirmation is created, the following steps take place:

  1. Pricing information for the service part(s) is updated in the confirmation for the service order, based on the purchase order price (or if present at that point in time, from the supplier invoice). The price condition PMP0 on the service confirmation is updated (by default in the system). There is a Self-Service Configuration User Interface (SSCUI) available, with which the condition can be changed to a custom condition if needed. If nothing is changed, the Cost-plus pricing strategy is not followed.
  2. The source of procurement price is updated with the reference procurement document used for pricing.
  3. There is a check during the service confirmation that does not allow you to confirm a consumed quantity that is greater than the actual goods receipt quantity.
  4. The service manager can verify the service confirmation via the UI and fix any inconsistencies before marking it as complete.

If the service confirmation is marked as Final Confirmation and completed, the service can be released to the customer for billing.

The supplier invoice will probably not be available in the system at the time of the creation of a service confirmation. In this case, the price for the service parts are updated based on the purchase order price. When the supplier invoice becomes available, the invoice price in the confirmation document is updated. This happens until the confirmation item is released for billing.

The transaction history of the service order shows all related documents: the purchase requisition, the purchase order, the goods movement document (i.e. the material document number) and any service confirmation that have been created. It is updated again once billing the customer has been executed.

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