Outlining Procurement of Services

The Procurement of Services (‏22Z‏) scope item belongs to the Operational Procurement and Invoice Management business areas, which are part of the Sourcing and Procurement line of business.

The Service Purchasing and Recording solution capability enables buyers to do the following:

• Give buyers access to one integrated system for service purchasing to create, display, change, and process Purchase Orders (POs).

• Support automated and manual processes for creating POs in response to purchase requisitions.

• Approve and release POs, send them to suppliers, and process supplier responses.

• Streamline PO processing so buyers can gain the transparency they need to manage purchases quickly and accurately.

This scope item enables an efficient process for the procurement of services. With seamless integration, this scope item ensures that the process from the initial creation of a purchase requisition through invoice management is easy to use.

This scope item contains the creation and approval of POs for services. Alternatively, the process can be triggered by the creation of a purchase requisition, which is later converted to a PO. The service fulfillment can be steered and monitored with the service entry sheet. After this, the invoicing process is triggered.

The scope item comprises standard as well as limit items and can be conducted with different optional steps.

The figure, Procurement of Services Process Overview, shows the process diagram for the Procurement of Service (22Z) scope item.

The following is a list of benefits:

• Provide efficient and cost-effective streamlined procurement processes.
• Ensure highly automated processes for the procurement of service.
• Reduce manual effort significantly.
• Monitor the service fulfillment in real time.
• Monitor purchase order items with an analytical list page.

• Process purchase requisitions.
• Manage purchase orders.
• Manage service entry sheets.
• Manage invoices.

With this app, you can create and manage POs to ensure that you get the ordered items on time, at the correct location, and in the required quantity. As a purchaser, you can manually order materials and services. The list of POs that is displayed is based on the header level of the PO, so the information shown relates to the entire PO. On the overview, you can immediately see the number of overdue items for each PO. The item categories Standard, Consignment, Subcontracting, Third-party, and Limit are supported.

• Create a new item for planned lean services:
  • You have two options for creating planned service items: You can either enter master data under the Material field (the master data must be of the product type group Service), or you specify the required services by entering a free short text and choosing the product type group 2 (Service).
  • You can influence the process control of service items so that neither a service entry sheet nor a goods receipt is required and an invoice can be posted immediately.
  • If you decide that a service entry sheet (and a goods receipt) is required, the account assignment category of the purchase order can no longer be changed once a service entry sheet has been created.
  • You can display the confirmations for lean services, including start date, end date, and service performer.
• Create limit items for unplanned lean services:
  • You can define a value limit for unplanned services, that is, services that cannot be specified in detail at the time of ordering. This also applies to services that are of such low value that you want to reduce the administrative effort involved in processing POs and follow-on documents. You can define both an expected value and an overall limit. For a limit item, you must enter a time period. The services can be specified later in the service entry sheet where the exact services and their price and quantity can be recorded. Otherwise, you post the invoice directly with reference to the PO.

  • You can enter a purchase contract number in an enhanced limit item for lean services to restrict the services recordable in the service entry sheet.

• Use the service order integration

  • A purchase order with the account assignment category Service Order is initiated by a service order from Service Order Management.

  • If the automatic creation of purchase requisitions from service orders is activated in the master data of the relevant material or service, the data of the service document is automatically maintained by the system. Otherwise, you as a purchaser can maintain the data of the service document in the purchase order.

Note

The support of Manage Purchase Orders (F0842A) SAP Fiori app on smartphones is deprecated as of SAP S/4HANA Cloud 2208 and will be deactivated with SAP S/4HANA Cloud 2302.

You will no longer be able to use this app on smartphones as of SAP S/4HANA Cloud 2302.

If you have been using this app on your smartphone, SAP recommends that you make the necessary preparations to be able to continue using the apps on one of the supported device types, which are tablet computers and desktop computers.

With this app, you can create service entry sheets to record that the ordered services have been performed. You can change these service entry sheets and send them for approval. You can search for service entry sheets and you can sort, filter, and group the list of the service entry sheets, for example, by supplier or by reference purchase order. Lean Services are a type of service that can be purchased in the same way as materials using SAP Fiori apps, such as Manage Purchase Orders, Manage Service Entry Sheets - Lean Services, and Create Supplier Invoice. These apps enable a lean process of service procurement that is equivalent to the procurement of materials.

You can create or change a service entry sheet with reference to a PO.

Each service entry sheet references one PO. This PO can consist of standard items for planned lean services or limit items for unplanned lean services. After entering the purchase order number, all purchase order items for lean services are added as service entry sheet items by the system. You can perform the following:

• Record planned services with reference to purchase order standard items.
  • In the service entry sheet, you complete the data of the purchase order by entering the stated quantity and the date of performance.
• Record unplanned services with reference to purchase order limit items.
  • In the service entry sheet, you record the services by entering an item description, the performance date, the stated quantity with its unit of measure, and the price per unit.
  • The system displays the expected value of the referenced purchase order limit item. It issues a warning if the expected value is exceeded and an error if the (aggregated) stated amount exceeds the overall limit.

You can define the account assignment for a service item in the purchase order or in the service entry sheet. Even if already defined in the purchase order item, you can change the account assignment in the service entry sheet, with the following restrictions:

• If the service entry sheet item refers to a purchase order limit item (unplanned services), only single account assignment is possible for the purchase order item as well as for the service entry sheet item.
• If the costs of the referenced purchase order (standard) item are distributed by amount, the distribution indicator Distribution by Amount cannot be changed in the service entry sheet. If you want to use the indicator Distribution by Amount in the service entry sheet, you must maintain it in the purchase order.
• You cannot change the Account Assignment Category that has been defined in the purchase order, with the exception of the account assignment category Unknown.

The following table shows a detailed overview of the possible options for account assignment distribution in service entry sheets, depending on the referenced purchase order item:

*By default, the costs are distributed by percentage if you maintain multiple account assignments in the Manage Purchase Orders app.

** You can select the Distribution on Quantity Basis and Distribution by Amount indicators for purchase order items in the Create Purchase Order - Advanced app.

• You can attach documents and add links at the header level and at the item level of the service entry sheet.

• The transfer of attachments in electronic communication processes is supported and enabled by the inbound SOAP message that is used to create service entry sheets in SAP S/4HANA Cloud.

• Business users have access to these attachments in the service entry sheet.

You can mark a service entry sheet item as the last service entry sheet item for the referenced purchase order item. After the service entry sheet has been created with the flag Final Entry set, no new service entry sheets can be created for the referenced purchase order item. After the service entry sheet has been approved, the Delivery Completed indicator is set automatically in the referenced purchase order item. Other service entry sheets that have already been created for the referenced purchase order item can still be completed.

You can create (multiple) service entry sheets by importing service entry sheets from Microsoft Excel files. Only authorized users can import service entry sheets from Microsoft Excel Files. To allow users to import service entry sheets, configuration experts maintain the required settings using the configuration app Manage Your Solution → Configure Your Solution → Application Area: Sourcing and Procurement → Sub Application Area: Operational Procurement → Item Name: Service Purchasing and Recording → Configuration Step: Activate Import of Service Entry Sheets for Specific Users.

If a service was completed, you can indicate that a service entry sheet item is the last item for the referenced purchase order item. If you use a spreadsheet to import service entry sheets, set the Is Final Entry field to TRUE. This field is optional. If you leave the field empty, the Final Entry indicator isn't set for the respective service entry sheet item.

You can initiate or cancel the approval process as follows:

• When you have recorded all services, you can send the service entry sheet for approval. The service entry sheet gets a status of In Approval and is automatically displayed in the approver’s My Inbox.
• If the service entry sheet has the status In Approval, you can edit it again. Choose Withdraw from Approval and edit it again.
• Once the service entry sheet has been approved by an authorized person, a goods receipt document is created by the system and a corresponding invoice can be created, checked, and posted.
• If the service entry sheet has been approved and no follow-on documents exist other than the goods receipt document, you can choose Revoke Approval, and edit it again.

You can use the flexible workflow for service entry sheets, enabling you to define your own approval process using the Manage Workflows for Service Entry Sheets - Lean Services app.

• The flexible workflow allows you to use either the automatic, one- or multi-step approval.
• The app also provides several options for determining the approver, such as the assignment of an approver by using a role, but you can also assign specific users or teams as approvers.

You can display the approver or a list of approvers when searching for a service entry sheet in the Manage Service Entry Sheets app. For this, you may need to adjust your settings to display the Approver column using the Settingsbutton.

You can record contract limits if there is a contract in the purchase order and select a contract item in the service entry sheet. The price per unit for each limit item is determined by the contract for limit.

On creation of a purchaser order for unplanned services, the user can assign a contract as a source of supply for a limit item.

While confirming the services in a service entry sheet, the user has the ability to select a free-text service item from the contract that has been assigned in the purchase order.

You can add and maintain notes at both the header and item level of service entry sheets.

You can use the Header Note or Item Note field to write an internal note for other people in your organization. Alternatively, you can use the Header Text or Item Text field to write a note for external parties in the process flow, for example, the supplier.

When creating a note or text, you can use the dropdown menu to select the language in which you are writing the note. Only one note and one text can exist for each header or item.

You can add multiple service entry sheet items from a purchase order or purchase contract. The basic details for the selected items are then automatically entered in the service entry sheet.

Instead of manually entering the details of service entry sheet items individually, you can add multiple items at once based on either the reference purchase order or purchase contract. The basic details for the selected items are then automatically entered in the service entry sheet.

You can record Consumable Materials in service entry sheets. Consumable materials are items of product type group Material (01) that were used during the execution of a service and that were planned together with a service in the referenced purchase order.

With this functionality, the transparency of the consumption of materials during service delivery is improved. The flexibility by handling services and materials together throughout the whole procurement process is also increased.

You can add Consumable Materials of product type group Material (01) to a service entry sheet, and is not limited to items of product type group Service (02). However, note that you can only record materials that were planned together with a service in a purchase order. This means that you have to maintain at least one item of product type group Service (02) in a service entry sheet. Please also note that you cannot change the account assignment stated in the purchase order item for consumable materials in a service entry sheet.

While you can add materials with or without a product master, there are several restrictions to the type of material you can add to a service entry sheet. You cannot record the following material types in a service entry sheet:

• Batch-managed materials

• Materials with classification

• Materials with serial numbers

• Materials with split valuation

• Materials with manufacturer part numbers

• Materials with a filled revision level

• Retail articles (with subitems in the purchase order)

Business users can trigger the creation of a purchase requisition for lean services directly out of a service order.

• Trigger the creation of a purchase requisition for planned lean services directly out of a service order.
• Use the service-order item as an accounting object for procurement of lean services.

Key users can configure a workflow that empowers the service order responsible to approve the respective service entry sheet. After approval, the confirmation for the service provided is automatically triggered. Reducing the manual effort and increasing automation leads to a more effective third-party service procurement process.

• Ability to trigger confirmation for the service provided by an external service provider in one step.
• Possibility for the person responsible for the service order to approve the service entry sheet.
• More effective third-party service procurement process, starting from the automatic creation of the purchase requisition out of a service order to the confirmation of the provided service.

You can use this app to approve or reject your service entry sheets via mobile or desktop devices anywhere and anytime. Using this app, you can process your standard and custom workflow tasks based on the decision options defined in the back-end system.

You can display the object page of a service entry sheet in the My Inbox app. When approving and rejecting service entry sheets in the My Inbox app, you, as an approver, can see detailed information, notes and attachments of the service entry sheets. By navigating to the item details, you can also view detailed information about particular items, such as tax or pricing details.

With this app, you can create, manage, and search for order acknowledgements to ensure that you receive the ordered items in the required quantity at the defined delivery date. The list of confirmations displayed is based on the header level of the confirmation, so the information shown relates to the entire confirmation. With this new business object the supplier confirmations are now separated from the purchase orders, but still connected.

• Create new supplier confirmations from scratch
• Enter confirmations for a purchase order as a whole
• Process single or a series of confirmations at once
• Edit confirmations
• Add confirmation lines
• Add confirmation items and change them
• Delete whole confirmations, individual confirmation items, individual confirmation lines

Note

As the Manage Supplier Confirmations app is an independent business object, confirmations maintained here cannot be maintained in other purchase order applications. Confirmations maintained in other purchase order applications can no longer be maintained in the app Manage Supplier Confirmations.

Note

The support of Manage Supplier Confirmations SAP Fiori app on smartphones is deprecated as of SAP S/4HANA Cloud 2208 and will be deactivated with SAP S/4HANA Cloud 2302.

You will no longer be able to use this app on smartphones as of SAP S/4HANA Cloud 2302.

If you have been using this app on your smartphone, SAP recommends that you make the necessary preparations to be able to continue using the apps on one of the supported device types, which are tablet computers and desktop computers.

The following table lists the SAP Fiori apps that are used in the standard Procurement of Services process steps:

The following table lists the SAP Fiori apps that are used in the Multiple Account Assignment for Procurement of Services process steps:

The following table lists the SAP Fiori apps that are used in the Procurement of Services without Service Entry Sheet process steps:

The following table lists the SAP Fiori apps that are used in the Automatic Purchase Order Creation from Purchase Requisition process steps:

The following table lists the SAP Fiori apps that are used in the Employee Self Services Procurement process steps:

In Sourcing and Procurement, several Self-Service Configuration UIs (SSCUIs), also referred to as configuration steps, are available in the Manage Your Solution app. The following SSCUIs affect the area of procurement of services: