Creating a Purchase Order 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:

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

Creating a Purchase Order for Lean Services

Introduction

Purchase Order Creation for Lean Services