Introducing Service and Material Procurement

Objectives

After completing this lesson, you will be able to:

  • Introduce Service and Material Procurement

Service and Material Procurement

Service and Material Procurement Process Flows Overview

The figure displays an overview of the process flows for the Service and Material Procurement (J13) scope item.

Description

The Service and Material Procurement scope item covers all relevant procurement processes of the professional services scenario.

Possible procurement sub-processes are:

  • Service procurement: You order an external service. The external service company confirms the purchase order and performs the service. The supplier invoices the service. You enter and process the supplier invoice.

    Example 1: purchasing the services of a contingent worker or contractor to be staffed to the project, capture time, and then automatically have their service entry sheet updated against their purchase order for comparison upon receiving the supplier invoice.

    Example 2: A sub-contractor is used to perform a specific service on the project (for example graphics services) and their services are confirmed against the supplier invoice that is received.

  • Material procurement for consumption: A material is requested for a customer or internal project. You create a purchase order and sent it to the supplier. The supplier delivers the material and you enter the goods receipt. Finally, you enter and process the supplier invoice.

    Example: A specialized piece of equipment (for example high-spec laptop) is required for a data analysis project which is to be ordered and received by the project team and charged to the project (optional: to be charged to the customer).

  • Procurement for third-party order processing: You order a material for an end-customer. The supplier ships the material directly to this end-customer.

    Example: As part of the contract agreement, the customer has purchased a server to be used in an implementation project for which the delivering company will raised the purchase order, pay the supplier invoice but the server will be delivered directly to the customer.

Key Process Steps

  • Procure services:

    • My Purchase Requisitions - New

    • Create and approve purchase order

    • Send purchase order to supplier

    • Confirm service from supplier

    • Post expenses of service

    • Create supplier invoice

  • Procure material for consumption:

    • My Purchase Requisitions - New

    • Create and check the purchase order

    • Send purchase order to supplier

    • Post and check goods receipt

    • Create supplier invoice

  • Procure for third-party order processing:

    • My Purchase Requisitions - New

    • Create and check the purchase order

    • Send purchase order to supplier

    • Post and check goods receipt

    • Create supplier invoice

  • Create contracts (optional):

    • Create contract from scratch

    • Create contract based on purchase requisition

Benefits

  • Optimize and streamline procurement process to professional services scenario requirements

  • Simplify procure-to-pay, invoice-to-pay

  • Integrate to the SAP supplier network natively (SAP Ariba Network)

Log in to track your progress & complete quizzes