Carrying out Procurement of Services Process Steps

You can manually create purchase requisitions for lean services using the Manage Purchase Requisitions - Professional app. You can convert these service purchase requisitions to purchase orders using the Process Purchase Requisitions (V2) app. You can create purchase requisitions with item hierarchy, by grouping items, services or materials. For instance, if you are purchasing services and materials for different departments of a company, you can use item hierarchies to group the items by department. To use the item hierarchy you need to switch to hierarchy view on the items tab/table in the Manage Purchase Requisitions - Professional app. After you switch to hierarchy view, you will not be able to change it back unless all items are deleted.

The Process Purchase Requisitions (V2) app only supports functional items (service or material), it does not support conversion on item hierarchy level. If you use item hierarchy in your purchase order, you need to use the Assign and Process Purchase Requisitions app to convert the purchase requisition to purchase order. Assign and Process Purchase Requisitions app only supports selection of a single item hierarchy at once, so you need to create item hierarchy in separate purchase requisitions.

Business users can trigger the creation of a purchase requisition for planned lean services directly out of a service order. You can use the service-order item as an accounting object for the procurement of lean services.

A configuration expert can configure a workflow so that the service order responsible can approve the respective service entry sheet. After approval, the confirmation for the service provided is automatically triggered.

• 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 check the solution process Project Control - Resourcing and Procurement (4RF) in the process navigator to learn how to trigger the procurement of services and materials when a service is required for a product.

Instead of being triggered by a service order or a manually created purchase requisition, the process can also start directly with the creation of a purchase order for the required service. It may also be subject to approval if required. You can use flexible workflows to define an approval process according to your business requirements.

As a purchaser, you can manually order materials and services using the Manage Purchase Orders SAP Fiori app. You can create purchase orders with standard items or limit items to procure lean services.

• 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.

As a purchaser, you can also create purchase orders for lean services using the advanced app Create Purchase Order - Advanced. The table shows the apps and corresponding item categories to create purchase orders for lean services:

You use the service entry sheet to record the ordered services that have been performed. You can create service entry sheets using the Manage Service Entry Sheet - Lean Services app. Using the app, you can change the 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.

You can create or change a service entry sheet with reference to a purchase order (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 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 purchase 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 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.

Recording of Consumable Materials in service entry sheets must always be combined with the recording of a service.

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.

You can add materials with or without a product master. You can NOT 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)

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.

The following restrictions apply while changing the account assignment in the service entry sheet:

• 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 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 set the indicator on to the item details of the service entry sheet item for which you want to set the flag. In the General Information tab, set the flag for Final Entry.

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 Activate Import of Service Entry Sheets for Specific Users..

Depending on the way yours system is managed, you can access the configuration by navigating

• Using Manage Your Solution: 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.
• Using SAP CBC: Activities → Business Process Configuration → Procurement → Purchase Request and Order Management → Service Procurement → Service Entry Sheet → 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.
• There are several options for determining the approver, such as the assignment of an approver by using a role, or 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 Settings button.

You can use My Inbox 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.

On the header level of the service entry sheet, you can view the Stated Amount Including the Input Tax of the entire service entry sheet. This is the stated amount including nondeductible taxes.

On the Item level, in the General Information tab, you can view the Stated Amount Including the Input Tax of the item. This is the stated amount including nondeductible taxes of the item that you've selected.

You can display and edit tax information that was defined in the reference purchase order in a service entry sheet.

In the Tax tab, you can view the Tax Code and the Tax Date as stated in the referenced purchase order. If applicable, the Tax Jurisdiction Code and/or the Tax Country/Region are also displayed.

You can not change the Tax date for the item in service entry sheet. This is done in the purchase order.

You can display and edit detailed pricing information for planned services with reference to purchase order standard items, as well as for unplanned services with reference to purchase order limit items, without a purchase contract as source of supply. You can also display pricing information for unplanned services with reference to purchase order limit items, with a purchase contract as source of supply.

To enable the editing of pricing information in a service entry sheet, choose Allow Price Change in the referenced purchase order. On item level, you can then edit the detailed pricing information as well as the Price Date, which you can find on the General Information tab.

After the service entry sheet has been posted, you will be able to access the process flow diagram for the items it contains via the Process Flow section for each item. The process flow diagram displays the preceding as well as follow-on documents of the service entry sheet item. Here you can also find links to the referenced documents.

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 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.

Once the service is performed and you receive the corresponding invoice from your supplier, you can create the supplier invoice for the service purchase order. As an Accounts Payable Accountant for Procurement, using the Create Supplier Invoice app, you can create supplier invoices for your purchase orders based on the received document from your supplier.

You enter the Basic Data such as invoice date or reference document number from the received invoice. The Invoicing Party is filled in automatically once you enter the reference purchasing document or the service entry sheet.

In the Purchasing Document References, as a reference you use the purchase order number by specifying the reference document category. If there is a service entry sheet for the purchase order then you can also use the service entry sheet as a reference by selecting the Service Entry Sheet - Lean Services as Reference Document Category.

If you select the Simulate or Post function, the system compares the quantity and amount data of each supplier invoice item with the data of the related purchase order item. The difference between the debits and credits (Balance) must not be outside the tolerance limits set. Using the Check function, you can make the system check the invoice before trying to post.

The Simulate function allows you to display the account movements before posting the document. On the Simulation view, you can also switch the simulation currency, and post the supplier invoice.

You can Park the invoice document for someone to complete the process and post it later on.