Name: Service Procurement - using Lean Services - Model Product Specifications
Uploaded: 2024-12-16
Duration: 315 s
Description: In this video you will learn how to create Model Product Specifications (MPS) in SAP S/4HANA. MPS are used to group items that are frequently ordered together to complete a particular task. You can then use (parts of) model product specifications as templates to create purchasing documents, such as purchase contracts.

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<div><div>In this video you will learn how to create Model Product Specifications (MPS) in SAP S/4HANA. MPS are used to group items that are frequently ordered together to complete a particular task. You can then use (parts of) model product specifications as templates to create purchasing documents, such as purchase contracts.</div></div>

Service Procurement - using Lean Services - Model Product Specifications

Hi and welcome to this microlearning series on Service Procurement in SAP S/4HANA. My name is Stefan Kirchhof and I'm a Senior Business Process Consultant at SAP specializing in Procurement and Supply Chain Management. In the next 10 minutes, I would like to walk you through the process on how you can create model product specifications, or MPS for short, in an SAP S/4HANA system. In the following videos, I will explain how you can use these MPS for your procurement processes. First, we start on the Fiori Launchpad. If you have the respective authorization, you can use the tile Manage Model Product Specifications to search and view your existing MPS and to create new ones. I'm using an SAP S/4HANA 2023 Feature Pack Stack 2 version. The MPS and item hierarchy functionality is available as of SAP S/4HANA 2022. In the application, you can display all of the existing MPS including the activation status. Also you can create new MPS from scratch, you can copy existing MPS or you can use the import functionality to use an Excel spreadsheet template, which gives you the opportunity to create or change large MPS very quickly. I will remove the plant column to get a better overview. Model product specifications support the so-called item hierarchies. Once the business function for item hierarchies is activated in the system, you can create item hierarchies by specifying the higher level item, which is called item set, for an item in a service transaction. You can create any number of sub-items for an item up to five hierarchy levels. However, each item set needs to have at least one item which can be a service or material. Unlike the model service specifications in an SAP ERP system, no prices can be assigned here to the items. As you will see in a separate video, the prices for each item will be maintained only in the purchasing contract. We will later use this MPS as a template to create such a contract. In our example, the items are grouped by the different phases of an SAP Activate Project. In every phase, there is a junior and a senior consultant and a project manager as a service item. You can create either free text items or use product Master Data for services and materials and specify the quantity. To set an item as material or service, you use the product type group to either select one for Material or two for Service. Further in the process, you will have the possibility to create a goods receipt for a material item. For the service, you will create a service entry sheet once the service got delivered. When creating an MPS, you can see that there is a small icon for an item set, which shows that this item is used structuring only. For an item set there's only a text that you can enter. An item set does not have any quantity or other item data. In the column item set you can see that there is a Yes for item sets and a No for functional items. For each functional item we allocate in this example 100 hours for service. You can copy and paste an item or complete item set. In our example let's copy the project manager down to another phase. Of course, you can also delete an item or item set and you can insert new item sets or functional items as needed. Once your MPS is complete, you can use it to create a purchase contract.