SCM540-ProcurementOfExternalServices

SCM540 Procurement of External Services

SCM540

Release 640 04/06/2006

0

SAP AG 2002

SCM540 Procurement of External Services

THE BEST-RUN BUSINESSES RUN SAP

© SAP AG 2002

SCM540

SAP AG

Procurement of External Services

SAP R/3 Enterprise 2003/Q2 Materialnummer: 50060824

0.2

SAP AG 2004

Copyright 2004 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Copyright

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Course Prerequisites

Essential

LO020 - Processes in Procurement

Recommended

LO520 - Purchasing Details and Optimization

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Target Group

Audience:

Members of the project team

Members of the implementation team

Duration: 2 days

Notes to the user The training materials are not teach-yourself programs. They complement the course instructor’s

explanations. On the sheets, there is space for you to write down additional information.

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Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Introduction to External Services

Comparison to Materials Procurement

Contents:

Course Overview

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Use the SAP R/3 System to procure services from your suppliers

Course Goals

This course will prepare you to:

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Create service master data

Create service specifications

Include external services throughout the procurement process

Use service entry sheets to record services performed

Customize the R/3 System for external services

Course Objectives

At the conclusion of this course, you will be able to:

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Unit 6 Value Limits for Unplanned Services

Unit 7 Entry and Acceptance of Performed Services

Unit 8 Invoice Verification

Unit 9 Integration with Other Processes

Unit 10 Conclusion

Unit 1 Course Overview

Unit 2 Master Data

Unit 3 Service Specifications in Requirements

Unit 4 Long-term Documents

Unit 5 Optimized Procurement

Preface

Course Content

Appendix

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Course Overview Diagram

Master Data

Service Specifications inRequirements

Integration with OtherProcesses

Course Overview

Entry and Acceptanceof Performed Services

Invoice Verification

Conclusion

Long-Term Documents

Value Limits forUnplanned Services

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Optimized Procurement

Inv oiceVerification

??==

Req.

Specs.

PO#12

Item 10

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Main Business Scenario

Your company orders services and supplies from external sources. You need to familarize yourself with the functionality available in the SAP R/3 System for describing and tracking these services.

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Steps in the Procurement of External Services

- User department- PM Plant Maintenance- PS Project System- CS Customer Service

Inv oicePur. order

??==

RFQKarl Einstein

Bank transfer 9,500Date

Determination of requirements

Creation of service

specifications

Sourcedetermination

Vendor selection

Bidinvitation process

(issue of RFQs)

Enter/comparequotationsPurchase

order

Purchase ordermonitoring

Entry ofservices performed

Serviceacceptance

Invoiceverification

Payment

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Requisition

Purchase order Contract Serviceentry sheet

ContractPurch. order

RFQ Quotation

A B

RFQ Quotation

?

RFQ

??

Purchaserequisition

1

2

Purchasing Documents for External Services

The procurement of external services is completely integrated within MM Purchasing. Purchasing documents can be used for the procurement of both materials and services. Services that have actually been performed are recorded using the service entry sheet. The entry of services performed is equivalent to a goods receipt of materials.

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Structure of a Purchasing Document

Einkaufsbeleg

• Allg. Daten• Statistik• Nachrichten• Konditionen

• Allg. Beschreibung des Vorhabens:Software - Einführung

• Termin: 31.10.

• Leistungsbeschreibung• Menge• Konditionen

Leistungs-zeilen

Position

Kopf

LV

Purchasing document

• General data• Statistics• Messages• Conditions

• General description of project:Software implementation

• Date: Oct. 31

• Service description• Quantity• Conditions

ServiceSpecification

Item

Header

Specs.

Materials procurement utilizes the item level. Services procurement works below the item level. A document item contains a short text describing what is to be procured. A set of service specifications (statement of work) may exist for each item.

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Bestellung

Leistungsverzeichnis

Gliederungsstufe

Leistungszeile

01 Auswahl der Software-Komponenten

01 Anforderungen definieren

Berater/In K4 10 Tage à 2100,- DM

Anpassung der Komponenten02

01 Komponente A


02 Test der Einstellung


??Wertlimit

ungeplante Leistungenbis max. 60.000,-

Pur. order

Service specifications

Outline level

Service line

01 Selection of software components

01 Define requirements

Senior Consultant 10 days 2000 per day

Adjustment of software components02

01 Revise Component A

Consultant 5 days 1800 per day

02 Test adjusted configuration


??Value limit

Unplanned services up to maximum 60000

Service Specifications in Purchasing Documents

Outline levels allow you to structure complex service specifications (statements of work) in a clear and concise manner.

You can utilize a maximum of four levels of outline. You can assign any number of service lines to each outline level. You can specify value limits for unplanned services for each document line item.

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Goods Receipt 12345, item 10

Limit adhered to

Service entry sheet 3 Feb.

Item 10

Oil filter replaced

Cost center 123

Limit

Release procedure Acceptance

- Account assignment

Purchase order # 12345 27 Jan.

Item 10 Repair printing press

- Precise description of service

- Order quantity

Cost control throughimposition of limits !!

MMM

3 Feb.

??????

??

LV!!

MMM

??????

??

Specs.

Stock Material versus External Services

Purchase order # 12345 27 Jan.

Item 10 Material : Steel - 01Order qty. : 250 pc

As their name implies, stock materials are kept in stock and are subject to inventory management. Services, as intangible goods, are procured for immediate consumption.

In the procurement of materials, much information is already available – such as the exact purchase order quantity.

In the procurement of services, in many cases neither the exact service description nor the purchase order quantity is known. If a printing press is broken, for example, the requisitioner may not know whether it needs a few readjustments or whether certain parts must be replaced. The time required for the repairs is often unknown.

Setting limits allows you to exercise an element of cost control despite such uncertainties.


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Consumable Material versus External Services

Purchase order

Item 10 Item category

Software forelectron beam welding equipment

Account: Asset 123

Standarditem

No further description

possible


Install software

Account: Asset 123or U

Service item

D

Purchase order

Service specificationpossible

Outline function Long text per outline level

and service line

Specs.

There are similarities between the procurement of consumable materials (materials for direct consumption) in a standard item of a purchasing document and the procurement of services. They are assigned to an accounting object. There is no inventory management.

Procuring services with MM-SRV has advantages: You can compile complex sets of service specifications (statements of work) using the outline

function. Greater flexibility in procurement planning is a result of not having to specify the precise service

description, the account assignment, or the exact quantity at the time you create the purchase order. Flexible long texts per outline level and service line are possible.


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Outline the steps in the external services procurement cycle

List the purchasing documents in the process

Describe the differences between procurement for materials and services

You are now able to:

Course Overview: Unit Summary


1.14Exercise Data Sheet

Key to Icons in Exercises and Solutions

Exercises

Solutions

Objectives

Business Scenario

Hints and Tips

Warning or Caution

Data Used in Exercises

Type of Data Data in Training System

Group Number ##

Item Category D

Company Code IDES AG (1000)

Purchasing Organization IDES Deutchland (1000)

Purchasing Group LO540-## (Y##)

Plant 1000 (Hamburg)

Material Group 007 (Services)

GL Account 417000

Cost Centers 4110

T-L##

Currency UNI

Tax rate 0%

Tax rate 10%

0i

1i

Vendors T-K40A##

T-K40B##


Data Created in the Exercises

Data from one unit is occasionally used in another. Use this data sheet to record and find the data you need easily.

Master Data

1-2 Service Number Description

First Activity Number

Second Activity Number

1-3-1

Service Activity Number Rate Unit of measure

1-3-2 Vendor T-K40A##

Service Number Rate Unit of measure

1-4 Model##

Service number or description

Quantity Rate (price) Unit of measure

Service Specifications

1-2-7 Requisition number: _____________________________________________


2-5 Purchase order number: ___________________________________________

Long-term Documents

1-1 Contract number: ________________________________________________

Service _________________ Quantity ________Gross price___________

Service _________________ Quantity ________Gross price ___________

Service _________________ Quantity ________Gross price ___________

1-2-2 Release order number: ____________________________________________


1-2 Purchase order number: ______________ * Used in Entry and Acceptance 1-2

Value Limits

1-2-3 Purchase order number: _____________** Used in Entry and Acceptance 1-3

Entry and Acceptance of Performed Services

1-2 Service entry sheet number: ______________________________________ *

1-3 Service entry sheet number: _____________________________________ **


1.15Course Overview Exercises

Unit: Course Overview

At the conclusion of this exercise, you will be able to:

Outline the steps in the procurement cycle

List the purchasing documents that can be used

Recognize the terms used for external services

Your company needs to review and decide on the documents required for its external services.

* 1-1 Services use several terms that are not used for material purchases. Select the correct term for each definition. Use the glossary if necessary.

a. Unplanned services

b. Service specification

c. Service master

d. Service

e. Service description

f. Outline

1. ___ Text that precisely defines a service to be procured.

2. ___ Listing and description of services for procurement purposes. Service specifications can contain service items with detailed descriptions or items with value limits for unplanned services.

3. ___ Levels of text lines that subdivide voluminous sets of service specifications on a hierarchical basis. For example, the service specifications for the construction of a road may contain the outline levels “surfacing” and “excavation works”. Below these outline levels are the individual items defining each specific service (individual task).

4. ___ Services unknown at purchase order time, so they are specified on the service entry sheet.


5. ___ Intangible good that is the subject of business activity and that can be performed internally or procured externally (outsourced). Services are regarded as being consumed at the time of their performance. They cannot be stored or transported.

6. ___ Master data record with descriptions of all services or work that a company has to procure frequently. It serves as a source of default data, set by the system when you create service specifications (used, for example, for invitations to bid sent to potential subcontractors during the competitive bidding process).

* 1-2 Number these types of documents in the sequence you would expect them to occur.

___ Request for quotation

___ Service entry sheet

___ Contract

___ Invoice

___ Purchase order

___ Quotation

___ Payment

___ Requisition

___ Service acceptance


1.16Course Overview Solutions

Unit: Course Overview

1-1 Terms used with services

1. e

2. b

3. f

4. a

5. d

6. c

1-2 Types of documents in sequence

2, 6, 4, 8, 5, 3, 9, 1, 7


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Contents:

Service Master Record

Conditions for Services

Standard Service Catalog

Model Service Specifications

Formulas for Services

Vendor Master Record

Master Data

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Create service master records

Create master conditions

List the benefits of using the standard service catalog

Define a model service specification

Describe the organization of the vendor master records

At the conclusion of this unit, you will be able to:

Master Data: Unit Objectives

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Course Overview Diagram: Master Data

Master Data



Course Overview



Conclusion

Long-Term Documents


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Req.

Specs.

PO#12

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Your company must use master data for service entry. To test the upcoming scenarios, project team members must create and maintain the service masters and conditions.

Master Data: Business Scenario

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Leistung Nr.1540- Texte- Mengeneinheiten

PMPMInstandInstand--haltunghaltung

PSPSProjektProjekt--SystemSystem

MMMMBeschaffungBeschaffung

AnwendungenAnwendungen

Leistungsstammsatz

NetzplanInstand-haltungs-auftrag

Service no. 1540- Texts- Units of measure

PMPMPlantPlant

MaintenanceMaintenance

PSPSProjectProjectSystemSystem

MMMMPurchasingPurchasing

ApplicationsApplications

Service master record

NetworkMainten-

ance order

Pur. order

1

LV

Requisn

Specs.

Service Master Record

A service master record contains information on the service (work) description such as: Descriptive texts Units of measure Material group Valuation class for account determination

Prices can be assigned to each service master record using the conditions. Service master data can be used at many points in the R/3 System.

Examples: Purchasing Plant Maintenance Project System Customer Service Sales and Distribution (Industry and Business Unit)

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Staffeln

100m 205,-200m 200,-300m 198,-

205,-

1999 2000 2001

210,-

220,-

Leistung Nr. 1580

Menge 1

Mengeneinheit m

Gültigkeitszeitraum

1998

Price/quantity scale

100m 205200m 200300m 198

205 UNI

2001 2002 2003

210 UNI

220 UNI

Service no. 1580

Quantity 1

Unit of measure m

Validity period

2000

Conditions for Service Master Records

The price of a service can be defined using the conditions that apply to a service master record. You can store prices for different validity periods. The prices can be scaled according to quantity. You can also maintain supplementary conditions.

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Adoption in Adoption in documentsdocuments

Purchaserequisition

Vendor

- Service no. 1540

1 day 2100 UNI

- Senior consultant 1 day

2100 UNI

15401560

1580

Level of conditions

Service

Determining the Price Using Master Conditions I

Prices for services that are valid over a long period can be stored in the R/3 System in the form of service conditions. At the level of the service (market price/own estimate) At the level of the service and the vendor At the level of the service, the vendor, and the plant In the form of contracts (See the unit Long-Term Documents)

At the service level, prices are then used automatically as default values in the purchasing document’s service specifications.

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Purchase order

ABC Software Ltd.- Service no. 1540

Plant 2 (Denver)2000 UNI

- Service no. 1540Plant 1 (New York)

1950 UNI

- Senior consultant 1 day- ABC Software Ltd.- Plant 1 (New York)

1950 UNI

- Senior consultant 1 day- ABC Software Ltd.

2000 UNI

15801560

1540

15801560

1540

Level of conditions

Service Service

Vendor Vendor

Plant

Determining the Price Using Master Conditions II

Adoption in Adoption in documentsdocuments

Service conditions can be used in purchase orders. At the level of the service and the vendor At the level of the service, the vendor, and the plant

The stipulated prices are then used automatically as default values in service specifications.

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Text module no. Text modulesT1 UnitT2 T3 T4

Masonry workSand-lime bricksSand-lime bricks A240 x 115 x 52240 x 175 x 52Wall thickness 12 cmWall thickness 24 cmm2

m20102

0201

02

001

Service type 1

Building work

Edition '95

Electricalwork

Edition '97

Plumbingwork

Edition '94

Tilingwork

Edition '96

01

Servicetype 2

Servicetype 3

Servicetype 4

Standard servicecatalog

Standard Service Catalog

The Standard Service Catalog (SSC) is available in addition to the service master file. The SSC contains standardized descriptions of services in the form of individual text modules. The

unique service number is made up of the edition year, the service type and the numbers of the individual text modules.

The following functions are possible: Maintenance of standard service catalogs using the SSC editor Transfer of external standard service catalogs to the SAP R/3 System from data carriers Use of standard service catalog numbers in purchasing documents Linking of service master records to standard service catalog numbers

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SSCMM-SRV

Specs.

Purchasingdocument

Value limit5000 for

SSC 037/198

SSC no.037/198

00.02.02.03

T1 T2 T3 T4

0102

020102

0001

0303

03

SSC editor

Service type 037 Edition 1/98

Hang coarse-grain wood-chip

wallpaper on sloping walls

Purchasing:Purchasing:Straightforward creation of service specsStraightforward creation of service specs

System administratorimports SSC

Wall covering

A Purchasing Document Using a SSC

Once imported or created, the user can select text modules to construct standardized descriptions.


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Specs.

Purch. doc.

Value limit5000 UNI on

model spec A23

Serviceselection

Modelspecification A23

Model spec

ABC Ltd.Contract 46...12Purch. org. 1000

Specs.

User parameter

MSP determinesdefault

Modelspecs.

Defaults:- Fixed vendor- Contract- Purchasing org.

• Cleaning

• Interior construction

• Pipe-laying

• Gardening/mowing

- Multiple re-use of data- Straightforward document creation

Purchasing:System administrator:

Single creation of set ofservice specifications

Model Service Specifications

Model Service Specifications can store sets of service specifications that you want to use frequently.They can be referenced in various purchasing documents.

A set of model service specifications contains individual service lines and, optionally, an outline representing a hierarchical structure.

Values can be defined for later use as default values when the model service specification is referenced. Purchasing organization Fixed vendor Contract document number

The user parameter MSP defines the suggested model specification per user.


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Specs.

Pur. order

Service selection

Model spec B03

Model spec B03Pipe-laying

Specs

Allservices belong-ing to an area

of work

Editor

L1: Lay gas pipe

Characteristics:

Lay pipes - in resident. areas- in wooded areas...- Length...- Diameter...

x

x

x

Completed specifications:

- Lay gas pipes, - in residential areas, - length 100cm, - diameter 120cm,

L1:

System combines all characteristics

of the services belonging to the

model specs.

Startconfigurator

- with type xy connections, - with transport by specialvehicle

- 1000 pcs. at 150 each

Leads buyerthrough relevantcharacteristics

Buyer assignsvalues to char-

acteristics

Documents with Model Service Specifications

A Model Service Specification with variant configuration selects services from a model specification and configures them automatically in the service specifications of any purchasing document.

From the range of possible services, the R/3 System selects and displays only those relevant to the proposed procurement. The buyer selects a model specification in the service selection function. When the Configurator begins, all characteristics for this specification are displayed. The buyer chooses the desired values. The Configurator assembles the selected services.

The basis for configuration is a model specification with services that are mutually exclusive or interdependent. The interdependencies are controlled by the object dependencies in the knowledge base.

The knowledge base stores attributes of the individual services as characteristics that are grouped into classes and assigned to configuration profiles and model specifications. The characteristics are part of Logistics Variant Configuration.


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Formulas to Simplify the Calculation of Quantities

Purchasing document

• Define formulas with variables

E.g. VOL01 = calculation of volume

L x W x H

maximum 5 variables

usual mathematical functions

(+, -, x, /, sin, cos)

and constants (e.g. pi, e)

Service entry sheet

Service: 123Dig trench

Unit of measure m3

Quantity ?

The user– chooses formula VOL01 – enters length 2, width 2,

and depth 5 of trench

System calculates value 20m3

Customizing

Formulas are used for calculating quantities in the procurement of externally performed services in many purchasing documents.

Formulas have these attributes: They are freely definable in customizing. They can contain up to five variables. They can include common mathematical functions such as sin, cos and constants such as pi, e.


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General data(client)

Purchasing organization data

Accounting data

For example@• Address• Communication

For example:• Order currency• Control data:

Automatic PO,ERS

E.g.:• Account

manage-ment

• Bank data

Organizational Levels of the Vendor Master Record

The vendor master record is structured according to organizational aspects. The general data is valid for the entire corporate group (client).

An example of general data is the vendor’s address. Separate purchasing data is maintained per purchasing organization. Examples are terms of payment,

evaluated receipt settlement (ERS) processing, and automatic purchase order processing. The accounting data is stored per company code. Examples are bank information and type of payment.


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Vendor: Purchasing Data

Conditions Purchase order currency Terms of payment Minimum purchase order value

Control data Invoice verification Order acknowledgement req. Subsequent settlement Qualifying for discount in kind

Service data

Default values for article Planned delivery time Purchasing group

Vendor sub-range Supply region

These are entries for the vendor that you can make for every purchasing organization in each of your clients. It includes data that is important for purchasing, such as purchasing data and partner roles.

In addition to maintaining the data that is valid for the entire purchasing organization, you can also maintain data for a specific site and/or sub-range in the purchasing data and partner role screens. This may include terms of payment or Incoterms that differ from the ones in the purchasing organization. You can create this separate data for the vendor on the following data retention levels: Vendor sub-range (VSR) Site Vendor sub-range / site

The system determines the data retention level containing the vendor data for a purchase order, for example, in the following sequence: Vendor sub-range / site / purchasing organization Vendor sub-range / purchasing organization Site / purchasing organization level Purchasing organization


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Create service master records and their conditions

List benefits of using the standard service catalog


Describe the organization of the vendor master records


Master Data: Unit Summary


2.17Master Data Exercises

Unit: Master Data


Create service master records

Create master conditions


Describe the organization of the vendor master

Your company will use master data to make service entry easier.

To test the upcoming scenarios, you must create and maintain service masters and conditions.

1-1 You will need service master records to use in requisitions and purchase orders for services that are repeated often. Use service examples that apply to your company. Your company may order, for example:

Office cleaning services

Equipment maintenance and repairs

Landscape maintenance

Consultant services

Temporary employee services

Building contracting

…

1-1-1 Find the menu to create a service master and add it to your Favorites.

1-1-2 Create a service master.

Description: Your short description

Service category: Service: Purchasing

Base unit of measure: AU for activity unit or

H for hour, for example

Material group: 007

Valuation class: Services


Long text is optional. Record the short description for the service. (The text is case sensitive.)

First service: ___________________________________________

1-1-3 Create another service with a different description. The data is otherwise the same. Save them and record the short description for the service.

Second service: _________________________________________

1-2 Display the service masters that you created. Record the service activity number assigned to each.

ADD these to the data sheet:

First service activity number: ____________________________________

Second service activity number: __________________________________

1-3 Your new service masters need default pricing condition records.

1-3-1 Maintain a price at the service level without specifying a plant or vendor. Choose a rate (price) and unit (currency) UNI. These conditions can be used for requisitions.

ADD to the data sheet:

First service price _______________________________________

Second service price _____________________________________

1-3-2 Maintain a price at the service and vendor level. Enter a rate (price) and unit (currency) UNI for vendor T-K40A## in purchasing organization 1000. These conditions can be used for purchase orders.


First service price _______________________________________

Second service price _____________________________________

1-4 Often, you plan to order your new services as a group. Define a Model Service Specification to reproduce the combination easily.

Model service specification: MODEL##

Service category: SERV

Currency: UNI

Material group: 007

Purchasing organization: 1000


In the list of services, include your two service master records and a third line with only a short description. Select an appropriate quantity, rate (price) and unit of measure for each service line.


Service line item __________ Quantity _______ Rate _____ UOM _____



*1-5 Verify the data for vendor T-K40A## with service master conditions.

1-5-1 What is the vendor’s order currency? _______________________

1-5-2 What are the default purchasing terms of payment? ____________

1-5-3 Has the indicator been set for automatic PO? _________________

1-5-4 Has the indicator been set for ERS? (AutoEvalGrSetmtDel)

_____________________________________________________


2.18Master Data Solutions

Unit: Master Data

1-1

1-1-1 Logistics Materials management Service master Service Service master

Select the transaction and select Add to Favorites to include the menu path.

Select the transaction and drag the title to Favorites to add just the screen title.

1-1-2 Select Favorites and Service Master. Select Create new service. Enter the short description, service category, and unit of measure. In Basic Data enter the material group and valuation class.

First Service short description _____________________________

1-1-3 Select Create new service again. Enter the short description, service category, and unit of measure. In Basic Data enter the material group and valuation class. Save.

Second Service short description ___________________________

1-2 Logistics Materials management Service master Service Service list

Enter your Logon User ID in the Created by field and select Execute.

ADD to data sheet:

First service number: __________________________________________

Second service number: ________________________________________

1-3

1-3-1 Logistics Materials management Service master Service Service conditions For service Add

ADD to data sheet:

Service number Rate Unit of measure


1-3-2 Logistics Materials management Service master Service Service conditions For vendor w/o plant Add

Add to data sheet:

Vendor T-K40A##

Service number Rate Unit of measure

1-4 Logistics Materials management Service master Model service specification Create

Enter MODEL##, the service category, a short description, an optional search term, and so on. Select Services.

ADD to data sheet:

Service number or description

Quantity Rate (price) Unit of measure

*1-5 Logistics Materials management Purchasing Master data Vendor Purchasing Display (current) Purchasing data

1-5-1 Order currency: UNI

1-5-2 Terms of payment: ZB00

1-5-3 Automatic PO: YES

1-5-4 ERS (AutoEvalGrSetmtDel) NO


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Service Specifications

Requisitions

Bid Invitations

Purchase Orders

Contents:

Service Specifications in Requirements

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SAP AG 1999

Define requisitions with a set of service specifications that include an outline and service lines

Describe the use of the approval process for documents

List the steps in the Request for Quotation process

Create purchase orders by referencing a quotation


Service Specifications: Unit Objectives

(C) SAP AG SCM540 2

3.3

SAP AG 1999

Course Overview Diagram: Service Specifications

Master Data



Course Overview



Conclusion

Long-Term Documents


12

9

6

3

11 1

7 58 4

210



??==

Req.

Specs.

PO#12

Item 10

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3.4

SAP AG 1999

Your company needs to describe the services you purchase in great detail. An outline can be used in 25% of your documents. Service lines will be used in 80%.

Bids are required for services without any prior order history if the value is over 5000 UNI.

Service Specifications: Business Scenario

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3.5

SAP AG 1999

Compile detailed descriptions for your services and supplies in requisitions and other purchasing documents

Service Specifications: Topic Objectives

At the conclusion of this topic, you will be able to:

(C) SAP AG SCM540 5

3.6

SAP AG 1999

Requirements for External Services Usage


Acct. assgt. cat.:

Activates externalservices functionality

D

Purchase order

Specs.

.

..

U

K

P

Service specifications not possible w/o item cat. D

Unknown

Cost center

Project

When creating purchasing documents for services, you must use item category D. This ensures that you can create a set of service specifications or statements of work, giving you access

to the service line. This is not possible for material line items.

(C) SAP AG SCM540 6

3.7

SAP AG 1999

Example of Service Specifications in a PO

Purch. order

Outline level

Service line

. . . . .

. . . . .

Leistungsverzeichnis

01 Auswahl der Software-Komponenten

01 Anforderungen definieren


Anpassung der Komponenten02

01 Komponente A


02 Test der Einstellung


Service specifications









Service Specifications May include an outline with up to four levels in the hierarchy May include service lines without an outline May include service lines for any level of an outline

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3.8

SAP AG 1999

New document Existing data

Model Spec

# B23

Purchase requisition

Item 10

Softwareimplementation

Specs.

Requisition# 12345

Specs.

Quotation# 22345

Specs.

Pur. order# 245678

Specs.

PM order# 7778

Specs.

Service Selection Classification

Class 12: SoftwareServices

S1S2S3

Compiling Service Specifications and Selection

Using the Service Selection function, you can easily compile a new set of service specifications from existing purchasing documents and classes of services.

You can reference model service specifications, network operations (Project System), and maintenance orders (Plant Maintenance).

Existing outlines (hierarchical structures for service specifications) can be referenced when creating new outlines. You can choose an entire outline, or an individual outline level.

The R/3 System supports the search for documents using selection options such as vendor intervals or document date.

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3.9

SAP AG 1999

Line type

Standard line

Contingency line

Service description

- Service number

- Material group

- SSC number

- Short/long text

- External service number

Quantity fields

- Quantity

- Quantity recorded (work done)

- Overfulfillment tolerances

Price and value fields

- Price per unit

- Net value

Alternatives

Basic line

Alternative line to line 30

Bidder‘s line

- Value 123...

Formula

- for user-specific information, e.g.service provider’s social insurance number

User fields - alphanumeric

Service Details

For each service line in a set of service specifications, you can maintain detailed information. External service number is the supplier’s service number. Overfulfillment tolerances are similar to overdelivery tolerances. Line type: May be used for a contingency line that is not required or a blanket line whose quantity is

always one. Alternatives: May be used for a service that could be substituted for the designated basic line. Bidder’s

lines were inserted in a quotation by the vendor. Formulas that had been defined in customizing can be referenced in a service line with the values for its

variables. There are four user-defined fields, two numeric and two alphanumeric.

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3.10

SAP AG 1999

Service Line Account Assignment

Item 10 Conduct pressuretests

Acct. assgt. cat. K

Document

Service line 10

Cost center1512 Cost center

entered manually

Valuation class3200

The R/3 System determines:

- the cost element, and

- the default general ledger

account on the basis of the

valuation class.

Purchasing General ledger

Service master recordcontains the valuation class

Valuation class:3200 External services

Service 10316: Checkwater pressure

The valuation class in a service master record enables the R/3 System to identify the default consumption account of the service.

The account assignment category in a purchasing document determines the type of cost object you must enter for the service.


3.11

SAP AG 1999

Release Procedure with MM Classification

Release codes

Characteristic

MM Classification

Release strategy S4

Value = relevant

Purchasingdocument

Item data

Alternative 1 2 3 4 55

1 2 3 4 Purchasingdocument

SAPWorkflow

E-mail

.

.

.

item valuePlantVendor

...

Purchasing groupMaterial group X

X...X

X

X

.

.

.

??

200,000 10004750

001007

Communi-cation

structure

Released!

The release procedure with a link to classification enables you to specify more release conditions other than value, material group, account assignment and plant.

Using Item Category as a characteristic, you could build release strategies for services that use item category D.

The release procedure with classification can be used for purchase requisitions and for other purchasing documents including service entry sheets.

The release codes with which a user releases or approves documents are specified in a user’s authorization profile

Release procedures are defined in customizing and are included in LO520 Purchasing Details and Optimization.


3.12

SAP AG 1999

Create multiple bid invitations for services

Standard bidding process

Global percentage bidding process

Compare multiple bids

Create purchase orders by referencing quotations

Bid Invitations: Topic Objectives



3.13

SAP AG 1999

Purchaserequisition

RFQsPrice

compar-isonlist

Purchase order

Bestoffer

Vendor BAngebot

Vendor BAngebot

Vendor AQuotation

Course of the Bid Invitation Process

Requests for Quotations (RFQs) can be created by referencing purchase requisitions. Bid or quotation data is entered into the quotation/RFQ document. The price comparison list facilitates the determination of the best bid. The purchase order is issued to the vendor who submitted the most favorable bid.


3.14

SAP AG 1999

Quotation

Specs.

RFQ

Specs.

Doc. type AN

Standard bidding process Global percentage bidding

Not possibleto enter prices

- Specifications- Quantities

RFQ

Specs.

Doc. type AB

Prices for eachservice line entered

by buyer

- Specifications- Quantities

Quotation

Specs.Prices for each

service line supplied by service provider

Percentage additions/deductions per outline

level supplied by service provider

Standard versus Global Percentage Bidding

Global Percentage Bidding functionality requires buyers to provide descriptions of services and suggested prices. The prices are transmitted to prospective bidders in the RFQs.

Purchasing buyers wait for quotations from each bidder. The service provider applies a percentage deduction from, or an addition to, the prices received from the

buyers. The additions or deductions can apply to either each group of services or to the complete service specification.

A different document type is used for global percentage bidding – AB in the standard system. Two condition types can be applied: header discount KR01 or header surcharge KZ01.


3.15

SAP AG 1999

Comparing Bids Using the Price Comparison List

Purchase order Vendor C

Service 1 100 UNIService 2 300 UNIService 3 200 UNI

Comparison levelsOutline level

Service line

Vendor C

100 UNI300 UNI200 UNI

600 UNI

Vendor A


650 UNI

Mean value


625 UNI

Service 1Service 2Service 3

Total Price comparison list

Quotation Vendor A

Service 1 150 UNIService 2 300 UNIService 3 200 UNI

The price comparison list is used to determine the most favorable bid or quotation. In the case of voluminous service specifications, you must be able to compare prices at different levels

of service. Possible levels for services only:

Price comparison per outline level Price comparison per service line

Selected quotations can be referenced in purchase orders and contracts.


3.16

SAP AG 1999


Service Specifications: Unit Summary

Define requisitions with a set of service specifications that include an outline and service lines

Describe the use of the approval process for documents

List the steps in the Request for Quotation process

Create purchase orders by referencing a quotation


3.17Service Specifications in Requirements Exercises

Unit: Service Specifications in Requirements

Topic: Service Specifications


Compile detailed descriptions for services and supplies in requisitions or other purchasing documents

Your company needs to describe the services it purchases in great detail. Outlines can be used in 25% of your documents. Service lines are used in 80% of your documents. Often, lists of services are copied from another document or from a model service specification.

You must create a requisition if the value is over 1000 UNI.

1-1 In your role as a buyer for services, you will regularly perform certain tasks. To focus on these tasks, find and activate the role for the activity group SAP_WP_Purchasing_Agent.

1-1-1 Assign it to your user ID.

1-1-2 Read the description of this activity group by selecting Documentation.

1-2 Create an Enjoy requisition with this data. You will organize an outline to describe the services requested.

Document type: NB Purchase Requisition.

Item category: D

Account assignment category: K

Account code 417000

Cost center 4110

Delivery date: One month from today

Plant: 1000

Purchasing group: LO540-## or Y##

Material group: 007

1-2-1 Enter a short description for the overall line item.

1-2-2 Use the outline function to structure your set of service specifications. Select Full Scr.: Services. Choose Outline on/off Add a level to your outline under your initial description. Repeat three times using your own descriptions.


Overall short description (Example: Install Pipe)

01 Short text (Example: Set up jobsite)

02 Short text (Example: Lay main pipe)

03 Short text (Example: Connect subsidiary pipes)

04 Short text (Example: Labor and materials)

1-2-3 Try different methods to enter services under each outline level.

Select level 01. In the Services screen area on the right-hand side, enter your first service master number with a quantity of 100. What was the source of the price?

_______________________________

1-2-4 Select level 02. In the Services screen area on the right-hand side, enter a short text for a service without a service master record. Order 100, select a unit of measure, and enter a price. You could enter a detailed description using Goto Long text for line.

1-2-5 Select level 03. Choose Service selection. Refer to your model service specification MODEL## and adapt all of its services. Other choices are M-SPEC-1 or M-SPEC-2 for sets of model services.

1-2-6 For level 04 choose Entry variant Formulas so that your screen fields allow you to enter a formula more easily. Enter a short text. Find the formula for volume and enter values of 10, 15 and 12 for L, B and H. The unit of measure is M3 and the gross price is 2 UNI. What is the calculated maximum volume?

_____________________________

*1-2-7 In your role as buyer, you enter requisitions frequently. Save this requisition screen as a Favorite using System User Profile Expand favorites

1-2-8 Save the requisition.


Requisition number: _____________________________________

*1-3 Change the requisition and record the values for each outline level.

Overall ____________________________________________________

Level 01 ____________________________________________________

Level 02 ____________________________________________________

Level 03 ____________________________________________________

Level 04 ____________________________________________________


Service Specifications in Requirements Exercises


Topic: Bid Invitations


Create multiple bid invitations for services using the standard bidding process

Compare multiple bids

Create purchase orders by referencing quotations

Your company asks for bids when a source cannot be found in the system and the value is over 5000 UNI.

Purchase orders are created from either requisitions or quotations.

2-1 Your new requisition should be sent to at least two service providers for quotations. Create requests for quotations (RFQ) by copying the requisition.

2-1-1 The document type is AN. The quotations are due in two weeks. Enter a Collective number of LO540## to help track the quotations.

Was the outline reproduced in the RFQ? _____________________

2-1-2 Enter T-K40A## for the first vendor and save the RFQ. Do not exit the screen.

RFQ: _________________________________________________

2-1-3 Enter T-K40B## for the second vendor and save.

RFQ: _________________________________________________

2-2 Your service providers promptly returned their quotations. Maintain the data in the R/3 System. A price for the first service per level is sufficient for comparison. Be sure that there is a difference!

Outline level T-K40A## T-K40B##

Total value _________________ _________________

01 _________________ _________________

02 _________________ _________________

03 _________________ _________________

04 _________________ _________________


The quotation data is entered into the request for quotation (RFQ) and shares the same document number.

2-3 Before you award a purchase order or contract, compare prices for the two quotations you received. Use the collective number to select both at once or enter the two RFQ numbers. Display the Mean value quotation to see the average price.

2-3-1 Which quotation ranked first overall? _______________________

2-3-2 Select the Services Details to display the individual services per level.

2-3-3 Select Hierarchy Level 4 to display costs per outline level.

*2-3-4 Mark the second-ranked quotation for a rejection letter.

2-4 Find the path to create a purchase order. Add it to your Favorites and rename it Purchase Order..

2-5 After evaluating the quotations, the lowest-cost service provider is awarded the purchase order. Use your Favorite. Adopt the services from the quotation so that all of the details are included.

You must provide missing prices.

On the invoice tab, select the indicator for service-based IV (and deselect ERS.

Were all of the services included? Save it.

ADD it to the data sheet.

Purchase order number: ________________________________________


3.18Service Specifications in Requirements Solutions


Topic: Service Specifications

1-1 Select Other Menu.

Select Activity group SAP_WP_Purchasing_Agent.

1-1-1 Select Assign users.

Enter your Logon user ID and select Add Users.

Select Yes to Generate profile and compare user masters.

Select User Menu to call this menu at any time.

1-1-2 Select Documentation.

1-2 Process Purchase Requisition Create Enjoy Purchase Requisition

Enter the item category, account assignment category, delivery date, plant, purchasing group, and material group in the item overview.

1-2-1 Enter a description of your choice for the line item.

1-2-2 With your cursor on the first line of the outline, select New Subgroup. Enter outline level 01 and your description. Place your cursor on the first line again and repeat for levels 02, 03, and 04.

1-2-3 Select outline level 01. On the right-hand side of the screen, enter your first service master number and quantity100.

The price for the service came from the service condition without a vendor.

1-2-4 For level 02 of the outline, enter a short text, quantity 100, your choice of unit of measure and your price.

1-2-5 For level 03, select Service Selection. Enter MODEL##. Select all services and adapt all services.

1-2-6 Entry variant Formulas.

Select formula VOL01. Enter formula values 10, 15 and 12, unit of measure M3, and gross price 2 UNI. The volume is 1800.

*1-2-7 System User Expand favorites

1-2-8 ADD to the data sheet:



*1-3 Process Purchase Requisition Change Enjoy Purchase Requisition

Select Full Scr. Services. Choose Outline Total Values and record the values from the outline area.

Outline level Values

Outline total

Level 01

Level 02

Level 03

Level 04


Service Specifications in Requirements Solutions


Topic: Bid Invitations

2-1 From your user menu, choose Request for Quotation Create Request for quotation

Enter the quotation deadline. Select Create referencing requisition. Enter your requisition number, deselect Assigned and choose Enter.

In the Header detail screen, enter the Coll. Number.

In the Create RFQ: Selection List, choose the item and Adopt.

2-1-1 From the Item overview screen, select the line item and Services. Choose a level in the outline to display its list of services. The outline was reproduced in the RFQ.

2-1-2 Return to the Item overview screen. Select Vendor Address. Enter T-K40A##. Save the RFQ.

RFQ number ____________________

2-1-3 Enter vendor T-K40B## and save.

RFQ number ____________________

2-2 Quotation Create Quotation

Enter the first RFQ number. From the Item overview screen, select the first item and Services. Choose an outline level and enter a value in the Service screen area on the right-hand side. Record the values for the quotations as you enter them, or in the Outline screen area select Total values.

Repeat the process for the second quotation.

Outline level T-K40A## T-K40B##

Total value

Level 01

Level 02

Level 03

Level 04


2-3 Quotation Price comparison list

Enter Collective RFQ LO540##, select Mean value quotation and choose Execute.

2-3-1 Record the quotation ranked first. _______________________

2-3-2 Select Services detail.

2-3-3 Select Hierarchy Level 4.

*2-3-4 Select the second-ranked quotation. Choose Maintain quotation.

Either set the rejection indicator in the lower left corner or choose Edit Fast change, set the rejection indicator, choose Continue and Save.

2-4 Purchase order Create Purchase Order or in the Standard SAP menu: Logistics Materials Management Purchasing Purchase Order Create Vendor/supplying plant known

Select the transaction and drag it to Favorites. Rename it.

Purchase order is now a Favorite.

2-5 Choose Favorite Purchase Order

Copy from your RFQ/Quotation number by entering the document number and line number in the columns on the far right of the item overview area.

Set the Service-based IV indicator on the Invoice tab.

From the Services tab, select the Full Scr.:Services icon. All services were included.

Save it.




4

SAP AG 1999

Contracts

Contract Release Orders

Invoicing Plans

Blanket Purchase Orders

Long-Term Documents

Contents:

(C) SAP AG SCM540 1

4.2

SAP AG 1999


Long-Term Documents: Unit Objectives

Create a contract for external services and supplies

Create a release order for the contract

Create an invoicing plan for services

Create a blanket purchase order

(C) SAP AG SCM540 2

4.3

SAP AG 1999

Course Overview Diagram: Long-Term Documents

Master Data



Course Overview



Conclusion

Long-Term Documents


12

9

6

3

11 1

7 58 4

210



??==

Req.

Specs.

PO#12

Item 10

(C) SAP AG SCM540 3

4.4

SAP AG 1999

For larger projects and long-term needs, your company uses contracts to define the terms and conditions in more detail. The release orders reflect the conditions of the contract.

Invoicing plans will be used for repetitive orders when service entry sheets may not be required. For example, car leasing or building rental.

Blanket purchase orders will be used for the inexpensive services where the main concern is the invoiced amounts.

Long-Term Documents: Business Scenario

(C) SAP AG SCM540 4

4.5

SAP AG 1999

Describe the use of contracts for services

Create a contract

Create a release order for your contract

Verify the links between the contract and the release

Contracts: Topic Objectives


(C) SAP AG SCM540 5

4.6

SAP AG 1999

Release orderdocumentation

Contracts

Contract

VendorVendor

Specs.

Releaseorder

Specs

In Procurement, a contract is a longer-term outline agreement with a service provider that covers the purchasing of materials or services over a certain period.

A contract for services contains the service descriptions – usually in the form of service master records – and their respective pricing conditions.

Value contracts (WK document type) are fulfilled when the value of the releases reaches the target value of the contract.

Quantity contracts (MK document type) are fulfilled when the quantity of the service lines reaches the target contract quantity.

During the contract validity period, release orders are issued for the contract items. There is release order documentation for each item.

(C) SAP AG SCM540 6

4.7

SAP AG 1999

Contracts: Account Assignment Category

Contract 123

Item 10 Pipe-laying

Acct. assgt. cat. U

Release orderagainst contract 123

Item 10

Acct. assgt. cat. U

Service entry sheet

Acct. assgt. cat. K

1,500

Specs.

S200

Acct. assgt.must

be specifiedPlanning of requirement

Concreterequirement

Performance of requirement

Specs.

Specs.S3S17S200

Pipe-laying

Unknown= possible

Unknown= possible

At the time a contract is created, the account assignment category may be unknown. It is often specified when a release order is issued against the contract.

In the case of services procurement, however, you can specify the account assignment much later in the procurement cycle – in the entry sheet for the services that have actually been performed.

(C) SAP AG SCM540 7

4.8

SAP AG 1999

Contracts: Release Orders

Release orders are POs issued with reference to an existingcontract.

Data is adopted from the contract when arelease order is created.

When a release order is created, the release orderdocumentation is updated.

Data is updated in the service line of the contract.

Definition

Adoption of data

Updating of data

Release orders give the service provider the following information: The services actually ordered (released) against the contract The quantity being released The delivery date for the release

Data from the contract is adopted in the release order: Vendor information Terms of delivery and payment Prices

Contract data is updated with each release order: The total value per release order Values and quantities per service

The service line of the contract is updated: The quantity released The value released

(C) SAP AG SCM540 8

4.9

SAP AG 1999

Contracts: Manual Creation of Release Orders

Contract

Rel. order

Manual entries:Reference to contract

(contract number)Delivery dateOrder quantity

You create the release order

The release order istransmitted to the vendor

The documentation in the contract is updated

You create a release order using the Purchase Order Create transaction with reference to the desired contract.

As a result, the following data is updated in the release order documentation of the contract: Release order (Purchase order) number Order value Document date

(C) SAP AG SCM540 9

4.10

SAP AG 1999

Automatic Release Order from Requisition

Save

- Contract is assigned as source of supply222

- Create purchase requisitions

- Convert worklist requisitions into release orders333

- Release order created- Release order documentationupdated

444

111

You can generate a worklist of purchase requisitions (for example, all requisitions of the previous week). If sources of supply exist in the R/3 System, vendors can be assigned automatically to requisition lines

and the requisition lines converted into purchase orders. If the source of supply is a contract, the requisition line is converted automatically into a release order.


4.11

SAP AG 1999

Contracts: Release Order Documentation Example

Contract Release order Release order(PO number)

Date Value

Value released 15000

450000026450000042450000056

May 1July 3Oct 5

100015002500

Release order documentation

The release order documentation provides information on the current status of the release orders issued against a contract.

The documentation shows the total value of each release order and the current value of the contract.


4.12

SAP AG 1999

Maintain both invoicing plans for repetitive services and blanket purchase orders for tracking inexpensive services

Invoicing Plans and Blanket POs: Topic Objectives



4.13

SAP AG 1999

Periodic invoicing plan Partial invoicing plan

Payment of full amount due atregularly recurring intervals Total amount payable in installments

Construction project 250000 UNI Plans complete 20000 UNI

Main structure

(phase 1) 80000 UNI

Main structure(phase 2) 100000 UNI

Acceptance 50000 UNI

Market research project 20000 UNI Award of contract 2000 UNI

Initial analysis 3000 UNI

Survey, evaluation ofsurvey results, interim report 7500 UNI

Final report, target/actualcomparison, action plan 7500 UNI

Invoicing Plans

Vehicle leasing 600 UNI(Monthly)

Rent for premises 2200 UNI

Photocopier rental 1000 UNI

Landscaping, monthly 1500 UNI

You can use invoicing plans for both items with services and items with materials. Invoicing plans can consist of items with dates and values and is the basis for automatic creation and

settlement of invoices. You should use document type FO (Framework Order) to enable you to enter a validity period. Automatic invoices are possible if the vendor master record has been set for Evaluated Receipt

Settlement and taxes are set per line item.


4.14

SAP AG 1999

Purchase order

FO Jan 1 - Dec 31

Acc. assgt. CC 123

Groundsmaint. 500.00

Item 10

LVPeriod. inv. plan

Mar 30Apr 30May 31Jun 30...

500500500500

recomm.

mandatory

Dates generatedautomatically

Customizing

Example: Invoicing plan type : Periodic

Start date : Start ofagreement

Date description : Maintenance ofgrounds

Rule for date : Last of eachdetermination month

Periodic Invoicing Plan

Invoice

Mar 30 500 UNI

InvoicesGenerated

automatically

Recurring procurement transactions are the basis of periodic invoicing plans. Worksteps are eliminated since you do not enter services performed. Invoices can be created automatically within the Logistics Invoice Verification transactions. In Customizing, the invoicing plan type sets the default periodicity, due dates, and start date.


4.15

SAP AG 1999

Market research15000

Purchase order

FO Jan 1 - Apr 30

Acc. assgt. CC 123

Item 10

recomm.

mandatory

Customizing

Partial Invoice

Jan 20 5000Mar 15 4000Apr 30 6000

Analysis/planSurvey/evaluationFinal report/action plan

You maintaindates

Example: Invoicing plan type : Partial

Start date : Today

Date seq. proposal : Plan # for partial inv. plan 0013

Partial Invoicing Plan

Invoice

Jan 20 5000

Generated automatically

Serviceentrysheet

Optional

Partial invoicing plans can be used for transactions that will be invoiced and distributed over the individual dates of the invoicing plan.

The total value is allocated among the due dates on a percentage basis or in absolute amounts. Due dates can be created by reference to another invoicing plan or by manual entry.


4.16

SAP AG 1999

Purch. order

Maintenance ofgrounds

Item detail screen

GR

GR-based invoiceverification

Non-valuated GR

IR

Evaluated Receipt Settlement

- If GR is not set then you will not enter and accept services performed

X

X

mandatoryTo allow automaticsettlement

If service entry sheet desired for information

only

X

X

GR

Non-val. GR

mandatory

Invoicing Plan: GR/IR Control

Invoicing plans may not have valuated goods receipts. As a simplified process, you should cancel the GR indicator and the GR-based invoice verification indicator in the purchase order item.

If a service entry sheet is needed for informational reasons, the GR indicator can be set if the Non-valuated GR indicator is also set.


4.17

SAP AG 1999

Value of requirement Cost of acquisition

Purch. order

Requisition

Serviceentry

Acceptance

Invoice

Inv oice

Follow-up

Catering

Minor repairs

Temporary help

Cleaning work

Courier services...

Blanket PO

Limit 5000Jan - Dec

Low

High

Blanket Purchase Orders

Invoice

215 UNI

Low

You can create purchase orders with a validity period and a value limit without service entry sheets for processing relatively low value services and materials.

The cost of processing is much lower with fewer steps. Invoices are posted directly to the blanket purchase order. A short text can be entered to describe the invoiced items. If the purchase order does not have any account assignment information it can be entered directly into

the invoice.


4.18

SAP AG 1999

Blanket PO

Doc. type FOJan - Dec

Item category BValue limit 5000

Account assgt. cat. U

Office supplies and courier services

LV

B = Limitbestellung

FO = Rahmenbestellungmit Laufzeit

kurze,allg. Beschreibungauf Positionsebene

nur WertlimitLeistungsverzeichnis

entfällt

Service entry sheet GR

Service acceptance

Invoice verification

Invoice

215.00Account assgt.

required

Enter invoices directlyagainst PO

Specs.

B = Blanket

FO = Framework orderwith validity period

Short generaldescription at item

level

Value limit only No service

specifications

Omitted

Blanket Purchase Order Requirements

Document type FO Framework Order is used for blanket purchase orders. The item category is B for blanket.

There are no service specifications or materials, only value limits. Each item must have an account assignment, but U Unknown is possible on the purchase order. Service entry sheets or Goods Receipts are not possible. Conventional invoice verification cannot be used.


4.19

SAP AG 1999

Create a contract for external services and supplies

Create a release order for the contract

Create an invoicing plan for services

Create a blanket purchase order


Long-Term Documents: Unit Summary


4.20Long-Term Documents Exercises

Unit: Long-Term Documents

Topic: Contracts


Create a contract for services or supplies

Create a release order

Check the links between them

Contracts for services describe your company’s long-term needs, and sets up the terms and conditions for the resulting release orders. Contracts can apply to multiple company codes; release orders cannot.

1-1 You have negotiated favorable terms for several services. Define a quantity contract.

Vendor: T-K40B##

Agreement type: MK

Purchasing Org: 1000

Purchasing Grp: Y## (LO540-##)

Item category: D

Account assign: U

Plant: 1000

Material group: 007

Validity end date: End of next year

Target value: 100000 UNI

In the item overview screen, enter a short text to describe the planned services – for example, Pipe-laying Project. Do not create an outline.

The first service is new, enter a short text. Enter the price, unit of measure, material group and quantity.

Adopt two more services (work) from either your last purchase order, your model service specification MODEL##, or model specifications M-SPEC-1 or M-SPEC-2.

Change the quantities or prices. Make the quantities large enough to reference multiple times.

Record the data for the three services and save the contract.


Service _________________ Quantity ________ Gross price___________



Add to the data sheet:

Contract number: _____________________________________________

1-2 The first release against your contract occurred this week. Create a release (purchase order) by referencing the contract.

1-2-1 The vendor is the same as on the contract, T-K40B##. Enter the number of your contract as a reference on the far right of the item overview.

In the list of services, you must choose Service selection to determine which services are being included this time. Adopt at least one service. Change the quantities if you need more than one of each. The tax code is 0i.

Did the contract prices transfer to the release? ________________

1-2-2 Save the release order. ADD it to your data sheet.

Release order number: ___________________________________

*1-3 Display the contract.

1-3-1 Is your release listed under the Release documentation?

1-3-2 Find the quantity released in the contract.

1-3-3 Display the details for a service item. Can you find the released value?


Long-Term Documents Exercises


Topic: Invoicing Plans and Blanket POs


Maintain invoicing plans

You are using invoicing plans for consistent values when service entry sheets are not needed.

2-1 Your vendor T-K40B## must be set for Evaluated Receipt Settlement (ERS) if you want invoices created automatically. Check the vendor master record for purchasing to be sure that the AutoEvalGRSetmt Del indicator is set.

2-2 There is a service that is invoiced monthly for the same amount. To set up an invoicing plan to automate the process, begin with a purchase order.

Order Type Framework order

Vendor: T-K40B##


Purchasing Grp: ##-LO540

The invoice plan is valid beginning this month and ending in one year.

Enter a short description for the line item, account assignment K, item category D, plant 1000 and material group 007.

In the Services tab area, specify the service, quantity and price per month.

In the accounting tab area, the account is 417000 and cost center 4110.

In the Delivery tab area, the GR indicator should be OFF.

Within the Invoice tab, the GR-based IV indicator should be OFF, the ERS indicator should be ON, and the tax code is 0i.

Select Invoicing plan.

Choose the periodic invoicing plan Training MM. Set the In advance indicator. Verify the suggested dates.


Return and save the invoicing plan.

Invoicing plan number: ________________________________________

2-3 Automatically create the first invoice for your plan. In the initial screen, enter your vendor or the invoicing plan number. Execute in test mode first, then Execute to generate the invoice.

Invoice number: ______________________________________________

2-4 Display your purchase order. Display the purchase order history to see the invoice linked to the purchase order.


4.21Long-Term Documents Solutions


Topic: Contracts

1-1 From the standard SAP menu:

Logistics Materials Management Purchasing Outline agreement Contract Create

Enter the data in the initial and header screens. Enter the first service.

Choose Service Selection.

Reference either your purchase order number and item, or a model service specification.

Select the desired services and choose Adopt services.

To display or change the pricing, you could also select a service and choose Item conditions.

Service Quantity Gross price


Contract number: _____________________________________________

1-2 Favorites: Purchase Order

1-2-1 Enter the number of your contract and the item number on the right. Select the line item and in the Services tab choose Service selection. Select at least one service and choose Adopt services. The quantities default to 1, change them as needed.

The contract prices did transfer.

1-2-2 Add it to your data sheet.

Release order number: ___________________________________

1-3 Logistics Materials Management Purchasing Outline agreement Contract Display


1-3-1 Select Release Documentation.

Yes, it is listed. You can also see the total value released.

1-3-2 Return to the contract. Select the line item and Services. The quantity released is on the right.

1-3-3 Select a service line and Details. The Statistic tab displays the value released and quantity released.


Solutions


Topic: Invoicing Plans and Blanket POs

2-1 Logistics Materials management Purchasing Master data Vendor Purchasing Change (current) Purchasing data

Vendor T-K40B## does have the indicator AutoEvalGRSetmt Del. set.


Enter the order type and vendor. In the Header screen area, select Additional data and enter the validity period dates.

Enter the item category, account assignment category, and a short text for the service in the item overview area.

In the Item details screen area:

Within the Services tab, enter the service by short text or service activity number, quantity and price.

Within the Accounting tab, enter the account and cost center.

Within the Delivery tab, deselect GR.

Within the Invoice tab, set the ERS indicator and select Invoicing plan.

Choose the Training MM periodic invoicing plan.

Set the In advance indicator in the Invoice Plan screen. Your first invoice date should be in the past.

Return and save.


2-3 SAP standard menu Logistics Materials management Invoice verification Logistics invoice verification Automaticr processing Invoicing plan

Invoice number: ______________________________________________

2-4 Purchase Order Display

In the Item details screen area, select the Purchase order history tab.


5

SAP AG 1999

Sources to Assign to a Requisition

Converting Requisitions into Purchase Orders and Release Orders


Contents:

(C) SAP AG SCM540 1

5.2

SAP AG 1999

Describe how the the R/3 System determines sources of supply

Convert a requisition into a purchase order or release


Optimized Procurement: Unit Objectives

(C) SAP AG SCM540 2

5.3

SAP AG 1999

Course Overview Diagram: Optimized Procurement

Master Data



Course Overview



Conclusion

Long-Term Documents


12

9

6

3

11 1

7 58 4

210



??==

Req.

Specs.

PO#12

Item 10

(C) SAP AG SCM540 3

5.4

SAP AG 1999

Several of your services are scheduled frequently. To process requisitions more efficiently, you will test the assignment of a service provider from contract or condition records.

Optimized Procurement: Business Scenario

(C) SAP AG SCM540 4

5.5

SAP AG 1999

Origin of Purchase Requisitions

or

Created manually in user department

Project system (PS) Plant maint. (PM) . . .

Generated automatically

Purchaserequisition

Purchase requisitions are created within departments for internal use or generated automatically within other processes such as Plant Maintenance, Project System, Service Management, and so on.

Procurement converts purchase requisitions into purchase orders.

(C) SAP AG SCM540 5

5.6

SAP AG 1999

Requisition Processing

Create purch.requisition

Determinesource

Release(optional)

Process requisition/

If no source determined:

RFQ or assign vendor

Manualor

automatic

Pur. order1

2Requisn. Contract Requisn

o.k.Vendor

Contractrel. order

RFQ

??

From a list of open requisitions, you can automate the conversion process into purchase orders. If no source is found, you could set the requisition for RFQ processing. Requisition release/approval processing is optional.

(C) SAP AG SCM540 6

5.7

SAP AG 1999

PurchaserequisitionPurchase

requisitionPurchaserequisition

PurchaserequisitionPurchase

requisition

Further Processing of Purchase Requisitions

Purchaserequisition

VendorSource

assigned

Nosource

assigned

- Start automaticsource

determination

- Assign sourcemanually

Process

Assignand

Process

Contractrel. order

Pur. order1

2

or

Pur. order1

2 Contractrel. order

RFQ

??

You can Assign purchase requisitions if a vendor had not been allocated. Sources are suggested from contracts for the service or material group, or from conditions with vendor (and plant).

Assigned requisitions can be processed into purchase orders or contract release orders. Assignment and processing could be separate processes or combined into a sequential transaction.

(C) SAP AG SCM540 7

5.8

SAP AG 1999

Vendor

Maintain services in purchase requisition

Assign sources Hour%

Conditions

UNI

ServiceServiceconditionsconditions

Requisn

Specs.

Contract

Vendor

Possible Sources for External Services

The R/3 System can suggest potential sources for the procurement of required services. These sources are determined on the basis of existing contracts and vendor service conditions.

(C) SAP AG SCM540 8

5.9

SAP AG 1999

Suggested Sources

Purchaserequisition

- Material groupSoftware consulting

- Service 1580Senior consultant

Rel. order

Pur. order

1

2

Rel. order

Contract

- Mat. Group

Softwareconsulting

Possible sources

- Service1580

- 250 UNI

Contract

- Service1580

- 260 UNI

Pri

ce s

imu

lati

on

Exist?

no yes

- Contracts forservice

x

x

x

- Serviceconditions

- Contracts formaterial group

Vendor

ConditionsVendor:Miller Corp.

If conditions and contracts with service specifications exist for certain material groups, they are suggested as potential sources.

If several sources are suggested, you can determine the most favorable one by carrying out a price simulation.

(C) SAP AG SCM540 9

5.10

SAP AG 1999

Price Simulation for Source Comparison

Selection of suitable source from those suggested

X

Possible for one or all of the sources found.

Results at individual service or outline level.

Color signals indicate origin of prices.

Price available, originates from listed source.

Price available, but originates from conditions for vendor and

service, not from listed source.

Price available, but only an own estimate (service condition).

No price available.

To help you select a source, you can compare prices if several sources are suggested. Price comparison is possible for one or all of the sources listed. For a service line it displays the individual price and total value For outline levels it displays:

Outline level first line – Total value of all subordinate outline levels Outline level second line – Total value of all services belonging to the outline level


5.11

SAP AG 1999

Customizing Source Determination

Purchaserequisition

- Mat. group 05Softw. consulting

- 1580- 1590- 1600- 1635

- At least one service

- All services

Service conditions

Vendor Miller Corp.

1600 200 UNI

Contract- 1600

.

.

.

Contract

- 1580- 1590- 1600- 1635

.

.

Contract

- 5030- 6700- 6720- 6800

Mat. group 05Softw. consulting

At leastone

service

Allservices Service conditions

Vendor Smith Co.1580 180 UNI1590 130 UNI1600 200 UNI1635 95 UNI

Same material group/other services

Customizing

Using the Customizing facility Source determination and default values at the client or purchasing organization level, you can define whether: All contracts and master conditions that contain at least one of the services requested in a purchase

requisition are to be suggested as possible sources or Only those contracts or master conditions containing all the services requested in the requisition are to

be offered for selection or A search for the material group is possible at item level

Automatic purchase order processing for services is also set in customizing. The other prerequisite is that the Automatic PO indicator must be set for each vendor master.


5.12

SAP AG 1999

Describe how the R/3 System determines sources of supply

Convert a requisition into a purchase order or release


Optimized Procurement: Unit Summary


5.13Optimized Procurement Exercises

Unit: Optimized Procurement


Convert a requisition into a purchase order or contract release

Describe how the R/3 System determines sources of supply

For your common services, you are testing the assignment of a service provider using data from contract or conditions definitions.

1-1 A requisition was received for services without specifying the vendor.

Document type: NB Purchase Requisition

Item category: D

Account assignment category: K

Delivery date: One month from today

Plant: 1000

Purchasing group: Y## (LO540-##)

Material group: 007

Enter a short description for the overall line item.

1-1-1 In the Services screen area, select all of the services from your contract. Change the quantities. For the account assignment, enter cost center 4110 and select the Auto repeat AA button to apply the cost center to all of the services. Record the data entered.

Service __________________ Quantity _____Price ____________



1-1-2 Save the requisition. Requisition number: ____________________


1-2 You are the buyer who assigns requisitions to vendors and converts them to purchase orders.

Use the Assign and Process function to convert the latest requisition into a purchase order. Select requisitions for your purchasing group and material group 007.

First, select your requisition and Assign automatically to list possible vendors. Compare prices by selecting Price simulation all. Which possible document most closely matches the requisition?

Return to the selection screen and choose your contract.

Second, from the Assign and process purchase requisitions screen, select Assignment overview. Choose your contract number and then Process assignment. Select your requisition in the document tree, Adapt, and Save.


Document number: ____________________________________________

*1-3 Did you create a purchase order or a contract release? Display the contract to verify the connection.

*1-4 If sources have been assigned to requisitions then you can convert requisitions to purchase orders automatically. The indicator has to be set for your vendor and in customizing for services.

1-4-1 Change vendor T-K40B## to set the Automatic PO indicator.

1-4-2 Display the setting in Customizing for Automatic purchase orders.

1-4-3 Create a requisition as above. Choose Service Selection and enter your contract number, item 10. Select Adopt Services. Modify the quantities and prices.

Assign the contract as the source in the Source of Supply tab. Choose Assign Source of Supply.


1-4-4 Create a purchase order automatically from the requisition. Select requisitions by your purchasing group and your contract vendor. Select New PO per requisition. Choose Execute.

Do the prices match the contract or the requisition? ____________

Purchase order number: __________________________________


5.14Optimized Procurement Solutions

Unit: Optimized Procurement

1-1 Favorites or User menu: Create Enjoy Purchase Requisition

1-1-1

Service Quantity Price

1-1-2 Requisition number: _____________________________________

1-2 Standard SAP menu: Logistics Materials management Purchasing Purchase requisition Follow-on functions Assign and process

Follow the directions in the exercise.



*1-3 Standard SAP menu: Logistics Materials management Purchasing Outline agreement Contract Display

Enter your contract number, select the line item, and choose Item Statistics Release Documentation.

*1-4

1-4-1 Standard SAP menu: Logistics Materials management Purchasing Master data Vendor Purchasing Change (Current)

Select Purchasing data. Check the Automatic PO indicator.

1-4-2 SAP standard menu Logistics Materials management Service Entry sheet Environment Customizing

Source determination and default values for Client


1-4-3 Favorites: Create Enjoy Purchase Requisition

Create another requisition similar to the last one.

Assign the contract as the source in the Source of Supply tab. Choose Assign Source of Supply.


1-4-4 Standard SAP menu: Logistics Materials management Purchasing Purchase requisition Follow-on functions Create purchase order Automat. via PReqs

The prices are taken from the contract.



6

SAP AG 1999

Unplanned Services

Applying Limits

Combination of Planned and Unplanned Services

Tolerances

Value Limits for Unplanned Services

Contents:

(C) SAP AG SCM540 1

6.2

SAP AG 1999


Value Limits: Unit Objectives

Apply value limits to control costs in the procurement of services and supplies

Create a service specification with unplanned value limits for unplanned services

(C) SAP AG SCM540 2

6.3

SAP AG 1999

Course Overview Diagram: Value Limits

Master Data



Course Overview



Conclusion

Long-Term Documents


12

9

6

3

11 1

7 58 4

210



??==

Req.

Specs.

PO#12

Item 10

(C) SAP AG SCM540 3

6.4

SAP AG 1999

Value Limits: Business Scenario

Often the services you order are unknown when you work with consulting or maintenance contracts. You can apply limits to control those costs. Limits are also used for not to exceedcontract limits.

(C) SAP AG SCM540 4

6.5

SAP AG 1999

Value Limit for Unplanned Services

adhered toLimit

Service entry sheet 3rd Feb.

Item 10Oil filter replaced1 hour 75 UNICost center 123

1

Release procedure Acceptance

Purch. order # 12345 27th Jan.

Item 10 Repair printing press

- Precise description of work

- Order quantity

- Account assignment

Cost control throughimposition of limits !!

??????

Specs.

??

Value limits are a tool of cost control with regard to those services whose exact nature or scope are not known or which you do not want to specify in detail at order entry time.

(C) SAP AG SCM540 5

6.6

SAP AG 1999

Value Limit When Planning/recording Services

Service specifications inthe purchase order

7th April

Service entrysheets



02 Adjustment of software components

Senior Consult. 3 days 2000 / day












Unplanned services up to maximum 60000??


Modification to Component QConsultant 10 days 2100 per day

Value limit

Planned Services: The service descriptions, quantities and prices have already been finalized at the time you ordered. When services are performed and entered into the R/3 System, planned services from the relevant

purchase order are adopted directly in the service entry sheet by referencing the purchase order. Unplanned Services:

The service descriptions, quantities, and prices have not yet been finalized at the time you ordered. The service description, quantity, and price are not entered until the time that the services are

recorded. In the process, the R/3 System checks that the limits have been adhered to as set out in the purchase

order.

(C) SAP AG SCM540 6

6.7

SAP AG 1999

Overall Limit and Sub-limits

Contract

- 20000 UNI on contract 46...12- 10000 UNI on contract 46...54

.

.

.

Standard service catalog

- 30000 UNI on SSC 037/198..

Model service specifications

- 60000 UNI on model spec. 123

Unspecified limit

5000 UNI

Overall limit100000 UNI

Split upamong:

For unplanned services the R.3 System verifies that the overall limit from the purchase order line item has not been exceeded in the service entry sheets. The overall limit is used as a tolerance check.

Sub-limits within the overall limit are also compared to the service entry sheets. Limits against contracts Limits against standard service catalogs Limits against model service specifications A limit without reference to other documents

The sub-limits do not have to equal the overall limit.

(C) SAP AG SCM540 7

6.8

SAP AG 1999

Value Limit: Expected Value

From the business point of view:

The value to which unplanned services are likely to be performed and recorded

Technically:

Used for account assignment and commitment value

Serves as the basis for the release procedure (if one is applied)

Depending on your aims with regard to cost control:

Expected value is lower than overall limit

Expected value is higher than overall limit

The Expected Value is the total likely to be performed and charged by the service provider. It need not equal the overall limit.

If the document may be subject to a release procedure, this value represents the value limits portion of the line item.

The expected value is added to the total value of the planned services to equal the net value of the document line item.

(C) SAP AG SCM540 8

6.9

SAP AG 1999

Value Limit at the Time of Service Entry

Purchase order

Serviceentry sheet

Planned service

10 days 12000 UNI

Unplanned service

8 days 16000 UNI

Limits

20000 UNI

10

10 days 1200 per day

Overall limit is checked Sub-limits are checked

Quantities of planned services checked

Price adopted

Quantity checked Price adapted

Service 123Contract

- Quantity 100 days

- Price 2,000 / day

10 Service 345

When you enter planned services on service entry sheets, prices and quantities are defaulted from the purchase order.

When you enter unplanned services, the R/3 System checks all of the limits set in the purchase order. If a limit is exceeded, it issues a warning or error message.

If you enter a service from a contract that has limit set in the purchase order, the R/3 System will: Adapt the price from the contract. Check adherence to the target quantity of the contract

(C) SAP AG SCM540 9

6.10

SAP AG 1999

Planned Procurement of Services

Purchase order

No value limits

Specs.

- Service 1580

- Service 1540

Serviceentry sheet

- Service 1580

- Service 1540

Plannedservices only

First possibility:

If unplanned services are not defined in the purchase order, you can enter services actually performed only if they are included in the service specification of the order.

This is appropriate if the services are known at the purchase order time.


6.11

SAP AG 1999

Partially Planned Procurement of Services

Purchase order

LimitContract 1 20000 UNIContract 2 10000 UNI

No servicespecifications

Serviceentry sheet

- Service 10from contract 1



Contract limitsbut no planned

services

Second possibility:

If limits are set against certain contracts, you can only enter services if they are covered by these contracts. The R/3 System automatically adapts the contract prices.

This is appropriate if you do not know the scope or the exact nature of the services, but know the area they represent and which contracts set their prices or values.


6.12

SAP AG 1999

Unplanned Procurement of Services

Purchase order

Value Limits

No servicespecifications

Serviceentry sheet

- Service 1

- Service 2

X Unlimited

.

.

.

Unplanned services only

Not created untilservices actually

performed are entered

Specifications

Third possibility:

If no limit is placed on the value of the services in the purchase order (value unlimited) any services performed can be entered with any quantity and price. The service specifications are not created until the services are actually performed and recorded in the R/3 System, late in the procurement cycle.

This is appropriate if you only know the service provider at purchase order time, but do not have any further information on the quantity or type of service.


6.13

SAP AG 1999

Overall Limit, Sub-limits, Limit w/o Reference

Limit definition

Overall limit100000 UNI

Limit (unspecified)10000 UNI

Purchase order

ABC Software Ltd.

10 Software implementation ...

Serviceentry sheet

<_ 60000 UNI

model spec A200Limits on model specsNo. A200 60000 UNINo. B320 50000 UNI

Planned

Unplannedvia limit

...

Unplanned service2000 UNI

Fourth possibility:

Model spec A200

Model spec B320

ABC Software GmbH

10 Software Consulting

- Junior consultant - Senior consultant - Head consultant

Limit100000 UNI

If an overall limit exists and sub-limits are defined, you can enter services within the sub-limit amounts. The overall limit must not be exceeded. The service specifications are not created until the services are actually performed and recorded in the R/3 System.

Within the limits defined above, services up to 60000 UNI can be entered against model service specification A200, 50000 UNI for B320, and any other services up to 10000 UNI. If you try to exceed 100000 UNI you have reached the maximum overall limit.

These limits are appropriate if you have a firm idea of the services involved, but should also allow for various contingencies.


6.14

SAP AG 1999


Create a service specification wirh unplanned value limits


Value Limits: Unit Summary


6.15Value Limits Exercises

Unit: Value Limits



Create a service specification with value limits on unplanned services

Often the precise services are unknown when creating maintenance or consulting contracts. You can apply limits to control costs. Limits are also used for not to exceed contract limits and in combination with planned services.

1-1 You require one service frequently. Create a contract for the service with a negotiated price.

Vendor: T-K40A##

Agreement type: MK


Purchasing Grp: Y## (LO540-##)

Item category: D

Account assign.: U

Plant: 1000

Material group: 007

Validity end date: End of next year

Enter a short text for the line item. In the list of services, enter your second service master number, quantity 100, and a gross price. Save it.

Contract number: _____________________________________________

1-2 You need several services, but your provider will not know the exact cost, the number of repair parts, or the additional labor that will be provided until after the service has been completed. One of the possible services is on the contract you just negotiated.

Create a purchase order but do NOT reference the contract.


Order type: Standard PO

Vendor: T-K40A##


Purchasing Grp: Y##-(LO540-##)

Account assign.: U

Item category: D

Material group: 007

Plant: 1000

Enter a short text for the line item.

1-2-1 For the first service, enter your first service master number, quantity 100. What was the source of the price? ______________________________________________________

1-2-2 Set limits for the unplanned services under the Limits tab.

The overall limit is 10000 UNI. This is the maximum value of unplanned services.

The expected value is 9000 UNI. This is the value used for release procedures.

Under the Contracts limit tab, set the Price change during entry allowed indicator. Enter your last contract document number, item 10, and a limit of 7000 UNI. This is a sub-limit for unplanned services.

Under the Other limit tab, enter 5000 UNI. This is a sub-limit for additional or unknown unplanned services.

Before saving, look at the Item overview screen area. What is the Net price? Which two values were added to obtain this figure?

______________________________________________________

1-2-3 Save the purchase order. ADD it to your data sheet.

Purchase order number. __________________________________

*1-3 True or false. Using the values and limits in the prior purchase order, you could create a service entry sheet for:

1-3-1 An amount less than the net value of the first service, 6000 UNI against the contract, and 3000 in additional services. ___________

1-3-2 5000 UNI against the contract and 5000 UNI in additional services. ______________________________________________________

1-3-3 6000 UNI against the contract and 5000 UNI in new services. ______________________________________________________

1-3-4 An amount less than the net value of the first service, 8000 UNI against the contract and 1000 UNI in new services. ____________


6.16Value Limits Solutions

Unit: Value Limits

1-1 From the standard SAP menu: Logistics Materials Management Purchasing Outline agreement Contract Create

Contract number: _____________________________________________


1-2-1 The gross price came from the service/vendor condition record.

1-2-2 The value of the first service item (planned service) and the Expected value limit (unplanned services) were added.

1-2-3 ADD it to your data sheet.


* 1-3

1-3-1 True. The total of the contract and additional service values is less than the overall limit.

1-3-2 True. The total of the contract and additional service values is equal to the overall limit.

1-3-3 False. The values are within the sub-limits but are beyond the overall limit.

1-3-4 False. It exceeds the contract sub-limit.


7

SAP AG 1999

Entering Services Performed

Acceptance/Approval of Actual Services

Reporting and Purchase Order History

Entry and Acceptance of Performed Services

Contents:

(C) SAP AG SCM540 1

7.2

SAP AG 1999

Enter planned and unplanned services performed

Approve or accept the services

Display the purchase order history

Execute reports on services


Entry and Acceptance of Services: Unit Objectives

(C) SAP AG SCM540 2

7.3

SAP AG 1999

Course Overview Diagram: Entry and Acceptance

Master Data



Course Overview



Conclusion

Long-Term Documents


12

9

6

3

11 1

7 58 4

210



??==

Req.

Specs.

PO#12

Item 10

(C) SAP AG SCM540 3

7.4

SAP AG 1999

Instead of a goods receipt, you enter service entry sheets which track the actual consulting, maintenance or repairs completed. There is no inventory processing required.

For service entry sheets over 2000, you will need two approvals. Under 2000 an acceptance is sufficient.

Entry and Acceptance: Business Scenario

(C) SAP AG SCM540 4

7.5

SAP AG 1999

Creation of an Entry Sheet for Performed Services

Service specifications inthe purchase order

7th April

Service entrysheets



02 Adjustment of software components

Senior Consult. 3 days 2000 / day












Unplanned services up to maximum 60000??


Modification to Component QConsultant 10 days 2100 per day

Value limit

You maintain services performed from the purchase order reference. Planned services

These can be adopted directly in the service entry sheet. Unplanned services

In this case, a precise description, the quantity, and price data are not provided until the services actually performed are entered into the system.

The system checks whether the unplanned services conform to the limits set in the purchase order: Planned services are allowed up to the quantities in the purchase order. Unplanned services are allowed only if limits were defined.

(C) SAP AG SCM540 5

7.6

SAP AG 1999

Service Entry and Account Assignment

575 UNI

Service entry sheet

Total:

Account assgt- single - multiple

Senior consultant

Junior consultant

Computer hours

1h

1h

1h

250 UNI

225 UNI

100 UNI

Account A 50%

Account A

Account B

PO history

Service entry

GR item 1

GR item 2

575 UNI

225 UNI

350 UNI

Material doc. Financial doc.

Account A

Account B

125 + 100 = 225

125 + 225 = 350

Summation at time ofservice acceptance

Account B 50%

In the case of external services, a valuated acceptance is carried out. A goods receipt line item is inserted for each account assignment item. At the time the entry sheet is accepted, a logistics document (material document) is generated, which

then controls the updating. The account assignments are debited at the same time in the accounting document.

(C) SAP AG SCM540 6

7.7

SAP AG 1999

Message Output for Entry Sheet

Serviceentry sheet

Printer Fax

Linked tomessage

determination

You can initiate the transmission of service entry sheets in message form manually. Using the message determination facility, new service entry sheets can be selected automatically and

printed or transmitted at certain time intervals. Message determination is defined in customizing, as it is for purchase orders and other documents.

(C) SAP AG SCM540 7

7.8

SAP AG 1999

Release Procedure for Service Entry Sheets

Service entrysheet

3

5

= Technical release

= Commercial release and acceptance

Release points:

2 41

Strategy 5

Service entrysheet

You can subject service entry sheets to a release procedure. The release strategy can have up to eight levels of approval and uses classification to select the

characteristics for approval requirements. An example:

Entry sheet value greater than 5000 UNI Entry sheet charged to a cost center First approval by a logistics manager Second-level approval by an accounting manager First level must approve before the second level can approve

(C) SAP AG SCM540 8

7.9

SAP AG 1999

One-Step Service Acceptance

Entry Acceptance

Financial postings

Serviceentry sheet

Serviceentry sheet

Total value22000 UNI

Services...

If a service entry sheet is not subject to a release procedure, it can be directly accepted at the time of service entry.

A precondition for this is that you have the authorization to accept services performed. You have the following options:

One stepservice entry + service acceptance (one user)

Two stepsservice entry (user A)service acceptance (user B)

Two stepsservice entry (user A)service acceptance (user A)

(C) SAP AG SCM540 9

7.10

SAP AG 1999

Multi-Step Service Approval

Entry Acceptance

Serviceentry sheet

Total value22000 UNI

Services...

Differentiatedworklists

Releaseprocedure

12 3

Via collective release

Financial postings

Serviceentry sheet

Serviceentry sheet

If a service entry sheet is subject to a release strategy, as a rule it must be released (approved) by several individuals (multi-step acceptance/approval).

Although service entry sheets can be released individually, collective release is the usual approach adopted. This means that you create worklists of all service entry sheets you are required to release within a certain period.


7.11

SAP AG 1999

Monitoring Purchase Orders

List of follow-on activities relating to a purchase order

From within the service specifications display function

- General analyses

- Analysis of purchase order values

- Logistics Information System

- Business Information Warehouse

Purchase order history

Comparison of planned/actual values

Purchasing analyses

The purchasing functionality provides a number of ways to obtain information on the activities thatfollow from a purchase order for services:

PO history Comparison of planned/actual values Purchasing analyses:

List displays – Among the search methods for external services are the service master number or the short text description.

General Analysis – Determines the order value for a certain material group over the last quarter, or which purchasing organization is responsible for the largest share of the total order values.

Order Value Analysis – Select by material group and list by net order value, ABC analysis, frequency analysis, and so on.

Logistics Information System – Standard analysis by service allows you to select by a service master number or material group.

Service entry sheets List analysis – Select by service master or purchase order.

MM External Services Management is linked to the Logistics Information System (LIS).


7.12

SAP AG 1999

Purchase Order History

Pur. order 1234

Specs.

Invoice 5678

Vendor ASoftwareimplem.

21000 UNI

Serviceentry sheet

21000 UNI

Serviceentry sheet

List of follow-on activities

- All services performed todate

- Entered but not accepted

- All services performed todate

- Entered and accepted

All invoices

= SEnt

= GR

= RE-L

21000 UNI

The Purchase Order history is actually a list of all follow-on transactions and events relating to a certain purchase order item. It tracks all services actually performed and recorded. It lists all services that have been accepted that produce a goods receipt. It records the relevant invoices received from the service provider.


7.13

SAP AG 1999

Comparison of Planned/Actual Values

PO 1234

Specs. 01 Selection of softwarecomponents

Service Specs. OutlineTotal Values

50%

Actualin %

Totalvalue

Actualvalue

50000 25000

From the outline view of a set of service specifications you can display the total values of all ordered services per outline level.

The Total Values selection also shows the value and percentage that has been performed/entered at the current date.


7.14

SAP AG 1999


Approve or accept the services

Display the purchase order history



Entry and Acceptance of Services: Unit Summary


7.15Entry and Acceptance of Performed Services Exercises

Unit: Entry and Acceptance of Performed Services



Approve or accept the service entry sheets

Display purchase order history


Instead of entering a goods receipt for a material, you create service entry sheets to track the actual consulting, maintenance or repairs completed. There is no inventory processing required.

Service entry sheets over 2,000 UNI must be approved.

1-1 In your service entry role, find the activity group for SAP_MM_SE_CLERK. Assign it to your user logon. This will add service entry functions to your current User menu.

1-2 You created several purchase orders. Create a service entry sheet for the purchase order in the Optimized Procurement unit. This purchase order contained only planned services.

Enter a short text to describe the overall services performed.

Be sure that the costs are assigned to cost centers.

Choose Service Selection and choose all of the services.

Adjust the quantities. Can you increase the quantity beyond the order quantity?

_________________________________________________________

Find the Tax column and set the tax code to 0i (no tax).

Accept the service entry sheet if it does not need approval. Note the traffic light color before and after.

Save the service entry sheet. ADD it to the data sheet.

Service entry sheet number: _____________________________________


If the value of the service entry sheet exceeds 2000 UNI, it must be released instead of accepted.

1-3 You want to enter unplanned services next. Recall the purchase order number from the Value Limits unit. Follow the same procedure as for the last service entry sheet. The account assignment category is Cost Center. Enter these services:

First line: First service master number, quantity 100 or less. The cost center is 4110.

Second line: Second service master number, quantity 100 or less.

*Test several combinations by raising or lowering the price and quantity.

Can you exceed a net value of 7000 UNI?

_____________________________________________

Third line: Enter a description to represent the supplies used. Enter a quantity and price that fit within the Overall limit and Other limit.

Accept the entry sheet, if possible, but do not release it.

Save the service entry sheet. ADD it to the data sheet.


1-4 Release any entry sheets if they need approval.

1-4-1 Release the entry sheets in your capacity as the person with technical responsibility first, release code FA. Select by entering your purchasing group number.

1-4-2 Release the entry sheets in your financial capacity second, code KA.

1-5 Display one of your service entry sheets.

1-5-1 What color is the traffic light now, if it has been accepted or approved? _____________________________________________

1-5-2 Display the purchase order history. How many documents were created?

Why? ______________________________________________________

1-5-3 Display the purchase order. Does the R/3 System display the actual values for a service line? _________________________________

______________________________________________________

1-6 View these reports:

1-6-1 The List displays for purchase orders for external services, to view the status of several purchase order quantities.


1-6-2 The Planned/actual comparison report, to display the quantities and value of service lines ordered, services accepted, and services invoiced.

1-6-3 The List Analysis, for service entry sheet status.

1-6-4 A Logistics Information System Standard Analysis for services from your two suppliers, T-K40A## and T-K40B##. Display the data graphically. Choose key figures to display additional data.

*1-7 Find the purchase order number from the Service Specification unit. Select from the tree or enter in Other Purchase Order. Choose Entry sheet Create With Planned Services. Specify 50% as the percentage performed. Check the services and quantities by expanding the services to a full screen and selecting each level of the outline. Save it.



7.16Entry and Acceptance of Performed Services Solutions

Unit: Entry and Acceptance of Performed Services

1-1 Select Other Menu.

Select Activity group SAP_MM_SE_CLERK.

Select Assign Users.

Enter your Logon user ID and select Add users.

Choose Yes to Generate profile and compare user masters.

Select User Menu to call up the extended user menu.

1-2 User menu: Service entry sheet

Either select your purchase order from the Document Overview list, or select Other purchase order and enter the number.

Choose Create if you want to select the services performed, or choose Entry sheet Create With Planned Services to copy all services with the percentage performed.

Enter a short text, account assignment Cost centers, and choose Service Selection if there are no services.

Select all of the services and Adopt them.

You can NOT increase the quantities above the order quantity, depending on the settings in Customizing for system messages.

Set the tax codes to 0i.

The traffic light is red before acceptance, yellow when accepted. Accept if the total is less than 2000. Save.


Service entry sheet number: _________________


After entering a planned service, an unplanned service from a contract, and an unplanned service not known until the service entry sheet, accept it and save it.


Service entry sheet number: _________________


1-4 User menu: Collective Release

1-4-1 Release code: FA

Purchasing Group: Y##

Choose Execute.

1-4-2 Release code: KA

Purchasing Group: Y##

Choose Execute.


1-5-1 The traffic light is green.

1-5-2 Environment Purchase order history

At least two documents were created.

An entry sheet (SEnt)

One or more Acceptance documents (GR)

1-5-3 From the Display Entry sheet screen, select Display next to the purchase order number.

Select a service line, select Detail and choose the Statistic tab.

To display the comparisons of planned versus actual values, select Full screen: Services, Outline on, and Outline Total values.

1-6

1-6-1 Standard SAP menu: Logistics Materials management Purchasing Purchase order List displays External services by service

Enter purchasing group Y## and choose Execute.

1-6-2 Standard SAP menu: Logistics Materials management Purchasing Purchase order List displays External services Planned/actual comparison

Enter purchasing group Y## and choose Execute.

The traffic lights are green when the complete quantity has been processed, yellow for partial processing, and red if that process has not yet occurred.

1-6-3 Standard SAP menu: Logistics Materials management Service entry sheet List Analyses For purchase order

Enter purchasing group Y##, select All and All, and Execute.

A red light indicates that it has not been accepted – a green light indicates that it has been accepted.


1-6-4 Standard SAP menu: Logistics Materials management Purchasing Purchase order Reporting Purchasing Information System Standard Analysis Service

Select the Graphics icon and the Choose key figures icon to explore some of the possibilities. Try others.

*1-7 User menu: Service entry sheet

Display all four levels of the outline.


8

SAP AG 1999

Vendor Invoices with Reference to a Purchase Order or Service Entry Sheet

Evaluated Receipt Settlement (ERS)


Contents:

(C) SAP AG SCM540 1

8.2

SAP AG 1999


Invoice Verification: Unit Objectives

Create an invoice from the service entry sheet data

(C) SAP AG SCM540 2

8.3

SAP AG 1999

Course Overview Diagram: Invoice Verification

Master Data



Course Overview



Conclusion

Long-Term Documents


12

9

6

3

11 1

7 58 4

210



??==

Req.

Specs.

PO#12

Item 10

(C) SAP AG SCM540 3

8.4

SAP AG 1999

To complete the procurement process, you will enter an invoice into the R/3 System and review the evaluated receipt settlement (ERS) options.

Invoice Verification: Business Scenario

(C) SAP AG SCM540 4

8.5

SAP AG 1999

InvoiceABCSoftware Ltd.

20000 UNISheet 1 Mar. 31

O.k.

?

VendorABCSoftware Ltd.

PO 0346722PO item 01

Sheet 1 20000 UNI

Sheet 3 6000UNI

26000UNI

Value 20000 UNI

Serviceentry sheet

Invoice from vendor

Invoiceverification

Invoice Verification: Reference to an Entry Sheet

You enter an invoice with reference to a purchase order. Using the PO number, all accepted service entry sheets for this PO are offered for selection. The R/3 System compares the price shown in the invoice with that of the service entry sheet. If there are no variances, the invoice can be entered and subsequently paid. In the event of variances, the invoice can be entered but is blocked for payment.

(C) SAP AG SCM540 5

8.6

SAP AG 1999

Service entry

Serviceentry sheet

Goods receipt

MMM

M

Material

=

GR-based invoice verification allows each service entry sheet relating to a PO to be invoiced separately.

GR-Based Invoice Verification

Externalservice

When you enter an invoice with reference to a purchase order, the R/3 System provides you with most of the data in the form of default values. You need only to enter a small amount of information directly.

GR-based invoice verification (that is, entering invoices for services with reference to the service entry sheet) allows each service entry sheet relating to a purchase order to be invoiced separately.

Only services with approved service entry sheets may be invoiced with GR-based invoice verification. In the PO history, each invoice item can be assigned to precisely one service entry sheet.

(C) SAP AG SCM540 6

8.7

SAP AG 1999

Pur. order1

2

Invoice Verification: Data Updates

Financial accounting

Assets

Cost centers

Projects

..

..

..

Purchasing andaccounting data is updated when an invoice is posted.

Invoiceverification

Invoice Verification uses datafrom Purchasing and the

service and vendor masterrecords.

Service master record

Vendor master record

Conditions

Serviceentry

Vendorinvoice

(C) SAP AG SCM540 7

8.8

SAP AG 1999

Invoice

Checking for Variances

Document no.5100012345

createdBlocked for payment!Price tolerances

Pur. order

1000 UNI

Serviceentry

10%10%

Variance

PostInvoice

1200 UNI

Each invoice is checked against the different tolerances set in customizing Invoices that exceed an upper tolerance limit are blocked for payment and released individually,

collectively or automatically.

(C) SAP AG SCM540 8

8.9

SAP AG 1999

Blocking of Invoices

BlockedBlocked!!

Invoice blocked forpayment!

Variance

Doc. no. ... created

Post

VendorPaymentprogram


Financial Accounting

Pur. order1

2

Serviceentry Sheet

1000 UNI

Invoiceverification

?=

1200

Bank1200

GR/IR

1000

Vendor

1200

1000

1200 UNI

Cost Center

200

If the variances between the prices shown in an invoice and those of a service entry sheet are too large, the invoice is blocked by the R/3 System so that payment cannot be effected.

A blocked invoice then needs to be released – possibly after consultation with Purchasing or the relevant vendor – in a separate step.

Automatic release involves the clearance for payment of all invoices whose reasons for blocking no longer apply.

In the case of manual release, a list of blocked invoices is generated. Working from the list, you can then delete individual blocking reasons, release individual invoices, or release several invoices at the same time.

(C) SAP AG SCM540 9

8.10

SAP AG 1999

Evaluated Receipt Settlement (ERS)

Vendor

Serviceentry sheet

Service 1

2100 UNI

Payment

2100 UNI

+ InfoLog

Ordering Company

Pur. order

Service 1

2100 UNI

Invoice

In normal materials procurement, evaluated receipt settlement (ERS) involves direct settlement with respect to goods receipts - without submission of an invoice - on the basis of information from the purchase order and the goods receipts. A settlement log is created. The vendor receives a printout of the log or an ERS document.

ERS is allowed if it is determined in the vendor master. ERS is specified per PO item and information record.

Settlement can be selected according to GR posting dates, vendors, or purchase orders. You can make the following settings for the creation of the invoice documents:

One invoice document per vendor One invoice document per purchase order One invoice document per purchase order item

For the procurement of services, the basis is the accepted service entry sheet (<=> goods receipt) and the purchase order.


8.11

SAP AG 1999



Invoice Verification: Unit Summary


8.12Invoice Verification Exercises

Unit: Invoice Verification



To complete the procurement process, you enter an invoice from your service provider. The invoice is verified against the purchase order and the acceptance document or goods receipt created when the service entry sheet was accepted.

Either invoices are sent to you or vendors send a statement of work completed for entry into service entry sheets. This can be followed by Evaluated Receipt Settlement (ERS) for automatic invoicing.

1-1 Your service provider T-K40A## sent an invoice for the services that you documented in the second service entry sheet in the Entry and Acceptance of Performed Services unit. Enter the data with Logistics Invoice Verification.

Document date: Today

Tax tab: Set Calculate tax

Purchase order PO number or entry sheet number from second

Or Entry sheet entry sheet.

Basic Data tab: Amount: Enter the Balance amount from the upper right-hand corner.

The gross invoice amount, normally found on the invoice, must match the total of the line items, plus the tax amount. If the traffic light is green or yellow, you may post the invoice. Yellow indicates that it is out of tolerance and will be blocked for payment.

If tax codes are blank in the service lines, set the tax codes to 0I, 0%.

Select Simulate to view a trial generation of the posting lines.

When it balances, save the invoice.

Invoice: _____________________________________________________


If service-based invoice verification is set in the vendor master or on a purchase order line item, then each service item is displayed in invoice verification and in PO history for GR.

1-2 If you have a good relationship with your service supplier, you can set ERS (Evaluated Receipt Settlement) in the vendor master. This allows the automatic processing of an invoice from the accepted service entry sheet and purchase order data.

1-2-1 Vendor T-K40B## was marked for ERS in an earlier unit. (AutoEvalGRSetmt Del). _________________________________

1-2-2 Execute the ERS function for your vendor T-K40B##.

Invoice number(s): ______________________________________

*1-3 An accelerated process for creating multiple invoices for simple services is based on a Blanket Purchase Order. Create a blanket purchase order and an invoice against it.

*1-3-1 For the blanket purchase order:

Order type: Framework order

Vendor: T-K40A##

Validity start: Today

Validity end: End of next year


Purchasing Grp: LO540-##

Account assign.: K

Item category: B

Material group: 007

Plant: 1000

Enter a short text for the line item.

Set limits for the unplanned services under the Limits tab.

The overall limit is 75000 UNI. This is the maximum value of unplanned services.

The expected value is 50000 UNI. This is the value used for release procedures.

The account is 417000 and the cost center 4110.

Under the Invoice tab, deselect GR-based IV and enter 0I for the tax rate.

Under the Delivery tab deselect GR.

Save the framework order.

Order number: _________________________________________


*1-3-2 Enter an invoice for minor services performed. You do not have to create a service entry sheet for a blanket purchase order.

Document date: Today

Gross Amount: Enter the amount of the invoice

Set Calculate tax

Purchase order: Blanket order number

Enter the amount against the line item and verify the account information.

Save it when it balances and the light is green.

Invoice number: ________________________________________


8.13Invoice Verification Solutions

Unit: Invoice Verification

1-1 SAP standard menu: Logistics Materials management Logistics invoice verification Document entry Enter invoice

Find the purchase order or service entry sheet number from your data sheet. After entering the data and when the amounts balance, save the invoice.

Invoice number: ______________________________________________

1-2

1-2-1 SAP standard menu: Logistics Materials management Purchasing Master data Vendor Purchasing Display (current)

YES, in an earlier unit.

1-2-2 SAP standard menu: Logistics Materials management Logistics invoice verification Further processing Execute ERS

Enter your vendor master number and select Execute. Choose Test mode the first time, then execute again after deselecting Test mode to create an invoice.

Invoice number: ________________________________________

*1-3

1-3-1 Favorites: Purchase order

Framework order: _______________________________________

1-3-2 SAP standard menu: Logistics Materials management Logistics invoice verification Document entry Enter invoice

Enter the line item value by choosing the icon in the Acct Assign column. After you enter the amount in the accounting screen, the value transfers to the invoice screen.

Invoice number: ________________________________________


9

SAP AG 1999

PM Maintenance Plans

Project Systems

Service Management

Cross Application Time Sheets

Data Exchange with Vendors

Business-to-Business Procurement

Integration with Other Processes

Contents:

(C) SAP AG SCM540 1

9.2

SAP AG 1999

Describe procured services within other processes


Integration with Other Processes: Unit Objectives

(C) SAP AG SCM540 2

9.3

SAP AG 1999

Course Overview Diagram: Integration

Master Data



Course Overview



Conclusion

Long-Term Documents


12

9

6

3

11 1

7 58 4

210



??==

Req.

Specs.

PO#12

Item 10

(C) SAP AG SCM540 3

9.4

SAP AG 1999

Many other business units within your company are responsible for services from service providers. You need to ensure that the other groups describe and process services as completely and efficiently as possible.

Integration: Business Scenario

(C) SAP AG SCM540 4

9.5

SAP AG 1999

Maintenance orders have operations that can be performed by external service providers

Plant Maintenance

Plant Maintenance Maintenance orders list multiple operations to be performed. If the operations are performed by a

vendor, a requisition is created. Maintenance orders can create purchase requisitions. Each operation in the order has a control key.

Control key PM03 allows purchasing of services for external operations. In customizing, you can define a control key for internal processing with services (service packages) and service entry sheets.

External services can be described with service specifications, including service masters, outlines and value limits.

(C) SAP AG SCM540 5

9.6

SAP AG 1999

Basic/Accelerated Process for Plant Maintenance

Invoice

Invoice

Prev. maint.(servicing)

plan

Maint-enanceorder

Preq. PO Serviceentrysheet

Prev. maint.(servicing)

plan

Serviceentrysheet

Generate service entry sheet from preventive maintenance (servicing) plan

Basic process

Acceleratedprocess

PM MM

Externally sourced

Sourcedetermination

Automatically generated on a regular

basis

Acceptance

With the Basic process, you can create maintenance plans for preventive maintenance. As you generate maintenance orders from the plan on a periodic basis, requisitions are created. The requisition is converted to a purchase order and service entry sheets are maintained.

The Accelerated process stores service specifications in a PM maintenance plan. A purchase order is not required each time. The R/3 System generates service entry sheets on a predefined cycle.

(C) SAP AG SCM540 6

9.7

SAP AG 1999

Framework order

FO 1.1 - 12.31Value limit 15,000.00on contract 46...11

PM MM Quarterly servicing of company fleet vehicles

Weekly cleaning work

Stipulation of acct. assgt.= (released) maint. order

Specification ofprices via conditions or contracts

Acceleration through elimination of

RequisitionSource determinationPO generationManual service entry

Acceptance= manually

Automatically generated on a regular

basis

Serviceentry sheet

Prev. maintenance(Servicing) plan

Cat.`MM`

Specifications

Enter frameworkorder as source

Accelerated Process for Regular Maintenance

The option to create service specifications directly for a maintenance plan is controlled by the maintenance plan category. In the standard system, the MM maintenance plan category does this. A Framework Order connected to the maintenance plan replaces multiple purchase orders, and a PM order is connected to the maintenance plan to collect the costs.

(C) SAP AG SCM540 7

9.8

SAP AG 1999

Mech. breakdown!

Maintenance order

PM MM

Preq. Framework order

1.1 - 12.31Value limit 10000on contract 46...13

Numerous transactions coveredby a single purchase order

is generated

Assign and process source

Enter framework order as source

Save/release

Service entrysheet

Acceptanc= manually

Generated auto-matically

Closing a Requisition with Performed Services

Beginning with Release 4.5, you can convert requisitions for external services automatically from plant maintenance operations into service entry sheets.

A number of purchase requisitions can reference one framework order. An entry sheet is created for each requisition. The framework order is the source of supply in the maintenance operation.

When in Ordering: Assigned Purchase Requisitions set the Entry sheets indicator and the R/3 System will create service entry sheets instead of purchase orders for maintenance orders.

(C) SAP AG SCM540 8

9.9

SAP AG 1999

Projects include multiple activities in networks

Activities with external processing include service specifications

Project Systems

Project 000000902345 Quotation Phase IIProject 000000902345 Quotation Phase II

Project System Projects are complex, unique, and part of the internal processes of your company. Projects are structured by organization (Work Breakdown Structure) and by the processes involved

(Networks). Network activities involve internal or external processing. External processing can include services. An activity’s requisition has a service specification with outline, service master and value limit

capability.

(C) SAP AG SCM540 9

9.10

SAP AG 1999

Customer Service

ExternaloperationsExternal

operations

Work center: PC-Serv 1200

Work: 10 H

Activity type: 1410

. . .

Operation desc. Service Type

Operation quantity 5

. . .

H

Price 200 UNI

Cost element 415000

. . . Service master

10 H

. . . .

Internaloperations

Internaloperations

Control keySM02

Man

ual

Manual

300000000432156

Repair Pump 23 H

ServiceOrderoperations

Control keySM01

Control keySM03

Customer Service enables service activities such as processing maintenance and service tasks, repair and replacement of products under warranty, or call management.

These functions are related to Sales and Distribution where customer systems can be configured and services defined, delivery scheduled, and customers billed. Sales orders can generate service orders.

Customer Service uses service contracts, quantity contracts, and warranty agreements for the long term, and service orders and spare parts orders for the short term.

Service orders contain operations: Internal operations usually refer to the work center responsible (control key SM01). External operations can involve materials and services using goods receipts (control key SM02) External processing by service providers with service entry sheets (item category D) is usually defined

by control key SM03. Control keys are also used in Plant Maintenance.


9.11

SAP AG 1999

Customer Service with External Services

Company

Invoicex y z

InvoiceVerification

InvoiceInvoiceVerificationVerification

ServiceAcceptance

ServiceServiceAcceptanceAcceptance

Entry of ServicesPerformed

Entry ofEntry of ServicesServicesPerformedPerformed

PurchaseOrder

PurchasePurchaseOrderOrder

OrderReleaseOrderOrder

ReleaseRelease

PurchaseRequisitionPurchasePurchase

RequisitionRequisition

ExternalOperationExternalExternal

OperationOperation

Service Order

When service orders include external operations from service providers, service specifications are entered in the service order. Typically, service masters and descriptions are sufficient to describe the operation. While in the Services tab, select the Overview option, with all external services functionality.

Purchase requisitions are generated depending on the order type either when the service order is saved or released.

In purchasing, service purchase orders are generated from the requisitions. The purchase order items are assigned to an account on the service order.

The service order must be released before service sheets are entered for the tasks performed. When the performed services are accepted, the service order is debited with the order value. At invoice receipt, any invoice differences that arise are debited or credited to the service order

automatically.


9.12

SAP AG 1999

R/3 Time Sheets

MMMMMM

PSCO

PM HR CS

CATSMini-master

Data EntryProfile Authorizations

Time Data Recording

(Release)

(Approval)

Transfer

The R/3 Time Sheet is used to record the actual labor times of individual or multiple persons in a central time sheet.

To use the R/3 Time Sheet, you should have: A human resources mini-master with a personnel number and personal data A data entry profile The authorization to work with the time sheet

The time sheet process includes entering data in the time sheet, releasing the time data, approving the time data and transferring the data to the target component. Release or approval could be automatic.

You can use the R/3 time sheet to transfer data to these components: External Services: Entry of services performed Controlling: Internal activity allocation Human Resources: Attendance and absences Plant Maintenance, Customer Service and Project Systems: Confirmations for orders, networks, work

breakdown structure elements, and so on.


9.13

SAP AG 1999

Time Sheet Data

Time Sheet Defaults (infotype 0315)

Personnel Nr

From

Time Sheet Defaults

Production Elevators

Machine hours

1000

Sender cost center 4290

1420Activity Type

01.01.1999 12.12.9999

Service number

Plant 1300

Vendor

Sending Purch. Order 4500004483

0010Sending PO item

100140

Frankfurt

-

12345

C.E.B. Berlin

Each person/employee must have a personnel number, which is created through the human resources entry screens even if it is not implemented. The HR mini-master includes: Personnel Actions – infotype 0000 holds initial data such as status and validity period. Organizational Assignment – infotype 0001 includes data on their position, company code and cost

center. Personal Data – infotype 0002 contains their name, birth data, and language key. Time Sheet Defaults – infotype 0315 stores data used for default values in the time sheet. (Optional.)

Data Entry Profiles determine the layout of the screen and the required data entry in the time sheets. The data entry profile could hide any fields not needed by external services. The profile definition lets

you release or approve automatically as you save the time sheet.


9.14

SAP AG 1999

Time Sheet Transfer to MM

Transfer report SAPMLCT

MM-SRVTemp.fileCATSMM

MM-SRV

Time data entered, released and approved (if required)

Send.PO Service Nr. Mon Tue000000000000100140 8.00

Item00104500004483

Service EntryService EntrySheetSheet

Time sheet data is entered for one or several people using a data entry profile. The release of the data makes it available for approval or transfer. If release and approval are omitted, then the data has a status of approved when it is saved. The data is stored in the time sheet database.

Data is transferred to external services if the sending purchase order, sending purchase order item, or service number field is filled in the time sheet.

The data is transferred with different procedures for each component. This means that you can transfer data at different intervals per component. You could transfer services daily and confirmations to the project system weekly. Time sheet data can transfer to multiple components.

After R/3 time sheet data is transferred to service entry sheets, the data must be accepted or approved in external services.


9.15

SAP AG 1999

R/3 MM-SRV Service provider’s system

Data transfer medium Disk/CD File Transfer Protocol (FTP) SAP e-mail

RFQ

Specs.

Quotation

Specs.

PO Contract

Specs. Specs.

Servicemaster records

Service entry sheet

Exchange of Data with Service Provider (1)

Processes can be accelerated by the adoption of service provider’s data on performed services using data transfer.

The following data can be imported or exported with your service provider: Requests for quotations, quotations Contracts Purchase orders Service entry sheets Service master data CATS Data (R/3 time sheet data)

The information can be transferred using File transfer protocol (FTP) Internet mail, SAPOffice mail Data media (diskettes, CDs)


9.16

SAP AG 1999

R/3 MM - SRV Service provider’s system

SAP enhancement(user exit)

SRVESIconverts the data

Serviceentry sheet

Specs

Pur. order

Specs

Contract

Specs

Servicemasterrecords

BAPIcreatesthe data

Service

provider‘s data

formats

Example: GAEB (Germany) for construction services

.

Data format can beadjusted as desired

Exchange of Data with Service Provider (2)

The interface for the exchange of RFQs, quotations, service master data, contracts and service entry sheets is based on the Business Application Interface (BAPI) for service documents or the SAP data model, for example BAPI_REQUISITION_CREATE.

The data is exchanged in data records whose structures are defined in the Data Dictionary.


9.17

SAP AG 1999

Describe procured services within other processes


Integration with Other Processes: Unit Summary


9.18Integration with Other Processes Exercises

Unit: Integration with Other Processes


Create a service entry sheet for a Plant Maintenance maintenance plan

For recurring maintenance and service functions, you do not want to create the service specifications each time. The R/3 System will generate them from a preventive maintenance plan.

1-1 Find a maintenance plan for services that are performed on a regular cycle. Search for maintenance plan category MM Service Provided.

From the header of the maintenance plan, determine the interval of the service cycle and the schedule calls. ____________________

From the Item tab, display the framework order and check the value limits. What is the Actual value of scheduled calls? ________________________

Return to the maintenance plan. Select PO history. to view prior maintenance.

Select Service specs. and Display to view the services that are performed per cycle.

1-2 In addition to the scheduled services, you want to make a manual call in this plan. Enter today’s date and save.

Display the plan again. How many service entry sheets are there now? ___________________________________________________________


9.19Integration with Other Processes Solutions

Unit: Integration with Other Processes

1-1 SAP standard menu: Logistics Plant maintenance Planned maintenance Maintenance planning Maintenance plans Display

Service cycle: ________________________________________________

Actual value of scheduled calls: __________________________________

1-2 From the maintenance plan screen, select Maintenance plan Schedule and choose Enter. Select Manual call.

There should be an additional service entry sheet in PO history.


10

SAP AG 1999

Conclusion

Master Data



Course Overview



Conclusion

Long-Term Documents


12

9

6

3

11 1

7 58 4

210



??==

Req.

Specs.

PO#12

Item 10

(C) SAP AG SCM540 1

10.2

SAP AG 1999


Describe the external services in detail for your supplier

Create service master data

Create service specifications

Include external services throughout the procurement process

Use service entry sheets to record services performed

Customize the R/3 system for external services

Course Objectives

(C) SAP AG SCM540 2

10.3

SAP AG 1999

Recommended Follow-up Courses

LO550 – Cross-Functional Customizing in Material Management

LO975 – Document Management System

LO985 – Classification

LO990 – Variant Configuration Part I

(C) SAP AG SCM540 3

10.4

SAP AG 1999

Recommended Follow-up Activities

Go through the exercises using IDES dataor your own data

Read on-line documentation

Read IMG documentation

Read release notes

(C) SAP AG SCM540 4

11

SAP AG 1999

Menu Paths

Contents:

Appendix

(C) SAP AG SCM540 1

11.2Menupath

(C) SAP AG SCM540 2

Frequently-used Menu Paths

Procurement of External ServicesActivity Menu Path

Master Data:

Service Master Record Logistics Materials management Service master Service Service master

Service Master Conditions without Vendor

Logistics Materials management Service master Service Service conditions For service Add

Service Master Conditions with Vendor

Logistics Materials management Service master Service Service conditions For vendor without plant Add

Service Master Conditions with Vendor and Plant

Logistics Materials management Service master Service Service conditions For vendor with plant Add

Model Service Specification Logistics Materials management Service master Model service specification Create

Standard Service Catalog Logistics Materials management Service master Standard service catalog Create

Vendor, Change Logistics Materials management Purchasing Master data Vendor Purchasing Change (current)

Documents:

Purchase Requisition Logistics Materials management Purchasing Purchase Requisition Create

Purchase Requisition, Automatic

Logistics Materials management Purchasing Purchase Requisition Follow-on functions Create purchase order Automat. via PReqs

Purchase Requisition, Assign and Process

Logistics Materials management Purchasing Purchase Requisition Follow on functions Assign and process

Request for Quotation (RFQ) Logistics Materials management Purchasing RFQ/Quotation Request for Quotation Create

Quotation Logistics Materials management Purchasing RFQ/Quotation Quotation Maintain

Quotation, Price Comparison Logistics Materials management Purchasing RFQ/Quotation Quotation Price comparison

Purchase Order Logistics Materials Management Purchasing Purchase order Create Vendor/supplying plant known

(C) SAP AG SCM540 3

Contract Logistics Materials Management Purchasing Outline agreement Contract Create

Service Entry Sheet Logistics Materials Management Service entry sheet Maintain

Invoice Verification Logistics Materials management Invoice Verification Logistics invoice verification Document entry Enter invoice

PM Maintenance Plan Logistics Plant maintenance Planned maintenance Maintenance planning Maintenance plans Create Single cycle plan

PM Maintenance Order Logistics Plant Maintenance Maintenance processing Order Create (General)

PS Network Logistics Project System Project Special Maintenance functions Network Change

CS Orders Logistics Customer service Service processing Order Service order Change

Time Sheets Human Resources Time Management Time sheet Time data Enter

Reports and Lists:

Service Master Lists Logistics Materials management Service master Service Service list

Standard Service Catalog List Logistics Materials management Service Master Standard Service Catalog List Display

Invoicing Plans Report, Create Invoices

Logistics Materials management Logistics invoice verification Automatic processing Invoicing plan

ERS Report, Create Invoices Logistics Materials management Logistics invoice verification Automatic processing Execute ERS

Service Entry Sheets, Collective Release

Logistics Materials Management Service Entry Sheet Collective Release

Service Entry Sheets, Data Transfer

Logistics Materials Management Service Entry Sheet Data Transfer . . .

Purchase Order Lists by External Service

Logistics Materials Management Purchasing Purchase order List displays External service by service

Purchase Order External Services, Planned vs. Actual

Logistics Materials Management Purchasing Purchase order List displays External service

(C) SAP AG SCM540 4

Planned/actual comparison

Service Entry Sheets Lists Logistics Materials Management Service entry sheet List Analyses For purchase order

Customizing:

All menu paths begin with: Tools AcceleratedSAP Customizing Edit Project SAP reference IMG Materials management

Service Master: Service Categories, number ranges, field display

External Services Management Service Master . . .

Screen Layout for Services in Documents

External Services Management Define Screen Layout

Sources for Assignment, Automatic PO

External Services Management Source Determination & Default Value For Client.

Define Condition Schemas … External Services Management Maintain Conditions for Services

Formulas, Define External Services Management Formulas for quantity determination Define Formulas.

Formulas, Variables External Services Management Formulas for quantity determination Specify names for Formula variables

Account Assignment Categories and Item Categories

Purchasing Account Assignment Define combination…

Service Entry Sheet Release Procedure

External Services Management Define Release Procedure for Service Entry Sheet

(C) SAP AG SCM540 5

SCM540-ProcurementOfExternalServices

Documents

evaluated

control key

purchase order

purchase order01

individual

service entry

blanket purchase

logon user