SCM540 Procurement of External Services

SCM540

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Only

Procurement of External Services

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THE BEST-RUN BUSINESSES RUN SAP

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SAP AG 2002
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„ SAP R/3 Enterprise

„ 2003/Q2

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„ Materialnummer: 50060824
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 Copyright

Copyright 2002 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.

All rights reserved.

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 Course Prerequisites

z Essential
z SCM500 - Processes in Procurement
z Recommended
z SCM520 - Purchasing

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 Target Group

z Audience:
„ Members of the project team
„ Members of the implementation team
z Duration: 2 days

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Notes to the user

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„ The training materials are not teach-yourself programs. They complement the course
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instructor’s explanations. On the sheets, there is space for you to write down additional
information.
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 Course Overview

Contents:

z Course Goals
z Course Objectives
z Course Content
z Course Overview Diagram
z Main Business Scenario

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z Introduction to External Services

z Comparison to Materials Procurement
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© SAP AG SCM540 1-1

 Course Goals

This course will prepare you to:

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

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© SAP AG SCM540 1-2

 Course Objectives

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

z Create service master data

z Create service specifications

z Include external services throughout the

procurement process

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z Use service entry sheets to record services

performed
z Customize the R/3 System for external services
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© SAP AG SCM540 1-3

 Course Content

Preface

Unit 1 Course Overview Unit 6 Value Limits for

Unplanned Services
Unit 2 Master Data
Unit 7 Entry and Acceptance
Unit 3 Service Specifications in of Performed Services
Requirements
Unit 8 Invoice Verification
Unit 4 Long-term Documents

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Unit 9 Integration with Other

Unit 5 Optimized Procurement Processes
Unit 10 Conclusion
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Appendix

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© SAP AG SCM540 1-4

 Course Overview Diagram

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

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Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
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Optimized Procurement Conclusion

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© SAP AG SCM540 1-5

 Main Business Scenario

z 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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© SAP AG SCM540 1-6

 Steps in the Procurement of External Services
- User department
- PM Plant Maintenance
Determination of - PS Project System
requirements - CS Customer Service
Karl Einstein Date RFQ
Bank transfer 9,500

Creation of
Payment service
specifications
Pur. order Invoice

?
= Invoice Source
verification determination

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Only

Service Vendor
acceptance selection

Entry of Bid
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services performed invitation process

(issue of RFQs)

Use
Purchase order Enter/compare
monitoring Purchase quotations
order
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© SAP AG SCM540 1-7

 Purchasing Documents for External Services

Requisition RFQ Quotation

Purchase RFQ RFQ Quotation

requisition

? A ? B

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Only

Purchase order Contract Service

entry sheet
Purch. order Contract
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Use
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„ The procurement of external services is completely integrated within MM Purchasing.

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Purchasing documents can be used for the procurement of both materials and services.
Use

„
„ 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.
Internal

Only

© SAP AG SCM540 1-8

 Structure of a Purchasing Document

Einkaufsbeleg
Purchasing document

• General
Allg. Daten
data
Header
Kopf
• Statistik
Statistics
• Nachrichten
Messages
• Konditionen
Conditions

• Allg.
General
Beschreibung
descriptiondes
of
Position
Item Vorhabens:
project:
Software implementation
- Einführung

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Only

• Date:
Termin:
Oct.
31.10.
31
• Service
Leistungsbeschreibung
description
Service
Leistungs- • Quantity
Menge
Specification
zeilen • Conditions
Konditionen
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LV
Specs.

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„ Materials procurement utilizes the item level.

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Services procurement works below the item level.
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„
„ 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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Only

© SAP AG SCM540 1-9

 Service Specifications in Purchasing Documents

Bestellung
Pur. order

Service
Leistungsverzeichnis
specifications

01 Selection
Auswahl der
of software
Software-Komponenten
components
Gliederungsstufe
Outline level 01 Anforderungen
Define requirements
definieren
Leistungszeile
Service line Berater/In
Senior Consultant
K4 10 days
Tage à2000
2100,-
perDM
day
02 Anpassung der
Adjustment of software
Komponenten
components

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Only

01 Komponente
Revise Component
A A

Berater/In
Consultant 5
K3days
5 Tage
1800àper
1900,-
day DM
02 Test adjusted
der Einstellung
configuration
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Berater/In
Consultant 4
K3days
4 Tage
1800àper
1900,-
day DM

? ungeplante
Unplanned services
Leistungen
up

Use
bis
to maximum
max. 60.000,-
60000
Value
Wertlimit
limit

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„ Outline levels allow you to structure complex service specifications (statements of work) in a clear

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and concise manner.
Use

„ 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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Only

© SAP AG SCM540 1-10

 Stock Material versus External Services

Purchase order # 12345 27 Jan. Purchase order # 12345 27 Jan.

Item 10 Material : Steel - 01 Item 10 Repair printing press

Order qty. : 250 pc - Precise description of service ?
- Order quantity ?
- Account assignment ?
LV
Specs.
Cost control through
imposition of limits !

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Only

Service entry sheet 3 Feb.

Item 10
Oil filter replaced
M
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Cost center 123

3 Feb. Limit adhered to ?

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Goods Receipt 12345, item 10 Release procedure Acceptance

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„ As their name implies, stock materials are kept in stock and are subject to inventory management.

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Services, as intangible goods, are procured for immediate consumption.
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„ 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
Internal

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.

Only

© SAP AG SCM540 1-11

 Consumable Material versus External Services

Purchase order Purchase order

Item 10 Item category Item 10 Item category D

Standard Service
Software for Install software
item item
electron beam
welding equipment

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Only

Account: Asset 123 Account: Asset 123

or U
No further
description Specs.
z Service specification
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possible possible
z Outline function
z Long text per outline level

Use
and service line

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„ There are similarities between the procurement of consumable materials (materials for direct

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consumption) in a standard item of a purchasing document and the procurement of services.
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y They are assigned to an accounting object.

y There is no inventory management.
„ Procuring services with MM-SRV has advantages:
y You can compile complex sets of service specifications (statements of work) using the outline
Internal

function.
y 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

Only
order.
y Flexible long texts per outline level and service line are possible.

© SAP AG SCM540 1-12

 Course Overview: Unit Summary

You are now able to:

z Outline the steps in the external services
procurement cycle
z List the purchasing documents in the process
z Describe the differences between procurement
for materials and services

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© SAP AG SCM540 1-13

 Data Used in Exercises
Type of Data Data in Training System
Group Number ##
Item Category D
Company Code IDES AG (1000)
Purchasing Organization IDES Deutschland
(1000)
Purchasing Group SCM540-## (Y##)
Plant 1000 (Hamburg)
Material Group 007 (Services)

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Only

GL Account 417000
Cost Centers 4110
T-L##
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Currency UNI
Tax rate 0%

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0i
Tax rate 10% 1i
Vendors T-K540A##

SAP
SAP

T-K540B##

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© SAP AG SCM540 1-14

 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.

Unit: Master Data

1-2 Service Number Description

First Activity Number
Second Activity Number

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1-3-1
Service Activity Number Rate Unit of measure
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1-3-2 Vendor T-K540A##
Service Number Rate Unit of measure

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SAP

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1-4 Model##
Service number Quantity Rate (price) Unit of
Internal

or description measure

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Unit: Service Specifications
1-2-7 Requisition number: _______________________________________

2-5 Purchase order number: ___________________________________________

© SAP AG SCM540 1-15

 Unit: Long-term Documents

1-1
Service _________________ Quantity ________Gross price___________
Service _________________ Quantity ________Gross price ___________
Service _________________ Quantity ________Gross price ___________
Contract number: ________________________________________________
1-2-2 Release order number: _____________________________________

Unit: Optimized Procurement

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Only

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

Unit: Value Limits

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

1-3

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Unit: Entry and Acceptance of Performed Services

SAP
SAP

1-2 Service entry sheet number: ______________________________________ *

1-3 Service entry sheet number: _____________________________________ **

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© SAP AG SCM540 1-16

 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

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Only

Your company needs to review and decide on the documents

required for its external services.
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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

SAP
SAP

b. Service specification
c. Service master

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d. Service
Use

e. Service description
f. Outline
Internal

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

2. ___ Listing and description of services for procurement purposes. These

Only
descriptions 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.

© SAP AG SCM540 1-17

 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

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___ Quotation
___ Payment
___ Requisition
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___ Service acceptance

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SAP
SAP

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Use
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© SAP AG SCM540 1-18

 Solutions

Unit: Course Overview

1-1 Terms used with services

1. (e) Service description. Text that defines a service to be procured.
2. (b) Service specification. Listing and description of services for procurement
purposes. These descriptions can contain service items with detailed descriptions or

Internal
Only

items with value limits for unplanned services.

3. (f) Outline. 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
Partner

“excavation works”. Below these outline levels are the individual items defining
each specific service (individual task).
4. (a) Unplanned services. Services unknown at purchase order time, so they are

Use
specified on the service entry sheet.
5. (d) Service. Intangible good that is the subject of business activity and that can
be performed internally or procured externally (outsourced). Services are regarded

SAP
SAP

as being consumed at the time of their performance. They cannot be stored or

transported.
6. (c) Service master. 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

Partner
Use

by the system when you create service specifications (used, for example, for
invitations to bid sent to potential subcontractors during the competitive bidding
process).
Internal

1-2 Types of documents in sequence

2 - Request for quotation

Only
6 - Service entry sheet
4 - Contract
8 - Invoice
5 - Purchase order
3 - Quotation
9 - Payment
1 - Requisition
7 - Service acceptance

© SAP AG SCM540 1-19

 Master Data

Contents:
z Service Master Record
z Conditions for Services
z Standard Service Catalog
z Model Service Specifications
z Formulas for Services

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Only

z Vendor Master Record

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© SAP AG SCM540 2-1

 Master Data: Unit Objectives

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

z Create service master records

z Create master conditions
z List the benefits of using the standard service
catalog

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z Define a model service specification

z Describe the organization of the vendor master
records
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© SAP AG SCM540 2-2

 Course Overview Diagram: Master Data

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
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© SAP AG SCM540 2-3

 Master Data: Business Scenario

z 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.

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Only
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© SAP AG SCM540 2-4

 Service Master Record

Service no.
Leistung Nr.1540
1540
- Texts
Texte
- Mengeneinheiten
Units of measure

Service
Leistungsstammsatz
master record

Internal
Only

PM PS MM
Instand-
Plant -
Instand Projekt-
Project-
Projekt Beschaffung
Purchasing
Maintenance
haltung System Pur. order

Instand- Netzplan
Network 1
Partner

Mainten-
haltungs- Requisn
ance order
auftrag
LV
Specs.

Use
Anwendungen
Applications

 SAP AG 1999

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SAP

„ A service master record contains information on the service (work) description such as:

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y Descriptive texts
Use

y Units of measure
y Material group
y Valuation class for account determination
„ Prices can be assigned to each service master record using the conditions.
Internal

„ Service master data can be used at many points in the R/3 System.
Examples:
y Purchasing

Only
y Plant Maintenance
y Project System
y Customer Service
y Sales and Distribution (Industry and Business Unit)

© SAP AG SCM540 2-5

 Conditions for Service Master Records

Leistung Nr. 1580

Service no. 1580
Menge 1
Quantity 1
Mengeneinheit m
Unit of measure m

205,-
205 EUR Staffeln
Price/

Internal
Only

210,-
210 EUR quantity
100m 205,-
scale
220,- 200m 200,-
220 EUR 100m 205
300m 198,-
200m 200
300m 198
Partner

1998 1999 2000 2001

2000 2001 2002 2003
Gültigkeitszeitraum

Use
Validity period

 SAP AG 2002

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SAP

„ The price of a service can be defined using the conditions that apply to a service master record.

Partner
You can store prices for different validity periods.
Use

„
„ The prices can be scaled according to quantity.
„ You can also maintain supplementary conditions.
Internal

Only

© SAP AG SCM540 2-6

 Determining the Price Using Master Conditions I

Level of conditions

1580
1560
1540

- Senior consultant 1 day

2100 EUR
Service

Purchase

Internal
Only

requisition

Vendor
Partner

- Service no. 1540

1 day 2100 EUR

Use
Adoption in documents

 SAP AG 2002

SAP
SAP

„ Prices for services that are valid over a long period can be stored in the R/3 System in the form of

Partner
service conditions.
Use

y At the level of the service (market price/own estimate)

y At the level of the service and the vendor
y At the level of the service, the vendor, and the plant
y In the form of contracts (See the unit Long-Term Documents)
Internal

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

Only

© SAP AG SCM540 2-7

 Determining the Price Using Master Conditions II

Level of conditions
1580
1580 1560
1560 1540
1540 - Senior consultant 1 day
- Senior consultant 1 day - ABC Software Ltd.
- ABC Software Ltd. - Plant 1 (New York)

2000 EUR Service 1950 EUR Service

Vendor Vendor
Plant

Internal
Only

Purchase order
ABC Software Ltd.
- Service no. 1540
Plant 2 (Denver)
Partner

2000 EUR
- Service no. 1540
Plant 1 (New York)

Use
1950 EUR

Adoption in documents
 SAP AG 2002

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SAP

„ Service conditions can be used in purchase orders.

Partner
y At the level of the service and the vendor
Use

y At the level of the service, the vendor, and the plant

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

Only

© SAP AG SCM540 2-8

 Standard Service Catalog

Standard service
catalog

Service Service Service Service

type 1 type 2 type 3 type 4
Building Electrical Plumbing Tiling
work work work work

Internal
Only

Edition '95 Edition '97 Edition '94 Edition '96

Text module no. Text modules

T1 T2 T3 T4 Unit
Partner

001 Masonry work

01 Sand-lime bricks
02 Sand-lime bricks A
240 x 115 x 52

Use
01
02 240 x 175 x 52
01 m2 Wall thickness 12 cm
02 m2 Wall thickness 24 cm
 SAP AG 1999

SAP
SAP

„ The Standard Service Catalog (SSC) is available in addition to the service master file.

Partner
The SSC contains standardized descriptions of services in the form of individual text modules. The
Use

„
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:
y Maintenance of standard service catalogs using the SSC editor
Internal

y Transfer of external standard service catalogs to the SAP R/3 System from data carriers
y Use of standard service catalog numbers in purchasing documents
y Linking of service master records to standard service catalog numbers

Only

© SAP AG SCM540 2-9

 A Purchasing Document Using a SSC

Purchasing
document SSC editor

Specs. T1 T2 T3 T4
SSC no.
037/198 00
[Link] 01
MM-SRV SSC Hang 02 01
coarse-grain 03 02
wood-chip
01
wallpaper on 03 02
03

Internal
Only

sloping walls
Value limit
5000 for
SSC 037/198
Service type 037
Edition 1/98
Partner

System administrator Purchasing:

imports SSC Straightforward creation of service specs

Use
Wall covering

 SAP AG 1999

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SAP

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

Partner
Use
Internal

Only

© SAP AG SCM540 2-10

 Model Service Specifications

User
parameter
MSP determines
default

Model Purch. doc. Model

specs.
specification A23
Defaults:
Specs. ABC Ltd.
- Fixed vendor Service Contract 46...12
- Contract selection Purch. org. 1000
- Purchasing org. Model spec
Specs.

• Cleaning

Internal
Only

Value limit
• Interior construction 5000 EUR on
model spec A23
• Pipe-laying
• Gardening/mowing
Partner

System administrator: Purchasing:

Single creation of set of - Multiple re-use of data

Use
service specifications - Straightforward document creation

 SAP AG 2002

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SAP

„ Model Service Specifications can store sets of service specifications that you want to use

Partner
[Link] can be referenced in various purchasing documents.
Use

„ 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.
Internal

y Purchasing organization
y Fixed vendor
y Contract document number

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

© SAP AG SCM540 2-11

 Documents with Model Service Specifications

Pur. order Model spec B03 Editor

Pipe-laying
Specs.
L1: Lay gas pipe
Leads buyer
Specs Characteristics: through relevant
Service selection
characteristics
Model spec B03 Lay pipes
Start
- in resident. areas x
configurator - in wooded areas
All .. .
System combines
services belong- all characteristics
- Length
ing to an area of the services ..
x
of work .

Internal
Only

belonging to the Buyer assigns

- Diameter
model specs. ... values to char-
x acteristics

Completed specifications:
Partner

L1:
- Lay gas pipes, - with type xy connections,
- in residential areas, - with transport by special

Use
- length 100cm, vehicle
- diameter 120cm, - 1000 pcs. at 150 each

 SAP AG 1999

SAP
SAP

„ A Model Service Specification with variant configuration selects services from a model specification

Partner
and configures them automatically in the service specifications of any purchasing document.
Use

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

y The buyer chooses the desired values.

y The Configurator assembles the selected services.
„ The basis for configuration is a model specification with services that are mutually exclusive or

Only
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.

© SAP AG SCM540 2-12

 Formulas to Simplify the Calculation of Quantities

Purchasing document
Customizing
Service entry sheet
Service: 123
Dig trench

• Define formulas with variables Unit of measure m3

E.g. VOL01 = calculation of volume Quantity ?

Internal
Only

- LxWxH The user

- maximum 5 variables – chooses formula VOL01
- usual mathematical functions – enters length 2, width 2,
and depth 5 of trench
(+, -, x, /, sin, cos)
Partner

and constants (e.g. pi, e)

System calculates value 20m3

Use
 SAP AG 1999

SAP
SAP

„ Formulas are used for calculating quantities in the procurement of externally performed services in

Partner
many purchasing documents.
Use

„ Formulas have these attributes:

y They are freely definable in customizing.
y They can contain up to five variables.
y They can include common mathematical functions such as sin, cos and constants such as pi, e.
Internal

Only

© SAP AG SCM540 2-13

 Organizational Levels of the Vendor Master Record

General data
(client)

For example
• Address
• Communication

Internal
Only

Purchasing
Accounting data
organization data

For example: E.g.:

Partner

• Order currency • Account

• Control data: manage-
Automatic PO, ment

Use
ERS • Bank data

 SAP AG 2002

SAP
SAP

„ The vendor master record is structured according to organizational aspects.

Partner
The general data is valid for the entire corporate group (client).
Use

„
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
Internal

payment.

Only

© SAP AG SCM540 2-14

 Vendor: Purchasing Data

z Conditions z Default values for article

„ Purchase order currency „ Planned delivery time
„ Terms of payment „ Purchasing group
„ Minimum purchase order value

z Control data
„ Invoice verification
„ Order acknowledgement req.

Internal
Only

z Service data
„ Subsequent settlement
„ Qualifying for discount in kind
Partner

z Vendor sub-range z Supply region

Use
 SAP AG 2001

SAP
SAP

„ These are entries for the vendor that you can make for every purchasing organization in each of your

Partner
clients. It includes data that is important for purchasing, such as purchasing data and partner roles.
Use

„ 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:
Internal

y Vendor sub-range (VSR)

y Site
y Vendor sub-range / site

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

© SAP AG SCM540 2-15

 Master Data: Unit Summary

You are now able to:

z Create service master records and their
conditions
z List benefits of using the standard service
catalog
z Define a model service specification

Internal
Only

z Describe the organization of the vendor master

records
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 2-16

 Exercises

Unit: Master Data

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

• Create service master records
• Create master conditions
• Define a model service specification

Internal
Only

• Describe the organization of the vendor master

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

To test the upcoming scenarios, you must create and maintain

service masters and conditions.

Use
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:

SAP
SAP

Office cleaning services

Equipment maintenance and repairs
Landscape maintenance

Partner
Use

Consultant services
Temporary employee services
Internal

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

Only
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: ___________________________________________

© SAP AG SCM540 2-17

 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 provided in unit one:
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.

Internal
Only

Choose a rate (price) and unit (currency) EUR. These conditions can be
used for requisitions.
Add these to the Data Sheet provided in unit one:
Partner

First service price _______________________________________

Second service price _____________________________________

Use
1-3-2 Maintain a price at the service and vendor level. Enter a rate (price) and unit
(currency) EUR for vendor T-K540A## in purchasing organization 1000.
These conditions can be used for purchase orders.
Add these to the Data Sheet provided in unit one:

SAP
SAP

First service price _______________________________________

Second service price _____________________________________

Partner
Use

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##
Internal

Service category: SERV

Currency: EUR

Only
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.
Add these to the Data Sheet provided in unit one:
Service line item __________ Quantity _______ Rate _____ UOM _____
Service line item __________ Quantity _______ Rate _____ UOM _____
Service line item __________ Quantity _______ Rate _____ UOM _____

© SAP AG SCM540 2-18

 1-5 Verify the data for vendor T-K540A## with service master conditions.
What is the vendor’s order currency? _______________________
What are the default purchasing terms of payment? ____________
Has the indicator been set for automatic PO? _________________
Has the indicator been set for ERS? (AutoEvalGrSetmtDel) _____

Internal
Only
Partner

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 2-19

 Solutions

Unit: Master Data

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

Internal
Only

Equipment maintenance and repairs

Landscape maintenance
Consultant services
Partner

Temporary employee services

Building contracting

Use
1-1-1 Logistics → Materials management → Service master → Service →
Service master
Select the transaction and select Add to Favorites to include the menu path.

SAP
SAP

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

Partner
Use

1-1-2 Create a Service Master.

Select Create new service icon.
At the header of your service enter the following:
Internal

Service number Do not enter anything system will

assign

Only
Short description Your short description
Service category Service: Purchasing
Base unit of measure: H (for Hour) or AU (for Activity Unit)
Long text is optional. Record the short description for the service. (The text
is case sensitive.)
In Basic Data enter the material group and valuation class.
Mat/[Link] 007 (Services)
Valuation class 3200
First Service short description _____________________________
Do not save yet.

© SAP AG SCM540 2-20

 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.
Select Create new service again.
At the header of your service enter the following:
Service number Do not enter anything the system will
assign
Short description Your short description
Service category Service: Purchasing
Base unit of measure: H (for Hour) or AU (for Activity
Unit)
Long text is optional. Record the short description for the service. (The text
is case sensitive.)

Internal
Only

In Basic Data enter the material group and valuation class.

Mat/[Link] 007 (Services)
Valuation class 3200
Partner

Second Service short description ___________________________

Save.

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

SAP
SAP

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 provided in unit one:

Partner
Use

First service number

Second service number
Internal

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.

Only
Choose a rate (price) and unit (currency) EUR. These conditions can be
used for requisitions.
Logistics → Materials management → Service master → Service →
Service conditions → For service → Add
If you are asked for a unit, enter EUR for your rate unit (currency)
Add to Data Sheet provided in unit one:
Service number (Activity) Rate Unit of measure

© SAP AG SCM540 2-21

 1-3-2 Maintain a price at the service and vendor level. Enter a rate (price) and unit
(currency) EUR for vendor T-K540A## in purchasing organization 1000.
These conditions can be used for purchase orders.
Logistics → Materials management → Service master → Service →
Service conditions → For vendor without plant → Add
Purchasing Organization 1000
Vendor T-K540A##

Add to data sheet provided in unit one:

Service number (Activity) Rate Unit of measure

Internal
Only

Save.
Partner

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

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

SAP
SAP

Create Model Service Specifications initial screen

Model service specs. MODEL##
Service category SERV

Partner
Use

Enter to following information on the General Data screen:

Internal

Description Enter any description

Currency EUR

Only
[Link] group 007

Enter the following information on the Default data for purchase requisition screen:
Purch. 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.

© SAP AG SCM540 2-22

 Select Services icon
Add these to the Data Sheet provided in unit one:
Service Quantity Unit of Gross price
number or measure
Short text

Save

Internal
Only

1-5 Verify the data for vendor T-K540A## with service master conditions.
Logistics → Materials management → Purchasing → Master data → Vendor →
Purchasing → Display (current)
Partner

Vendor T-K540A##

Use
Purchasing data Check this box

Display Vendor: Purchasing data screen

SAP
SAP

Conditions
Order currency EUR
Terms of payment ZB00

Partner
Use

Control data
Automatic PO Yes
Internal

ERS (AutoEvalGrSetmtDel) No

Only

© SAP AG SCM540 2-23

 Service Specifications in Requirements

Contents:
z Service Specifications
z Requisitions
z Bid Invitations
z Purchase Orders

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 3-1

 Service Specifications: Unit Objectives

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

z Define requisitions with a set of service

specifications that include an outline and
service lines
z Describe the use of the approval process for
documents

Internal
Only

z List the steps in the Request for Quotation

process
z Create purchase orders by referencing a
Partner

quotation

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 3-2

 Course Overview Diagram: Service Specifications

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 3-3

 Service Specifications: Business Scenario

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

Internal
Only
Partner

Use
 SAP AG 2002

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 3-4

 Service Specifications: Topic Objectives

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

z Compile detailed descriptions for your

services and supplies in requisitions and other
purchasing documents

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 3-5

 Requirements for External Services Usage

Purchase order

Item 10 Item category D

Activates external
services functionality

Acct. assgt. cat.: U Unknown

K Cost center

Internal
Only

P Project
.
..

Specs.
Partner

Service specifications not

possible w/o item cat. D

Use
 SAP AG 2002

SAP
SAP

„ When creating purchasing documents for services, you must use item category D.

Partner
This ensures that you can create a set of service specifications or statements of work, giving you
Use

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

Only

© SAP AG SCM540 3-6

 Example of Service Specifications in a PO

Purch. order
Service
Leistungsverzeichnis
specifications

01 Selection
Auswahl der
of software
Software-Komponenten
components
01 Anforderungen
Define requirements
definieren
Outline level

Service line Berater/In

Senior Consultant
K4 10 days
Tage à2000
2100,-
perDM
day
02 Anpassung der
Adjustment of software
Komponenten
components
01 Komponente
Revise Component
A A

Internal
Only

Berater/In
Consultant 5
K3days
5 Tage
1800àper
1900,-
day DM
02 Test adjusted
der Einstellung
configuration

Berater/In
Consultant 4
K3days
4 Tage
1800àper
1900,-
day DM
Partner

. . . . .
. . . . .

Use
 SAP AG 2002

SAP
SAP

„ A set of service specifications is a list of external services including detailed information.

Partner
A set of service specifications can be structured in the following ways:
Use

„
y As a list of individual service lines. Service lines are entered 'below' the document item - without a
service outline (hierarchical arrangement). This option is particularly suitable for the maintenance
of less voluminous service specifications.
y With service specifications outline. You can create a Service Specifications Outline with a
Internal

maximum of four hierarchy levels. The outline function allows you to arrange voluminous service
specifications in hierarchical levels (grouped by project phase, for example). You can enter
individual service lines below each outline level.

Only

© SAP AG SCM540 3-7

 Compiling Service Specifications and Selection

Requisition
New document # 12345 Existing data
Specs.
Purchase
requisition Model Spec
Quotation
Item 10 # 22345 # B23

Software Specs.
implementation
Specs.

Internal
Only

Pur. order
Service # 245678
Selection Specs.
Classification
Class 12: Software
Services
Partner

PM order S1
# 7778 S2
S3
Specs.

Use
 SAP AG 1999

SAP
SAP

„ Using the Service Selection function, you can easily compile a new set of service specifications from

Partner
existing purchasing documents and classes of services.
Use

„ 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.
Internal

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

Only

© SAP AG SCM540 3-8

 Service Details

Service description Line type

- Service number Standard line
- Material group Contingency line
- SSC number
- Short/long text Alternatives
- External service number Basic line
Alternative line to line 30
Quantity fields
Bidder‘s line
- Quantity
Formula

Internal
Only

- Quantity recorded (work done)

- Overfulfillment tolerances - Value 1
2
Price and value fields 3
.
- Price per unit .
.
Partner

- Net value - alpha

User fields - numeric
- for user-specific information, e.g.

Use
service provider’s social insurance
number

 SAP AG 1999

SAP
SAP

„ For each service line in a set of service specifications, you can maintain detailed information.

Partner
External service number is the supplier’s service number.
Use

„
„ 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.
Internal

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.

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

© SAP AG SCM540 3-9

 Service Line Account Assignment

Purchasing General ledger

Document
Valuation class
Item 10 Conduct pressure 3200
tests
The R/3 System determines:
Acct. assgt. cat. K
- the cost element, and
Service Service 10316: Check - the default general ledger
line 10 water pressure

Internal
Only

account on the basis of the

Service master record valuation class.
contains the valuation class
Valuation class:
3200 External services
Partner

Cost center
1512 Cost center

Use
entered manually

 SAP AG 2002

SAP
SAP

„ The valuation class in a service master record enables the R/3 System to identify the default

Partner
consumption account of the service.
Use

„ The account assignment category in a purchasing document determines the type of cost object you
must enter for the service.
„ Specification of account assignments for services at the time of their initial procurement is optional.
If you wish to specify account assignments, enter an account assignment category at document item
Internal

level. You maintain the account assignment data at service line or value limit level.

Only

© SAP AG SCM540 3-10

 Release Procedure with MM Classification

Purchasing MM Classification
document Communi-
cation
Characteristic Value = relevant ?
Item data structure Material group 007 X
Purchasing group 001 X
.. ..
. .
Vendor 4750 X
Plant 1000 X
item value 200,000 X
. .
. .
. .

Internal
Only

Release strategy S4

Purchasing
Release codes 1 2 3 4 document

5
Partner

Alternative 1 2 3 4
Released!
SAP
Workflow

Use
E-mail
 SAP AG 2002

SAP
SAP

„ The release (approval) procedure, with a link to classification, enables you to specify release

Partner
conditions based on the criteria of your purchasing documents.
Use

„ 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.
Internal

„ Release procedures without classification can only be used for purchase requisitions. You are limited
to using requisition value, material group, plant and account assignment as critera for release.
The release codes with which a user releases or approves documents are specified in a user’s

Only
„
authorization profile
„ Release procedures are defined in customizing and are included in SCM520 Purchasing.

© SAP AG SCM540 3-11

 Bid Invitations: Topic Objectives

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

z Create multiple bid invitations for services

z Standard bidding process

z Global percentage bidding process

z Compare multiple bids

Internal
Only

z Create purchase orders by referencing

quotations
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 3-12

 Course of the Bid Invitation Process

Purchase
requisition

Purchase
Vendor B order
Price
RFQs Angebot compar-
ison Best
Vendor B

Internal
Only

list offer
Angebot
Vendor A
Quotation
Partner

Use
 SAP AG 2002

SAP
SAP

„ A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to

Partner
submit a quotation (bid) for the supply of materials or performance of services.
Use

„ Requests for Quotations (RFQs) can be created by referencing purchase requisitions.

„ A quotation is an offer by a vendor to a purchasing organization regarding the supply of materials or
performance of services subject to specified conditions.
„ Bid or quotation data is entered into the quotation document.
Internal

„ You can compare the prices from all quotations received as a result of a competitive bidding process
using the price comparison list.
A purchase order is typically issued to the vendor who submitted the most favorable bid.

Only
„

© SAP AG SCM540 3-13

 Standard versus Global Percentage Bidding

Standard bidding process Global percentage bidding

RFQ RFQ
Doc. type AN Doc. type AB
Specs. Not possible Specs. Prices for each
to enter prices service line entered
by buyer

- Specifications - Specifications
- Quantities - Quantities

Internal
Only

Quotation Quotation

Prices for each

Partner

Percentage additions/
Specs. service line supplied Specs.
deductions per outline
by service provider level supplied by

Use
service provider

 SAP AG 2002

SAP
SAP

„ With the use of external services you have a choice of using the SAP standard bidding process or

Partner
you can use global percentage bidding.
Use

„ The "global percentage" bidding procedure is typically used in the procurement of external services.
„ The aim of this approach is to considerably simplify the maintenance of service specifications. Since
the service descriptions in the quotations submitted by the various bidders do not usually vary, the
buyer states the prices of the services in advance, and the bidders merely indicate a percentage
Internal

addition to or deduction from these prices in their quotations, Purchasing is faced with a minimal
maintenance effort even if a large number of individual RFQs are issued.
A special document type for RFQs must have been defined in Customizing for Purchasing. In the

Only
„
standard system, document type AB is available for this purpose.
„ The standard system includes the condition schema MS0002 and the condition types KR01 (header
discount) and KZ01 (header surcharge). Both are to be found in Customizing for External Services
Management.

© SAP AG SCM540 3-14

 Comparing Bids Using the Price Comparison List

Quotation Vendor A
Service 1 150 EUR
Service 2 300 EUR
Service 3 200 EUR

Vendor C Vendor A Mean value

Comparison levels
Service 1 100 EUR 150 EUR 125 EUR
Service 2 300 EUR 300 EUR 300 EUR Outline level

Internal
Only

Service 3 200 EUR 200 EUR 200 EUR Service line

Total 600 EUR 650 EUR 625 EUR Price
comparison list
Partner

Purchase order Vendor C

Service 1 100 EUR

Use
Service 2 300 EUR
Service 3 200 EUR

 SAP AG 2002

SAP
SAP

„ The price comparison list is used to determine the most favorable bid or quotation.

Partner
The comparison list ranks the quotations by item from lowest to highest price. The price comparison
Use

„
list facilitates the determination of the best bid.
„ In the case of voluminous service specifications, you must be able to compare prices at different
levels of service.
„ Possible levels for services only:
Internal

y Price comparison per outline level

y Price comparison per service line
„ Selected quotations can be referenced in purchase orders and contracts.

Only

© SAP AG SCM540 3-15

 Service Specifications: Unit Summary

You are now able to:

z Define requisitions with a set of service
specifications that include an outline and service
lines
z Describe the use of the approval process for
documents

Internal
Only

z List the steps in the Request for Quotation

process
z Create purchase orders by referencing a
quotation
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 3-16

 Exercises

Unit: Service Specifications in Requirements

Topic: Service Specifications

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

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

Internal
Only

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.
Partner

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

Use
1-1 Create a purchase requisition document using the following data:
Document type: NB Purchase Requisition.
Item category: D

SAP
SAP

Short text: Enter a short description

Account assignment category: K
Account code: 417000

Partner
Use

Cost center: 4110

Delivery date: One month from today
Internal

Plant: 1000
Purchasing group: Y## (SCM540-##)

Only
Material group: 007
1-1-1 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)

© SAP AG SCM540 3-17

 1-1-2 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? _______________________________
1-1-3 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.
1-1-4 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.
1-1-5 For level 04 choose Entry variant → Formulas so that your screen fields

Internal
Only

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 EUR. What is the calculated
quantity?
Partner

_____________________________
*1-1-6 In your role as buyer, you enter requisitions frequently. Save this requisition
screen as a Favorite using System → User Profile → Expand favorites

Use
1-1-7 Save the requisition.
ADD to the Data Sheet:

SAP
SAP

Requisition number: _____________________________________

*1-2 Go into change mode for the requisition and record the values for each outline
level.

Partner
Use

Overall ____________________________________________________
Level 01 ____________________________________________________
Level 02 ____________________________________________________
Internal

Level 03 ____________________________________________________

Only
Level 04 ____________________________________________________

© SAP AG SCM540 3-18

 Exercises

Unit: Service Specifications in Requirements

Topic: Bid Invitations

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

2. Create multiple bid invitations for services using the standard
bidding process
3. Compare multiple bids

Internal
Only

4. Create purchase orders by referencing quotations

Your company asks for bids when a source cannot be found in the
Partner

system and the value is over 5000 EUR.

Purchase orders are created from either requisitions or quotations.

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

SAP
SAP

The document type is AN. The quotations are due in two weeks. Enter a Collective
number of SCM540## to help track the quotations.
2-1-1 Was the outline reproduced in the RFQ? _____________________

Partner
Use

2-1-2 Enter T-K540A## for the first vendor and save the RFQ. Do not exit the
screen.
RFQ: _________________________________________________
Internal

2-1-3 Enter T-K540B## for the second vendor and save.

RFQ: _________________________________________________

Only
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-K540A## T-K540B##
Total value _________________ _________________
01 _________________ _________________
02 _________________ _________________
03 _________________ _________________
04 _________________ _________________

The quotation data is entered into the request for quotation

(RFQ) and shares the same document number.

© SAP AG SCM540 3-19

 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

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.

Internal
Only

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.
Partner

ADD it to the Data Sheet.

Purchase order number: ________________________________________

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 3-20

 Solutions

Unit: Service Specifications in Requirements

Topic: Service Specifications

1-1 Create a purchase requisition document using the following data:

Logistics->Materials Management -> Purchasing -> Purchase Requisition ->
Create
Enter the following information for your requisition:

Internal
Only

Document type NB Purchase Requisition

Account assignment category K
Item category D
Partner

Short text Enter a short description

Delivery date One month from today

Use
Material group 007
Plant 1000

SAP
Purchasing group Y## (SCM540-##)
SAP

1-1-1 Open the Item Detail section of the screen.

Use the outline function to structure your set of service specifications.
Select Full Scr.: Services icon. Choose Outline on/off icon. Add a level to

Partner
Use

your outline under your initial description. Repeat three times using your
own descriptions.
Right-click with your cursor on the first line of the outline and choose New
Internal

Subgroup. Enter outline level 01 and your description. Place your cursor on
the first line again and repeat for levels 02, 03, and 04.

Only
Overall short description
01 Short text
02 Short text
03 Short text
04 Short text

© SAP AG SCM540 3-21

 1-1-2 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.
For account assignment date enter the following:
G/L account 417000
Cost center 4110
Select the Rpt. AA on icon to ensure that all services in this requisition will
have the same account assignment.
What was the source of the price?
The price for the service came from the service condition without a vendor.
1-1-3 Select level 02. In the Services screen area on the right-hand side, enter a

Internal
Only

short text for a service without a service master record. Order 100, select a
unit of measure, and enter a price.
Enter the following information:
Short text Enter a short description
Partner

Quantity 100

Use
Unit of measure H or AU
Gross price Enter a price of your choice
You could enter a detailed description using Goto → Long text for line.

SAP
SAP

1-1-4 Select level 03. Choose Service selection icon. 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.

Partner
Enter MODEL##. Select all services and adopt all services.
Use

If necessary, select continue to confirm the account assignment.

1-1-5 For level 04 choose Entry variant → Formulas so that your screen fields
Internal

allow you to enter a formula more easily. Enter a short text. Select formula
VOL01 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 EUR.

Only
Short text Enter a short description
Formula VOL01
[Link].1 10
[Link].2 15
[Link].3 12
Unit of measure M3
Gross price 2
If necessary, select continue to confirm the account assignment.
What is the calculated quantity?
The volume is 1.800 M3.

© SAP AG SCM540 3-22

 1-1-6 Save the requisition.
ADD to the Data Sheet:
Requisition number: _____________________________________

*1-2 Go into change mode for the requisition and record the values for each outline
level.
Logistics ->Materials Management -> Purchasing -> Purchase Requisition ->
Change
If needed select the other requisition icon.
Enter your requisition number. Select the other document icon.
Select Full Scr. Services.

Internal
Only

From the menu bar: Outline → Total Values and record the values from the outline
area. You may have to expand the outline area by dragging the vertical bar that
separates the outline area from the services area.
Partner

Outline level Values

Outline total

Use
Level 01
Level 02
Level 03

SAP
SAP

Level 04

Partner
Use
Internal

Only

© SAP AG SCM540 3-23

 Solutions

Unit: Service Specifications in Requirements

Topic: Bid Invitations

2-1 Your new requisition should be sent to at least two service providers for quotations.
Create requests for quotations (RFQ) by referencing the requisition.
Select the SAP menu icon from the application toolbar.
Logistics →Materials Management →Purchasing →RFQ/Quotation →Request

Internal
Only

for Quotation → Create

Document Type AN
Partner

Quotation deadline Two weeks from today

Use
Select the Create referencing requisition icon. Enter your requisition number,
deselect Assigned and choose Enter.

SAP
SAP

In the Header detail screen, enter the

Coll. Number. SCM540##

Partner
Use

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

2-1-1 Was the outline reproduced in the RFQ?

Only
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 Enter T-K540A## for the first vendor and save the RFQ. Do not exit the
screen.
Return to the Item overview screen. Select Vendor Address. Enter T-
K540A##.
Save the RFQ.
RFQ number ____________________

© SAP AG SCM540 3-24

 2-1-3 Enter T-K540B## for the second vendor and save.
Enter vendor T-K540B## and
Save the RFQ.
RFQ number ____________________
Exit from the 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!
From the SAP Easy Access menu, choose Quotation → Maintain
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

Internal
Only

right 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.
Partner

Outline level T-K540A## T-K540B##

Use
Total value
Level 01
Level 02

SAP
SAP

Level 03
Level 04
The quotation data is entered into the request for quotation

Partner
Use

(RFQ) and shares the same document number.

Internal

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

Only
the two RFQ numbers. Display the Mean value quotation to see the average price.
Quotation → Price Comparison
Enter Collective RFQ SCM540##, select Mean value quotation and choose Execute.
2-3-1 Record the quotation ranked first. _______________________
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.
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.

© SAP AG SCM540 3-25

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

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.

2-5-1 Choose Favorite →Purchase Order

Internal
Only

Select the Document overview on icon.

Select the Selection Variant icon.
Choose Requests for quotations
On the Purchasing documents screen, enter the following data:
Partner

Plant 1000

Use
Purchasing group Y## (SCM540-##)
Purchasing organization 1000
Execute

SAP
SAP

2-5-2 Drag and drop the winning quotation into the shopping cart.
If any of the services you are adopting are missing a price,you must provide
missing prices.

Partner
Use

On the Invoice tab, set the Srv-based IV indicator for service based invoice
verification
Were all of the services included?
Internal

From the Services tab, select the Full Scr.:Services icon.

Yes, all services were included.

Only
Save the Purchase order.
ADD to the Data Sheet:
Purchase order number: ________________________________________

© SAP AG SCM540 3-26

 Long-Term Documents

Contents:
z Contracts
z Contract Release Orders
z Invoicing Plans
z Blanket Purchase Orders

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-1

 Long-Term Documents: Unit Objectives

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

z Create a contract for external services and

supplies
z Create a release order for the contract
z Create an invoicing plan for services

Internal
Only

z Create a blanket purchase order

Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-2

 Course Overview Diagram: Long-Term Documents

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-3

 Long-Term Documents: Business Scenario

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

Internal
Only

z Blanket purchase orders will be used for the

inexpensive services where the main concern is
the invoiced amounts.
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-4

 Contracts: Topic Objectives

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

z Describe the use of contracts for services

z Create a contract
z Create a release order for your contract

z Verify the links between the contract and the

Internal
Only

release order
Partner

Use
 SAP AG 2002

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-5

 Contracts

Release order
documentation

Contract

Specs.

Internal
Only

Vendor
Release
order
Partner

Specs

Use
 SAP AG 2002

SAP
SAP

„ In Procurement, a contract is a longer-term outline agreement with a service provider that covers the

Partner
purchasing of materials or services over a certain period.
Use

„ A contract for services contains the service specifications – 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.
Internal

„ 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

Only
„
order documentation for each item.

© SAP AG SCM540 4-6

 Contracts: Account Assignment Category

Contract 123

Item 10 Pipe-laying
Release order
against contract 123
Acct. assgt. cat. U
Service entry
Unknown Item 10 Pipe-laying
Specs. sheet
= possible Acct. assgt. cat. U

Specs.
Unknown Acct. assgt. cat. K
S3 = possible

Internal
Only

S17 Acct. assgt.

S200 must
Planning of be specified
Specs.
requirement
Concrete
requirement S200 1,500
Partner

Performance of

Use
requirement

 SAP AG 2002

SAP
SAP

„ At the time a contract is created, the account assignment category may be unknown. Therefore it is

Partner
possible to use account assignment category U.
Use

„ The account assignment 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 – at the time the entry sheet for the services that have actually been performed
is created.
Internal

Only

© SAP AG SCM540 4-7

 Contracts: Release Orders

Definition

Release orders are POs created with reference to an existing

contract.

Adoption of data

Data is adopted from the contract when a

release order is created.

Internal
Only

Updating of data
Partner

When a release order is created, the release order

documentation is updated.
Data is updated in the service line of the contract.

Use
 SAP AG 2002

SAP
SAP

„ Release orders give the service provider the following information:

Partner
y The services actually ordered (released) against the contract
Use

y The quantity being released

y The delivery date for the release
„ Data from the contract is adopted in the release order:
y Vendor information
Internal

y Terms of delivery and payment

y Prices
„ Contract data is updated with each release order:

Only
y The total value per release order
y Values and quantities per service
„ The service line of the contract is updated:
y The quantity released
y The value released

© SAP AG SCM540 4-8

 Contracts: Manual Creation of Release Orders

Rel. order

You create the

release order

Manual entries:
z Reference to contract
(contract number)
The release order is
transmitted to the vendor

Internal
Only

z Delivery date
z Order quantity Contract
Partner

Use
The documentation in
the contract is updated

 SAP AG 2002

SAP
SAP

„ Release orders give the service provider the following information:

Partner
y The services actually ordered (called off) against the contract
Use

y The quantity of the release order

y The delivery date for the release order
„ Data from the contract is adopted in the release order:
y Vendor information
Internal

y Terms of delivery and payment

y Prices
„ Contract data is updated with each release order:

Only
y The total value per release order
y Values and quantities per service
„ The service line of the contract is updated:
y The quantity of the release orders
y The value of the release orders

© SAP AG SCM540 4-9

 Automatic Release Order from Requisition

11 - Create purchase requisitions

22 - Contract is assigned as source of supply

Internal
Only

33 - Convert worklist requisitions into release orders

Partner

44 - Release order created

- Release order documentation
updated

Use
Save

 SAP AG 1999

SAP
SAP

„ You can generate a worklist of purchase requisitions (for example, all requisitions of the previous

Partner
week).
Use

„ 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.
Internal

Only

© SAP AG SCM540 4-10

 Contracts: Release Order Documentation Example

Release order documentation

Contract Release order Release order Date Value
(PO number)
450000026 May 1 1000
450000042 July 3 1500
450000056 Oct 5 2500
Value released 15000

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

„ The release order documentation provides information on the current status of the release orders

Partner
issued against a contract.
Use

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

Only

© SAP AG SCM540 4-11

 Invoicing Plans and Blanket POs: Topic Objectives

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

z Maintain both invoicing plans for repetitive

services and blanket purchase orders for
tracking inexpensive services

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-12

 Invoicing Plans

Periodic invoicing plan Partial invoicing plan

z Construction project 250000 EUR
„ Plans complete 20000 EUR
z Vehicle leasing 600 EUR
„ Main structure
(Monthly)
(phase 1) 80000 EUR
„ Main structure
z Rent for premises 2200 EUR (phase 2) 100000 EUR
„ Acceptance 50000 EUR
z Photocopier rental 1000 EUR z Market research project 20000 EUR

Internal
Only

„ Award of contract 2000 EUR

z Landscaping, monthly 1500 EUR „ Initial analysis 3000 EUR
„ Survey, evaluation of
survey results, interim
report 7500 EUR
Partner

„ Final report, target/actual

comparison, action plan 7500 EUR
Payment of full amount due at

Use
regularly recurring intervals Total amount payable in installments

 SAP AG 2002

SAP
SAP

„ You can use invoicing plans for both items with services and items with materials.

Partner
Invoicing plans can consist of items with dates and values and is the basis for automatic creation and
Use

„
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.
Internal

Only

© SAP AG SCM540 4-13

 Periodic Invoicing Plan

Purchase order
recomm. Customizing
FO Jan 1 - Dec 31
Acc. assgt. CC 123 mandatory
Item 10 Grounds
maint. 500.00
LV Example:
Period. inv. plan z Invoicing plan type : Periodic
Mar 30 500 Dates generated
z Start date : Start of

Internal
Only

Apr 30 500 automatically

May 31 500 agreement
Jun 30 500
. z Date description : Maintenance of
.
. grounds
Invoice
Partner

Mar 30 500 EUR z Rule for date : Last of each

determination month
Invoices

Use
Generated
automatically

 SAP AG 2002

SAP
SAP

„ Recurring procurement transactions are the basis of periodic invoicing plans.

Partner
Worksteps are eliminated since you do not enter services performed.
Use

„
„ 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.
Internal

Only

© SAP AG SCM540 4-14

 Partial Invoicing Plan

Purchase order
recomm. Customizing
FO Jan 1 - Apr 30
Acc. assgt. CC 123 mandatory
Item 10 Market research
15000 Example:
You maintain z Invoicing plan type : Partial
Partial Invoice
dates
Analysis/plan Jan 20 5000 z Start date : Today
Survey/evaluation Mar 15 4000

Internal
Only

Final report/ Apr 30 6000 z Date seq. proposal : Plan #

action plan for partial inv. plan 0013
Invoice
Jan 20 5000
Partner

Service
entry Generated
sheet automatically

Use
Optional

 SAP AG 1999

SAP
SAP

„ Partial invoicing plans can be used for transactions that will be invoiced and distributed over the

Partner
individual dates of the invoicing plan.
Use

„ 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.
Internal

Only

© SAP AG SCM540 4-15

 Invoicing Plan: GR/IR Control

Purch. order
If service entry sheet
Maintenance of
desired for information
grounds only

Item detail screen

GR - If GR is not set then you will not X GR

enter and accept services performed
GR-based invoice
verification mandatory

Internal
Only

Non-valuated GR X Non-val. GR
X IR mandatory
To allow automatic
X Evaluated Receipt Settlement settlement
Partner

Use
 SAP AG 1999

SAP
SAP

„ Invoicing plans may not have valuated goods receipts. As a simplified process, you should cancel the

Partner
GR indicator and the GR-based invoice verification indicator in the purchase order item.
Use

„ 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.
Internal

Only

© SAP AG SCM540 4-16

 Blanket Purchase Orders

High

Value of requirement Cost of acquisition

Invoice

Requisition
Invoice
Catering
Purch. order
Minor repairs
Acceptance Follow-up
Temporary help
Service

Internal
Only

entry
Cleaning work

Courier services
. Blanket PO
.
Partner

Limit 5000
. Invoice
Jan - Dec
215 EUR

Use
Low
Low

 SAP AG 2002

SAP
SAP

„ You can create purchase orders with a validity period and a value limit without service entry sheets

Partner
for processing relatively low value services and materials.
Use

„ 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
Internal

into the invoice.

Only

© SAP AG SCM540 4-17

 Blanket Purchase Order Requirements

Blanket PO Service entry sheet GR

Doc. type FO FO = Framework

Rahmenbestellung
order Service acceptance
Jan - Dec with
mit
validity
Laufzeit
period
Item category B B = Limitbestellung
B = Blanket Omitted
Value limit 5000
Account assgt. cat. U
kurze,
Office supplies and Short general
allg. Beschreibung Invoice verification
courier services description at item

Internal
Only

auf Positionsebene
level

z nur
Value
Wertlimit
limit only Invoice
LV
Specs. z Leistungsverzeichnis
No service Account assgt.
entfällt
specifications 215.00 required
Partner

Enter invoices directly

against PO

Use
 SAP AG 2002

SAP
SAP

„ Document type FO Framework Order is used for blanket purchase orders.

Partner
The item category is B for limit or (blanket).
Use

„
„ 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.
„ Invoices for blanket purchase orders are entered using Logistics Invoice Verification transactions.
Internal

Conventional invoice verification cannot be used.

Only

© SAP AG SCM540 4-18

 Long-Term Documents: Unit Summary

You are now able to:

z Create a contract for external services and
supplies
z Create a release order for the contract
z Create an invoicing plan for services
z Create a blanket purchase order

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-19

 Exercises

Unit: Long-Term Documents

Topic: Contracts

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

• Create a contract for services or supplies
• Create a release order
• Check the links between them

Internal
Only

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
Partner

orders cannot.

Use
1-1 You have negotiated favorable terms for several services. Create a quantity
contract.
Vendor: T-K540B##

SAP
SAP

Agreement type: MK
Purchasing Org: 1000

Partner
Purchasing Grp: Y## (SCM540-##)
Use

Item category: D
Account assign: U
Internal

Plant: 1000
Material group: 007

Only
Validity end date: End of next year
Target value: 100000 EUR
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.

© SAP AG SCM540 4-20

 Service _________________ Quantity ________ Gross price___________
Service _________________ Quantity ________ Gross price___________
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-K540B##. 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

Internal
Only

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.
Partner

Release order number: ___________________________________

Use
*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.

SAP
SAP

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

Partner
Use
Internal

Only

© SAP AG SCM540 4-21

 Exercises

Unit: Long-Term Documents

Topic: Invoicing Plans and Blanket POs

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

1. Maintain invoicing plans

Internal
Only

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

Use
2-1 Your vendor T-K540B## 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.

SAP
SAP

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

Partner
Use

Vendor: T-K540B##
Purchasing Org: 1000
Purchasing Grp: SCM540-##
Internal

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,

Only
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.
Framework order (Invoicing plan) number:
________________________________________

© SAP AG SCM540 4-22

 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.

Internal
Only
Partner

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-23

 Solutions

Unit: Long-Term Documents

Topic: Contracts

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

• Create a contract for services or supplies
• Create a release order
• Check the links between them

Internal
Only

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
Partner

orders cannot.

Use
1-1 From the SAP Easy Access menu:
Logistics → Materials Management → Purchasing → Outline agreement →

SAP
Contract → Create
SAP

Enter the following data on the initial screen:

Vendor T-K540B##

Partner
Use

Agreement type MK
Purchasing Org 1000
Purchasing Grp Y## (SCM540-##)
Internal

Item category D
Account assign U

Only
Plant 1000

Enter the following data on the header data screen:

Validity end date End of next year
Target value 100000 EUR

© SAP AG SCM540 4-24

 1-1-1 In the item overview screen, enter a short text to describe the planned
services – for example, Pipe-laying Project. Use material group 007 Do not
create an outline.
Enter the following information on the item overview:
Short text Enter your description
Material group 007

1-1-2 Enter your first service.

The first service is new, and does not have a service master so enter a short
text. Enter the price, unit of measure, material group and quantity.

Internal
Only

Short text Enter your description

Quantity Any quantity you want
Unit of measure AU
Partner

Price 100.00
Material goup 007

Use
1-1-3 Enter two additional services.
Adopt two more services (work) from either your last purchase order, your

SAP
SAP

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

Partner
reference multiple times.
Use

Choose the Service Selection icon.

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

Select the desired services and choose Adopt services.

Only
To display or change the pricing, select a service and choose Goto
conditions.

Service Quantity Gross price

Save.
Add to the Data Sheet:
Contract number: _____________________________________________

© SAP AG SCM540 4-25

 1-2 The first release against your contract occurred this week. Create a release
(purchase order) by referencing the contract.
Favorites: Purchase Order
1-2-1 The vendor is the same as on the contract, T-K540B##. Enter the number of
your contract as a reference on the far right of the item overview.
Select the Document overview on icon.
Select the Selection Variant icon.
Choose Contracts
On the Purchasing documents screen, enter the following data:
Plant 1000

Internal
Only

Vendor T-K540B##
Purchasing group SCM540-## or Y##
Purchasing organization 1000
Partner

Leave all other fields blank.

Execute

Use
Select your contract and drag and drop it into the shopping basket.
Alternatively you can select your contract and then select the Adopt icon
from the document overview.

SAP
Close the document overview.
SAP

In the list of services, you must choose the Service selection icon to
determine which services are being included this time. Adopt at least one

Partner
Use

service from your contract.

Goto the invoice tab. Ensure that tax code is 0i is chosen.
Did the contract prices transfer to the release?
Internal

The contract prices did transfer.

Save.

Only
1-2-2 Add it to your Data Sheet.
Release order number: ___________________________________

1-3 Display the contract.

Logistics → Materials Management → Purchasing → Outline agreement →
Contract → Display
1-3-1 Is your release listed under the Release documentation?
Select the line item, select the Release Documentation icon.
Yes, it is listed. You can also see the total value released.

© SAP AG SCM540 4-26

 1-3-2 Find the quantity released in the contract.
Highlight the release order number, then click on the Services icon.
The quantity released is on the right.
1-3-3 Display the details for a service item. Can you find the released value?
Go back to the Display Contract: Item overview, select the line item, click
on the Services icon.
Select a service line in the contract and the Details icon at the bottom of the
screen.
The Statistic tab displays the value released and quantity released.

Internal
Only
Partner

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-27

 Solutions

Unit: Long-Term Documents

Topic: Invoicing Plans and Blanket Pos

2-1 Your vendor T-K540B## 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.

Internal
Only

From the SAP Easy Access menu:

Logistics → Materials management → Purchasing → Master data → Vendor →
Purchasing → Change (current) → Purchasing data
Partner

Change Vendor: Initial Screen

Vendor T-K540B##

Use
Purchasing data Check this box
Display Vendor: Purchasing data screen
Control data

SAP
SAP

ERS (AutoEvalGrSetmtDel) Yes

Vendor T-K540B## does have the indicator AutoEvalGRSetmt Del. set.

Partner
Use

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.
Favorites: Purchase Order
Internal

Enter the order type and vendor.

Order type FO

Only
Vendor T-K540B##

Enter the following header data on the organizational data tab:

Purchasing Org 1000
Purchasing Grp SCM540-## or Y##

Enter the following header data on the additional data tab:

Validity start Beginning of this month
Validity end End of next year

© SAP AG SCM540 4-28

 2-2-1 Enter the account assignment category, item category, and a short text for
the service in the item overview area.
Enter the following information on the item overview:
Account assignment category K
Item Category D
Short text Enter your description
Material group 007
Plant 1000
In the Item details screen area: Select the Services tab
Enter the flowing information:.

Internal
Only

Short text or Service master Enter your choice

Quantity Enter any quantity
Partner

Within the Accounting tab, enter the account and cost center.
G/L Account 417000

Use
Cost center 4110
Goto the Delivery tab, deselect Goods Receipt.
Goto the Invoice tab, make sure the the ERS indicator is set and select the

SAP
SAP

Invoicing plan icon.

Choose the Training MM periodic invoicing plan.
Ensure the In advance indicator is set in. Your first invoice date should be in

Partner
the past.
Use

Return and save.

Purchase order (Framework order) number:
_______________________________
Internal

2-3 Automatically create the first invoice for your plan. In the initial screen, enter your

Only
vendor or the invoicing plan number. Execute in test mode first, then Execute to
generate the invoice.
From the SAP Easy Access menu:
Logistics → Materials management → Logistics invoice verification →
Automatic Settlement → Invoicing plan settlement
For Documentation selection, enter the following information:
Plant 1000
Vendor T-K540B##

© SAP AG SCM540 4-29

 For processing options, enter the following information:
Doc. Selection 3
Test run Set
Execute
Go back and rerun the settlement this time without the test run set.
Invoice number: ______________________________________________

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

Purchase Order → Display

Internal
Only

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

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 4-30

 Optimized Procurement

Contents:
z Sources to Assign to a Requisition
z Converting Requisitions into Purchase Orders and
Release Orders

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 5-1

 Optimized Procurement: Unit Objectives

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

z Describe how the the R/3 System determines

sources of supply
z Convert a requisition into a purchase order or
release

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 5-2

 Course Overview Diagram: Optimized Procurement

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 5-3

 Optimized Procurement: Business Scenario

z 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.

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 5-4

 Origin of Purchase Requisitions

Created manually in Generated

user department automatically

„ Project system (PS)

or „ Plant maint. (PM)
„ ...

Internal
Only

Purchase
requisition
Partner

Use
 SAP AG 1999

SAP
SAP

„ Purchase requisitions are created within departments for internal use or generated automatically

Partner
within other processes such as Plant Maintenance, Project System, Service Management, and so on.
Use

„ Procurement converts purchase requisitions into purchase orders.

Internal

Only

© SAP AG SCM540 5-5

 Requisition Processing

Process requisition/
Create purch. Determine Release If no source
requisition source (optional) determined:
RFQ or assign vendor

Pur. order
1

Requisn. Contract Requisn

Internal
Only

2 Contract
rel. order

Manual
RFQ
or
automatic o.k.
Vendor ?
Partner

Use
 SAP AG 1999

SAP
SAP

„ From a list of open requisitions, you can automate the conversion process into purchase orders.

Partner
If no source is found, you could set the requisition for RFQ processing.
Use

„
„ Requisition release/approval processing is optional.
Internal

Only

© SAP AG SCM540 5-6

 Further Processing of Purchase Requisitions

Purchase Pur. order

requisition
Purchase 1
requisition
Purchase
requisition 2

Contract
rel. order

Source Process
Vendor assigned

Internal
Only

Purchase Pur. order

requisition
Purchase - Start automatic 1

requisition
Purchase source
determination 2 Contract
requisition rel. order
Partner

or
Assign RFQ
- Assign source and
?

Use
manually
No Process
source
assigned
 SAP AG 1999

SAP
SAP

„ You can Assign purchase requisitions if a vendor had not been allocated. Sources are suggested from

Partner
contracts for the service or material group, or from conditions with vendor (and plant).
Use

„ 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.
Internal

Only

© SAP AG SCM540 5-7

 Possible Sources for External Services

Maintain services in Requisn

purchase requisition
Specs.

Contract Hour
Assign sources %

Internal
Only

Conditions
EUR

Vendor Service
conditions
Partner

Use
Vendor
 SAP AG 2002

SAP
SAP

„ The R/3 System can suggest potential sources for the procurement of required services.

Partner
These sources are determined on the basis of existing contracts and vendor service conditions.
Use

„
Internal

Only

© SAP AG SCM540 5-8

 Suggested Sources

Purchase
requisition
- Material group Conditions
Software consulting Vendor: Pur. order
Miller Corp.
- Service 1580 1
- Service
Senior consultant 1580
2
- 250 EUR
Vendor

Price simulation
Possible sources Contract Rel. order
- Mat. Group

Internal
Only

Exist?
Software
no yes consulting
- Service
conditions x
Contract Rel. order
Partner

- Contracts for - Service

x
material group 1580
- Contracts for

Use
x - 260 EUR
service

 SAP AG 2002

SAP
SAP

„ If conditions and contracts with service specifications exist for certain material groups, they are

Partner
suggested as potential sources.
Use

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

Only

© SAP AG SCM540 5-9

 Price Simulation for Source Comparison

Selection of suitable source from those suggested

z Possible for one or all of the sources found.

z Results at individual service or outline level.
z Color signals indicate origin of prices.

Internal
Only

„ 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).
Partner

„ No price available.
X

Use
 SAP AG 1999

SAP
SAP

„ To help you select a source, you can compare prices if several sources are suggested.

Partner
Price comparison is possible for one or all of the sources listed.
Use

„
„ For a service line it displays the individual price and total value
„ For outline levels it displays:
y Outline level first line – Total value of all subordinate outline levels
y Outline level second line – Total value of all services belonging to the outline level
Internal

Only

© SAP AG SCM540 5-10

 Customizing Source Determination

Purchase Contract Customizing

requisition - 1600
.
.
- Mat. group 05 . At least Service conditions
Softw. consulting one Vendor Miller Corp.
- 1580 service - At least one service 1600 200 EUR
- 1590
- 1600 Contract - All services
- 1635 - 1580
- 1590
All

Internal
Only

- 1600 Service conditions

- 1635 services
. Vendor Smith Co.
. 1580 180 EUR
1590 130 EUR
Contract 1600 200 EUR
Mat. group 05
Partner

1635 95 EUR
Softw. consulting
- 5030
- 6700 Same material group/

Use
- 6720 other services
- 6800

 SAP AG 2002

SAP
SAP

„ Using the Customizing facility Source determination and default values at the client or purchasing

Partner
organization level, you can define whether:
Use

y 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
y Only those contracts or master conditions containing all the services requested in the requisition
are to be offered for selection or
Internal

y 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.

Only

© SAP AG SCM540 5-11

 Optimized Procurement: Unit Summary

You are now able to:

z Describe how the R/3 System determines
sources of supply
z Convert a requisition into a purchase order or
release

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 5-12

 Exercises

Unit: Optimized Procurement

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

1. Convert a requisition into a purchase order or contract release
2. Describe how the R/3 System determines sources of supply

Internal
Only

For your common services, you are testing the assignment of a

service provider using data from contract or conditions
definitions.
Partner

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

Use
purchase requisition document with the following data:
Document type: NB Purchase Requisition
Item category: D

SAP
SAP

Account assignment category: K

Delivery date: One month from today

Partner
Plant: 1000
Use

Purchasing group: Y## (SCM540-##)

Material group: 007
Internal

Enter a short description for the overall line item.

1-1-1 Select all of the services from your contract.

Only
1-1-2 Change the quantities.
1-1-3 Bill the cost of the item to cost center 4110
1-1-4 Record the data entered.
Service __________________ Quantity _____Price ____________
Service __________________ Quantity _____Price ____________
Service __________________ Quantity _____Price ____________

Requisition number: ____________________

© SAP AG SCM540 5-13

 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.
Process your requestion with your contract as the source. Assign and process
purchase requisitions screen, select Assignment overview.
ADD to the Data Sheet:
Document number: ____________________________________________

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

Internal
Only

*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.
Partner

1-4-1 Change vendor T-K540B## to set the Automatic PO indicator.

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

Use
1-4-3 Create another 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

SAP
SAP

Source of Supply.
Requisition number: _____________________________________
1-4-4 Create a purchase order automatically from the requisition. Select

Partner
Use

requisitions by your purchasing group and your contract vendor. Select New
PO per requisition. Choose Execute.
Internal

Purchase order number: __________________________________

Only

© SAP AG SCM540 5-14

 Solutions

Unit: Optimized Procurement

1-1 A requisition was received for services without specifying the vendor. Create a
purchase requisition document with the following data:

Logistics-> Materials Management -> Purchasing -> Purchase Requisition ->

Create

Internal
Only

Enter the following information for your requisition:

Document type NB Purchase Requisition
Account assignment category K
Partner

Item category D
Short text Enter a short description

Use
Delivery date One month from today
Material group 007

SAP
SAP

Plant 1000
Purchasing group Y## (SCM540-##)
1-1-1 Using the Service tab Select all of the services from your contract by

Partner
Use

selecting the Serv. Selection radio button and enter your contract in the
From purch. Document field. Select all service lines. Select the Adopt
services icon.
1-1-2 Change the quantities.
Internal

1-1-3 Bill the cost of the items to enter cost center 4110 Within the Accounting
pop up tab, enter the G/L account and cost center.

Only
G/L Account 417000
Cost center 4110
Select the Auto repeat AA button to apply the cost center to all of the
services.

© SAP AG SCM540 5-15

 Record your service specification information:
Service Quantity Price

SAVE
Requisition number: _____________________________________

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

Internal
Only

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.
Logistics → Materials management → Purchasing → Purchase requisition →
Follow-on Functions → Assign and process
Partner

Enter the following information to call up your requisition:

Use
Purchasing group Y## (SCM540-##)
Plant 1000
Execute.

SAP
SAP

Select your requisition by placing a check in the box to the left or your requisition.
Then select the Assign automatically icon to list possible vendors.
From the Assign and process purchase requisitions screen, select the Assignment

Partner
overview icon.
Use

Save
Logistics-> Materials Management->Purchasing -> Purchase Order -> Create ->
Vendor/Supplying Plant Known
Internal

Select your requisition from the document overview and drag and drop it into the
shopping basket. Alternatively you can select your requisition and then select the

Only
Adopt icon in the document overview.
Save.
Add to the Data Sheet:
Purchase order number: ________________________________________

© SAP AG SCM540 5-16

 *1-3 Did you create a purchase order or a contract release? Display the contract to verify
the connection.
Logistics → Materials management → Purchasing → Outline agreement →
Contract → Display
Enter your contract number, select the line item, and choose Item → Statistics →
Release Documentation.
Yes, The Purchase order was created as a release order with reference to the
contract.

*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.

Internal
Only

1-4-1 Change vendor T-K540B## to set the Automatic PO indicator.

From the SAP Easy Access menu:
Logistics → Materials management → Purchasing → Master data →
Partner

Vendor → Purchasing → Change (Current)

Change Vendor: Initial Screen

Use
Vendor T-K540B##
Purchasing data Check this box
Change Vendor: Purchasing data screen

SAP
SAP

Control data
Automatic purchase order Check this box

Partner
Save.
Use

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

From the SAP Easy Access menu:
Internal

Tools→Customizing→ IMG→Edit Project

SAP Reference IMG→ Materials management → External Services

Only
Management→ Source determination and default values → for Client
The source determination flag is set at the client level.

© SAP AG SCM540 5-17

 1-4-3 Create a requisition as above.
Logistics-> Materials Management->Purchasing -> Purchase Order ->
Create -> Vendor/Supplying Plant Known
Enter the following information for your requisition:
Document type NB Purchase Requisition
Account assignment category K
Item category D
Short text Enter a short description
Delivery date One month from today
Material group 007

Internal
Only

Plant 1000

Purchasing group Y## (SCM540-##)

In the Services screen area, select all of the services from your contract.
Change the quantities. For the account assignment, enter cost center 4110
Partner

and select the Auto repeat AA button to apply the cost center to all of the
services. Record the data entered.

Use
Select the Serv. Selection icon and enter your contract in the From purch.
Document field.
Select all service lines. Select the Adopt services icon.

SAP
SAP

Within the Accounting pop up tab, enter the G/L account and cost center.
G/L Account 417000
Cost center 4110

Partner
Use

Select the Auto repeat AA button to apply the cost center to all of the
services.
Change the quantities to enable you to enter multiple service entry sheets.
Internal

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

Only
Record your service specification information:
Service Quantity Price

Save.
Requisition number: _____________________________________

© SAP AG SCM540 5-18

 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.
From the SAP Easy Access menu:
Logistics → Materials management → Purchasing → Purchase
requisition → Follow-on Functions → Create purchase order → Automat.
via Purchase Requisitions

Enter the following information to convert up your requisition:

Purchasing group Y## (SCM540-##)
Vendor T-K540B##

Internal
Only

Plant 1000

New purchase order field group:

Partner

Plant 1000
Execute

Use
Purchase order number: __________________________________

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 5-19

 Value Limits for Unplanned Services

Contents:
z Unplanned Services
z Applying Limits
z Combination of Planned and Unplanned Services
z Tolerances

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 6-1

 Value Limits: Unit Objectives

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

z Apply value limits to control costs in the

procurement of services and supplies
z Create a service specification with unplanned
value limits for unplanned services

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 6-2

 Course Overview Diagram: Value Limits

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 6-3

 Value Limits: Business Scenario

z 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 exceed
contract limits.

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 6-4

 Value Limit for Unplanned Services

Purch. order # 12345 27th Jan.

Item 10 Repair printing press
- Precise description of work ?
- Order quantity ?
- Account assignment ?
Specs. Cost control through
imposition of limits !

Internal
Only

Service entry sheet 3rd Feb.

Item 10
1 Oil filter replaced
1 hour 75 EUR
Partner

Cost center 123

Limit adhered to ?

Use
Release procedure Acceptance

 SAP AG 2002

SAP
SAP

„ If you wish to make provision in the PO for services that are not precisely definable during the

Partner
planning phase of a procurement project, set a money limit instead of entering a service description.
Use

This limit for unplanned services, must not be exceeded.

„ The service can be specified later - perhaps at the time of actual performance
Internal

Only

© SAP AG SCM540 6-5

 Value Limit When Planning/recording Services

Service specifications in Service entry

the purchase order
01 Selection of software components
sheets
01 Define requirements

Senior Consultant 10 days 2000 per day

7th April
02 Adjustment of software components
01 Revise Component A
01 Selection of software components
Consultant 5 days 1800 per day
02 Test adjusted configuration 01 Define requirements
Consultant 4 days 1800 per day
Senior Consult. 3 days 2000 / day

Internal
Only

? Unplanned services up
to maximum 60000
02 Adjustment of software components
Value limit

01 Revise Component A
Consultant 5 days 1800 per day
Partner

02 Test adjusted configuration

Consultant 3 days 1800 per day
Modification to Component Q

Use
Consultant 10 days 2100 per day

 SAP AG 2002

SAP
SAP

„ MM External Services Management offers two basic ways of specifying services:

y As planned services with description, quantity, and price.

Partner
Use

y By "planned services" we mean services whose nature and scope is known to you at the start of a
procurement project or transaction.
y At the time the services are requested, the individual specifications are entered either with the aid
Internal

of a service master record or directly as short and long texts. Price and quantity are specified in
both cases.
y As unplanned services with the setting of a value limit only.

Only
y By unplanned services, we mean services that cannot be specified in detail because their precise
nature and scope are not initially known, or services which - for various reasons - you do not wish
to plan. Unplanned services therefore have no descriptions.
„ They are entered in the form of monetary limits. Services may be performed up to a value not
exceeding these value limits. This allows you to exercise a degree of cost control in such situations.

© SAP AG SCM540 6-6

 Overall Limit and Sub-limits

Contract
- 20000 EUR on contract 46...12
- 10000 EUR on contract 46...54
Overall limit .
.
100000 EUR .
Standard service catalog
Split up
- 30000 EUR on SSC 037/198
among: .
.

Internal
Only

Model service specifications

- 60000 EUR on model spec. 123
Partner

Unspecified limit
5000 EUR

Use
 SAP AG 2002

SAP
SAP

„ For unplanned services the R.3 System verifies that the overall limit from the purchase order line

Partner
item has not been exceeded in the service entry sheets. The overall limit is used as a tolerance check.
Use

„ Sub-limits within the overall limit are also compared to the service entry sheets.
y Limits against contracts
y Limits against standard service catalogs
y Limits against model service specifications
Internal

y A limit without reference to other documents

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

Only

© SAP AG SCM540 6-7

 Value Limit: Expected Value

z From the business point of view:

„ The value to which unplanned services are likely to be

performed and recorded

z Technically:
„ Used for account assignment and commitment value
„ Serves as the basis for the release procedure (if one is applied)

Internal
Only

z Depending on your aims with regard to cost control:

Partner

„ Expected value is lower than overall limit

„ Expected value is higher than overall limit

Use
 SAP AG 1999

SAP
SAP

„ The Expected Value is the total likely to be performed and charged by the service provider. It need

Partner
not equal the overall limit.
Use

„ 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.
Internal

Only

© SAP AG SCM540 6-8

 Value Limit at the Time of Service Entry

Purchase order
Contract
10 Service 123
10 days 1200 per day 10 Service 345

Limits - Quantity 100 days

20000 EUR - Price 2,000 / day

„ Quantities of planned
services checked
„ Price adopted

Internal
Only

Service
entry sheet
„ Quantity checked

Planned service „ Price adapted

Partner

„ Overall limit is checked 10 days 12000 EUR

„ Sub-limits are checked
Unplanned service

Use
8 days 16000 EUR

 SAP AG 2002

SAP
SAP

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

Partner
purchase order.
Use

„ 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:
y Adapt the price from the contract.
Internal

y Check adherence to the target quantity of the contract

Only

© SAP AG SCM540 6-9

 Planned Procurement of Services

First possibility:

Purchase order Service

entry sheet
Specs.
- Service 1580 - Service 1580
- Service 1540 - Service 1540

No value limits

Internal
Only

Planned
services only
Partner

Use
 SAP AG 2002

SAP
SAP

Partner
Use

„ You can work only with planned services in the purchase order - and not specify any limits for
unplanned services.
„ At the time the performance of the services is recorded, only the precise services, quantities and
prices set out in the specifications may be entered.
Internal

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

Only

© SAP AG SCM540 6-10

 Partially Planned Procurement of Services

Second possibility:

Purchase order Service

entry sheet
No service - Service 10
specifications from contract 1
- Service 24
Limit from contract 2

Internal
Only

Contract 1 20000 EUR - Service 57

Contract 2 10000 EUR from contract 2

Contract limits
but no planned
Partner

services

Use
 SAP AG 2002

SAP
SAP

„ You can work exclusively with unplanned services but restrict the nature of the latter by referencing

Partner
contracts. In this case, you do not enter any specifications, quantities, or prices in the PO, but set
Use

only value limits relating to certain contract items. This ensures that the provider is not able to enter
any services at any prices, but only those agreed in the contract.
„ 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.
Internal

„ 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.

Only

© SAP AG SCM540 6-11

 Unplanned Procurement of Services

Third possibility:

Purchase order Service

entry sheet
No service - Service 1
specifications - Service 2
.
.
Value Limits .

Internal
Only

X Unlimited Specifications
Not created until
Unplanned services actually
services only performed
are entered
Partner

Use
 SAP AG 2002

SAP
SAP

„ You can work exclusively with unplanned services. In this case, you enter no specifications,

Partner
quantities, or prices in the PO. Instead, you merely set a value limit for unplanned services. This
Use

allows any services to be performed up to that limit. The services are not actually specified until late
in the procurement process - at the time their actual performance is recorded.
„ 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
Internal

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.

Only

© SAP AG SCM540 6-12

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

Fourth possibility:

Purchase order
ABC Software Ltd.
Planned 10 Software
implementation ...

Unplanned Limit
via limit 100000 EUR

Internal
Only

Limit definition Service

Model spec A200 entry sheet
Overall limit
Model spec B320 100000 EUR <
_ 60000 EUR
model spec A200
ABC Software GmbH Limits on model specs
Partner

10 Software Consulting No. A200 60000 EUR

No. B320 50000 EUR
- Junior consultant ..
- Senior consultant .

Use
- Head consultant
Limit (unspecified) Unplanned service
10000 EUR 2000 EUR

 SAP AG 2002

SAP
SAP

„ If an overall limit exists and sub-limits are defined, you can enter services within the sub-limit

Partner
amounts. The overall limit must not be exceeded. The service specifications are not created until the
Use

services are actually performed and recorded in the R/3 System.

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

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

Only

© SAP AG SCM540 6-13

 Value Limits: Unit Summary

You are now able to:

z Apply value limits to control costs in the
procurement of services and supplies
z Create a service specification with unplanned
value limits

Internal
Only
Partner

Use
 SAP AG 2002

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 6-14

 Exercises

Unit: Value Limits

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

1. Apply value limits to control costs in the procurement of
services and supplies
2. Create a service specification with value limits on unplanned

Internal
Only

services

Often the precise services are unknown when creating

maintenance or consulting contracts. You can apply limits to
Partner

control costs. Limits are also used for not to exceed contract limits
and in combination with planned services.

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

SAP
SAP

Vendor: T-K540A##
Agreement type: MK
Purchasing Org: 1000

Partner
Use

Purchasing Grp: Y## (SCM540-##)

Item category: D
Internal

Account assign.: U
Plant: 1000

Only
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: _____________________________________________

© SAP AG SCM540 6-15

 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: NB Standard PO
Vendor: T-K540A##
Purchasing Org: 1000
Purchasing Grp: Y##-(SCM540-##)
Account assign.: U
Item category: D

Internal
Only

Material group: 007

Plant: 1000
Enter a short text for the line item.
Partner

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

Use
______________________________________________________
1-2-2 Set limits for the unplanned services under the Limits tab.
The overall limit is 10000 EUR. This is the maximum value of unplanned

SAP
SAP

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

Partner
Under the Contract limits tab, set the Price change during entry allowed
Use

indicator. Enter your last contract document number for this vendor, item
10, and a limit of 7000 EUR. This is a sub-limit for unplanned services.
Under the Other limit tab, enter 5000 EUR. This is a sub-limit for additional
Internal

or unknown unplanned services.

Before saving, look at the Item overview screen area. What is the Net price?

Only
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, plus 6000 EUR
against the contract, and 3000 in additional services. ___________
1-3-2 5000 EUR against the contract and 5000 EUR in additional services.
______________________________________________________

© SAP AG SCM540 6-16

 1-3-3 6000 EUR against the contract and 5000 EUR in new services.
______________________________________________________
1-3-4 An amount less than the net value of the first service, 8000 EUR against the
contract and 1000 EUR in new services. ____________

Internal
Only
Partner

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 6-17

 Solutions

Unit: Value Limits

1-1 You require one service frequently. Create a contract for the service with a
negotiated price.
Logistics → Materials Management → Purchasing → Outline agreement →
Contract → Create

Internal
Only

Enter the following data on the initial screen:

Vendor T-K540A##
Agreement type MK
Partner

Purchasing Org 1000

Purchasing Grp Y## (SCM540-##)

Use
Item category D
Account assign U

SAP
SAP

Plant 1000
Material Group 007

Partner
Use

Enter the following data on the header data screen:

Validity end date End of next year
Internal

Enter a short text for the line item.

Enter the following information on the item overview:

Only
Short text Enter your description

In the list of services, enter your second service master number, quantity 100, and a
gross price.
Service Master Your second service master
Quantity 100
Gross price 100.00
Save.
Contract number: _____________________________________________

© SAP AG SCM540 6-18

 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.
Logistics->Materials Management->Purchasing -> Purchase Order -> Create ->
Vendor/Supplying Plant Known
Enter the order type and vendor.
Order type NB Standard PO
Vendor T-K540A##

Internal
Only

Enter the following header data on the organizational data tab:

Purchasing Org 1000
Purchasing Grp Y## (SCM540-##)
Partner

Enter the following information on the item overview:

Use
Account assignment category U
Item Category D
Short text Enter your description

SAP
SAP

Material group 007

Plant 1000

Partner
Use

1-2-1 For the first service, enter your first service master number, quantity 100.
In the Item details screen area: Select the Services tab
Enter the flowing information:.
Internal

Service master Your first service master

Only
Quantity 100

What was the source of the price?

Serices Tab →Conditions icon→highlight PRS line→Condition rec. icon
The gross price came from the service/vendor condition record.
Back.

© SAP AG SCM540 6-19

 1-2-2 Set limits for the unplanned services under the Limits tab.
The overall limit is 10000 EUR. This is the maximum value of unplanned
services.
The expected value is 9000 EUR. This is the value used for release
procedures.
Select the Limits tab.
Enter the flowing information:.
Overall limit 10000
Expected value 9000
Under the Contract limits tab, set the Price change during entry allowed
indicator. Enter your last contract document number for this vendor, item

Internal
Only

10, and a limit of 7000 EUR. This is a sub-limit for unplanned services.
On the Contracts Limit tab, enter the following:
Price change during entry allowed Set this flag
Partner

Contract Enter your last contract

Item 10

Use
Limit 7000

Under the Other limit tab, enter 5000 EUR. This is a sub-limit for additional

SAP
SAP

or unknown unplanned services.

On the Other limit tab, enter the following:
Limit 5000

Partner
Use

No limit Deselect this flag

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

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

Only
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, plus 6000 EUR
against the contract, and 3000 in additional services.
True. The total of the contract and additional service values is less than the
overall limit.
1-3-2 5000 EUR against the contract and 5000 EUR in additional services.
True. The total of the contract and additional service values is equal to the
overall limit.

© SAP AG SCM540 6-20

 1-3-3 6000 EUR against the contract and 5000 EUR in new services.
False. The values are within the sub-limits but are beyond the overall limit.
1-3-4 An amount less than the net value of the first service, 8000 EUR against the
contract and 1000 EUR in new services.
False. It exceeds the contract sub-limit.

Internal
Only
Partner

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 6-21

 Entry and Acceptance of Performed Services

Contents:
z Entering Services Performed
z Acceptance/Approval of Actual Services
z Reporting and Purchase Order History

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 7-1

 Entry and Acceptance of Services: Unit Objectives

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

z Enter planned and unplanned services

performed
z Approve or accept the services
z Display the purchase order history

Internal
Only

z Execute reports on services

Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 7-2

 Course Overview Diagram: Entry and Acceptance

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 7-3

 Entry and Acceptance: Business Scenario

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

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 7-4

 Creation of an Entry Sheet for Performed Services

Service specifications in Service entry

the purchase order
01 Selection of software components
sheets
01 Define requirements

Senior Consultant 10 days 2000 per day

7th April
02 Adjustment of software components
01 Revise Component A
01 Selection of software components
Consultant 5 days 1800 per day
02 Test adjusted configuration 01 Define requirements
Consultant 4 days 1800 per day
Senior Consult. 3 days 2000 / day

Internal
Only

? Unplanned services up
to maximum 60000
02 Adjustment of software components
Value limit

01 Revise Component A
Consultant 5 days 1800 per day
Partner

02 Test adjusted configuration

Consultant 3 days 1800 per day
Modification to Component Q

Use
Consultant 10 days 2100 per day

 SAP AG 1999

SAP
SAP

„ You maintain services performed from the purchase order reference.

Partner
Planned services
Use

„
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.
Internal

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

Only

© SAP AG SCM540 7-5

 Service Entry and Account Assignment

- single
Service entry sheet Account assgt - multiple

Senior consultant 1h 250 EUR Account A 50% Account B 50%

Junior consultant 1h 225 EUR Account B

Computer hours 1h 100 EUR Account A

Total: 575 EUR

Summation at time of

Internal
Only

service acceptance

PO history Material doc. Æ Financial doc.

Partner

Service entry 575 EUR Account A 125 + 100 = 225

Use
GR item 1 225 EUR
Account B 125 + 225 = 350
GR item 2 350 EUR
 SAP AG 2002

SAP
SAP

„ When procuring external services, you must ensure that the relevant account assignments are made

Partner
not later than the time the services actually performed are recorded in the system. You enter the
Use

account assignment category at header level in the service entry sheet. You maintain the account
assignment data at service level
„ In the case of external services, a valuated acceptance is carried out.
„ A goods receipt line item is inserted for each account assignment item.
Internal

„ At the time the entry sheet is accepted, a material document is generated, which then controls the
updating.
The account assignments are debited at the same time in the accounting document.

Only
„

© SAP AG SCM540 7-6

 Message Output for Entry Sheet

Printer Fax

Internal
Only

Service
entry sheet
Linked to
Partner

message
determination

Use
 SAP AG 2002

SAP
SAP

„ If you wish to transmit an entry sheet to the service provider (as a hardcopy printout, as a fax, or via

Partner
electronic data interchange (EDI), for example), you can have the system automatically generate a
Use

message (meaning here a document in output form for communication to another party).
„ You can initiate the transmission of service entry sheets in message form manually.
„ Message output (printing/transmission of documents in message form) for entry sheets corresponds
to that for purchasing documents
Internal

„ You can set up the message output facility for service entry sheets in Customizing for External
Services Management under Messages.

Only

© SAP AG SCM540 7-7

 Release Procedure for Service Entry Sheets

Strategy 5

Release points:

1 2 4

Service entry
sheet

Internal
Only

3
= Technical release
Service entry
sheet
Partner

5
= Commercial release
and acceptance

Use
 SAP AG 2002

SAP
SAP

„ You also can make service entry sheets subject to a release (approval) procedure.

Partner
Depending on the setting in Customizing, there may be different release procedures involving
Use

„
different "release points" (individuals or departments) within your enterprise, each of which must
successively signify their approval. The document is not regarded as accepted until the last release
point has released it. This procedure enables you to ensure both technical and commercial
correctness.
Internal

„ The release strategy can have up to eight levels (release points) of approval and uses classification to
select the characteristics for approval requirements.
„ An example:

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

© SAP AG SCM540 7-8

 One-Step Service Acceptance

Entry Acceptance

Service Service
entry sheet entry sheet

Total value
22000 EUR

Internal
Only

Services
.
.
.
Partner

Use
Financial postings
 SAP AG 2002

SAP
SAP

„ After services that have been performed for your firm have been recorded in the service entry sheet,

Partner
one or more responsible persons (depending on the system settings) must check that the work is
Use

satisfactory and formally accept the 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.
Internal

„ You have the following options:

y The same person carries out the processes of service entry and acceptance
y Service entry and service acceptance are organizationally separated, in order to preserve the dual

Only
control principle.

© SAP AG SCM540 7-9

 Multi-Step Service Approval

Entry Acceptance

Service
entry sheet Release
procedure
Via collective Differentiated
Total value 2 release worklists
1 3
22000 EUR

Internal
Only

Service Service
Services entry sheet entry sheet
.
.
.
Partner

Use
Financial postings
 SAP AG 2002

SAP
SAP

„ If a service entry sheet is subject to a release strategy, as a rule it must be released (approved) by

Partner
several individuals (multi-step acceptance/approval).
Use

„ 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.
Internal

Only

© SAP AG SCM540 7-10

 Monitoring Purchase Orders

Purchase order history

List of follow-on activities relating to a purchase order

Comparison of planned/actual values

From within the service specifications display function

Internal
Only

Purchasing analyses

- General analyses
- Analysis of purchase order values
Partner

- Logistics Information System

- Business Information Warehouse

Use
 SAP AG 1999

SAP
SAP

The purchasing functionality provides a number of ways to obtain information on the activities that

Partner
follow from a purchase order for services:
Use

„ PO history
„ Comparison of planned/actual values
„ Purchasing analyses:
y List displays – Among the search methods for external services are the service master number or
Internal

the short text description.

y 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.

Only
y Order Value Analysis – Select by material group and list by net order value, ABC analysis,
frequency analysis, and so on.
y Logistics Information System – Standard analysis by service allows you to select by a service
master number or material group.
„ Service entry sheets
y List analysis – Select by service master or purchase order.
„ MM External Services Management is linked to the Logistics Information System (LIS).

© SAP AG SCM540 7-11

 Purchase Order History

List of follow-on activities

Service
entry sheet

21000 EUR
- All services performed to
Pur. order 1234 = SEnt date
- Entered but not accepted
Specs.
Service
entry sheet

Internal
Only

21000 EUR
- All services performed to
= GR date
- Entered and accepted
Partner

Invoice 5678
Vendor A

Use
Software
implem. = RE-L
21000 EUR All invoices
 SAP AG 2002

SAP
SAP

„ The Purchase Order history is actually a list of all follow-on transactions and events relating to a

Partner
certain purchase order item.
Use

y It tracks all services actually performed and recorded.

y It lists all services that have been accepted that produce a goods receipt.
y It records the relevant invoices received from the service provider.
Internal

Only

© SAP AG SCM540 7-12

 Comparison of Planned/Actual Values

Service Specs. Outline

Total Values

Actual Total Actual

PO 1234 in % value value

Specs. 01 Selection of software

50% 50000 25000
components

Internal
Only
Partner

Use
 SAP AG 2002

SAP
SAP

„ During the phase of service performance, the cumulative " actual" values (for the services actually

Partner
performed) are continually updated in the underlying purchase order (standard PO or contract release
Use

order). This enables you to monitor the progress of a procurement project on an ongoing basis
„ 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
Internal

the current date.

Only

© SAP AG SCM540 7-13

 Entry and Acceptance of Services: Unit Summary

You are now able to:

z Enter planned and unplanned services
performed
z Approve or accept the services
z Display the purchase order history
z Execute reports on services

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 7-14

 Exercises

Unit: Entry and Acceptance of Performed Services

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

• Enter planned and unplanned services performed
• Approve or accept the service entry sheets
• Display purchase order history

Internal
Only

• Execute reports on services

Instead of entering a goods receipt for a material, you create service entry
Partner

sheets to track the actual consulting, maintenance or repairs completed.

There is no inventory processing required.

Use
Service entry sheets over 2,000 EUR must be approved.

1-1 You created several purchase orders. Create a service entry sheet for the purchase

SAP
SAP

order in the Optimized Procurement unit. This purchase order contained only
planned services.
Enter a short text to describe the overall services performed.

Partner
Use

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?
Internal

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

Only
Accept the service entry sheet if it does not need approval.(Do not use release
codes.) 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 EUR, it must be
released instead of accepted.

© SAP AG SCM540 7-15

 1-2 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 EUR?
_____________________________________________
Third line: Enter a description to represent the supplies used. Enter a quantity

Internal
Only

and price that fit within the Overall limit and Other limit.
Accept the entry sheet, if possible, but do not release it with a release code.
Save the service entry sheet. ADD it to the Data Sheet.
Partner

Service entry sheet number: _____________________________________

1-3 Release any entry sheets if they need approval.

Use
1-3-1 Release the entry sheets in your capacity as the person with technical
responsibility first, release code FA. Select by entering your purchasing
group number.

SAP
SAP

1-3-2 Release the entry sheets in your financial capacity second, code KA.

1-4 Display one of your service entry sheets.

Partner
Use

1-4-1 What color is the traffic light now, if it has been accepted or approved?
_____________________________________________
1-4-2 Display the purchase order history. How many documents were created?
Internal

1-4-3 Display the purchase order. Does the R/3 System display the actual values

Only
for a service line? _______________________________________
______________________________________________________

1-5 View these reports:

1-5-1 The List displays for purchase orders for external services, to view the
status of several purchase order quantities.
1-5-2 The Planned/actual comparison report, to display the quantities and value
of service lines ordered, services accepted, and services invoiced.
1-5-3 The List Analysis, for service entry sheet status.
*1-5-4 A Logistics Information System Standard Analysis for services from your
two suppliers, T-K540A## and T-K540B##. Display the data graphically.
Choose key figures to display additional data.

© SAP AG SCM540 7-16

 *1-6 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.

Service entry sheet number: _____________________________________

Internal
Only
Partner

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 7-17

 Solutions

Unit: Entry and Acceptance of Performed Services

1-1 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).
Logistics -> Materials Management -> Service Entry Sheet -> Maintain

Internal
Only

Either double click your purchase order from the Tree on/off list, or select Other
purchase order icon and enter the number.
Choose the Create entry sheet icon.
Partner

Enter a short text to describe the overall services performed. Be sure that the costs
are assigned to cost centers.

Use
Enter the following:
Short text Enter a description of services
Acc. assgt. cat. K Cost center

SAP
SAP

Choose Service Selection icon, choose and adopt all of the services from your
purchase order.
Within the Accounting pop up tab, enter the G/L account and cost center.

Partner
Use

G/L Account 417000

Cost center 4110
Select the Auto repeat AA button to apply the cost center to all of the services.
Internal

Adjust the quantities. Can you increase the quantity beyond the order quantity?
You cannot increase the quantities above the order quantity, depending on the

Only
settings in Customizing for system messages.

Find the Tax column and set the tax code to 0i (no tax).
Tax codes 0i
Accept the service entry sheet if it does not need approval. (Do not use release
codes.) Note the traffic light color before and after. (If necessary adjust your
quantity downward until you see the Accept icon).
The traffic light is red before acceptance, yellow when accepted.
Accept if the total is less than 2000.
Save.
Add it to the Data Sheet.
Service entry sheet number: _________________

© SAP AG SCM540 7-18

 1-2 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.
Logistics -> Materials Management -> Service Entry Sheet -> Maintain
Enter a short text to describe the overall services performed. Be sure that the costs
are assigned to cost centers.
Enter the following:
Short text Enter a description of services
Acc. assgt. cat. K Cost center

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

Internal
Only

Enter the following:

Service number Your first service master
Quantity 100 or less
Partner

Within the Accounting pop up tab, enter the G/L account and cost center.
G/L Account 417000

Use
Cost center 4110
Select the Auto repeat AA button to apply the cost center to all of the services.

SAP
Second line: Enter your second service master number, quantity 100 or less.
SAP

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

Enter the following:

Partner
Use

Service number Your second service master

Quantity 100 or less

Can you exceed a net value of 7000 EUR?

Internal

No, you cannot exceed the net value of 7000 EUR.

Third line: Enter a description to represent the supplies used.

Only
Enter a quantity and price that fit within the Overall limit and Other limit.
Enter the following:
Short text Enter a description
Quantity Enter a quantity
Unit of measure AU or H
Gross price Enter a price
Accept the entry sheet, if possible, but do not release it with a release code.
Save.
Add it to the Data Sheet.
Service entry sheet number: _________________

© SAP AG SCM540 7-19

 1-3 Release any entry sheets if they need approval.
Logistics->Materials Management -> Service Entry Sheet -> Collective Release
1-3-1 Release the entry sheets in your capacity as the person with technical
responsibility first, release code FA. Select by entering your purchasing
group number.
Enter the following:
Release code FA
Purchasing group Y## (SCM540-##)

Execute
Select the line with your service entry sheet. Select the release icon.

Internal
Only

The status icon stays red.

Save.
1-3-2 Release the entry sheets in your financial capacity second, code KA.
Partner

Enter the following:

Release code KA

Use
Purchasing group Y## (SCM540-##)
Execute
Select the line with your service entry sheet. Select the release icon.

SAP
SAP

The status icon turns yellow.

Save. Accept default data in popup box.

Partner
Use

1-4 Display one of your service entry sheets.

Logistics -> Materials Management -> Service Entry Sheet -> Maintain
1-4-1 Double click on one of the purchase orders to view it.
Internal

What color is the traffic light now, if it has been accepted or approved?
The traffic light is green if the service entry sheet has been approved.

Only
1-4-2 Display the purchase order history.
Environment → Purchase order history
How many documents were created?
At least two documents were created. An entry sheet and one or more
Acceptance documents.
Back.

© SAP AG SCM540 7-20

 1-4-3 Display the purchase order. Does the R/3 System display the actual values
for a service line?
From the Display Entry sheet screen, select the Display icon next to the
purchase order number.
Select a service line, select the Detail icon and choose the Statistic tab.
To display the comparisons of planned versus actual values, select the Full
screen: Services icon, select the Outline on/off icon, and menue path
Outline → Total values. If necessary drag and drop the vertical line
separating the Service specs. Outline from the services area.

1-5 View these reports:

1-5-1 The List displays for purchase orders for external services, to view the

Internal
Only

status of several purchase order quantities.

Standard SAP menu: Logistics → Materials management → Purchasing
→ Purchase order → List displays → External services → by service
Enter purchasing group Y## and choose Execute.
Partner

1-5-2 The Planned/actual comparison report, to display the quantities and value
of service lines ordered, services accepted, and services invoiced.

Use
Standard SAP menu: Logistics → Materials management → Purchasing
→ Purchase order → List displays → External services → Planned/actual
comparison

SAP
SAP

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.

Partner
Use

1-5-3 The List Analysis, for service entry sheet status.

Standard SAP menu: Logistics →Materials management → Service entry
sheet → List Analyses → For purchase order
Internal

Enter purchasing group Y##, select both All radio buttons for blocked and
accepted service entry sheets. Execute.
A red light indicates that it has not been accepted – a green light indicates

Only
that it has been accepted.
*1-5-4 A Logistics Information System Standard Analysis for services from your
two suppliers, T-K540A## and T-K540B##. Display the data graphically.
Choose key figures to display additional data.
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.

© SAP AG SCM540 7-21

 *1-6 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.

Logistics -> Materials Management -> Service Entry Sheet -> Maintain
Display all four levels of the outline.

Internal
Only
Partner

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 7-22

 Invoice Verification

Contents:
z Vendor Invoices with Reference to a Purchase Order
or Service Entry Sheet
z Evaluated Receipt Settlement (ERS)

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 8-1

 Invoice Verification: Unit Objectives

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

z Create an invoice from the service entry sheet

data

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 8-2

 Course Overview Diagram: Invoice Verification

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 8-3

 Invoice Verification: Business Scenario

z To complete the procurement process, you will

enter an invoice into the R/3 System and review the
evaluated receipt settlement (ERS) options.

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 8-4

 Invoice Verification: Reference to an Entry Sheet

Invoice
ABC
Software Ltd.
O.k.
?
20000 EUR
Sheet 1 Mar. 31
Invoice from
vendor Vendor

Internal
Only

ABC
Software Ltd.
PO 0346722
Value 20000 EUR PO item 01
Partner

Service Sheet 1 20000 EUR

entry sheet Sheet 3 6000 EUR
26000 EUR

Use
Invoice
verification
 SAP AG 2002

SAP
SAP

„ You enter an invoice with reference to a purchase order.

Partner
Using the PO number, all accepted service entry sheets for this PO are offered for selection.
Use

„
„ 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.
Internal

Only

© SAP AG SCM540 8-5

 GR-Based Invoice Verification

External
Material Service
entry sheet service

M
=
Goods receipt Service entry

Internal
Only

GR-based invoice verification allows each service entry sheet relating

Partner

to a PO to be invoiced separately.

Use
 SAP AG 1999

SAP
SAP

„ When you enter an invoice with reference to a purchase order, the R/3 System provides you with

Partner
most of the data in the form of default values. You need only to enter a small amount of information
Use

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
Internal

verification.
„ In the PO history, each invoice item can be assigned to precisely one service entry sheet.

Only

© SAP AG SCM540 8-6

 Invoice Verification: Data Updates

Pur. order
1 Financial accounting
Service
2 entry
Assets
Vendor
invoice
Invoice
verification Cost centers

Service master record

Internal
Only

Projects
Vendor master record
.
.
Conditions .
Partner

Invoice Verification uses data Purchasing and

from Purchasing and the accounting data is

Use
service and vendor master updated when an
records. invoice is posted.

 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 8-7

 Checking for Variances

Pur. order Service

entry

1000 EUR

Variance
Invoice

Internal
Only

Post
Invoice
1200 EUR
Document no.
5100012345
Partner

created
Price tolerances Blocked for payment!

Use
10% 10%

 SAP AG 2002

SAP
SAP

„ Each invoice is checked against the different tolerances set in customizing

Partner
Invoices that exceed an upper tolerance limit are blocked for payment and released individually,
Use

„
collectively or automatically.
Internal

Only

© SAP AG SCM540 8-8

 Blocking of Invoices

Pur. order Service

1 entry Sheet
2
1000
1000 EUR

Variance

Invoice
Invoice Verification verification
1200 EUR
?
=

Internal
Only

Post
Doc. no. ... created
Invoice
Cost Center GR/IR Vendor blocked for
200 1000 1200 payment!
Partner

Financial Accounting Vendor

Payment
Bank

Use
1200 program 1200

Blocked!
Blocked!
 SAP AG 2002

SAP
SAP

„ If the variances between the prices shown in an invoice and those of a service entry sheet are too

Partner
large, the invoice is blocked by the R/3 System so that payment cannot be effected.
Use

„ 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.
Internal

„ 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.

Only

© SAP AG SCM540 8-9

 Evaluated Receipt Settlement (ERS)

Vendor

Service
Pur. order entry sheet Invoice
Service 1 Service 1

Internal
Only

2100 EUR 2100 EUR

Partner

Payment
Ordering Company 2100 EUR

Use
+ Info
Log

 SAP AG 2002

SAP
SAP

„ In normal materials procurement, evaluated receipt settlement (ERS) involves direct settlement with

Partner
respect to goods receipts - without submission of an invoice - on the basis of information from the
Use

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.
Internal

„ 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:
y One invoice document per vendor

Only
y One invoice document per purchase order
y 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.

© SAP AG SCM540 8-10

 Invoice Verification: Unit Summary

You are now able to:

z Create an invoice from the service entry sheet
data

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 8-11

 Exercises

Unit: Invoice Verification

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

• Create an invoice from the service entry sheet data

Internal
Only

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.
Partner

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

Use
invoicing.

1-1 Your service provider T-K540A## sent an invoice for the services that you

SAP
SAP

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

Partner
Tax tab: Set Calculate tax
Use

Purchase order: PO number or entry sheet number from second

Or Entry sheet: entry sheet.
Internal

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

Only
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 or have another value, change 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.

© SAP AG SCM540 8-12

 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 Was Vendor T-K540B## marked for ERS in an earlier
unit?(AutoEvalGRSetmt Del). _________________________________
1-2-2 Execute the ERS function for your vendor T-K540B##.
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:

Internal
Only

Order type: Framework order

Vendor: T-K540A##
Validity start: Today
Partner

Validity end: End of next year

Purchasing Org: 1000

Use
Purchasing Grp: SCM540-##
Account assign.: K

SAP
Item category: B
SAP

Material group: 007

Plant: 1000

Partner
Enter a short text for the line item.
Use

Set limits for the unplanned services under the Limits tab.
The overall limit is 75000 EUR. This is the maximum value of unplanned
Internal

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

Only
The account is 417000 and the cost center 4110.
Under the Invoice tab, enter 0I for the tax rate.
Save the framework order.
Order number: _________________________________________

© SAP AG SCM540 8-13

 *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: ________________________________________

Internal
Only
Partner

Use
SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 8-14

 Solutions

Unit: Invoice Verification

1-1 Your service provider T-K540A## sent an invoice for the services that you
documented in the second service entry sheet in the Entry and Acceptance of
Performed Services unit.
SAP standard menu: Logistics → Materials management → Logistics invoice

Internal
Only

verification → Document entry → Enter invoice

Enter the following header information:
Invoice date Today
Partner

Calculate tax Set flag to calculate tax

Purchase order PO number or entry sheet

Use
number from exercise 1-3 in the
last unit (Vendor T-K540A##)
Amount Enter the Balance amount from
the upper right-hand corner.

SAP
SAP

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

Partner
Use

payment.
If tax codes are blank or have another value, change the tax codes to 0I, (0%).
Select the Simulate icon to view a trial generation of the posting lines.
Internal

After entering the data and when the amounts balance (balance equals 0), save the
invoice.

Only
Invoice number: ______________________________________________

© SAP AG SCM540 8-15

 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 Was Vendor T-K540B## marked for ERS in an earlier unit?
(AutoEvalGRSetmt Del).
SAP standard menu: Logistics → Materials management → Purchasing →
Master data → Vendor → Purchasing → Display (current)
Display Vendor: Initial Screen
Vendor T-K540B##
Purchasing data Check this box
YES, the vendor was set in an earlier unit.

Internal
Only

1-2-2 Execute the ERS function for your vendor T-K540B##.

SAP standard menu: Logistics → Materials management → Logistics
invoice verification → Automatic Settlement → Evaluated Receipt
Partner

Settlement (ERS)
For Documentation selection, enter the following information:

Use
Plant 1000
Vendor T-K540B##

SAP
SAP

For processing options, enter the following information:

Doc. Selection 3
Test run Set

Partner
Use

Execute
Go back and rerun the settlement this time without the test run set.
Internal

Invoice number: ________________________________________

Only

© SAP AG SCM540 8-16

 *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.
Logistics->Materials Management->Purchasing -> Purchase Order -> Create ->
Vendor/Supplying Plant Known
1-3-1 For the blanket purchase order:
Enter the following information for your purchase order:
Document type FO Framework order
Vendor T-K540A##
Org. data tab

Internal
Only

Purchasing org. 1000

Purchasing group Y## (SCM540-##)
Additional data tab
Vaildity start Today
Partner

Validity end End of next year

Use
Item overview information
Account assignment category K
Item category B

SAP
SAP

Short text Enter a short description

Material group 007
Plant 1000

Partner
Use

Set limits for the unplanned services under the Limits tab.
Limits tab
Internal

Overall limit 75000

Only
Expected value 50000

Within the Accounting pop up tab, enter the G/L account and cost center.
G/L Account 417000
Cost center 4110
Under the Invoice tab, deselect GR-based IV and enter 0I for the tax rate.

Invoice tab
Tax code 0I
Save.
Framework order: _______________________________________

© SAP AG SCM540 8-17

 1-3-1 Enter an invoice for minor services performed. You do not have to create a
service entry sheet for a blanket purchase order.
Logistics → Materials management → Logistics invoice verification →
Document entry → Enter invoice
Enter the following header information:
Invoice date Today
Amount Enter an amount
Calculate tax Set flag to calculate tax
Purchase order Your Blanket purchase order

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

Internal
Only

Scroll to the right and select the Mult acct assign icon in the Acct. assgt.
column.
Enter the same amount as you entered at the header of the invoice.
Partner

Select the back icon. The value transfers to the invoice screen.
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

Use
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 or have another value, change the tax codes to 0I,

SAP
SAP

(0%).
Select the Simulate icon to view a trial generation of the posting lines.
After entering the data and when the amounts balance (balance equals 0),

Partner
save the invoice.
Use
Internal

Only

© SAP AG SCM540 8-18

 Integration with Other Processes

Contents:
z PM Maintenance Plans
z Project Systems
z Service Management
z Cross Application Time Sheets
z Data Exchange with Vendors

Internal
Only
Partner

Use
 SAP AG 2002

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 9-1

 Integration with Other Processes: Unit Objectives

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

z Describe procured services within other

processes

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 9-2

 Course Overview Diagram: Integration

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 9-3

 Integration: Business Scenario

z 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.

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 9-4

 Plant Maintenance

z Maintenance orders have operations that can be performed

by external service providers

Internal
Only
Partner

Use
 SAP AG 2002

SAP
SAP

„ For services that have to be performed on a periodic basis (the monthly service of fork lift trucks)

Partner
you can record the service specifications in a maintenance order that references a maintenance plan
Use

„ 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
Internal

and value limits.

Only

© SAP AG SCM540 9-5

 Basic/Accelerated Process for Plant Maintenance

Generate service entry sheet from preventive maintenance (servicing) plan

Prev. maint. Maint- Preq. PO Service Invoice

(servicing) enance entry
plan order sheet

Externally Source Acceptance

sourced determination

Basic process

Internal
Only

PM MM

Prev. maint. Service Invoice

(servicing) entry
plan sheet
Partner

Automatically
generated on a regular

Use
Accelerated basis
process
 SAP AG 1999

SAP
SAP

„ With the Basic process, you can create maintenance plans for preventive maintenance. As you

Partner
generate maintenance orders from the plan on a periodic basis, requisitions are created. The
Use

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.
Internal

Only

© SAP AG SCM540 9-6

 Accelerated Process for Regular Maintenance

z Quarterly servicing of PM MM
Framework order
company fleet vehicles
z Weekly cleaning work FO 1.1 - 12.31
Value limit 15,000.00
on contract 46...11
Prev. maintenance
(Servicing) plan
Cat. Service
`MM` entry sheet
Automatically
generated on a regular

Internal
Only

basis
Specifications Acceptance
= manually
Enter framework
Acceleration through
order as source
elimination of
Partner

Specification of z Requisition
prices via z Source determination
Stipulation of acct. assgt. z PO generation

Use
conditions
= (released) maint. order z Manual service entry
or contracts

 SAP AG 2002

SAP
SAP

„ Using the maintenance plan category MM in the standard system, you can use automatically

Partner
generated service entry sheets to simplify service procurement in purchasing.
Use

„ The "service entry sheet" is defined as the maintenance call object for this maintenance plan
category. The system therefore generates a service entry sheet for a due maintenance call.
„ The system automatically generates a service entry sheet for an external service order with runtime
from the maintenance plan (the document type for this in the standard system is FO). As a result,
Internal

service entry sheets do not need to be created for the services provided. It is only necessary to accept
the service entry sheets generated automatically.
The option to create service specifications directly for a maintenance plan is controlled by the

Only
„
maintenance plan category.
„ 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.

© SAP AG SCM540 9-7

 Closing a Requisition with Performed Services

Mech. PM MM
breakdown!
Maintenance order Preq. Framework order
1.1 - 12.31
Assign and process source
Value limit 10000
Enter framework on contract 46...13
order as source
is generated
Service entry
Save/ sheet

Internal
Only

release Generated auto-

matically

Acceptanc
= manually
Partner

Numerous transactions covered

by a single purchase order

Use
 SAP AG 2002

SAP
SAP

„ Beginning with Release 4.5, it is possible to automatically convert requisitions for external services

Partner
stemming from plant maintenance operations into service entry sheets.
Use

„ In this way, you can close the requisition directly without first having converted it into a purchase
order. This often makes particular sense in connection with plant maintenance, since repairs
frequently have to be carried out urgently when machines break down and there is seldom enough
time to process purchase orders in the normal way
Internal

„ Any number of requisitions can reference a single framework order with an extended validity period
that has been set up in the system. This means that you can deal with a large number of individual
procurement transactions using just one purchase order.

Only
„ An entry sheet is created for each requisition. The framework order is the source of supply in the
maintenance operation.
„ When in Requisition -> Follow-on functions -> Create purchase order -> Via assignment list set the
Entry sheets indicator and the R/3 System will create service entry sheets instead of purchase orders
for maintenance orders.

© SAP AG SCM540 9-8

 Project Systems

z Projects include multiple activities in networks

z Activities with external processing include service
specifications

Project
Project 000000902345
000000902345 Quotation
QuotationPhase
PhaseIIII

Internal
Only
Partner

Use
 SAP AG 2002

SAP
SAP

„ Projects are complex, unique, and part of the internal processes of your company

Partner
Projects are structured by organization (Work Breakdown Structure) and by the processes involved
Use

„
(Networks).
„ You can create externally processed activities in your network - for example, if you award the
contract for designing a machine to an external design agency
„ The system takes the data in the activity and creates a purchase requisition which is processed by the
Internal

purchasing department. For external processing purposes, you can refer to data from the purchasing
department - for example, to a purchasing info record. This contains the prices and delivery times
applying to external processing.

Only

© SAP AG SCM540 9-9

 Customer Service

Internal
Internal Work center: PC-Serv 1200
operations
operations Control key Work: 10 H
SM01
l
ua
Activity type: 1410
an
M

...

Service Operation desc. Service Type

Order Operation quantity 5 H
operations Control key Price 200 EUR

Internal
Only

SM02
M

Cost element 415000

an

...
ua

External
External
l

operations
operations
Partner

300000000432156 10 H
Repair Pump 23 H
Control key

Use
SM03 . . . Service master .. ..

 SAP AG 2002

SAP
SAP

„ Customer Service enables service activities such as processing maintenance and service tasks, repair

Partner
and replacement of products under warranty, or call management.
Use

„ 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.
Internal

„ Service orders contain operations:

y Internal operations usually refer to the work center responsible (control key SM01).
y External operations can involve materials and services using goods receipts (control key SM02)

Only
y 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.

© SAP AG SCM540 9-10

 Customer Service with External Services

External
External
Operation
Operation

Purchase
Purchase
Requisition
Requisition

Purchase
Purchase
Order
Order

Order
Order
Release
Release

Internal
Only

Service Order Entry

Entry of
of Services
Services
Performed
Performed
Partner

Service
Service
Acceptance
Acceptance

Use
Company x y z
Invoice Invoice
Invoice
Verification
Verification
 SAP AG 1999

SAP
SAP

„ When service orders include external operations from service providers, service specifications are

Partner
entered in the service order. Typically, service masters and descriptions are sufficient to describe the
Use

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.
Internal

„ 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.

Only
„
„ 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.

© SAP AG SCM540 9-11

 R/3 Time Sheets

CATS Time Data Recording

Mini-
master
(Release)

(Approval)

Internal
Only

Transfer
Partner

Data Entry MM
Profile Authorizations CO PS

Use
PM HR CS
 SAP AG 1999

SAP
SAP

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

Partner
central time sheet.
Use

„ To use the R/3 Time Sheet, you should have:

y A human resources mini-master with a personnel number and personal data
y A data entry profile
y The authorization to work with the time sheet
Internal

„ 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:

Only
y External Services: Entry of services performed
y Controlling: Internal activity allocation
y Human Resources: Attendance and absences
y Plant Maintenance, Customer Service and Project Systems: Confirmations for orders, networks,
work breakdown structure elements, and so on.

© SAP AG SCM540 9-12

 Time Sheet Data

Time Sheet Defaults (infotype 0315)

Personnel Nr 12345

From 01.01.1999 - 12.12.9999

Time Sheet Defaults
Sender cost center 4290 Production Elevators

Activity Type 1420 Machine hours

Plant 1300 Frankfurt

Internal
Only

Vendor 1000 C.E.B. Berlin

Sending Purch. Order 4500004483

0010
Partner

Sending PO item

Service number 100140

Use
 SAP AG 2002

SAP
SAP

„ Each person/employee must have a personnel number, which is created through the human resources

Partner
entry screens even if it is not implemented. The HR mini-master includes:
Use

y Personnel Actions – infotype 0000 holds initial data such as status and validity period.
y Organizational Assignment – infotype 0001 includes data on their position, company code and
cost center.
y Personal Data – infotype 0002 contains their name, birth data, and language key.
Internal

y 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.

Only
„ 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.

© SAP AG SCM540 9-13

 Time Sheet Transfer to MM

[Link] Item Service Nr. Mon Tue

4500004483 0010 000000000000100140 8.00

MM-SRV
[Link] Time data entered, released and
CATSMM approved (if required)

Internal
Only
Partner

MM-SRV
Transfer report SAPMLCT
Service Entry

Use
Sheet

 SAP AG 1999

SAP
SAP

„ Time sheet data is entered for one or several people using a data entry profile. The release of the data

Partner
makes it available for approval or transfer. If release and approval are omitted, then the data has a
Use

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
Internal

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

Only
in external services.

© SAP AG SCM540 9-14

 Exchange of Data with Service Provider (1)

R/3 MM-SRV Service provider’s system

RFQ Quotation

Specs. Specs.

Data transfer medium

z Disk/CD
PO Contract z File Transfer Protocol (FTP)

Internal
Only

Specs. Specs. z SAP e-mail

Service
entry sheet
Partner

Service

Use
master
records

 SAP AG 1999

SAP
SAP

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

Partner
data transfer.
Use

„ The following data can be imported or exported with your service provider:
y Requests for quotations, quotations
y Contracts
y Purchase orders
Internal

y Service entry sheets

y Service master data
y CATS Data (R/3 time sheet data)

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

© SAP AG SCM540 9-15

 Exchange of Data with Service Provider (2)

R/3 MM - SRV Service provider’s system

Service Service
entry sheet
Specs provider‘s data
formats
Pur. order Example: GAEB
SAP enhancement
Specs BAPI (Germany) for
(user exit)
creates construction
SRVESI

Internal
Only

the data services

converts the data
Contract .
Specs
Data format can be
adjusted as desired
Partner

Service
master

Use
records

 SAP AG 2002

SAP
SAP

„ The interface for the exchange of RFQs, quotations, service master data, contracts and service entry

Partner
sheets is based on the Business Application Interface (BAPI) for service documents or the SAP data
Use

model, for example BAPI_REQUISITION_CREATE.

„ The data is converted from an external format into the SAP format or vice-versa with the aid of the
SAP enhancement SRVESI. This allows you to adjust the data format to suit your requirements.
„ The data is exchanged in data records whose structures are defined in the Data Dictionary.
Internal

Only

© SAP AG SCM540 9-16

 Integration with Other Processes: Unit Summary

You are now able to:

z Describe procured services within other
processes

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 9-17

 Exercises

Unit: Integration with Other Processes

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

1. Create a service entry sheet for a Plant Maintenance
maintenance plan

Internal
Only

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.
Partner

Use
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 maintenance
plan cycle __________ and the maintenance plan schedule calls.

SAP
SAP

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

Partner
Use

Return to the maintenance plan. Select Last call object MaintItem icon→PO
display icon→PO history tab
to view prior maintenance.
Internal

On the maintenance plan screen select Service specs. and Display to view the
services that are performed per cycle.

Only
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?
__________________________________________________________

© SAP AG SCM540 9-18

 Solutions

Unit: Integration with Other Processes

1-1 SAP standard menu: Logistics → Plant maintenance → Preventative maintenance

→ Maintenance planning → Maintenance plans → Display
Header tab: Maintenance plan cycle:

Internal
Only

_______________________________________
Header tab: Maintenance plan schedule calls:. ____________________
Item tab – PO display – Other limits tab: Actual value of scheduled calls:
__________________________________
Partner

1-2 From the maintenance plan screen, select Maintenance plan → Schedule and

Use
choose Enter. Select Manual call.
Select Last call object MaintItem icon→PO display icon→PO history tab
There should be an additional service entry sheet in PO history.

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 9-19

 Conclusion

PO#12
Item 10
Value Limits for
Course Overview Unplanned Services
Specs.

Entry and Acceptance

Master Data of Performed Services
Req.
Verification Invoice

Service Specifications in
Invoice Verification ?
Requirements =

Internal
Only

Integration with Other

Long-Term Documents 10
9
11
12
1
2
3
Processes
8 4
7 6 5
Partner

Optimized Procurement Conclusion

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 10-1

 Course Objectives

You are now able to:

z Describe the external services in detail for your

supplier
z Create service master data
z Create service specifications

Internal
Only

z Include external services throughout the

procurement process
z Use service entry sheets to record services
performed
Partner

z Customize the R/3 system for external services

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 10-2

 Recommended Follow-up Courses

z SCM550 - Cross Functional Customizing in MM

z PLM120 - Document Management System
z PLM130 - Classification
z PLM140 - Variant Configuration Part 1

Internal
Only
Partner

Use
 SAP AG 2002

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 10-3

 Recommended Follow-up Activities

z Go through the exercises using IDES data

or your own data
z Read on-line documentation
z Read IMG documentation
z Read release notes

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 10-4

 Appendix

Contents:
z Menu Paths

Internal
Only
Partner

Use
 SAP AG 1999

SAP
SAP

Partner
Use
Internal

Only

© SAP AG SCM540 11-1

 Frequently-used Menu Paths
Procurement of External Services
Activity Menu Path
Master Data:
Service Master Record Logistics → Materials management → Service
master → Service → Service master
Service Master Conditions Logistics → Materials management → Service
without Vendor master → Service → Service conditions → For
service → Add

Internal
Only

Service Master Conditions Logistics → Materials management → Service

with Vendor master → Service → Service conditions → For
vendor without plant → Add
Service Master Conditions Logistics → Materials management → Service
Partner

with Vendor and Plant master → Service → Service conditions → For

vendor with plant → Add

Use
Model Service Specification Logistics → Materials management → Service
master → Model service specification → Create
Standard Service Catalog Logistics → Materials management → Service

SAP
SAP

master → Standard service catalog → Create

Vendor, Change Logistics → Materials management →
Purchasing → Master data → Vendor →

Partner
Purchasing → Change (current)
Use
Internal

Only

© SAP AG SCM540 11-2

 Documents:
Purchase Requisition Logistics → Materials management → Purchasing
→ Purchase Requisition → Create
Purchase Requisition, Logistics → Materials management → Purchasing
Automatic → Purchase Requisition → Follow-on functions →
Create purchase order → Automat. via Purchase
Requisitions
Purchase Requisition, Logistics → Materials management → Purchasing
Assign and Process → Purchase Requisition → Follow on functions →
Assign and process
Request for Quotation Logistics → Materials management → Purchasing

Internal
Only

(RFQ) → RFQ/Quotation → Request for Quotation →

Create
Quotation Logistics → Materials management → Purchasing
Partner

→ RFQ/Quotation → Quotation → Maintain

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

Use
comparison
Purchase Order Logistics → Materials Management → Purchasing
→ Purchase order → Create → Vendor/supplying

SAP
SAP

plant known
Contract Logistics → Materials Management → Purchasing
→ Outline agreement → Contract → Create

Partner
Use

Service Entry Sheet Logistics → Materials Management → Service

entry sheet → Maintain
Invoice Verification Logistics → Materials management → Logistics
Internal

invoice verification → Document entry → Enter

invoice

Only
PM Maintenance Plan Logistics → Plant maintenance → Preventive
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 →CATS Classic →Record
Working Times

© SAP AG SCM540 11-3

 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, Logistics → Materials management → Logistics

Create Invoices invoice verification → Automatic Settlement →
Invoicing plan Settlement

Internal
Only

ERS Report, Create Invoices Logistics → Materials management → Logistics

invoice verification → Automatic Settlement →
Evaluated Receipt Settlement (ERS)
Partner

Service Entry Sheets, Logistics → Materials Management → Service

Collective Release Entry Sheet → Collective Release

Use
Service Entry Sheets, Data Logistics → Materials Management → Service
Transfer Entry Sheet → Data Transfer . . .
Purchase Order Lists by Logistics → Materials Management →

SAP
External Service Purchasing → Purchase order → List displays →
SAP

External service → by service

Purchase Order External Logistics → Materials Management →
Services, Planned vs. Actual Purchasing → Purchase order → List displays →

Partner
Use

External service → Planned/actual comparison

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

order

Only

© SAP AG SCM540 11-4

 Customizing:
All menu paths begin with: Tools → Customizing → IMG→ Edit Project → SAP reference
IMG → Materials management
Service Master: Service External Services Management → Service Master . . .
Categories, number ranges,
field display
Screen Layout for Services in External Services Management → Define Screen
Documents Layout
Sources for Assignment, External Services Management → Source
Automatic PO Determination & Default Value → For Client.

Internal
Only

Define Condition Schemas … External Services Management → Maintain

Conditions for Services
Formulas, Define External Services Management → Formulas for
quantity determination → Define Formulas.
Partner

Formulas, Variables External Services Management → Formulas for

Use
quantity determination → Specify names for
Formula variables

SAP
SAP

Account Assignment Purchasing → Account Assignment → Define

Categories and Item combination…
Categories

Partner
Service Entry Sheet Release External Services Management → Define Release
Use

Procedure Procedure for Service Entry Sheet

Internal

Only

© SAP AG SCM540 11-5