SCM540 Procurement of External Services (Col52)

In t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y  SAP AG 2003 SCM540 Procurement of External Services THE BEST-RUN BUSINESSES RUN SAP © SAPAG 2005 SCM540 Procurement of External Services SAP ERP 2004 2005/Q2 Material number: 50073207 I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y  SAP AG 2004 Copyright 2005 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Copyright Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. 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I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y  SAP AG 2003 Course Prerequisites Essential SCM500 – Processes in Procurement Recommended SCM520 – Purchasing I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y  SAP AG 2003 Target Group Audience: Members of the project team Members of the implementation team Duration: 2 days The training materials are not teach-yourself programs. They complement the course instructor's explanations. Your training materials include room for taking notes on this additional information. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 1-1  SAP AG 2003 Contents: Course Overview ● Course Goals ● Course Objectives ● Course Content ● Course Overview Diagram ● Main Business Scenario I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 1-2  SAP AG 2003 Use the SAP system to procure services from your suppliers Course Goals This course will prepare you to: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 1-3  SAP AG 2003 Create service master data Create and maintain service specifications Incorporate services into the procurement process Based on service entry sheets, enter and accept services performed Customize the SAP system for external services Course Objectives At the conclusion of this course, you will be able to: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 1-4  SAP AG 2003 Unit 6 Entry and Acceptance of Services Planned Unit 7 Invoice Verification Unit 8 Invoicing Plans Unit 9 Procurement of Unplanned Services Unit 10 Integration with Other Processes Unit 11 Summary Unit 1 Course Overview Unit 2 The Procurement Process for Services Unit 3 Master Data Unit 4 Services in Purchasing Documents Unit 5 Optimized Procurement Preface Course Content Appendix I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 1-5  SAP AG 2003 Course Overview Diagram Services in Purchasing Services in Purchasing Documents Documents Integration with Other Integration with Other Processes Processes Course Overview Course Overview Entry and Acceptance Entry and Acceptance of Services Planned of Services Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = Require- ment The Procurement Process The Procurement Process for Services for Services Invoicing Plans Invoicing Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Data Master Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 1-6  SAP AG 2003 Main Business Scenario Your company orders goods from external vendors and also subcontracts various operations to external service providers. Your task is to familiarize yourself with the procurement process for services in the SAP system to enable you to implement these functions in your company. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-1  SAP AG 2003 Introduction to the procurement process for services Comparison of the procurement of services to the procurement of materials Contents: The Procurement Process for Services: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-2  SAP AG 2003 Create service master data Create service specifications Incorporate services into the procurement process Based on service entry sheets, enter services performed Customize the SAP system for external services The Procurement Process for Services: Unit Objectives At the conclusion of this course, you will be able to: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-3  SAP AG 2003 The Procurement Process for Services: Course Overview Diagram Services in Purchasing Services in Purchasing Documents Documents Integration with Other Integration with Other Processes Processes Course Overview Course Overview Entry and Acceptance Entry and Acceptance of Services Planned of Services Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for Services for Services Invoicing Plans Invoicing Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Data Master Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-4  SAP AG 2003 The Procurement Process for Services: Business Scenario Your company subcontracts certain operations to external business partners. To enable you to decide how you could make use of the procurement process for services, you must familiarize yourself with this function in the SAP system. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-5  SAP AG 2003 Steps in the Procurement of External Services Invoice Purchase Order ? ? = = Quotation Karl Einstein Bank transfer 9,500 Date Determination of requirements Creation of service specifications Source determination Vendor selection Bid invitation process (RFQs) Enter/compare quotations Purchase Order Purchase order monitoring Service entry Acceptance of services Invoice verification Payment User department PM Plant Maintenance PS Project System CS Customer Service Typically, the procurement cycle for external services starts with the determination of requirements. The requisition contains the service specifications which list the individual services to be performed. For external services, the source determination is only carried out on the item level. Frequently, the vendors are selected as a result of a competitive bidding process; in other words, requests for quotations are created in the SAP system. After the RFQs have been sent to the potential vendors, you will receive their quotations. You can then enter the information from the bids into the SAP system and compare it using the price comparison list. The next step is to create the purchase order, which subsequently can be monitored by means of the purchase order history. This means, you determine whether services have already been entered and, if so, whether they have already been accepted. Only services that have been accepted can be invoiced using a Logistics Invoice Verification transaction. The final step in the procurement cycle for external services is the payment run which is usually initiated by Financial Accounting. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-6  SAP AG 2003 Requirement Purchase Order Contract Service Entry Sheet Contract Purchase Order Request for Quotation (RFQ) Quotation A B RFQ Quotation ? Request for Quotation (RFQ) ? ? Requisition 1 2 Purchasing Documents for External Services The procurement of external services is completely integrated within MM Purchasing. All purchasing document types can also be used for the procurement of services (with the exception of scheduling agreements). Services that have actually been performed are recorded using the service entry sheet. The acceptance of a service entry sheet is equivalent to a goods receipt of materials. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-7  SAP AG 2003 Feb. 3: Goods Receipt 1234, item 10 Limit Service entry sheet February 3 Item 10 Oil filter replaced Cost center 123 Limit Release procedure Acceptance – Account assignment PO 45012345 January 27 Item 10 Repair of a printing press – Precise description of service – Order quantity Cost control through imposition of limits ! ! ? ? ? ? ? ? ! ! M MMM MM ? ? ? ? ? ? ? ? Stock Material versus External Services PO 45012345 January 27 Item 10 Material: Steel - 01 Quantity: 250 pc Specs. Specs. As their name implies, stock materials are kept in stock and are subject to inventory management. Services, as intangible goods, are procured for immediate consumption. In the procurement of materials, much information is already available – such as the exact purchase order quantity. In the procurement of services, in many cases neither the exact service description nor the purchase order quantity is known. If a printing press is broken, for example, the requisitioner may not know whether it needs a few readjustments or whether certain parts must be replaced. The time required for the repairs is often unknown. Setting limits allows you to exercise an element of cost control despite such uncertainties. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-8  SAP AG 2003 Consumable Material versus External Services Purchase Order Item 10 Item Category Software for Electron Beam Welding Equipment Account Code: Asset 123 Standard Item No further details available (*) Item 10 Item Category Install Software Account Code: or U (unknown) Asset 123 Service Item D Purchase Order Service can be specified Outline function Long text per outline level and service line Specs. There are similarities between the procurement of consumable materials (materials for direct consumption) or services in a standard item of a purchasing document and the procurement of services. You must specify an accounting object not only for the procurement of consumable materials, but also for the procurement of services. Unlike in the procurement of consumable materials, you can specify the accounting code U (Unknown) in a purchase order when you use the item category Service in a procurement. In this case, an accounting object must be specified when the services performed are entered in the service entry sheet. There is no inventory management for the procurement of consumable materials and services. Procuring services with MM-SRV has advantages: You can compile complex sets of service specifications (statements of work) using the outline function. Greater flexibility in procurement planning is a result of not having to specify the precise service description, the account assignment, or the exact quantity at the time you create the purchase order. Flexible long texts are possible per outline level and service line. (*) When you use standard items for the procurement, a detailed description of the consumable materials or services is always possible in the form of long texts. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-9  SAP AG 2003 Structure of a Purchasing Document Purchasing Document • General Data • Statistics • Messages • Conditions • General Description of Project: Introduction of Software • Date: October 31 • Service Description • Quantity • Conditions specs. Purchasing Document • General data • Statistics • Messages • Conditions • General Description of Project: Implementation of Software • Date: October 31 • Service Description • Quantity • Conditions Specs. Header Item Service Specifications For the procurement of materials, the document item level is used. For the procurement of external services, a level below the item level is used. A service item only contains a short text that describes the complete service specification. The individual services to be performed are listed in the service specification (Services tab). A service specification may exist for each document item. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-10  SAP AG 2003 Purchase Order Purchase Order Service Specifications in Purchasing Documents Outline level Service line Value limit: for unplanned services up to EUR 20,000 (maximum) ? ? Service specification for the item 10 Selection of software components 01 Define requirements Senior consultant 4 days EUR 2,000 per day 20 Customization of components Consultant 10 days EUR 1,400 per day Senior consultant 6 days EUR 2,000 per day 01 Revise Component A Junior consultant 10 days EUR 1,000 per day 02 Test adjusted configuration … Outline levels allow you to structure complex service specifications (statements of work) in a clear and concise manner. You can utilize a maximum of four levels of outline. You can assign any number of service lines to each outline level. You can specify value limits for unplanned services for each document line item. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-11  SAP AG 2003 Outline the steps in the external services procurement cycle List the purchasing documents in the process Describe the differences between procurement for materials and services You are now able to: The Procurement Process for Services: Unit Summary I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-12 Exercise Data Data Created in the Exercises Type of Data Data in Training System Group Number ## Item Category D Company Code IDES AG (1000) Purchasing Organization IDES Deutschland (1000) Purchasing Grp SCM540-## (Y##) Site Dresden (1200) Material group 007 (Services) G/L account 417000 Cost Centers 4110 4220 T-L## Currency EUR Tax rate 0% Tax rate 10% 0i 1i Vendor T-K540A## T-K540B## I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-13 Worksheet In the individual exercises, you create data that you need to access again in the subsequent exercises. Make a note of this data on this worksheet, so you can easily find it again later. Unit: Master Data 1-2 Service Master Records Service Activity Number Description First Activity Number Second Activity Number 1-3-1 Conditions for Service ("Own Estimate") Service Activity Number Amount Unit of measure 1-3-2 Conditions for Vendor T-K540A## Service Activity Number Amount Unit of measure 1-4 Model Service Specifications: __________________________________________ Service number or Description Quantity Unit of measure Rate (price) I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-14 Unit: Services in Purchasing Documents 1-3-6 Requisition number: __________________________________ 2-5 Purchase order number. __________________________________ 3-1 Contract number: __________________________________ Service Quantity/UoM Gross Price 3-2-2 Purchase order number. __________________________________ Unit: Optimized Procurement 1-1 Requisition number: __________________________________ 1-2 Number of purchase order 1: __________________________________ 1-4-4 Number of purchase order 2: __________________________________ Unit: Entry and Acceptance of Services Performed: 1-1-5 Service entry sheet 1: __________________________________ 1-1-6 Service entry sheet 2: __________________________________ 1-3 Service entry sheet 3: __________________________________ Unit: Procurement of Unplanned Services 1-1 Invoicing plan number: __________________________________ 1-4 Contact number: __________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-15 Exercises Unit: The Procurement Process for Services At the conclusion of this exercise, you will be able to: • Outline the steps in the procurement cycle • List the purchasing documents that can be used • Recognize the terms used for external services Your company needs to review and decide on the documents required for its external services. 1-1 Services use several terms that are not used for material purchases. Assign the definitions listed below to the terms given under (A) through (F). Use the glossary, if necessary. (A) Unplanned services (B) Service specifications (C) Service master record (D) Service (E) Service description (F) Outline 1. Text that defines a service to be procured. ______ 2. List and description of services for procurement purposes. These descriptions can contain service items with detailed descriptions or items with value limits for unplanned services. ______ 3. Levels of text lines that subdivide comprehensive 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 for which the individual services are defined. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-16 ______ 4. Services unknown at purchase order time, so they are specified on the service entry sheet. ______ 5. Intangible good that is the subject of business activity and that can be performed internally or procured externally (outsourced). Services are regarded as being consumed at the time of their performance. They cannot be stored or transported. ______ 6. Master data record with descriptions of all services or work that a company has to procure frequently. It serves as a source of default data, set by the system when you create service specifications (used, for example, for invitations to bid sent to potential subcontractors during the competitive bidding process). ________ 1-2 Sort the following operations according to the chronological order in which they are carried out. ___ Create request for quotation (RFQ) ___ Create service entry sheet ___ Create a contract ___ Post incoming invoice ___ Create purchase order ___ Enter quotation ___ Make payment ___ Create purchase requisition ___ Accept the service I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 2-17 Solutions Unit: The Procurement Process for Services 1-1 Terms used in the context of procuring services: 1. (E) Service description – Text that defines a service to be procured. 2. (B) Service specifications – Listing and description of services for procurement purposes. These descriptions can contain service items with detailed descriptions or 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 “excavation works”. Below these outline levels are the individual items for which the individual services are defined. 4. (A) Unplanned services – Services unknown at purchase order time, so they are 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 as being consumed at the time of their performance. They cannot be stored or transported. 6. C) Service master record – 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 Chronological order of operations: 2 Create request for quotation (RFQ) 1 Create purchase requisition 6 Create service entry sheet 2 Create request for quotation (RFQ) 4 Create a contract 3 Enter quotation 8 Post incoming invoice 4 Create a contract 5 Create purchase order 5 Create purchase order 3 Enter quotation 6 Create service entry sheet 9 Make payment 7 Accept the service 1 Create purchase requisition 8 Post incoming invoice 7 Accept the service 9 Make payment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-1  SAP AG 2003 Contents: Service Master Data Conditions for Services Standard Service Catalog Model Service Specifications Formulas for Services Master Data I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-2  SAP AG 2003 Create service master data Maintain master conditions List the benefits of using the standard service catalog Define a model service specification At the conclusion of this unit, you will be able to: Master Data: Unit Objectives I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-3  SAP AG 2003 Master Data: Course Overview Diagram Services in Purchasing Services in Purchasing Documents Documents Integration with Other Integration with Other Processes Processes Course Overview Course Overview Entry and Acceptance Entry and Acceptance of Services Planned of Services Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for Services for Services Invoicing Plans Invoicing Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Data Master Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-4  SAP AG 2003 Your company wants to work with master data when procuring external services. To enable you to present the functions for the procurement of services, you create service master records and maintain the service conditions. Master Data: Business Scenario I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-5  SAP AG 2003 Service no. 1540 - Texts - Units of measure PS PS Project Project System System MM MM Procurement Procurement Applications Applications Service master record Network Main- tenance order Service no. 1540 - Texts - Units of measure PM PM Plant Plant Maintenance Maintenance PS PS Project Project System System MM MM Purchasing Purchasing Application Application Service master record Network Maintenance plan order Purchase order Specs. Require- ment PM PM Plant Plant Maintenance Maintenance Specs. Service Master Record Service conditions EUR 200 A service master record contains information on the service (work) description such as: Descriptive texts Units of measure Material group Valuation class for account determination (however, this is not used for determining the GR/IR clearing account) Prices can be assigned to each service master record using the conditions. Service master data can be used at many points in the SAP system, for example, by the following areas: Purchasing Plant Maintenance Project System Customer Service Sales and Distribution (Industry and Business Unit) I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-6  SAP AG 2003 Overview Service Master Record: Transaction AC03 Other Service Activity number Service category Basic data Long text . . . . . . Material group . . . Valuation class Original Language . . . Display/Change Create New Service Show/Hide Overview Display other service The service master record is one of the master records and serves as source for data that you can use when creating service specifications as well as in the procurement transactions. A service master record contains the following main information to uniquely identify a service: Service number, service category, descriptive texts (short and long text), base unit of measure, material group, valuation class. You can define for each service master record individually whether the short text in the purchasing documents can be changed or not. The service master record transaction enables you to create, modify and display services on one screen. When you call this function, the display mode is active. You can select a specific service using the Other service option or search for it, for example, in the overview. You can work with this overview in the same way you work with the document overview for purchase requisitions and purchase orders (selection, layout, breakdown). You can show or hide the overview in this transaction. The data areas on the right side of the screen can be expanded and collapsed. When you open the overview for the first time, the data areas for the basic data and the long text are expanded. Any time you open the overview thereafter, it displays the settings and data you had selected or maintained prior to exiting the function. Service master records can be categorized. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-7  SAP AG 2003 Formulas to Simplify the Calculation of Quantities Service: 1238 Dig trench Unit of measure m 3 Quantity ? User enters length (2), width (2), depth (5) of trench System calculates value 20 m 3 Customizing Purchasing document Service no. 1238 Unit of measure: m 3 Formula: VOL01 Defining formulas with variables: • Maximum of 5 variables allowed • Common mathematical functions (+, –, x, /, sin, cos) • Constants, such as pi, e For example: Calculation of volume VOL01 = L * W * D Base unit of measure m 3 Name of variables: VOL01, L — Length VOL01, W — Width VOL01, D — Depth You can use formulas for calculating quantities in the procurement of externally performed services in service master records and in purchasing documents. Formulas have these attributes: They are freely definable in Customizing. They can contain up to five variables. They can include common mathematical functions (such as sin and cos) and constants (such as pi and e). I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-8  SAP AG 2003 Service no. 1580 Unit of measure: m Price unit: 1 EUR 220.00 01/01/2005 Conditions for Service Master Records 07/01/2005 01/01/2006 12/31/2006 Validity period EUR 205.00 EUR 210.00 Service number Dependencies Purchasing organization Plant Vendor Contract (possibly with plant) Price/ quantity scale from 1 m EUR 205 100 m EUR 200 200 m EUR 199 500 m EUR 195 … The price of a service can be defined using the conditions that apply to a service master record. The prices for external services are determined in the same way as for standard items in Purchasing: You can store prices for different validity periods. The prices can be scaled according to quantity. You can also maintain addition conditions for services, such as header discounts and header surcharges. You can maintain prices for services that are valid over a long period with different dependencies in the standard SAP system: At the level of the service (market price/own estimate) At the level of the service, the purchasing organization, and the vendor At the level of the service, the purchasing organization, the vendor, and the plant At the level of the purchasing organization and the service In the form of contracts (See the unit Long-Term Documents) You can customize the price determination process in Customizing for external services according to the requirements of your company. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-9  SAP AG 2003 Adoption in documents Determining the Price Using Master Conditions I Purchase requisition Item 10 Repair Purch. organization Vendor Service no. 2231 Plant 1000 Price EUR 140 Service no. 2231 Unit of measure: SU Price unit: 1 Price EUR 140 Service Level of Conditions To maintain the service master conditions for service, open the SAP Easy Access menu and select the following options: Logistics   ¨ Materials management   ¨ Service   ¨ Service conditions - for vendors with plant - for vendors without plant - for the service (market price/own estimate) Logistics   ¨ Materials management   ¨ Service   ¨ Service conditions   ¨ Others - for a service and a purchasing organization, among other things You can also maintain service master conditions as contract conditions. Plant-specific conditions are also permitted. If you require separate key combinations for conditions, you must create separate condition tables and define the access sequence. The corresponding settings are configured in Customizing for External Services in Maintain Conditions for Services. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-10  SAP AG 2003 Determining the Price Using Master Conditions II Purchase Order Purch. Organization 1000 Vendor 1010 Item 10 Service no. 2231 Plant 1000 Price EUR 138 Item 20 Service no. 2231 Plant 1200 Price EUR 145 Level of Conditions Vendor Purch. Org. Service Service Vendor Purch. Org. Plant Adoption in documents Adoption in documents Service no. 2231 Purch. Organization: 1000 Vendor: 1010 Price: EUR 145 Service no. 2231 Purch. Organization: 1000 Vendor: 1010 Plant: 1000 Price: EUR 138 Service conditions can be used, for example, in purchase orders depending on the vendor (and depending on the purchasing organization): At the level of the service and the vendor At the level of the service, the vendor, and the plant When a purchasing document is created, the system automatically suggests existing conditions. You can update the conditions stored in the service master record with the conditions of the current purchasing document (requisition, request for quotation, purchase order). You must first set the Condition Update as Default in Purchasing Documentindicator in Customizing. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-11  SAP AG 2003 Text module no. Text modules T1 Unit T2 T3 T4 Masonry work Sand-lime bricks Sand-lime bricks A 240 x 115 x 52 240 x 175 x 52 Wall thickness 12 cm Wall thickness 24 cm m 2 01 02 02 01 02 001 Service type 1 Building work Edition 2003 Electrical work Edition 2005 Plumbing work Edition 2002 Tiling work Edition 2004 01 Service type 2 Service type 3 Service type 4 Standard service catalog Standard Service Catalog m 2 The Standard Service Catalog (SSC) is available in addition to the service master file. The SSC contains standardized descriptions of services in the form of individual text modules. The unique service number is made up of the edition year, the service type and the numbers of the individual text modules. The SAP system offers the following functions: Maintenance of standard service catalogs using the SSC editor Transfer of external standard service catalogs to the SAP system from data carriers (import of a standard service type via the MLS5 transaction) Use of standard service catalog numbers in purchasing documents Linking of service master records to standard service catalog numbers I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-12  SAP AG 2003 MM-SRV Specs. Purchasing document Value limit 5000 for SSC 037/198 SSC no. 037/198 00.02.02.03 T1 T2 T3 T4 01 02 02 01 02 00 01 03 03 03 SSC Editor Activity type 037 Edition 1/98 coarse-grain wood-chip wallpaper on sloping wall Purchasing: Purchasing: Straightforward Straightforward creation of service specs creation of service specs System administrator imports SSC Wall covering SSC A Purchasing Document Using an SSC Once a standard service catalog has been imported or created, the user can select text modules to construct standardized descriptions. If variables are used, they must be replaced with the specific details. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-13  SAP AG 2003 Specs. Purch. doc. Value limit EUR 5,000 for Model Spec A23 Service selection Model Spec A23 Model Spec ABC Ltd. Contract 4600012 Purchasing organization 1000 Specs. User parameter MSP determines default Model Spec Specs. Defaults: – Fixed vendor – Contract – Purchasing organization • Cleaning • Interior construction • Pipe-laying • Gardening/mowing – Multiple re-use of data – Straightforward document creation Purchasing: System administrator: Single creation of set of service specifications Model Service Specifications You can use Model Service Specifications (Model Specs.) to store service specifications that are frequently used in your company. You can then refer to these service specifications in various purchasing documents. A set of model service specifications contains individual service lines and, optionally, an outline representing a hierarchical structure. You can maintain the following default values in the model service specifications: Purchasing organization Fixed vendor Contract document number The user parameter MSP defines the preferred model service specification as default. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-14  SAP AG 2003 Purchase order Service Selection Model spec B03 Model spec B03 Pipe-laying Specs. Specs. All services belonging to an area Editor Lay pipes – in resident. areas – in wooded areas – … – Length m – Diameter cm – … Completed specifications: – Lay gas pipes – in residential areas – length: 100 cm – diameter 120 cm L1: System combines all characteristics of the services belonging to the model specs. Start configurator – with type xy connections – with transport by special vehicle – 1000 pcs at 150 each Leads buyer through relevant characteristics Buyer assigns values to characteristics Configurable Model Service Specifications Characteristics: L1: Lay gas pipe A Model Service Specification with variant configuration allows you to create a service specification automatically based on the specific data entered by the user. From the range of possible services, the SAP system selects and displays only those relevant to the proposed procurement. The buyer selects a model specification using the Service Selection function. When the Configurator begins, all characteristics for this specification are displayed. The buyer chooses the desired values. The Configurator assembles the selected services. The basis for configuration is a model specification with services that are mutually exclusive or interdependent. The interdependencies are controlled by the object dependencies in the knowledge base. The knowledge base stores attributes of the individual services as characteristics that are grouped into classes and assigned to configuration profiles and model specifications. The characteristics are part of Logistics Variant Configuration. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-15  SAP AG 2003 You are now able to: Master Data: Unit Summary Create service master data Maintain master conditions List the benefits of using the standard service catalog Define a model service specification I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-16 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 Your company will use master data to make service entry easier. To test the upcoming scenarios, create service masters and maintain conditions for them. 1-1 You want to use service master records for services that must be procured often. Use examples of services that apply to your company. Your company may order, for example: Office cleaning services Equipment maintenance and repairs Landscape maintenance Consultant services Temporary help Building contracting 1-1-1 Find the menu to create a service master and add it to your Favorites. 1-1-2 Create two service master records. Use internal number assignment for your services. Enter all data for both services and then save. First service: Short text: Service 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 I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-17 Long text is optional. Record the short text for the service. First service: __________________________________________ Create another service with a different description. The data is otherwise the same as in the first service. Record the short text for the service Second service: __________________________________________ Save the service master records. 1-2 Display both service masters that you created. Record the service activity number assigned to each. First service activity number: ____________________________________ Second service activity number: ____________________________________ Add this data to your worksheet. 1-3 Your new service masters need default pricing condition records. 1-3-1 Enter the price at the service level without specifying a plant or vendor. Choose an amount (price) and EUR as the unit (currency). Accept the suggested validity period. These conditions display your “own estimate” and can be used for requisitions. First service price: _________________________________ Second service price: _____________________________________ _________________________________ Add this data to your worksheet. 1-3-2 Enter the prices at the service and vendor level. Enter the prices for purchasing organization 1000 and vendor T-K540A##. Choose an amount (price) and enter EUR as the unit (currency). These conditions can be above your “own estimate” and are used in purchase orders. First service price: _________________________________ Second service price: _____________________________________ _________________________________ Add this data to your worksheet. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-18 1-4 You plan to order your new services often as a group. Define a model service specification to allow you to refer to this service quickly. Model service specification: MODEL## Service category: SERV Description Any description Search term: GR## Currency: EUR 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. Complete the quantity, amount (price) and unit of measure for each service line. Record the data. Service short text Quantity UoM Amount Add this data to your worksheet. 1-5 You will frequently procure services from your vendor T-K540A##. Check the vendor master record for purchasing organization 1000. Which order currency was entered? _______________________________ Which terms of payment are used in purchasing? _____________ Has the indicator been set for purchase order processing? ________ Has the indicator been set for evaluated receipt settlement? (AutoEvalGrSetmtDel) __________________________________________ Has the indicator been set for service-based invoice verification? _______________________________________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-19 Solutions Unit: Master Data 1-1 You want to use service master records for services that must be procured often. Use examples of services that apply to your company. Your company may order, for example: Office cleaning services Equipment maintenance and repairs Landscape maintenance Consultant services Temporary help Building contracting 1-1-1 Find the menu to create a service master and add it to your Favorites. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Service master → Service → Service master Select the transaction and choose Add to Favorites, or Drag the entry directly to your Favorites. 1-1-2 Create two service master records. Use internal number assignment for your services. Enter all data for both services and then save. Select Create new service. In the header of your service enter the following: Service number Do not enter anything. The system will assign the number. Short text Service description Service category Service: purchasing Base unit of measure For example, AU (for activity unit) or H (for hour) I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-20 In Basic Data enter a material group and a valuation class. Material group 007 (Services) Valuation class 3200 Long text is optional. Record the short text for the service. (The text is case sensitive.) Do not save yet. Create another service with a different description. The data is otherwise the same as in the first service. Select Create new service again. In the header of your service enter the following: Service number Do not enter anything. The system will assign the number. Short text Service description Service category Service: purchasing Base unit of measure For example, AU (for activity unit) or H (for hour) In Basic Data enter a material group and a valuation class. Material group 007 (Services) Valuation class 3200 Long text is optional. Record the short text for the service. (The text is case sensitive.) Save both service master records. Choose Save. 1-2 Display the service masters that you created. Record the service activity number assigned to each. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Service master → Service → Service list Enter your user name in the field Created by and choose Execute. Alternatively, you can use the Service Master transaction. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-21 1-3 Your new service masters need default pricing condition records. 1-3-1 Enter a price at the service level without specifying a plant or vendor. Choose an amount (price) and enter EUR as the unit (currency). These conditions display your “own estimate” and can be used for requisitions. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Service master → Service → Service conditions → For service → Add Enter both service numbers and the prices. Use the currency EUR as the unit for the amount. You can accept price unit 1 and the suggested validity period without making any changes. Choose Save. 1-3-2 Enter the prices at the service and vendor level. Enter the prices for purchasing organization 1000 and vendor T-K540A##. Choose an amount (price) and enter EUR as the unit (currency). These conditions can be above your “own estimate” and are used in purchase orders. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Service master → Service → Service conditions → For vendor without plant → Add First, enter your purchasing organization and vendor. Purchasing Organization 1000 Vendor T-K540A## Enter both service numbers and the prices. You can accept the currency EUR as the unit for the amount, the price unit 1 and the suggested validity period without making any changes. Choose Save. 1-4 You plan to order your new services often as a group. Define a model service specification to allow you to refer to this service quickly. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Service master → Model service specification → Create Enter the following data on the initial screen for creating model service specifications (model specs). Model service specs MODEL## Service category SERV I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 3-22 Enter to following information on the General Data screen: Description Service description Search term GR## Currency EUR Material group 007 Enter the following information on the Default data for purchase requisition screen: Purchasing Organization 1000 In the list of services, include your two service master records and a third line with only a short description. Complete the quantity, amount (price) and unit of measure for each service line. Select icon Services and add three services to your service specification. Choose Save. 1-5 You will frequently procure services from your vendor T-K540A##. Check the vendor master record for purchasing organization 1000. Which order currency was entered? Which terms of payment are used in purchasing? Has the indicator been set for purchase order processing? Has the indicator been set for evaluated receipt settlement? (AutoEvalGrSetmtDel) Has the indicator been set for service-based invoice verification? In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Master data → Vendor → Purchasing → Display (current) On the initial screen, enter the vendor number and the purchasing organization. Select Purchasing Data. Vendor T-K540A## Purchasing Organization 1000 The purchasing data contains details such as the following: Conditions: Purchase order currency EUR Terms of payment ZB00 Control data: Automatic purchase order Yes AutoEvalGrSetmtDel No Svr.-based inv. Ver. Yes I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-1  SAP AG 2003 Service Specifications Requisitions Bid Invitations Purchase Orders Contracts Contents: Services in Purchasing Documents I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-2  SAP AG 2003 Define requisitions with a set of service specifications that include an outline and service lines List the steps involved in the RFQ/quotation process Create purchase orders from quotations Create contracts for the long-term procurement of external services At the conclusion of this unit, you will be able to: Services in Purchasing Documents: Unit Objectives I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-3  SAP AG 2003 Services in Purchasing Documents: Course Overview Diagram Services in Purchasing Services in Purchasing Documents Documents Integration with Other Integration with Other Processes Processes Course Overview Course Overview Entry and Acceptance Entry and Acceptance of Services Planned of Services Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for Services for Services Invoicing Plans Invoicing Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Data Master Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-4  SAP AG 2003 When procuring external services, you mainly work with service master records into which you have entered a thorough description of the details. In extensive projects, you use an outline to structure the sets of service specifications. Bids are required for services without any prior order history if the value is over EUR 5,000. Services in Purchasing Documents: Business Scenario I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-5  SAP AG 2003 Create requisitions and other purchasing documents containing service items, including outlines Services in Purchasing Documents: Objectives of Topic 1 At the conclusion of this topic, you will be able to: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-6  SAP AG 2003 Controlling the External Services Functionality Item 10 Item category Acct. assgt. cat.: Activates external services functionality D Purchase order … U K P Service specifications not possible w/o item cat. D Unknown Cost center Project Specs. Use item category D in requisitions for external services. This ensures that you create a set of service specifications and can access service lines. You cannot enter a set of service specifications in a requisition for standard items. Service items require an account assignment category. You must specify the account assignment details by the time you enter the services. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-7  SAP AG 2003 Purchase order Purchase order Service Specifications in a Purchase Order: Example Outline level Service line Service specification for the item 10 Selection of software components 01 Define requirements Senior consultant 4 days EUR 2,000 per day 20 Customization of components Consultant 10 days EUR 1,400 per day Senior consultant 6 days EUR 2,000 per day 01 Revise Component A Junior consultant 10 days EUR 1,000 per day 02 Test adjusted configuration … A set of service specifications is a list of external services including detailed information. You enter a separate line for each service. You can structure a complex set of service specifications hierarchically using an outline: You can create a Service Specifications Outline with a 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. To create an outline, proceed as follows: Select the detailed data for the item in the Services tab. Select Full Scr. Services. This opens a separate screen where you can maintain the service specifications. You must display the services on a full screen to be able to create a new outline or modify an existing one. When in full screen mode, select Outline On/Off. To enter an outline, select New Subgroup. You select the level for which you want to create a new level (subgroup) by placing the cursor on the corresponding level. You can now insert the required services for each level of your outline (again, you select the respective level by positioning the cursor accordingly). I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-8  SAP AG 2003 New document Existing data Model Spec B23 Purchase requisition Item 10 Software implementation Specs. Purchase requisition 123456 Specs. Quotation 223445 Specs. PO 245678 Specs. Maintenance plan order 7778 Specs. Service selection Classification Class 12: Software services L1 S2 S3 Compiling Service Specifications and Selection Using the Service Selection function, you can easily compile a new set of service specifications from existing purchasing documents and service specifications as well as by classifying services. You can also refer to model specifications or standard service catalogs, to activities of a network (Project System), and to maintenance orders (Maintenance). Existing outlines (hierarchical structures for service specifications) can be referenced when creating new outlines. You can choose an entire outline or an individual outline level. The SAP system supports the search for documents using selection options such as vendor number or document date. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-9  SAP AG 2003 Line type Standard line Contingency line Service description - Service Activity number - Material group - SSC number - Short/long text - External service number Quantity fields - Quantity - Actual quantity (quantity entered) - Overfulfillment tolerance - Indicator for an unlimited overfulfillment Price/value fields - Price per unit - Net value - Indicator whether price changes are permitted when service is entered - Indicator for updated conditions Alternatives Basic line Alternative line to line 30 Bidder‘s line - Formula value 1 - Formula value 2 - Formula value 3 - … Formula - For user information, such as for the service provider's social security number User fields - alphanumeric - numeric Service Details in Purchasing Documents For each service line in a set of service specifications, you can maintain additional information. The external service number is the vendor’s service number. Overfulfillment tolerances are similar to overdelivery tolerances for standard items. The line type can be one of the following: Contingency line (A contingency line contains a service that may not be needed.) Blanket line (The blanket line describes a service that is automatically assigned a standard quantity of 1 and that is invoiced at a flat rate.) Unrestricted quantity (In this line type, the service is listed without indicating a quantity.) Information line (Information lines simply are areas where additional text can be stored.) An alternative line be used for a service that can be performed as an alternative to the service specified in the respective basic line. Bidder's lines are lines that have been added by the vendor. In a service line, you can calculate the quantity using a formula, which has been defined in Customizing, and the specific values for the variables. There are four user-defined fields: two numeric and two alphanumeric. You define their meaning in Customizing in Source determination and default values. You can do this either on the client level or depending on the purchasing organization. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-10  SAP AG 2003 Service Line Account Assignment Document Item 10 Conduct pressure tests Acc. assgt. cat. K Service line 10 Cost center 1512 Cost center may have been entered manually valuation class 3200 The SAP system determines: – the cost element, and – the consumption account – based on the valuation class Purchasing General ledger Service master data contains the valuation class Valuation class: 3200 External services Service 10316: Check water pressure Service procurements are expenses for which a posting is made to a consumption account when the services are accepted (does not apply for PO items if the GR not evaluated indicator is selected). You can have the System suggest a consumption account for items that have been assigned to an account (with the exception of account assignment category U), depending, among other things, on the valuation class of the service master record. The permitted valuation classes that can be specified in Customizing for service master records must be assigned to account category reference 006. For the determination of the GR/IR clearing account for external service items, the System generally uses the valuation class ' ' (blank). The account assignment category in a purchasing document determines the details for the account assignment that you have to enter for the service (such as the cost center, the ship-to party, and the unloading point). 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 level. The account assignment data itself is maintained at service line level. At the service line level, you can specify multiple account assignments. Use the distribution indicator to define whether distribution should be based on certain quantities or percentages. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-11  SAP AG 2003 Create multiple bid invitations for services Standard bidding Global percentage bidding Compare multiple bids Create purchase orders from quotations Services in Purchasing Documents: Objectives of Topic 2 At the conclusion of this topic, you will be able to: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-12  SAP AG 2003 Purchase order best offer Purchase requisition RFQs Price comparison list Vendor C Quotation Vendor B Quotation Vendor A Quotation The RFQ Process A request for quotation (RFQ) is an invitation extended to a vendor by a purchasing organization to submit a quotation (bid) for the supply of materials or performance of services. 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 RFQ. 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. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-13  SAP AG 2003 Quotation RFQ Specs. Doc. type AN Standard Bidding Process Global Percentage Bidding No prices can be entered – Specifications – Quantities RFQ Specs. Doc. type AB Prices for each service line entered by buyer – Specifications – Quantities Quotation Specs. Specs. Prices for each service line entered by service provider Competitive Bidding Process: Standard vs. Global Percentage Bidding Percentage additions/ deductions per outline level supplied by service provider With the use of external services, you have a choice of using the SAP standard bidding process or you can use global percentage bidding. In the procurement process for external services, the global percentage bidding is often used. The aim of this procedure is to considerably simplify the maintenance of service specifications and their conditions. Since the service descriptions in the quotations submitted by the various bidders do not usually vary, the buyer states not only the service specifications, but also the prices of the services in advance. The bidders merely indicate a percentage addition to or deduction from these prices in their quotations that can be entered at the outline level. Purchasing is faced with a minimal maintenance effort, even if a large number of RFQs is issued. A special document type for global percentage bids must have been defined in Customizing for Purchasing. In the standard system, document type AB is available for this purpose. For services, the standard system includes the condition schema MS0002 and the condition types KR01 (header discount) and KZ01 (header surcharge). Both the condition schema MS0002 and the condition types KR01 and KZ01 can be adjusted in Customizing. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-14  SAP AG 2003 Comparing Prices Using the Price Comparison List Purchase order Vendor C Service 1 EUR 100 Service 2 EUR 300 Service 3 EUR 200 Levels of comparison Outline level Service line level Vendor C EUR 100 EUR 300 EUR 200 EUR 600 Vendor A EUR 150 EUR 300 EUR 200 EUR 650 Mean value EUR 125 EUR 300 EUR 200 EUR 625 Service 1 Service 2 Service 3 Total Price comparison list Quotation Vendor A Service 1 EUR 150 Service 2 EUR 300 Service 3 EUR 200 The price comparison list is used to determine the most favorable bid or quotation. The comparison list ranks the quotations by item from lowest to highest price. The price comparison 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 include: Price comparison per outline level Price comparison per service line Note: The price comparison list does not always display vendor discounts and surcharges, that may apply, at the service level. Selected quotations can be referenced in purchase orders and contracts. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-15  SAP AG 2003 Services in Purchasing Documents: Objectives of Topic 3 At the conclusion of this topic, you will be able to: Describe the use of contracts for the procurement of services Create a contract Create a release order for the contract Track how the contract is updated due to the release order I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-16  SAP AG 2003 Long-Term Documents Contract 123 Item 10 Pipe- laying Acc. assgt. cat. U Release order against contract 123 Item 10 Acc. assgt. cat. U Service entry sheet Acc. assgt. cat. K EUR 1,500 Long-term agreement Concrete requirement for services Entry of service and acceptance Specs. Pipe- laying Unknown possible Specs. S3 S17 S200 S200 Specs. Account code must be specified Unknown possible A contract is a long-term agreement between a purchasing organization and a vendor regarding the supply of materials or performance of services subject to specified conditions over a certain period. The services are frequently requested by different departments and employees and for a variety of tasks as the requirement arises. If this is the case, you can assign the account code U. This allows you to specify the correct account assignment category and the account assignment details later, for example, when issuing the release order or possibly even when entering the service. Typically the account assignment category is specified when a release order is issued against the contract. However, you can continue to use the account code U in the purchase order. When procuring services, 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. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-17  SAP AG 2003 Contract Release Orders Contract Contract release order Manual entries: Reference to contract (contract number) Delivery date Order quantity Entry of a contract release order The release order is transmitted to the vendor All release orders are displayed in the release order documentation for the contract item Release orders are purchase orders that contain the following information for the service provider: The services actually ordered (called off) against the contract The quantity of the released services The delivery date for the release The following data from the contract is adopted in the release order: Vendor information Long texts Terms of delivery and payment Prices The following contract data is updated in the release order documentation with each release order: The total value per release order Values and quantities per service The service line of the contract release documentation is updated with the following data: The quantities of the release orders The value of the release orders I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-18  SAP AG 2003 Release Order Documentation 1 Release order Purch. doc. Date Value Value released EUR 5,000 Contract 450000026 10 450000042 10 450000056 10 02/02/2005 04/03/2005 05/05/2005 EUR 1,000 EUR 1,500 EUR 2,500 Release order documentation The release order documentation provides information on the current status of the release orders issued against a contract. The documentation shows the total value of each release order and the target value of the contract that is still open. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-19  SAP AG 2003 Release Order Documentation 2 Line Purch. doc. Service Quantity UOM 10 100200 200 SU 4500000026 100200 4 SU 4500000042 100200 6 SU 4500000056 100200 10 SU 10 100201 300 SU 4500000026 100201 8 SU 4500000042 100201 12 SU 4500000056 100201 20 SU Release orders Release order documentation Contract The release order documentation provides information about the current status of the release orders issued for each service of a contract item of the Service item category (D). I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-20  SAP AG 2003 Long Texts in Purchasing Documents Containing Service Specifications: Purchase order 45000123 05/26/2005 PGr: Hausmann 06227-123456 Company Services GmbH Industriestr. 16 80000 München We hereby would like to order the services listed below as per … Item. Material/Service Quantity/ UoM Price 10. Vehicle check-up 1 SU 320 Release order against contract 46000444 Vehicle is made available by 9:00 AM Check shocks 1 SU – Long text for service – Description of service Balancing of tires 5 pcs – Long text for service – Description of service Change battery 1 pcs – Long text for service – Description of service IDES Deutschland AG Header text(s) Item text(s) Long text from the service master record Long text for service line Form header Footer Sender Text origin – Depends on purchasing organization – Default texts – Possibly from vendor master record – Upon contract release order – From a preceding document, such as a requisition – From the service master record – Maintained in purchasing document (at header level, at item level, at service level, at outline level) As in the procurement of materials, you can work with different long texts in the procurement of external services. You can define in Customizing as well as in the form itself which long texts should appear and in what sequence. In addition to the item texts, you can output the long text from the service master record and the long text from the document item for each service line. If you have created an outline for your service specifications, the outline levels and the long texts for the outline levels (if these have been maintained) are also output. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-21  SAP AG 2003 You are now able to: Services in Purchasing Documents: Unit Summary Define requisitions with a set of service specifications that include an outline and service lines List the steps involved in the RFQ/quotation process Create purchase orders from quotations Create contracts for the long-term procurement of external services I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-22 Exercises Unit: Services in Purchasing Documents Topic: Service Specifications in Purchase Requisitions At the conclusion of this exercise, you will be able to: • Create extensive procurements of services effectively using service specifications in purchase requisitions or other purchasing documents. Your company needs to describe the services it wants to procure in detail. Twenty-five percent of your service procurements are very extensive. You can use an outline for these procurements. Only use service lines for the other 75% of your documents. Lists of services are often copied from another document or from a model service specification. You work with purchase requisitions for irregularly recurring procurements of services. 1-1 (Optional) In your job, you frequently enter purchase requisitions. Save the Create purchase requisition transaction to your list of Favorites. 1-2 You need to update your personal settings and the default values for creating purchase requisitions. 1-2-1 You want the document overview to be compiled automatically and show your documents from today. 1-2-2 Enter the following default values. Purchasing Grp: SCM540-## (Y##) Item category: Service Plant: 1200 (Dresden) Material group: 007 (Services) I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-23 1-3 Enter the following information for your requisition: Document type: NB (normal purchase requisition) Item category: D Short text: Any description Delivery date: One month from today Purchasing group: Y## (SCM540-##) Material group: 007 (Services) Plant: 1200 (Dresden) Acct. assgt. cat.: K G/L account: 417000 Work center: 4110 1-3-1 Use the outline function to structure your set of service specifications. First, select Full Scr. Services. Then choose Outline on/off and add four subgroups (of the same level) with a short description to your outline under your item's initial short description. For example: Overall short description Set up jobsite 01 Short text: Install pipe 02 Short text: Lay main pipe 03 Short text: Connect subsidiary pipes 04 Short text: Labor and materials 1-3-2 Try different methods for entering services for the outline levels. Select the outline level 01. On the right side of the screen, enter a larger quantity for your first service, for example, 10. Where does the price come from? _________________________________ 1-3-3 Select outline level 02. On the right-hand side of the screen, enter a short text for a service without a service master record. The quantity could be 10, for example. Select a suitable unit of measure and enter a price. Enter a detailed service description using the line long text function. 1-3-4 Select outline level 03. Choose the Service selection icon. Refer to your model service specification MODEL## and transfer all of its services. Alternatively, you can use model specifications M-SPEC-1 and M-SPEC-2. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-24 1-3-5 For subgroup 04, choose the Formulas entry variant to allow you to enter formulas easier. Enter a short text such as “Ground Excavation Project.” Select the formula for volume and enter 10, 15 and 2 for length, width and height. The unit of measure is M3 and the gross price is EUR 20. What volume is calculated? _________________________________________________________ 1-3-6 Save the requisition. Requisition number: ___________________________ Add it to your worksheet. 1-4 (Optional) Display the purchase requisition. 1-4-1 Display the AC commitment documents in the item overview display of the purchase requisition. How many lines were shown? _________________________________________________________ 1-4-2 Display and record the total values for each outline level. Total _______________________________________ Outline level 01 _______________________________________ Outline level 02 _______________________________________ Outline level 03 _______________________________________ Outline level 04 _______________________________________ 1-4-3 Display Acct. assgt. (total) (in Full Scr. Services) and the services (for each) account assignment. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-25 Exercises Unit: Services in Purchasing Documents Topic: Bid Invitations At the conclusion of this exercise, you will be able to: • Create multiple bid invitations for services using the standard quotation process • Compare multiple quotations • Create purchase orders by referencing RFQs Your company asks for bids when a source cannot be found in the system and the value is over EUR 5,000. Purchase orders are created from either requisitions or quotations. 2-1 Your new requisition should be sent to at least two service providers for quotations. Create requests for quotations (RFQs) by referencing the requisition from exercise 3. The document type is AN. The quotations are due in two weeks. Enter collective number SCM540## to make it easier to select quotations for comparison. 2-1-1 Was the outline reproduced in the RFQ? __________ 2-1-2 Enter T-K540A## for the first vendor and save the RFQ. Do not exit the transaction yet. RFQ: _________________________________________________ 2-1-3 Enter T-K540B## for the second vendor and save. RFQ: _________________________________________________ 2-2 Your service providers delivered their quotations ahead of schedule. Enter realistic price data in the system. Be sure that the prices differ. Record the total values for each outline level. Outline level T-K540A## T-K540B## Total value _________________ _________________ Outline level 01 _________________ _________________ Outline level 02 _________________ _________________ Outline level 03 _________________ _________________ Outline level 04 _________________ _________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-26 The quotation data is entered the request for quotation (RFQ) and shares the same document number. 2-3 Before you create a purchase order or contract, compare the prices for the two quotations you received. Use the collective number to select your RFQs/quotations for the price comparison list. Display the Mean value quotation to see the average price. 2-3-1 Which quotation ranked as the most favorable? _____________ 2-3-2 Select the Services Details to display the individual services per level 2-3-3 Select Level 4 to display values per outline level. 2-3-4 (Optional) Write down the second-ranked quotation so you can send a rejection letter. 2-4 Save the transaction Purchase Order – Create– Vendor/supplying plant known to Favorites. 2-5 After evaluating the quotations, create a standard PO for the lowest-cost service provider. Adopt the services from the quotation so that all of the details are included. Check the Invoice tab to make sure that the indicator for service-based invoice verification is set and ensure that evaluated receipt settlement is off. Were all of the services transferred? Save. Purchase order number: __________________________________________ Add the information to your worksheet. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-27 Exercises Unit: Services in Purchasing Documents Topic: Long-Term Documents 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 Contacts for services describe your company’s long-term requirements for external services. They contain conditions for later release orders. Contracts can apply to multiple company codes; release orders cannot. 3-1 You have negotiated favorable terms with a vendor for several services. Enter them in a value contract. Vendor: T-K540B## Agreement type: WK Purchasing Org: 1000 Purchasing group: Y## (SCM540-##) Item category: D Acct. assgt. cat.: U Plant: 1200 (Dresden) Material group: 007 Validity end: End of next year Target value: EUR 100,000 3-1-1 On the item overview screen, enter a short description the planned services (for example, Pipe-laying project). Do not create an outline. Use material group 007. 3-1-2 Enter only a short text, the price, the unit of measure, the material group and the target quantity for the first new service (that is, a service without a master record). 3-1-3 Transfer two more services from your last purchase order, your model service specification MODEL##, or model specification M-SPEC-1. Customize the quantities or prices. Make the quantities large enough to reference multiple times. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-28 Record the data for the three services and save your contract. Contract number: _____________________________________________ Service Quantity/UoM Gross price Add the information to your worksheet. 3-2 The first release order for your contract should occur this week. Create a release (standard purchase order with reference to the contract). 3-2-1 Enter the release order using the document overview in the purchase order transaction. Create a selection variant called Y## for your contracts. Transfer the contract from the document overview into your new purchase order. Vendor T-K540B## is suggested from the contract. 3-2-2 Choose Service Selection from service specifications and transfer at least two services from your contract. Order a quantity between 5 and 10 for each service. The tax code is 0I. Did the contract prices transfer to the release? _______ Save the release order. Purchase order number: _____________________________________ Add the information to your worksheet. 3-3 (Optional) Display the contract. 3-3-1 Is your release listed in the release documentation? _____________ 3-3-2 Find the quantity released in the release order documentation. Service 1: ______________________________________________ Service 2: ______________________________________________ 3-3-3 Display the details for a service item. Can you find the released value? __________________________________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-29 Solutions Unit: Services in Purchasing Documents Topic: Service Specifications in Purchase Requisitions 1-1 (Optional) In your job, you frequently enter purchase requisitions. Save the Create purchase requisition transaction to your list of Favorites. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Purchase Requisition → Create Select the transaction and choose Add to Favorites, or Drag the entry directly to your Favorites. 1-2 You need to update your personal settings and the default values for creating purchase requisitions. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Purchase Requisition → Create 1-2-1 You want the document overview to be compiled automatically and show your documents from today. Select icon Personal setting. On the Basic settings tab, select Yesterday as the selection timeframe for your documents. Select the Compile doc. overview automatically indicator. 1-2-2 Enter the following default values. Select the Default values tab. Select additional fields option and display the Purchasing group, Material group and Plant fields. Enter your default values for creating purchase requisitions. Item Category D Purchasing Group Y## (SCM540-##) Material group 007 (Services) Plant 1200 (Dresden) Click Save. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-30 1-3 Create a purchase requisition. Choose the following in the SAP Easy Access menu: Logistics → Materials management → Purchasing → Purchase Requisition → Create Enter the following information in your purchase requisition: Document type Purch.requis. Stand. Item Category D Acc. assgt. cat. K Short text Any description Delivery date One month from today Purchasing Group Y## (SCM540-##) Material group 007 Plant 1200 (Dresden) 1-3-1 Use the outline function to structure your set of service specifications. First, select Full Scr. Services. Then choose Outline on/off and add four subgroups (of the same level) with a short description to your outline under your item's initial short description. Go to the item details. Select the Services tab. Choose Full Scr. Services. Choose Outline On/Off. Position the cursor on the first line of the outline (short text of the item) and choose New Subgroup. Enter outline level 01 and a short description for this first subgroup. Place your cursor on the first line again and repeat the step for levels 02, 03, and 04. 1-3-2 Try different methods for entering services for the outline levels. Select outline level 01 by positioning your cursor. On the right side of the screen, enter a larger quantity for your first service, for example, 10. Enter the following information: Service no. Number of your first service master record Quantity 10 Unit of measure Is adopted from the service master record I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-31 Enter the following account assignment information: G/L account 417000 Cost center 4110 Activate the function for repeated account assignments to ensure that all services of the first item in this requisition will have the same account assignment. To do so, select icon Rpt. AA on. Where does the price come from? The price of the service is your “own estimate.” Service conditions that you have maintained without entering a vendor are transferred. 1-3-3 Select outline level 02. On the right-hand side of the screen, enter a short text for a service without a service master record. The quantity could be 10, for example. Select a suitable unit of measure and enter a price. Select outline level 02 by positioning your cursor. Enter the following information: Short text Any description Quantity 10 Unit of measure H or AU Gross price Any price If necessary, select Continue to confirm the account assignment. Enter a detailed service description using the line long text function. Choose: Goto → Long text for line or Create line long text in the service specifications to enter a detailed service description. 1-3-4 Select outline level 03. Choose the Service selection icon. Refer to your model service specification MODEL## and transfer all of its services. Alternatively, you can use model specifications M-SPEC-1 and M-SPEC-2. Select outline level 03 by positioning your cursor. Choose icon Service Selection. Enter MODEL##. Select all services and choose icon Adopt services. If necessary, select Continue to confirm the account assignment. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-32 1-3-5 For subgroup 04, choose the Formulas entry variant to allow you to enter formulas easier. Enter a short text such as “Ground Excavation Project.” Select the formula for volume and enter 10, 15 and 2 for length, width and height. The unit of measure is M3 and the gross price is EUR 20. What volume is calculated? Select outline level 04 by positioning your cursor. Choose: Entry variant → Formulas. Enter the following information: Short text Any description Formula VOL01 Form.val.1 10 Form.val.2 15 Form.val.3 2 Unit of measure M3 Gross price 20 If necessary, select Continue to confirm the account assignment. What is the calculated quantity? The volume is 300 m³. 1-3-6 Save the requisition. Click Save. 1-4 (Optional) Display the purchase requisition. 1-4-1 Display the AC commitment documents in the item overview display of the purchase requisition. How many lines were shown? In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Purchase Requisition → Display If needed select the Other requisition icon. Specify the number of your purchase requisition. Select icon Other document. Choose: Environment → AC commitment documents A separate line for each account assignment (G/L account, cost center, order, and so on) appears with the information about the CO commitment for the purchase requisition. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-33 1-4-2 Display and record the total values for each outline level. Go to the item details. Select the Services tab. Choose Full Scr. Services. Choose Outline On/Off. Choose: Outline → Total values, and record the values from the outline area. You may have to enlarge the outline area by dragging the vertical bar that separates the outline area from the services area. 1-4-3 Display Acct. assgt. (total) (in Full Scr. Services) and the services (for each) account assignment. Select the following in Full Scr. Services: Goto → Acct. assgt. (total) An overview appears with the account assignment details of your requisition item. Select an account assignment line by positioning your cursor, and select icon Services Per Account Assignment. The overview shows you the services you ordered with quantities and values for account assignment. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-34 Solutions Unit: Services in Purchasing Documents Topic: Bid Invitations 2-1 Your new requisition should be sent to at least two service providers for quotations. Create requests for quotations (RFQs) by referencing the requisition from exercise 3. The document type is AN. The quotations are due in two weeks. Enter collective number SCM540## to make it easier to select quotations for comparison. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → RFQ/Quotation → Request for Quotation → Create Enter the following data on the initial screen: Document type AN Quotation deadline Two weeks from today Select icon Create referencing requisition. Enter your purchase requisition number and click Continue. On the Header detail screen, enter: Collective Number SCM540## In Create RFQ: Selection List: Purchase Requisitions, select the purchase requisition item and choose Adopt. 2-1-1 Was the outline reproduced in the RFQ? Select the service item and choose Services. Choose the Outline icon. Choose Outline On/Off. You determine that the outline of the service specification of your purchase requisition is reproduced in the RFQ. 2-1-2 Enter T-K540A## for the first vendor and save the RFQ. Do not exit the transaction yet. Return to the Item overview screen. Click Back. Click Vendor Address. Enter the vendor number T-K540A##. Click Save. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-35 2-1-3 Enter T-K540B## for the second vendor and save. Enter the vendor number T-K540B##. Click Save. 2-2 Your service providers delivered their quotations ahead of schedule. Enter realistic price data in the system. Be sure that the prices differ. Record the total values for each outline level. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → RFQ/Quotation → Quotation → Maintain Enter the first RFQ number. On the Item overview screen, select the RFQ item and choose Services. Choose one outline level at a time and enter quotation prices for all of your services. Record the values that you entered. Next choose Total values from above the outline layout to display the total values. Click Save. Repeat the process for the second quotation. 2-3 Before you create a purchase order or contract, compare the prices for the two quotations you received. Use the collective number to select your RFQs/quotations for the price comparison list. Display the Mean value quotation to see the average price. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → RFQ/Quotation → Quotation → Price comparison Enter Collective RFQ SCM540##, select Mean value quotation and choose Execute. 2-3-1 Which quotation ranked as the most favorable? The program shows you the results of the price comparison with a ranking order. The most favorable quotation is ranked first (also indicated by Rank 1). 2-3-2 Select icon Services Details to display the individual services and their prices per level. 2-3-3 Select icon Hierarchy Level 4 to display values per outline level. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-36 2-3-4 (Optional) Note the second-ranked quotation so you can send a rejection letter. Choose the quotation with rank 2 (at item level) by positioning your cursor. Select icon Maintain quotation. Either set the rejection indicator in the lower-left corner of the item detail screen, or choose Edit → Fast change from the item overview, set the rejection indicator and choose Continue. Click Save. 2-4 Save the transaction Purchase Order – Create– Vendor/supplying plant known to Favorites. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Purchase order → Create → Vendor/supplying plant known Select the transaction and choose Add to Favorites or drag it to your list of Favorites. 2-5 After evaluating the quotations, create a standard PO for the lowest-cost service provider. Adopt the services from the quotation so that all of the details are included. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Purchase order → Create → Vendor/supplying plant known Click icon Document overview on. Select Selection Variant. Choose Requests for quotations. On the Purchasing documents screen, enter the following data: Plant 1200 (Dresden) Purchasing Group Y##-(SCM540-##) Purchasing Organization 1000 Choose Execute. Select the document type Standard PO. Transfer the winning quotation by dragging it to the shopping cart or selecting it by positioning your cursor and choose Adopt. If any of the services you are transferring do not have a price, you must provide them when creating the PO. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-37 Check the Invoice tab to make sure that the indicator for service-based invoice verification is set and ensure that evaluated receipt settlement is off. Select the Invoice tab. If necessary, set the indicator for service-based invoice verification on the Invoice tab and set the indicator evaluated receipt settlement to off. Were all of the services transferred? Save. On the Services tab, select the Full Scr.:Services icon. Yes, all services from the RFQ were adopted in the purchase order item. Click Save. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-38 Services in Purchasing Documents – Solutions Unit: Services in Purchasing Documents Topic: Long-Term Documents 3-1 You have negotiated favorable terms with a vendor for several services. Enter them in a value contract. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Outline agreement → Contract → Create Enter the following data on the initial screen: Vendor T-K540B## Agreement type WK Purch. Organization 1000 Purchasing Group Y## (SCM540-##) Item Category D Acct. assignment cat. U Plant 1200 (Dresden) Enter the following data on the header data screen: Validity end End of next year Target value EUR 100,000 3-1-1 In the item overview screen, enter a short description the planned services (for example, Pipe-laying project). Do not create an outline. Use material group 007. Enter the following information on the item overview: Short text Any description Material group 007 I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-39 3-1-2 Enter only a short text, the price, the unit of measure, the material group and the target quantity for the first new service (that is, a service without a master record). The first service is new. No service master record exists for this service. Enter a short text. Enter the price, quantity, unit of measure and material group. Short text Any description Quantity Any quantity Unit of measure SU Price 100 EUR Material group 007 3-1-3 Transfer two more services from your last purchase order, your model service specification MODEL##, or model specification M-SPEC-1. Customize the quantities or prices. Make the quantities large enough to reference multiple times. Choose icon Service Selection. Reference either your purchase order number and item, or a model service specification. Select the required services and choose icon Adopt services. To display or change the pricing, select a service and choose Goto conditions. Click Save. 3-2 The first release order for your contract should occur this week. Create a release (standard purchase order with reference to the contract). In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchase order → Create → Vendor/supplying plant known 3-2-1 Enter the release order using the document overview in the purchase order transaction. Create a selection variant called Y## for your contracts. Transfer the contract from the document overview into your new purchase order. Vendor T-K540B## is suggested from the contract. Click icon Document overview on. Select Selection Variant. Choose Contracts. On the Purchasing documents screen, enter the following data: Plant 1200 (Dresden) Vendor T-K540B## Purchasing Group Y## Purchasing Organization 1000 I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-40 Leave all other fields blank. Click Save. Enter the name Y## and a description for your selection variant. Save. Click Save. Choose Execute. Select Standard PO as the document type. Select your contract and drag it to the shopping cart. Alternatively you can select your contract in the document overview and then click Adopt. Close the document overview. Click icon Document overview off. 3-2-2 Choose Service Selection from service specifications and transfer at least two services from your contract. Order a quantity between 5 and 10 for each service. The tax code is 0I. Did the contract prices transfer to the release? In the Item details screen area, select the Services tab and click icon Service selection. Choose From contract. Select at least two services from your contract and click icon Adopt services. Enter the purchase order quantities for each service. The contract prices were transferred. In the Item details screen area, select the Invoice tab. Enter tax code 0I. Click Save. 3-3 (Optional) Display the contract. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Outline agreement → Contract → Display 3-3-1 Is your release listed in the release documentation? Select the contract item and choose Release Documentation. Yes, it is listed. You can also see the total value released. 3-3-2 Find the quantity released in the release order documentation. Stay in the release documentation and choose Services. You can see the quantity and the quantity released per purchase order (release order item) in an overview for each service. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 4-41 3-3-3 Display the details for a service item. Can you find the released value? Go back to the Display Contract: Item overview screen. Click Back. Select the contract item and choose Services. Select all services and on the Statistics tab choose Detail. The Statistics tab displays the value released and quantity released. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-1  SAP AG 2003 Sources for purchase requisitions Converting purchase requisitions into purchase orders and release orders Optimized Procurement Contents: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-2  SAP AG 2003 Describe how the SAP system determines sources of supply Convert a requisition into a purchase order or contract release order At the conclusion of this unit, you will be able to: Optimized Procurement: Unit Objectives I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-3  SAP AG 2003 Optimized Procurement: Course Overview Diagram Services in Services in Purchasing Purchasing Documents Documents Integration Integration with Other with Other Processes Processes Course Overview Course Overview Entry Entry and and Acceptance Acceptance of Services of Services Planned Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for for Services Services Invoicing Invoicing Plans Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Master Data Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-4  SAP AG 2003 Several of your services are scheduled frequently. To process requisitions more efficiently, you would like to utilize the assignment of sources through contracts or conditions. Optimized Procurement: Business Scenario I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-5  SAP AG 2003 Origin of Purchase Requisitions or or Manual creation in user departments Project System (PS) Plant Maintenance (PM) . . . Automatic generation Purchase requisition Purchase requisitions are created manually for internal use in the respective departments or generated automatically in other processes. Automatically generated requisitions could be generated, for example, in the areas of Plant Maintenance, Project System and Service Management. For the procurement of the external services, the requisitions are (only) converted into purchase orders. You can carry out the conversion of the purchase requisitions using the Create purchase order transaction (ME21N) as well as using one of the collective transactions, such as Assign and process purchase requisitions. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-6  SAP AG 2003 Convert purchase requisition; if no source is available: Create RFQ or assign vendor Processing Purchase Requisitions Create purchase requisition Determine source Release (optional) Contract Vendor Purchase requisition Purchase requisition o.k. Purchase order Contract release order RFQ ? ? manual or automatic From a list of open requisitions, you can automate the conversion process into purchase orders. If no source is found, you can set the requisition for RFQ processing. The definition and use of release (approval) procedures for requisitions in your company is optional. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-7  SAP AG 2003 Purchase requisition Purchase requisition Purchase requisition Purchase order Contract release order RFQ ? ? Purchase order Contract release order Purchase requisition Purchase requisition Further Processing of Purchase Requisitions Start automatic source determination Assign source manually Assign and process or Purchase requisition Vendor Source has been assigned Requisition processing No source assigned You can manually assign sources to purchase requisitions if a vendor had not been allocated. Sources are suggested by the system based on service or material group contracts or based on the service conditions for vendors (plant-specific or non-plant-specific). You can immediately generate purchase orders or release orders from assigned purchase requisitions (requisitions that have been assigned a source). You can assign sources and carry out other processing steps each in a separate process step, combine both process steps, or convert assigned requisitions by means of a report. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-8  SAP AG 2003 Vendor Maintain services in purchase requisition Assign sources Hour % Conditions EUR Service Service conditions conditions Possible Sources for External Services Purchase requisition Specs. Contract Vendor The SAP system can suggest potential sources for the procurement of required services. A source is valid for one purchasing organization. Sources are determined on the basis of existing contracts and available service conditions for vendors (plant-specific or non-plant-specific). I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-9  SAP AG 2003 Suggested Sources Purchase requisition - Material group Software consulting - Service 1580 Senior consultant P r i c e s i m u l a t i o n Vendor Conditions - Service 1580 EUR 260 Possible sources: Purchase order Contract release order Contract release order Contract Contract - Material group Software consulting - Service 1580 EUR 250 Vendor: Miller Corp. Exist? NO YES - Contracts for service X X X - Service conditions - Contracts for material group If conditions or contracts with service specifications exist for certain material groups, they are suggested as potential sources. If several sources are suggested, you can determine the most favorable one by carrying out a price simulation. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-10  SAP AG 2003 Customizing Source Determination Purchase requisition - Material group 005 Software consulting 1580 1590 1600 1635 At least one service All services No search at service level Service conditions Vendor Miller Corp. 1600 EUR 200 Contract 1600 … Contract Contract At least one service All services Service conditions Vendor Smith Co. 1580 EUR 180 1590 EUR 130 1600 EUR 200 1635 EUR 95 Same material group/ other services Customizing Customizing 1580 1590 1600 1635 … 5030 6700 6720 6800 - Material group 005 Software consulting Material group at item level Search at item level for contracts Using the Customizing activities Source determination and default values at the client or purchasing organization level, you can define whether: all contracts and master conditions that contain at least one of the services requested in a purchase requisition are to be suggested as possible sources or only those contracts or master conditions containing all the services requested in the requisition are to be offered for selection or a search for sources is to be conducted for the material group at item level. Automatic purchase order processing for services is also set in Customizing. A prerequisite for automatic PO creation from service requisitions is that the Automatic PO indicator has been set in the vendor master data. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-11  SAP AG 2003 Price available, but is based only on own estimate (service condition) No price available Price available, originates from listed source Price Simulation for Source Comparison Price available, but originates from vendor and service conditions, not from listed source Selection of a suitable source Selection of a suitable source Possible for one or all of the sources found Results for individual service or for outline level Colors indicate price origin X ? ? ? ? ? ? ? ? To simplify the selection among several sources, you can carry out a price comparison. The price comparison is possible for one or all of the sources listed. For each service line, it displays the individual price and total value. The price information about the sources is also compared to the current prices (of this requisition item) as well as to the "own estimate" (master condition for the service). For outline levels, it displays the following: First line of outline level: Total value of all subordinate outline levels Second line of outline level: Total value of all services belonging to the outline level I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-12  SAP AG 2003 Describe how the SAP system determines sources of supply Convert a requisition into a purchase order or contract release order You are now able to: Optimized Procurement: Unit Summary I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-13 Exercises Unit: Optimized Procurement After completing the exercise, you will be able to: • effectively assign your purchase requisitions to a source of supply and convert them to purchase orders • explain how the SAP system determines sources of supply Use available contracts and master conditions to check source determination for external service procurement. 1-1 Create a purchase requisition using the following data: Document type: NB Purch. requis. Standard) Item category: D Acct. assgt. cat.: K Delivery date: One month from today Plant: 1200 (Dresden) Purchasing Grp: Y## (SCM540-##) Material group: 007 Enter a short description for your requested service item 1-1-1 Transfer all services from your contract. 1-1-2 All services costs are covered by cost center 4110. Use the automatic repeat account assignment function so that this cost center for all additional services can be entered automatically by the system. 1-1-3 Enter any quantity. The quantities should be between two and ten and not fulfill the contract. Make sure that the total value of all services does not exceed EUR 2,000. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-14 1-1-4 Write down the data entered. Service __________________ Quantity _____Price ____________ Service __________________ Quantity _____Price ____________ Service __________________ Quantity _____Price ____________ Save the purchase requisition. Purchase requisition number: _________________________________ Add the information to your worksheet. 1-2 Your task as a buyer is also to assign a source supply to your purchase requisitions. You can convert these purchase requisitions into purchase orders. Use the Assign and Process function to convert the newly created requisition to a purchase order. Select purchase requisitions with your purchase group Y## and the material group 007. To list possible vendors, use the automatic source of supply assignment function. Compare prices and check especially sources of supply containing price data for all service items. Which possible source of supply most closely matches the purchase requisition? _______________________________________________________________ Assign your contract as a source of supply and save this assignment. Convert your assigned purchase requisition into a standard purchase order. Order number: ________________________________________________ Add the information to your worksheet. 1-3 (Optional) Verify if the newly created purchase order is now displayed in the release documentation of the assigned contract. _______________________________________________________________ 1-4 You can use a program to automatically create purchase orders for purchase requisitions with an assigned source of supply are assigned. This requires that you enable the automatic purchase order generation in Customizing for services and in the vendor master record. 1-4-1 (Optional) Verify if the setting in Customizing for automatic purchase order generation used for purchase requisition for services is activated. Which level (Client or Purchasing Organization) is important for your purchase requisitions? _________________________________________________________ 1-4-2 Verify if the automatic creation of purchase orders has been enabled for vendor T-K540B##. Enable the indicator if it has not been set. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-15 1-4-3 Create an additional purchase requisition using document type standard purchase requisition. Use the copy function and your purchase requisition from exercise 1-1 (exercise 6) as a template. Increase the quantity of requested services total above EUR 2,000. Verify if your contract has already been assigned as a source of supply. Purchase requisition number: ___________________________ 1-4-4 Execute the automatic purchase order generation. Select the purchase requisition containing your purchasing group and vendors in your contract. Create a new purchase order for each purchase requisition. Purchase order number: ______________________________ Add the information to your worksheet. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-16 Solutions Unit: Optimized Procurement 1-1 Create a purchase requisition using the following data: In the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Purchase Requisition → Create Enter the purchase requisition using the following information: Document type NB (normal purchase requisition) Acc. assgt. cat. K Item Category D Short text Any description Delivery date One month from today Material group 007 Plant 1200 (Dresden) Purchasing Grp Y## (SCM540-##) 1-1-1 Adopt all of the services from your contract. Access the detailed data for the item in the Services tab. Choose icon Service Selection. Choose From purch. Document and enter your contract and item numbers. Select all service lines. Select icon Adopt services. 1-1-2 All services costs are covered by cost center 4110. For this reason, use the automatic repeat account assignment function so that the system can assign this cost center for all subsequent services automatically. Enter the following information for the account assignment: G/L account 417000 Cost center 4110 Choose icon Automatic repeat account assignment. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-17 1-1-3 You can enter any quantities you wish. They should be between two and ten and not yet fulfill the contract. Make sure that the total value of all services does not exceed EUR 2,000. Change the quantities in the service lines. Save the purchase requisition. Click Save. 1-2 Your tasks as a buyer include the assignment of sources to your purchase requisitions. You then convert these purchase requisitions into purchase orders. Use the Assign and Process function to convert the newly created requisition into a purchase order. Select the purchase requisitions with your purchase group Y## and the material group 007. In the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Purchase requisition → Follow-on Functions → Assign and process Enter the following information into the selection screen: Purchasing group Y## (SCM540-##) Scope of list ALV Material group 007 Choose Execute. Three screen areas are displayed. Choose Collapse assignment, if applicable, and Expand items to enable you to better see the bottom part of the screen. The item overview displays all requisitions you have selected and shows the icon, where applicable, in the Sources column to indicate that a source has already been assigned. Use the automatic source assignment function to list possible vendors. Select you purchase requisition and choose Assign source to list the possible sources. The area with the detailed data for the item on the Source tab shows an overview of all sources that were found by the system for your requisition item. Compare prices and check specifically which source of supply contains price data for all service items. Which possible source of supply most closely matches the purchase requisition? Assign your contract as a source of supply and save this assignment. Choose icon Price simulation, show all. Analyze the results. Your contract from task 3- 1 (exercise 5), Services in Purchasing Documents unit, should be the best source. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-18 Click Back. Select your source (contract) in the icon Assign source column and, if needed, choose icon Assigned source. The item overview now shows the assignment of one of several possible sources for your requisition item. This is indicated by the icon in the Sources column. Click Save. Now convert your assigned purchase requisition into a standard purchase order. Close the screen areas at the bottom and open the screen area at the top. Select Collapse item details and, if necessary, Collapse items as well as Expand assignment to allow you to further edit the assignments. Select the Assignments tab. Select the assignment shown. If the list contains more than one assignment, select only the one you wish to process. Choose Generate purch. ord. Select Standard PO as the document type. Select the open purchase requisition by placing the cursor on it in the document overview and choose Adopt. Complete your purchase order, where necessary. Click Save and exit this transaction by clicking Exit. 1-3 (Optional) Check to see if the newly created purchase order is now displayed in the release documentation of the assigned contract. In the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Outline agreement → Contract → Display Enter your contract number and click Enter. Select the appropriate contract item and choose Release Documentation. Yes, the release documentation does contain this purchase order. 1-4 You can use a program to automatically create purchase orders for purchase requisitions with an assigned source of supply. As a prerequisite, you must have enabled the automatic purchase order generation in Customizing for services and in the vendor master record. 1-4-1 (Optional) Check to see if the automatic purchase order generation for purchase requisitions for services is enabled in Customizing. Which of the two levels (Client or Purchasing Organization) is important for your purchase requisitions? In the SAP Easy Access menu, select the following: Tools → Customizing → IMG → Execute Project Choose icon SAP Reference IMG. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-19 Choose: SAP Customizing Implementation Guide → Materials Management → External Services Management→ Source determination and default values → for Client The Automatic PO generation for service requisitons indicator is set at client level. Choose: SAP Customizing Implementation Guide → Materials Management → External Services Management→ Source determination and default values → for Purchasing Organizations Select purchasing organization 1000 and choose Detail. The Automatic PO generation for service requisitions indicator has also been set for purchasing organization 1000. This indicator is curucial for your work. 1-4-2 Check to see if the automatic creation of purchase orders has been enabled for your vendor T-K540B## . If it has not been set, please do so. In the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Master data → Vendor → Purchasing → Change (current) On the initial screen, enter the vendor number and the purchasing organization. Select Purchasing Data. Vendor T-K540B## Purchasing Organization 1000 The Automatic PO indicator is part of the control data and may already have been set. If it has not been set, please do so. Click Save. 1-4-3 Create another purchase requisition using the document type Purch. requis. Stand. Use the copy function and your purchase requisition from task 1-1 (exercise 6) as a template. Increase the quantities for the services ordered so that the total value exceeds EUR 2,000. Check whether your contract is already assigned as source of supply. In the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Purchase Requisition → Create Click icon Document overview on. Select Selection variant. Choose My purchase requisitions. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 5-20 Select the purchase requisition you most recently created by placing the cursor on it in the document overview and choose Adopt. Click icon Document overview off. Go to the item details on the Services tab and increase the quantities ordered per service. Select the Source of Supply tab. Your contract should already be assigned as source of supply. Click Save. 1-4-4 Create a purchase order automatically from the requisition. Select the purchase requisitions with your purchase group and the vendor of your contract. Create a new purchase order from each purchase requisition. From the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Purchase Requisition → Follow-on functions → Create purchase order → Automat. via Purchase Requisitions Enter the following information into the selection screen: Purchasing Grp Y## (SCM540-##) Vendor T-K540B## In the New purchase order screen area, select Per requisition. Choose Execute. An overview is displayed showing the purchase orders that have been generated, information about the converted requisitions, and the contracts from which the orders have been released. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-1  SAP AG 2003 Entry of services planned and performed in a service entry sheet Acceptance and approval of service entry sheets Reporting and Purchase Order History Entry and Acceptance of Services Planned: Contents: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-2  SAP AG 2003 Enter services planned Accept and approve services Display the purchase order history Create reports on services At the conclusion of this unit, you will be able to: Entry and Acceptance of Services Planned: Unit Objectives I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-3  SAP AG 2003 Entry and Acceptance of Services Planned: Course Overview Diagram Services in Services in Purchasing Purchasing Documents Documents Integration Integration with Other with Other Processes Processes Course Overview Course Overview Entry Entry and and Acceptance Acceptance of Services of Services Planned Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for for Services Services Invoicing Invoicing Plans Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Master Data Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-4  SAP AG 2003 Instead of entering a goods receipt for a material, you create service entry sheets to track the actual consulting, maintenance or repairs completed. Two releases (approvals) are required for service entry sheets with a total value greater than EUR 2,000. When the total value is less than EUR 2,000, you can accept the service entry sheet directly. Entry and Acceptance of Services Planned: Business Scenario I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-5  SAP AG 2003 Service sel. Overview Service Entry: ML81N Transaction Other purch. order Entry sheet for PO Short text Header tab Display/change Display PO Tree on/off Select PO Create entry sheet Accept Copy entry sheet The services performed by a vendor are recorded in the service entry sheet with reference to the purchase order. You can maintain all data (header and service data) in the service entry transaction on one screen. When you call this function, the display mode is active. Select the purchase order for which you want to create the service entry sheet by choosing Other purch. order. Then start the entry process by choosing Create entry sheet. You can also copy an existing service entry sheet. You can either enter the services manually or use the Service Selection button to select them from the purchase order or from a model service specification, for example. If you have stored limits in the purchase order, you can manually enter additional unplanned services up to this limit. You can only enter a service provider's invoice for a purchase order after the service entry sheet has been accepted. You can perform the acceptance at the same time you create an entry sheet, provided no matching release strategy is stored for the acceptance process. You can also accept service entry sheets collectively (ML85 transaction). Choose Tree on/off to show on the left side of the screen a list of purchase orders for whom services have been entered recently, along with their respective service entry sheets. In this list, double-click a service entry sheet to select it to display, modify or copy it. In SAP R/3 Enterprise and later, you can retroactively modify a time or quantity entry in a time sheet that you have already transferred into a service entry sheet and use the new data right away to create a new service entry sheet. As soon as you also transfer the modified time sheet to External Services, the system additionally generates not only a service entry sheet with the new data, but also a service entry sheet in which the original data is reset and the returns indicator is set. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-6 Note: A return is only possible when a time sheet is used and transferred to External Services (cats/catm). The returns indicator cannot be set manually, but is set by the system when a modified time sheet is transferred to External Services. The existing service entry sheet is canceled by the returns sheet that has been additionally generated. You can monitor this in the purchase order history of the underlying purchase order. To enable returns of time sheets during service entry, you must select the corresponding activation indicator in the Customizing of the external service: Source determination and default values for Client +++Retoure aktiv I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-7  SAP AG 2003 Creating a Service Entry Sheet Value limit: for unplanned services up to EUR 20,000 (maximum) ? ? Service specification for purchase order item 10 Selection of software components 01 Define requirements Senior consultant 4 days EUR 2,000 per day 20 Customization of components Consultant 10 days EUR 1,400 per day Senior consultant 6 days EUR 2,000 per day 01 Revise Component A Junior consultant 10 days EUR 1,000 per day 02 Test adjusted configuration … Modify Component Q Consultant 10 days EUR 2,100 per day Service entry sheet April 7 10 Selection of software components 01 Define requirements Senior consultant 4 days EUR 2,000 per day 20 Customization of components Consultant 10 days EUR 1,400 per day Senior consultant 6 days EUR 2,000 per day 01 Revise Component A Junior consultant 10 days EUR 1,000 per day 02 Test adjusted configuration … When entering services, you refer to the purchase order. Planned services can be adopted directly in the service entry sheet. Planned services are allowed up to the quantities in the purchase order. You can only enter a larger quantity of services than was ordered if an overdelivery was allowed in the purchase order item at the service level. For unplanned services, a precise description, quantity, and price data are not provided until the services actually performed are entered into the system. Unplanned services are allowed only when corresponding limits have been defined in the purchase order item. When you enter unplanned services, the system checks whether they conform to the limit set in the purchase order. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-8  SAP AG 2003 Service Entry and Account Assignment EUR 475 Service entry sheet Total: Account assignment single or multiple Senior consultant Junior consultant Computer hours 1h 1h 1h EUR 250 EUR 125 EUR 100 Account A 50% Account A Account B PO history Service entry GR item 1 GR item 2 EUR 475 EUR 225 EUR 250 Material Accounting document document Account A Account B 125 + 100 = EUR 225 125 + 125 = EUR 250 Summation at time of service acceptance Account B 50% When procuring external services, you must ensure that the relevant account assignments are made not later than the time the services actually performed are recorded in the system. You enter the 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, generally a valuated acceptance is carried out. A goods receipt line item is inserted in the purchase order history for each account assignment item. At the time the entry sheet is accepted, a material document (goods receipt document) is generated. If the goods receipt is valuated, the accounting documents (FI document, Controlling document, profit center document) are generated in addition to the material document. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-9  SAP AG 2003 Message Output for Service Entry Sheet Service entry sheet Printer Fax Linked to message determination If you wish to transmit an entry sheet to the service provider (as a hardcopy printout, as a fax, or via electronic data interchange (EDI), for example), you can have the system automatically generate a message (in this case, in the form of a printed document). 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. You can set up the message output facility for service entry sheets in Customizing for External Services Management under Messages. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-10  SAP AG 2003 Release Procedure for Service Entry Sheets Service entry sheet 3 5 Technical release Commercial release and acceptance Release points: 2 4 1 Strategy 5 Service entry sheet You also can make service entry sheets subject to a release (approval) procedure. Depending on the setting in Customizing, there may be different release procedures involving different release points (individuals or departments) within your enterprise. Each one of them 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. The release strategy can include up to eight release codes and uses classification to select the characteristics for approval requirements. The following example lists possible characteristics of an approval procedure: Only for entry sheets whose value exceeds EUR 5,000 Only for entry sheets that are assigned to a specific cost center First approval performed by a logistics manager Second-level approval performed by an accounting manager First level must approve before the second level can approve I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-11  SAP AG 2003 Service Acceptance Entry Acceptance Accounting Dept. Service entry sheet Service entry sheet Total value EUR 22,000 Services . . . After services that have been performed for your firm have been recorded in the service entry sheet, one or more responsible persons (depending on the system settings) must check that the work is 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. You have the following options: The same person carries out the processes of service entry and acceptance. Service entry and service acceptance are organizationally separated, in order to preserve the dual control principle. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-12  SAP AG 2003 Service Acceptance with Release Procedure Entry Acceptance Service entry sheet Total value EUR 22,000 Services . . . Differentiated worklists Release procedure 1 2 3 by collective release Accounting Dept. Service entry sheet Service entry sheet If a service entry sheet is subject to a release strategy, as a rule it must be released (approved) by several individuals (multi-step acceptance/approval). Although service entry sheets can be released individually, collective release is the usual approach adopted. This means that you create worklists of all service entry sheets you are required to release within a certain period. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-13  SAP AG 2003 Purchase Order History PO 1234 Specs. Invoice 5678 Vendor A Software implementation EUR 21,000 Service entry sheet List of follow-on activities – All services performed to date – Entered but not accepted – All services performed to date – Entered and accepted All invoices = SEnt = GR = RE-L EUR 21,000 EUR 21,000 Service entry sheet The purchase order history shows all follow-on documents for a purchase order item in a list. It lists all service entry sheets. The material documents (goods receipt documents) are displayed for all accepted entry sheets. All invoices of the service provider for the purchase order item are listed. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-14  SAP AG 2003 Comparison of Planned/Actual Values PO 1234 Specs. 01 Selection of software components Service specifications Total values 50% Actual in % Total value Actual value 50,000 25,000 During the phase of service performance, the cumulative "actual" values (for the services actually performed) are continually updated in the underlying purchase order (standard PO or contract release 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 view also shows the value and percentage – based on the purchase order value – that has been entered at the current date. This applies to the services that have been performed and entered by the current date. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-15  SAP AG 2003 You are now able to: Entry and Acceptance of Services Planned: Summary Enter services planned Accept and approve services Display the purchase order history Create reports on services I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-16 Exercises Unit: Entry and Acceptance of Performed Services After completing this exercise, you will be able to: • Enter planned services • Approve and release the service entry sheets • Analyze purchase order history regarding service entry and acceptance. • Use list displays and service analyses Enter performed services for repairs, maintenance and consultant services in a service entry sheet and partially accept them. Service entry sheets exceeding EUR 2,000 are subject to a release procedure, meaning you need to accept other employees for them. 1-1 You created several purchase orders. The ordered services have been already performed. Create a service entry sheet for the purchase order 1 in the Optimized Procurement unit (exercise 1-2). This order contains only planned services assigned to cost center 4110. 1-1-1 Enter a short description for the service entry sheet and update (optional) the other text fields such as the External Number field. Which default for account assignment category appears? Can it be changed? _________________________________________________________ 1-1-2 Transfer all services in the purchase order for the service selection. Check the various quantity entries. Compare the value changes on the Values tab page. Can you increase the quantity above the order quantity? _________________________________________________________ Your service provider carried out work over several days and will send separate invoices. Enter only part of the ordered services. Enter only half of the amount ordered for each service. Make sure that the total of the services performed does not exceed EUR 2,000. 1-1-3 Instead of using the account assignment data in the order, assign the first service to cost center 4220. Change the assigned cost center for your first service in the service overview. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-17 1-1-4 Find the Tax column and set the tax code to 0i (input tax for training 0%) if it is not the default value. 1-1-5 Accept the service entry sheet (a separate release is not required for a total less than EUR 2,000). Note the traffic light color before and after acceptance. Do NOT execute a release if a release strategy for the service entry sheet is already active. Save your service entry sheet and the acceptance. Write down the number of the first service entry sheet. Number of service entry sheet 1: __________________ Add the information to your worksheet. 1-1-6 Copy the newly created service entry sheet and use it to invoice the second part of the work completed by the service provider. Accept and save this service entry sheet. Write down the number this service entry sheet. Number of service entry sheet 2: __________________ Add the information to your worksheet. If the value of the service entry sheet exceeds EUR 2,000, it must be released before being accepted. 1-2 Check the updated entry sheets in the SAP system. 1-2-1 Display your service entry sheets. What color is the traffic light after you save the acceptance? _________________________________________________________ 1-2-2 Analyze the purchase order history for this purchase order item. Which purchase order history categories are displayed? How many lines for the purchase order history category GR are displayed? Why? _________________________________________________________ _________________________________________________________ _________________________________________________________ 1-2-3 Display the purchase order 1 from the Optimized Procurement unit (exercise 1- 2). Is there information on entered quantities and orders for each service available? _________________________________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-18 1-3 Ordered services have also been performed for purchase order 2 in the Optimized Procurement unit (exercise 1-4-4). A service entry sheet needs to be created. Transfer all services from the purchase order. The total of the performed services should exceed EUR 2,000. Can you accept this service entry sheet? _______________________________________________________________ Do NOT execute a release if a release strategy for the service entry sheet is already active. Number of service entry sheet 3: ________________________ Add the information to your worksheet. 1-4 Release any entry sheets if they need approval by using collective release. 1-4-1 From the technical aspect you are responsible for the entry sheet release. Use code FA for a release and limit entry sheet selection by choosing only service entry sheets from your purchasing group. 1-4-2 You are the employee responsible for accounting. Release your purchasing group’s service entry sheets. Use release code KA. 1-5 View these reports: 1-5-1 The List display for the use of services in purchasing document is used for displaying purchasing documents in which these services are used. 1-5-2 The Planned/actual comparison report is for displaying the quantity and value of ordered service lines, accepted services, and invoiced services. 1-5-3 List display for your service entry sheet status. 1-5-4 (Optional) Standard Analysis of your two suppliers T-K540A## and T- K540B## in the logistics information system for services. Display data as a graph. Choose key figures to display additional data. 1-6 (Optional) 60% of the planned services were performed for your purchase order in the Services in Purchase Documents unit (exercise 2-5). Enter these services in an additional service entry sheet. To select services, choose: Entry sheet → Create → With Planned Services. Check the individual services and quantities. Make sure that you have entered an outline that can only be displayed in Full Screen Services. Accept these services. Service entry sheet: _______________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-19 Solutions Unit: Entry and Acceptance of Services Performed 1-1 You have created several purchase orders. The ordered services have been already performed. Create a service entry sheet for purchase order 1 in the Optimized Procurement unit (exercise 1-2). This purchase order contains only planned services assigned to cost center 4110. In the SAP Easy Access menu choose: Logistics Materials Management Service Entry Sheet Maintain Choose either Tree on/off to display the document overview (if it is not displayed) and choose your order by double-clicking the document overview, or choose icon Other Document and enter the order number and then choose Continue. Choose Create Service Entry Sheet. 1-1-1 Enter a short description in the service entry sheet and update the other text fields, such as the External Number field (optional). Which account assignment category default is shown? Can it be changed? Enter a short description in the service entry sheet describing the first part of the services performed. You can also enter a number in the External Number field and long text describing the service location of the services and time period. Account assignment category C (Cost center) is given as a default value. It cannot be changed. 1-1-2 Transfer all services in the purchase order. Check the various quantities entered. Compare the value changes to the values on the Values tab page. Can you increase the quantity above the order quantity? Your service provider carried out the work over several days and will send separate invoices. Enter only part of the ordered services, not more than half of the ordered quantity for each service. Make sure that the total amount of services performed does not exceed EUR 2,000. Choose icon Service Selection, choose from Purchase Order, and then choose Continue. Select all purchase order services and choose icon Adopt Services. Choose the Values tab page and view the net value including input tax, or the total value. Reduce the quantity for one service. Both values will be reduced. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-20 Now increase the quantity for the same service above the ordered quantity. When you enter planned services, the standard system does not allow the order quantity to be exceeded if no overdelivery tolerances were entered in the purchase order. To meet your company’s requirements you can customize the message type of message SE 363. Now that you know the system response for quantity changes, enter the final quantity (no more than half of the ordered quantities for each service) so that the total value does not exceed EUR 2,000. 1-1-3 Instead of using the account assignment data in the order, assign the first service to cost center 4220. Change the assigned cost center for your first service in the service overview. Scroll to the right in the service overview until the column Cost Center appears. Cost center 4110 is the default for each service line in the purchase order item. Assign cost center 4220 to the first service. 1-1-4 Find the Tax column and set the tax code to 0i (input tax for training 0%) if it is not the default value. Scroll to the right in the service overview until the Tax Code column appears. The purchase order item also contains a default tax code. Choose 0i as the tax code for each service if a code other than 0i appears. 1-1-5 Accept the service entry sheet (a separate release is not required for total values less than EUR 2,000). Note the traffic light color before and after the acceptance. Do NOT execute a release if a release strategy for the service entry sheet is already active. Save your service entry sheet and the acceptance. Make a note of the first service entry sheet’s number. The traffic light now shows the status no acceptance. Choose Accept. Now the status is accepted is displayed. You can no longer change any fields. However, if necessary, you can choose Undo Acceptance to make corrections before saving the data. Choose Save. The service entry sheet status is now accepted. 1-1-6 Copy the newly created service entry sheet to invoice the second part of the work completed by the service provider. Accept and save this service entry sheet. Make a note of this service entry sheet’s number as well. Choose Copy Entry Sheet and enter the short description of the new entry sheet and any additional data in the header level. Choose Accept. Choose Save. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-21 1-2 Check the updated entry sheets in the SAP system. 1-2-1 Display your service entry sheets. What color is the traffic light after you save the acceptance? In the SAP Easy Access menu choose: Logistics Materials Management Service Entry Sheet Maintain Choose Tree on/off to display the document overview (if it does not appear). The document overview displays your service purchase order items with service entry sheets that have already been entered and may have been accepted. Service entry sheets that have been accepted appear with the green icon . 1-2-2 Analyze the purchase order history of this purchase order item. Which purchase order history categories appear? How many lines for purchase order history category GR appear? Why? In the SAP Easy Access menu choose:Logistics Materials Management Service Entry Sheet Maintain Choose an accepted entry sheet and then choose Environment → Purchase Order History. An overview appears with the follow-on documents for your selected order item. Both service entry sheets appear for the service entry transaction from your purchase order 1 from the Optimized Procurement unit (exercise 1-2). Four lines appear for the Goods Receipt transaction. Two lines display the same material document number because the system displays the first line with an account assigned to cost center 4110 and the second with an account assigned to cost center 4220. Choose change view and choose Services followed by GR/IR-assignment to get acquainted with other displays. Choose Back. 1-2-3 Display purchase order 1 from the Optimized Procurement unit (exercise 1-2). Is there information on entered quantities and orders for each service available? In the display area of the service entry sheet, choose PO display. In the Item details choose the Services tab. Select all services and choose Detail. You can see the actual quantity on the Statistics tab page and the value entered for the service chosen. Choose Next Line. Choose Continue. Choose Full Screen Services to view the comparisons between planned and actual values for all services of a purchase order item. Choose Outline On/Off. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-22 Choose Outline → Total Values. Drag & drop the separators between the service directory outline and the services area if needed. You can see the total value, fulfillment percentage and actual value for the selected outline level. Choose Back. 1-3 Ordered services have also been performed for purchase order 2 in the Optimized Procurement unit (exercise 1-4-4). You also need to create a service entry sheet for these services. Transfer all services from the purchase order. The total value of services performed should exceed EUR 2,000. Can you accept this service entry sheet? Do NOT execute a release if a release strategy for the service entry sheet is already active. In the SAP Easy Access menu choose: Logistics Materials Management Service Entry Sheet Maintain Choose icon Other Document and enter the purchase order number. Choose Continue. Choose Create entry sheet. Enter a short description in the service entry sheet describing the services performed. Choose icon Service Selection, choose from Purchase Order, and then choose icon Continue. Select all services in the purchase order and choose icon Adopt services. Choose the Values tab page and view the net value including input tax or the total value. Is the total value at least EUR 2,000? If not, increase the quantity in the purchase order. Position the cursor on the icon. The Release Quick info is displayed instead of Accept. Choose: Goto → Entry Sheet → Release Strategy. The new entry sheet is subject to an approval procedure with the release strategy S1 (SCM540). The releases have to be executed using release codes FA and KA. Choose Save. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-23 1-4 Use the collective release to release entry sheets subject to a release strategy. In the SAP Easy Access menu choose: Logistics → Materials Management → Service Entry Sheet → Collective Release 1-4-1 From the technical aspect you are responsible for releasing the entry sheet. Use code FA for a release, and limit entry sheet selection by choosing only service entry sheets from your purchasing group. Enter the following data: Release code FA Purchasing Group Y## (SCM540-##) Transfer all additional default values from the initial screen. Choose Execute. Select the line that contains your service entry sheet. Choose Continue. The status of the service entry sheet remains unchanged ( no Acceptance). Choose Save. 1-4-2 You are the employee responsible for accounting. Release your purchasing group’s service entry sheets. Use release code KA. Enter the following information: Release code KA Purchasing Group Y## (SCM540-##) Transfer all additional default values from the initial screen. Choose Execute. Select the line that contains your service entry sheet. Choose Continue. Now the status of the service entry sheet is is Accepted. Choose Save. Enter dates, a reference and the document header text if needed. Choose Continue. 1-5 View the following reports: 1-5-1 The List display for the use of services in purchasing document is used for displaying purchasing documents in which these services are used. In the SAP Easy Access menu choose: Logistics → Materials Management → Purchasing → Purchase order → List displays → External services → by service Choose Y## for your purchasing group. Now select the document types you want to use for your analysis and then choose Execute. You now have an overview of your services with quantity and value entries as well as documents in which services were used. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-24 1-5-2 The Planned/actual comparison report is for displaying the quantity and value of ordered service lines, accepted services, and invoiced services. In the SAP Easy Access menu choose: Logistics → Materials Management → Purchasing → Purchase order → List displays → External services → Planned/actual comparison Select Y## for your purchasing group and then choose execute. An overview grouped by purchase orders appears, which displays the quantities and values for your ordered services as well as the entered, accepted and invoiced quantities and values. The progress for entering, acceptance, and invoicing services performed is indicated by an icon for each of these follow-up transactions. The icon shows that the total quantity was further processed for each transaction (if the total quantity entered was accepted for example). The icon shows that the subsequent process was started, but the entire quantity still has not been processed (if two service entry sheets were created from which only one was accepted for example). The icon shows, that the subsequent process has not been started. 1-5-3 List display for your service entry sheet status In the SAP Easy Access menu choose: Logistics →Materials Management → Service entry sheet → List Analyses → for Purchase Order Select Y## for your purchasing group and then choose all blocking indicators and all acceptance indicators. Choose Execute. An overview grouped by purchase orders appears, which displays your service entry sheets along with value and status information. The icon indicates, that the service entry sheets were already accepted. The icon indicates that the service entry sheets have not yet been accepted or approved. 1-5-4 (Optional) Standard Analysis of your two suppliers T-K540A## and T- K540B## in the logistics information system for services Display the data as a graph. Choose other key figures to display additional data. In the SAP Easy Access menu choose: Logistics → Materials Management → Purchasing → Purchase order → Reporting → Purchasing Information System → Standard Analysis → Service Enter both of your vendor numbers. To do so choose Multiple Selection. Choose Execute. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 6-25 You now have an overview of your services with the key figures order value, accepted value and invoice value. You can double-click a service to display the key figures for each vendor. Choose Graphics...and confirm the quoted key figures by clicking Continue. Choose Back. Choose Choose key figures to display additional key figures in the overview. 1-6 (Optional) 60% of the planned services were performed for your purchase order in the Services in Purchase Documents unit (exercise 2-5). Enter these services in an additional service entry sheet. To select services, choose the following: Entry sheet → Create → With Planned Services. Verify the individual services and quantities. Make sure that you have entered an outline that can only be displayed in Full Screen Services. Accept these services. In the SAP Easy Access menu choose: Logistics → Materials Management → Service Entry Sheet → Maintain Choose icon Other Document and enter the purchase order number. Choose Continue. Choose Entry sheet → Create → With Planned Services. In the Quantity in Percent field, enter 60%. Choose Continue. Enter a short description for the service entry sheet. Choose Full Scr. Services. Choose Outline on /off to display the outline and the individual services for each outline level. Make a note of individual quantity specifications. Choose Back. Choose Purchase Order Display. In the Item details choose the Services tab. Choose Full Scr. Services. Choose Outline on /off to display the outline and the individual services for each outline level. Compare the quantity specifications for each service from the purchase order (= 100%) with the specifications in the service entry sheet (= 60%). Choose Back. Choose Accept. Choose Save. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-1  SAP AG 2003 Vendor Invoices with Reference to a Purchase Order or Service Entry Sheet Service-Based Invoice Verification Evaluated Receipt Settlement Invoice Verification Contents: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-2  SAP AG 2003 At the conclusion of this unit, you will be able to: Invoice Verification: Unit Objectives Verify invoices with reference to service entry sheets I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-3  SAP AG 2003 Invoice Verification: Course Overview Diagram Services in Services in Purchasing Purchasing Documents Documents Integration Integration with Other with Other Processes Processes Course Overview Course Overview Entry Entry and and Acceptance Acceptance of Services of Services Planned Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for for Services Services Invoicing Invoicing Plans Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Master Data Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-4  SAP AG 2003 You conduct the invoice verifications as the last step in the procurement process. Furthermore, you are looking into the automatic settlement of services. Invoice Verification: Business Scenario I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-5  SAP AG 2003 Invoice Verification for Services: Reference to a Purchase Orders Vendor PO ABC 450722 Software Ltd. Item 10 Service Quantity Price 1234 10 SU 1,000/SU 1287 20 SU 500/SU 9687 20 SU 400/SU … Service entry sheet 1 03/15/2005 PO 450722, Item 10 Service Quantity Price 1234 10 SU 1,000/SU 1287 8 SU 500/SU Value 14,000 Service entry sheet 2 03/25/2005 PO 450722, Item 10 Service Quantity Price 1287 10 SU 500/SU 1287 10 SU 400/SU Value 9,000 Invoice ABC Software Ltd. Services of ... 03/15/2005 14,000 03/25/2005 9,000 Total 23,000 Invoice verification with reference to PO Purch. order 450722 10 Sheet 1 14,000 Sheet 2 9,000 … To invoice external services, a service entry sheet must have been created in the service purchase order default where the services to be performed are specified in detail. The service acceptance of the services performed is equivalent to a goods receipt of materials. The accepted services can then be invoiced in Invoice Verification. When you enter an invoice, the suggested values for quantities and amounts to be invoiced are determined in the same way as when you verify an invoice for purchase order items with the item category Normal. Tolerances are also checked in the same way as for Normal items. You can also enter partial invoices for service purchase orders. When the balance is zero, the invoice can be posted and the payment can be initiated. The SAP system compares the price shown in the invoice with that of the service entry sheet. In the event of variances beyond the specified tolerances, the invoice can be posted but is blocked for payment. You can invoice accepted services based on goods received or based on services performed. Case 1: You can enter invoices for services performed by specifying the purchase order number and, if applicable, the item number. Depending on the GR/IR indicator set in the purchase order, you can choose from the quantities and values of the purchase order items or from the quantities and values for all service entry sheets accepted for this purchase order. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-6  SAP AG 2003 Invoice Verification for Services: Reference to Service Entry Sheet Vendor PO ABC 450722 Software Ltd. Item 10 Service Quantity Price 1234 10 SU 1,000/SU 1287 20 SU 500/SU 9687 20 SU 400/SU … Service entry sheet 1 03/15/2005 PO 450722, Item 10 Service Quantity Price 1234 10 SU 1,000/SU 1287 8 SU 500/SU Value 14,000 Service entry sheet 2 03/25/2005 PO 450722, Item 10 Service Quantity Price 1287 10 SU 500/SU 1287 10 SU 400/SU Value 9,000 Invoice ABC Software Ltd. Services of March 15, 2005 1234 10 SU 10,000 1287 8 SU 4,000 Total 14,000 Invoice verification based on SES Service entry sheet 1 Sheet 1 14,000 … Case 2: You can enter invoices for services performed by specifying the number(s) of accepted service entry sheets. If you are working with the GR-based, but not the service-based invoice verification, an item line will be suggested to you for each service entry sheet specified when you enter the invoice. Each item line contains the total value of the entry sheet's services, but no quantity specifications. You can overwrite the suggested amount with the actual invoice amount; if multiple accounts have been assigned, you must call up an additional screen to do so. Items for which the invoice verification is performed based on the goods received, and not based on the services, automatically receive the indicator for GR/IR clearing. As a result, the GR/IR clearing account is settled even if the invoice amount differs from the service acceptance value. You can set the final invoice indicator to cancel the purchase order commitment if fewer services need to be settled than were ordered. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-7  SAP AG 2003 Invoice Verification for Services: Service-Based Invoice Verification Vendor PO ABC 450722 Software Ltd. Item 10 Service Quantity Price 1234 10 SU 1,000/SU 1287 20 SU 500/SU 9687 20 SU 400/SU … Service entry sheet 1 03/15/2005 PO 450722, Item 10 Service Quantity Price 1234 10 SU 1,000/SU 1287 8 SU 500/SU Value 14,000 Service entry sheet 2 03/25/2005 PO 450722, Item 10 Service Quantity Price 1287 10 SU 500/SU 1287 10 SU 400/SU Value 9,000 Invoice ABC Software Ltd. Services of March 15, 2005 1234 10 SU 10,000 1287 8 SU 4,000 Total 14,000 Invoice verification based on SES Service entry sheet 1 1234 10 SU 10,000 1287 8 SU 4,000 Case 3: You want to be able to enter invoice items not only for each service entry sheet, but also for each individual service. This will display price variances per service, for example. You can achieve this through service-based invoice verification. You set the indicator for the service-based invoice verification in the purchase order item (suggestion: from the vendor master record). In Invoice Verification, you then obtain a separate item line for each service line of an accepted service entry sheet for which you want to enter the invoice. This item line contains suggested values for quantity and price taken from the service entry sheet. In Purchase Order History, the system displays the service number, the service quantity and the service value for each goods receipt (= acceptance document) and each invoice receipt. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-8  SAP AG 2003 850.00 Purchase Order History 1: Without Service-Based Invoice Verification Short ... Trans. ... Material Doc. Item Quantity UOM LC Amount LC GR GR GR GR 101 101 101 101 5000011015 5000011015 5000011007 5000011007 1 2 1 2 300.00 200.00 100.00 200.00 EUR EUR EUR EUR Goods receipt operation 800.00 EUR RE-L RE-L RE-L RE-L 5105608515 5105608515 5105608507 5105608507 1 2 1 2 307.20 204.80 102.00 204.00 EUR EUR EUR EUR Invoice receipt operation 818.00 EUR SEnt SEnt SEnt 100000160 100000141 100000140 50.00 500.00 300.00 EUR EUR EUR Service entry operation 850.00 EUR For each purchase order item of the item category Service, the purchase order history displays all service entry sheets with the value of the services entered. At the time of the acceptance of a service entry sheet, by default a material document and the accounting documents (FI document, Controlling document, profit center document and Special Purpose Ledger, for example) are posted. If one service is assigned to multiple accounts or if each service is assigned to a different account, a material document line is posted per account assignment. When you enter the incoming invoice, you can enter price/amount variations per service entry sheet (per material document) or per account assignment. A more differentiated overview by services is not available when you are not using the service-based invoice verification process. You can also display the purchase order history using the Service or GR/IR assignment views. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-9  SAP AG 2003 850.00 Purchase Order History 2: With Service-Based Invoice Verification Short ... Trans. ... Material doc. Item Quantity UOM LC amount LC GR GR GR GR 101 101 101 101 5000011016 5000011016 5000011008 5000011008 1 2 1 2 300.00 200.00 120.00 200.00 EUR EUR EUR EUR RE-L RE-L RE-L RE-L 5105608517 5105608517 5105608509 5105608509 1 2 1 2 307.50 204.00 123.00 204.00 EUR EUR EUR EUR EUR SEnt SEnt SEnt 100000162 100000145 100000142 50.00 500.00 320.00 EUR EUR EUR EUR Service 000…100200 000…100207 000…100200 000…100207 000…100200 000…100207 000…100200 000…100207 EUR 5 4 2 4 Goods receipt operation SU SU SU SU 820.00 5 4 2 4 SU SU SU SU 838.50 Invoice receipt operation 870.00 Service entry operation When you are working with service-based invoice verification, the purchase order history provides detailed information about the services accepted and invoiced. It displays the quantities and amounts for each service that were accepted and invoiced. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-10  SAP AG 2003 Service entry Service entry sheet Goods receipt M MM M Material = In materials procurement, GR-based invoice verification is optional. In the procurement of external services of item category D, GR-based invoice verification is mandatory for an evaluated goods receipt document. This makes it easy to enter a separate invoice for each service entry sheet of a purchase order item. GR-Based Invoice Verification Service When you enter an invoice with reference to a purchase order, the SAP system provides you with most of the data in the form of default values. You need to enter only a small amount of data directly. GR-based invoice verification (that is, entering invoices for services with reference to a service entry sheet) allows each service entry sheet relating to a purchase order to be invoiced separately. Only services with approved service entry sheets may be invoiced with GR-based invoice verification. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-11  SAP AG 2003 Bank transfer Invoice Evaluated Receipt Settlement Service entry sheet 1 Purchase order Service 1 10 SU at 500/SU Service 2 20 SU at 400/SU Service 1 4 SU at 500/SU2,000.00 Service 2 10 SU at 400/SU4,000.00 + Message to vendor Invoice Service 1 4 SU 2,000.00 Service 2 10 SU 4,000.00 6,000.00 + 10% VAT 600.00 6,600.00 Adoption of prices from purchase order Adoption of quantities from service entry sheet Payment 6,600.00 Payment 6,600.00 In normal materials procurement, evaluated receipt settlement (ERS) involves direct settlement with respect to goods receipts – without submission of an invoice from a vendor – on the basis of information from the purchase order and the goods receipts. A settlement log is created. The vendor can be informed about the settled goods receipts via the message determination facility by means of a printout, a fax or an EDI message. The Evaluated Receipt Settlement function must be enabled in the vendor master record. The indicator for the evaluated receipt settlement can be set per purchase order item. Settlement can be selected according to GR posting dates, vendors, or purchase orders. You can make the following settings for the creation of the invoice documents: One invoice document per vendor One invoice document per purchase order One invoice document per purchase order item One invoice document per delivery document/service entry For the procurement of services, the basis is the accepted service entry sheets (<=> goods receipt) and the purchase orders. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-12  SAP AG 2003 Verify invoices based on service entry sheet data Invoice accepted service entry sheets automatically You are now able to: Invoice Verification: Unit Summary I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-13 Exercises Unit: Invoice Verification At the conclusion of this exercise, you will be able to: • Enter and post invoices for service items manually • Automatically generate invoices from accepted service entry sheets You receive invoices from your service provider for services performed, and you would like to enter them with reference to the service entry sheets, if possible. While processing, the system compares the invoice data with the purchase order and the accepted service entry sheets. Messages are issued if any differences are found. For extensive and recurrent procurements of services, you would like to simplify the procedure with respect to individual service providers by using the ERS function. This function enables you to automatically generate invoice documents for service entry sheets that have been accepted. 1-1 Your service provider T-K540A## has sent an invoice for the first services. You have entered and accepted these services in the Entry and Acceptance of Services Performed unit (exercise 1-1-5) for purchase order 1 of the Optimized Procurement unit (exercise 1-2). Enter this invoice. Try out different entry methods. Use the procedure you think is suited best. Document date: Today Reference: GR## Tax code: 0i Set the Calculate tax indicator. 1-1-1 Enter the invoice first with reference to the purchase order (without posting it). Use the Services layout. Purchase order: Purchase order 1 of Optimized Procurement unit How many item lines are displayed? _________________________________________________________ Show the purchase order structure. Take a look at the information. Compare the purchase order structure to the item lines. Delete all item lines to test the second entry method. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-14 1-1-2 Now enter the invoice with reference to your first service entry sheet. Service entry sheet: Service entry sheet 1 of Entry and Acceptance of Services Performed unit How many item lines are displayed now? _________________________________________________________ Has the purchase order structure changed? _________________________________________________________ Hide the purchase order structure. 1-1-3 Complete the invoice and post the document. Verify that the tax code 0i is assigned to each invoice item. Enter the total invoice amount into the Amount field on the Basic data tab. Do this by adopting the value from the Balance field (upper right-hand corner). (The gross invoice amount should match the total value of the service lines plus the tax amount. You can post the invoice only if the balance is zero or if it is within the tolerances specified.) Start the Simulate function to get an idea of the posting lines to be generated. Post the invoice. Record the document number. Invoice number: _______________________________________ If service-based invoice verification is set in a purchase order line item, then each service item is displayed in invoice verification and in PO history for GR. 1-2 If you have a good relationship with your service provider, you can come to an agreement with him to use ERS (Evaluated Receipt Settlement) for the automatic settlement of goods received. This allows you to automatically post an invoice for services that have been performed and accepted based on accepted service entry sheets and purchase order data. 1-2-1 As prerequisite for the automatic settlement of accepted services, you must have set the AutoEvalGRSetmt Del indicator in the vendor master record. Only then it is possible to set this indicator also for a purchase order item. Has this indicator been set for vendor T-K40B##? _________________________________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-15 1-2-2 Has the AutoEvalGRSetmt Del indicator also been set in purchase order 2 of the Optimized Procurement unit (exercise 1-4-4)? If it has not been set, please do so. Verify that the tax code 0i has also been assigned. Select it, if necessary. _________________________________________________________ Have any services already been entered and accepted for this purchase order item? _________________________________________________________ 1-2-3 Execute the ERS function fro this purchase order. Use the purchase order number to select it. Invoice number(s): _____________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-16 Solutions Unit: Invoice Verification 1-1 Your service provider T-K540A## has sent an invoice for the first services. You had entered and accepted these services in the Entry and Acceptance of Services Performed unit (exercise 1-1-5) for purchase order 1 of the Optimized Procurement unit (exercise 1-2). Enter this invoice. Try out different entry methods. Use the procedure you think is suited best. From the SAP Easy Access menu, select the following: Logistics → Materials management → Logistics invoice verification → Document entry → Enter invoice Select the Invoice transaction. Check whether the company code 1000 has been assigned. Otherwise you must switch to this company code. To do so, select Edit → Switch Company Code and enter 1000 into the Company Code field. Click Continue. Enter the following header information: Invoice date Today Reference GR## Tax code 0i Calculate tax Set this indicator. 1-1-1 Enter the invoice first with reference to the purchase order (without posting it). Use the Services layout. Select the reference document category Purchase Order/Scheduling Agreement. Enter the document number of purchase order 1 of the Optimized Procurement unit. Select the Goods/Service Items indicator. Select the Services layout. Click Continue. How many item lines are displayed? Six item lines are displayed. Because the indicator for a service-based invoice verification is set in the purchase order item, a separate item line is displayed for each service and for each entry sheet. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-17 Show the purchase order structure. Take a look at the information. Compare the purchase order structure to the item lines. Click icon Show PO structure. An overview for the purchase order you entered displays the purchase order items with the Service entry sheet and Acceptance follow-up transactions that have already been entered as well as the quantities and values per service from each service entry sheet. The number of accepted services in the purchase order structure is the same as the number of item lines. The quantities and values that have been entered and accepted and that are shown in the PO structure for each service also correspond to the item overview data. Delete all item lines to test the second entry method. Click Deselect all. Click Delete items not selected. 1-1-2 Now enter the invoice with reference to your first service entry sheet. Select the reference document category Service Entry Sheet. Enter the document number of Service entry sheet 1 of the Entry and Acceptance of Services Performed unit. Click Continue. How many item lines are displayed now? Has the purchase order structure changed? Three item lines are displayed – one for each service of your service entry sheet. The display of the PO structure has not changed. Hide the purchase order structure. Click icon Hide PO structure. 1-1-3 Complete the invoice and post the document. Verify that the tax code 0i is assigned to each invoice item. The balance of the invoice does not allow you to post the invoice yet. This is indicated by the icon Messages (errors) icon as well as by the icon next to the Balance field. Enter the total invoice amount into the Amount field on the Basic data tab. Do this by adopting the value from the Balance field (upper right-hand corner). Click Continue. Now the balance should be zero (or be within the tolerances for minor differences of EUR 5). The or, possibly, the icon indicate that you are now able to post the invoice. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-18 If applicable, select icon Messages (warning) to read the system messages. Start the Simulate function to get an idea of the posting lines to be generated. Click icon Simulate. Four (or more) posting lines are displayed. The first posting line contains the posting to the vendor account (and to the payables account in the general ledger), while the other three posting lines contain the clearing item on the GR/IR clearing account (for posting of the material document at the time of acceptance). Post the invoice. Record the document number. Click icon Post. 1-2 If you have a good relationship with your service provider, you can come to an agreement with him to use ERS (Evaluated Receipt Settlement) for the automatic settlement of goods received. This allows you to automatically post an invoice for services that have been performed and accepted based on accepted service entry sheets and purchase order data. 1-2-1 As prerequisite for the automatic settlement of accepted services, you must have set the AutoEvalGRSetmt Del indicator in the vendor master record. Only then it is possible to set this indicator also for a purchase order item. Has this indicator been set for vendor T-K40B##? From the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Master data → Vendor → Purchasing → Display (current) On the initial screen, enter the vendor number and the purchasing organization. Select Purchasing Data. Vendor T-K540A## Purchasing Organization 1000 Yes, the AutoEvalGRSetmt Del indicator has been set. Click Continue. 1-2-2 Has the AutoEvalGRSetmt Del indicator also been set in purchase order 2 of the Optimized Procurement unit (exercise 1-4-4)? If it has not been set, please do so. Verify that the tax code 0i has also been assigned. Select it, if necessary. From the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Purchase Order → Change Click icon Document overview on. Select Selection Variant. Choose My purchase orders. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 7-19 Select purchase order 2 of the Optimized Procurement unit (exercise 1-4-4) by double-clicking it. In the Item details screen area, select the Invoice tab. Set the AutoEvalGRSetmt Del indicator, if necessary. Select the tax code 0i, if necessary. Have any services already been entered and accepted for this purchase order item? In the Item details screen area, select the Purchase order history tab. Yes, in exercise 1-3 of the Entry and Acceptance of Services Performed unit, you had created a service entry sheet and accepted it in exercise 1-4 by means of a collective release. Click Save, if necessary. 1-2-3 Execute the ERS function fro this purchase order. Use the purchase order number to select it. From the SAP Easy Access menu, select the following: Logistics → Materials management → Logistics invoice verification → Automatic Settlement → Evaluated Receipt Settlement (ERS) To select a document, enter the following information: Plant 1200 PO number Purchase order 2 of Optimized Procurement unit Doc. Selection For example, document selection per delivery document/service entry Do not set the indicator for the test mode. Choose Execute. Because the indicator for a service-based invoice verification is set in the purchase order item, a separate line is displayed in the overview for each service of the entry sheet. However, the three services were invoiced with one single invoice. Display the details for the documents in the overview as needed. Click Back. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-1  SAP AG 2003 Invoicing Plans for External Services Partial Invoicing Plan and Periodic Invoicing Plan Automatic Creation of Invoices for Invoicing Plans Invoicing Plans Contents: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-2  SAP AG 2003 At the conclusion of this unit, you will be able to: Invoicing Plans: Unit Objectives Create an invoicing plan for services Create invoices for invoicing plans I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-3  SAP AG 2003 Invoicing Plans: Course Overview Diagram Services in Services in Purchasing Purchasing Documents Documents Integration Integration with Other with Other Processes Processes Course Overview Course Overview Entry Entry and and Acceptance Acceptance of Services of Services Planned Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for for Services Services Invoicing Invoicing Plans Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Master Data Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-4  SAP AG 2003 In your company invoicing plans are used for simple service orders for which service entry sheets are not required. Invoicing Plans: Business Scenario I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-5  SAP AG 2003 Payment of full amount due at regularly recurring intervals Total amount payable in installments Construction project EUR 250,000 Plans complete EUR 20,000 Construction (phase 1) EUR 80,000 Construction (phase 2) EUR 100,000 Acceptance EUR 50,000 Market survey EUR 20,000 Conclusion of contract EUR 2,000 First analysis EUR 3,000 Survey/evaluation of EUR 7,500 survey results, interim report Final report, target/actual EUR 7,500 comparison, action plan Invoicing Plans Security service EUR 6,000 (monthly) Rent for premises EUR 2,200 Photocopier rental EUR 1,000 Landscaping (monthly) EUR 1,500 Periodic invoicing plan Partial invoicing plan You can use invoicing plans for external service items as well as for combined items with material master records. Invoicing plans contain settlement periods, scheduled invoicing dates and their values. Together they form the basis for the automatic creation of invoices and thus for effecting the payment for goods and services. You can create as many due dates for the invoicing plan as you need. You can impose an initial invoice block on individual due dates. For purchase orders with invoicing plans, you can use the document type FO (framework order), for which you can enter a validity period. In the area menu of Invoice Verification, there is a separate program for settling invoicing plans. This program generates invoices for all due dates of the selected invoicing plans that are not blocked and that have not been invoiced yet. To enable automatic invoicing of invoicing plans, the Evaluated Receipt Settlement indicator must be set in the vendor master, and a tax code must be entered for all purchase order items. You can also invoice invoicing plans manually using the function for entering an invoice in the logistics invoice verification system (MIRO). When you do this, you can also invoice dates that are not due yet. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-6  SAP AG 2003 FO Framework order Validity: Jan. 01 – Dec. 31 Item 10: Rent for training classroom EUR 500/month March 31 EUR 500 April 30 EUR 500 May 31 EUR 500 June 30 EUR 500 . . . Invoicing plan Invoicing plan Invoices are generated automatically Invoicing Plan: Steps Acc. assgt. CC 123 Invoice Mar. 31 EUR 500 Invoice April 30 EUR 500 Invoice May 31 EUR 500 Invoice June 30 EUR 500 March 31 April 30 May 31 June 30 Time Specs. You create an invoicing plan for a purchase order item. In the area menu of Invoice Verification, there is a separate program for settling invoicing plans. This program generates invoices for all due dates of the selected invoicing plans that are not blocked and that have not been invoiced yet. You can also invoice invoicing plans manually using the function for entering an invoice in the logistics invoice verification system (MIRO). When you do this, you can also invoice dates that are not due yet. To automatically create invoices for invoicing plans, the Evaluated Receipt Settlement indicator must be set in the vendor master record (Purchasing data). As of Release 4.6A, ABAP List Viewer (ALV) is used for outputting logs for invoicing plans: You can create and save variants for log output and maintain your personal settings. From the screen for log output, you can display the following contextual information for the analysis of the invoice items: purchase order and long text. The Simulate function has been expanded: It is checked in test mode whether the invoice can be posted. As of Release 4.6C, you can send the invoices created in the invoicing plan to the vendor as messages. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-7  SAP AG 2003 Periodic Invoicing Plan FO Framework order Validity: Jan. 01 - Dec. 31 Acc. assgt. CC 123 Mainten. of techn. equip. EUR 500 per month Item 10: Must Invoicing plan Customizing Invoicing plan type: 07 periodic General data Invoice data Tax data Start date: 02 End date: 09 Horizon: 10 Invoice date: 11 Purchase order dialog: X Start of agreement End of agreement Agrmt start + 1 year monthly In advance: Optional Mar. 31 April 30 May 31 June 30 . . . Periodic invoicing plan EUR 500 EUR 500 EUR 500 EUR 500 Dates are generated automatically 07 07 Specs. In the case of periodic invoicing plans, the total value of the purchase order item is invoiced at each respective due date. For example, an amount of EUR 500 is invoiced each month at the end of the month for the maintenance of technical equipment. Worksteps are eliminated for this procurement of services since you do not individually enter services performed. You can select the duration of a period in the invoicing plan. Furthermore, you can specify for how long the invoicing plan is valid. In Customizing, the invoicing plan type sets the default periodicity, due dates, and start date. You do not have to generate the invoicing dates at once for the entire validity period of an invoicing plan. If an invoicing plan is valid for five years, for example, you can generate the invoicing dates only for the first year at the beginning of its validity; when the year has passed, you can generate the dates for the next year and so on. The term horizon refers to the period for which invoicing dates have been specified at any given point in time. In the area menu of Purchasing, there is a separate function for creating additional due dates for periodic invoicing plans (... Purchasing Purchase Order Follow-On Functions Periodic Invoicing Plan). I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-8  SAP AG 2003 Partial Invoicing Plan Invoicing plan type: 08 Partial invoice General data Tax data Start date: 02 Reference I.P.: 000047 Purchase order dialog: X Start of agreement FO Framework order Validity: Jan. 1 - Dec. 31 Acc. assgt. CC 123 Market survey EUR 20,000 total Item 10: Mand. Invoicing plan Optional Jan. 20 6000 March 15 6000 April 30 8000 Analysis/ plan Survey/ evaluation Final report Maintain data 08 Partial invoicing plan 08 Customizing Service entry sheet Optional In a partial invoicing plan, the total amount to be invoiced for the purchase order item is distributed to the individual dates of the invoicing plan. You can use a partial invoicing plan, for example, when payment for a specific project is effected in three steps: After completion of the first project phase, 30% of the purchase order item's total value are invoiced and paid, another 30% after completion of the second phase, and the remainder after final completion and acceptance of the project. 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. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-9  SAP AG 2003 Partial Invoicing Plans Invoicing plan 1. Jan. 20 30% EUR 6,000 2. March 31 10% EUR 2,000 X 3. April 25 20% EUR 4,000 X 4. June 15 40% EUR 8,000 X Framework order Item 10: Market survey EUR 20,000 Status C invoiced Invoice block You can create as many due dates for the invoicing plan as you need. You can impose an initial invoice block on individual due dates. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-10  SAP AG 2003 Invoicing Plan GR/IR Control Framework order Item 10 20 Invoice Item: [10], Maintenance of techn. equipment 1I IR Evaluated Receipt Settlement Tax codes Invoicing plan Delivery GR GR not valuated GR GR not valuated or FO Short text Price Currency PU K Mainten. of techn. equip. EUR 500 per month … You can enter invoicing plans only for purchase order items that have been assigned to an account category and for which a non-valuated GR has been set. When service entry sheets are required for informational purposes, the GR indicator as well as the indicator for a non-valuated goods receipt must be set. If you want to settle the due dates of an invoicing plan automatically using the program designed for this purpose, you must set the Evaluated Receipt Settlement indicator in the purchase order item and specify a tax code. Furthermore, you must have maintained the invoicing plan types in Customizing before you create an invoicing plan. When you create an invoicing plan, the plan type determines the suggested values for due dates, horizons and so on. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-11  SAP AG 2003 You are now able to: Invoicing Plans: Unit Summary Create an invoicing plan for services Create invoices for invoicing plans I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-12 Exercises Unit: Invoicing Plans At the conclusion of this exercise, you will be able to: • Create invoicing plans and post invoices at the scheduled dates automatically In your company, you use invoicing plans for simple service procurements because service entry sheets are not required for these services. 1-1 (Optional) You have already come to an agreement with your vendor T-K540B## that performed (and accepted) services will be settled automatically, and you have set the according AutoEvalGRSetmt Del indicator in the vendor master record. This indicator also must be set to enable the automatic generation of invoices for an invoicing plan. Make sure that the indicator is set in the vendor master record for vendor T-K540B##. 1-2 One of the services you require is invoiced monthly by the vendor for the same amount. Automate the process using an invoicing plan. Create a purchase order with an invoicing plan item. Order Type: FO Framework order Vendor: T-K540B## Purchasing Org: 1000 Purchasing Grp: Y## (SCM540-##) Item category: D Acct. assgt. cat.: K Material group: 007 Plant: 1200 (Dresden) The invoicing plan is valid from the beginning of this month and expires in one year. Enter a short description of the service for the line item. In the Services tab area, specify a service, quantity and price per month. Assign the service to the G/L account 417000 and to cost center 4110. Deselect the Goods Receipt indicator on the Delivery tab. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-13 Select the Invoice tab. The indicator for the automatic settlement of goods received (ERS) must be set. The tax code is 0I. Click Invoicing Plan. Choose the invoicing plan M1 (periodic invoicing plan). Set the In advance indicator. Check the suggested dates. Exit the screen with the invoicing plan details. Confirm that there are unbilled dates in the past. Save the purchase order. Framework order number: ____________________________________ 1-3 Create the first invoice for your plan. Use your purchase order number to select it. 1-3-1 Execute in test mode first. 1-3-2 Post the invoice in a live run. Invoice number: _______________________________________ 1-3-3 Display the updated purchase order. Which documents are displayed in the purchase order history? Have any of the invoicing plan dates changed? I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-14 Solutions Unit: Invoicing Plans 1-1 (Optional) You have already come to an agreement with your vendor T-K540B## that performed (and accepted) services will be settled automatically, and you have set the according AutoEvalGRSetmt Del indicator in the vendor master record. This indicator also must be set to enable the automatic generation of invoices for an invoicing plan. Make sure that the indicator is set in the vendor master record for vendor T-K540B##. From the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Master data → Vendor → Purchasing → Display (current) On the initial screen, enter the vendor number and the purchasing organization. Select Purchasing Data. Vendor T-K540A## Purchasing Organization 1000 Yes, the AutoEvalGRSetmt Del indicator has been set. Click Continue. 1-2 One of the services you require is invoiced monthly by the vendor for the same amount. Automate the process using an invoicing plan. Create a purchase order with an invoicing plan item. From the SAP Easy Access menu, select the following: Logistics → Materials management → Purchasing → Purchase order → Create → Vendor/supplying plant known Enter the following information into your purchase order: Order type FO (framework order) Vendor T-K540B## Purchasing Org 1000 Purchasing Grp Y##-(SCM540-##) The invoicing plan is valid from the beginning of this month and expires in one year. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-15 Enter the following header data on the Additional data tab: Validity start Beginning of this month Validity end End of next year Enter a short description of the service for the line item. Enter the following information on the item overview: Acc. assgt. cat. K Item Category D Short text Any description Material group 007 Plant 1200 In the Services tab area, specify a service, quantity and price per month. In the Item details screen area, select the Services tab. Enter a service line with the following information: Service no. or Short text Any service number or any description Quantity/UoM Any Price Any Assign the service to the G/L account 417000 and to cost center 4110. Complete the account assignment information: G/L account 417000 Cost center 4110 Click Continue. In the Item details screen area, select the Delivery tab. Deselect the Goods Receipt indicator. Select the Invoice tab. Make sure that the AutoEvalGRSetmt Del indicator is set. If it has not yet been set, please do so. Click icon Invoicing Plan. Choose invoicing plan type M1 (periodic invoicing plan). Click icon Continue. Set the In advance indicator. As a result, the suggested dates change. The date for the first invoice should be in the past. Exit the screen with the invoicing plan details. Confirm that there are unbilled dates in the past. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-16 Save the purchase order. Click Back. Click Continue. Click Save. 1-3 Create the first invoice for your plan. Use your purchase order number to select it. From the SAP Easy Access menu, select the following: Logistics → Materials management → Logistics invoice verification → Automatic Settlement → Invoicing plan settlement 1-3-1 Execute in test mode first. To select a document, enter the following information: Plant 1200 Vendor T-K540B## For processing options, enter the following information: Doc. Selection 3 Test run Set indicator Choose Execute. An overview is displayed showing the number of the purchase order you have just created. The document can be posted. Click Back. 1-3-2 Post the invoice in a live run. For processing options, enter the following information: Doc. Selection 3 Test run Do not set indicator Choose Execute. An overview is displayed showing the number of the purchase order you have just created as well as the numbers of the material and accounting documents that have been generated automatically. Display the details for the automatically generated documents in the overview as needed. 1-3-3 Display the updated purchase order. Which documents are displayed in the purchase order history? Have any of the invoicing plan dates changed? Select your purchase order in the overview, or choose Goto → PO display icon. In the Item details screen area, select the Purchase order history tab. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 8-17 The invoice document that has just been generated is displayed. Select the Invoice tab. Click icon Invoicing Plan. The first date has received the status C (completed). Click Back. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-1  SAP AG 2003 Unplanned Services Imposing Value Limits Combination of Planned and Unplanned Services Tolerances at the Time of Service Entry Invoices for Unplanned Services Procurement of Unplanned Services: Contents: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-2  SAP AG 2003 At the conclusion of this unit, you will be able to: Procurement of Unplanned Services: Unit Objectives Apply value limits to control costs in the procurement of goods and services Create a service specification with value limits for unplanned services I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-3  SAP AG 2003 Procurement of Unplanned Services: Course Overview Diagram: Services in Purchasing Services in Purchasing Documents Documents Integration with Other Integration with Other Processes Processes Course Overview Course Overview Entry and Acceptance Entry and Acceptance of Services Planned of Services Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for Services for Services Invoicing Plans Invoicing Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Data Master Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-4  SAP AG 2003 Procurement of Unplanned Services: Business Scenario Often the scope of services you require is unknown when you work with consulting or maintenance contracts. Using value limits, you can limit the costs for service entry and invoice verification. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-5  SAP AG 2003 Value Limits for Unplanned Services Value limit was adhered to Service entry sheet February 3 Item 10 Oil filter replaced 1 hour EUR 75 Cost center 123 1 Release procedure Acceptance Purch. order # 12345 Jan. 27 Item 10 Repair printing press – Precise description of work – Order quantity – Account assignment Cost control through value limits ! ! ? ? ? ? ? ? Specs. ? ? MM External Services Management offers two basic ways of specifying services: As planned services including service description, quantity and price. Planned services are services whose nature and scope is known to you at the beginning of the procurement project or operation. As unplanned services, merely with a value limit specified. Unplanned services are services that can not be specified in detail yet because their nature and scope is not yet known or because you do not wish to plan the services in more detail for various reasons. They can therefore only be described in more detail in an item's long text. If you are not yet able to accurately describe services in the purchase order, for example, because you are still in the planning phase of a procurement project, set a value limit instead of entering a service description. This limit for unplanned services, must not be exceeded. This ensures a certain degree of cost control. The service can be described later, perhaps at the time it is actually performed. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-6  SAP AG 2003 Overall Limit and Sub-limits Contract – EUR 20,000 on contract 4600123 – EUR 10,000 on contract 4600054 – … Standard Service Catalog – EUR 30,000 on SSC 037/198 – … Model Service Specifications – EUR 60,000 on model spec. 123 Other limit – EUR 5,000 Overall limit EUR 100,000 Split up among: For unplanned services, the SAP system verifies that the overall limit from the purchase order line item has not been exceeded in the service entry sheets. The overall limit is used as a tolerance check. The adherence of sub-limits as part of the overall limit is also checked in the service entry sheets. You can maintain the following sub-limits: Limits for reference to contract items Limits for reference to standard service catalogs Limits for reference to model specifications Limits without reference to other documents (Other limits) The sum of the sub-limits does not have to equal the overall limit. If the overall limit is exceeded within Invoice Verification, a warning or an error message can be issued. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-7  SAP AG 2003 Value Limits: Expected Value The term "expected value" means: From a business standpoint: The value up to which unplanned services are likely to be performed and entered In a technical context: Used for account assignment and commitment value Serves as the basis for the release procedure (if applicable) Depending on your goals regarding cost control: Expected value is below overall limit Expected value exceeds overall limit The expected value is the total value of services, planned and unplanned. It need not equal the overall limit. If the document is subject to a release procedure, the expected value can be used as release criterion (item value). The expected value is added to the total value of services planned. The result is the net value of the document item. CO (Controlling) adopts the expected value into the document's commitment. The expected value is included in the release statistics of contracts. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-8  SAP AG 2003 Value Limits at the Time of Service Entry Purchase order Service entry sheet Planned service 10 days EUR 12,000 Unplanned service 8 days EUR 16,000 Limits EUR 20,000 10 10 days at EUR 1,200 each Overall limit is checked Sub-limits are checked Quantities of services planned are checked Price is adopted Quantity checked Price from contract Service 123 Contract – Quantity 100 days – Price EUR 2,000/day 10 Service 345 When you enter planned services on service entry sheets, prices and quantities are defaulted from the purchase order. When you enter unplanned services, the SAP 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 a limit set in the purchase order, the SAP system will: Adopt the price from the contract Check adherence to the target quantity of the contract I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-9  SAP AG 2003 Planned Procurement of Services Purchase order No value limits Service entry sheet – Service 1580 – Service 1540 Planned services only First possibility: Specs. – Service 1580 – Service 1540 You have the option to work only with planned services in the purchase order. It is not possible to define limits for unplanned services. At the time you enter the services, the maximum of services and quantities you enter corresponds to those contained in the service specifications. This procedure is appropriate only if all services are known at the time the purchase order is created. You can permit that the prices can be modified at the time of entering the services. This is done at item level in the purchasing documents. The SAP system can update the master conditions automatically if you have enabled the corresponding function in Customizing. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-10  SAP AG 2003 Partially Planned Procurement of Services Second possibility: Service entry sheet – Service 1580 from Contract 1 – Service 1540 from Contract 2 – Service 1557 from Contract 2 Contract limits, but no planned services Purchase order Contract limits: Contract 1 EUR 20,000 Contract 2 EUR 10,000 No service specifications Specs. You can work exclusively with unplanned services and potentially set an overall limit for them. and/or set limits to one or more items of vendor contracts. As a result, it is not permitted that any services be performed within the overall limit, but only services specified in the contract items mentioned. Because the service specifications and the prices are defined in the contract item, this ensures on one hand that only these services agreed upon with the vendor are performed, and not any other services, and, on the other hand, that the price given in the contract applies. In this case, you do not enter any specifications, quantities, or prices in the PO, but set only value limits relating to certain contract items. This ensures that you or the provider are/is not able to enter any services at any prices, but only those agreed in the contract. You can permit that the prices can be modified at the time of entering the services. This is done at item level in the purchasing documents. The SAP system can update the contract prices automatically if you have enabled the corresponding function in Customizing. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-11  SAP AG 2003 Unplanned Procurement of Services Unplanned services only Third possibility: Purchase order No service specifications Value limits X Unlimited Service entry sheet – Service 1 – Service 2 – … Specs. Specs are not created until services performed are entered You can work exclusively with unplanned services. In this case, you enter no specifications, quantities, or prices in the PO. Instead, you merely set a value limit for unplanned services. This allows you to enter any services up to that limit. The individual services are not actually specified until the time the services are entered. If no limit is placed on the value of the services in the purchase order, but the indicator for an unlimited value is set, any services performed can be entered with any quantity and price. The service specifications are not created until the services are entered into the SAP system. 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. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-12  SAP AG 2003 Overall Limit, Sub-limits, Limit w/o Reference Limit definition Overall limit EUR 100,000 Limit (other) EUR 10,000 Purchase order ABC Software Ltd. 10 Software implementation Service entry sheet < _ EUR 60,000 model spec A200 Limits on model specs No. A200 EUR 60,000 No. B320 EUR 50,000 Planned Unplanned via limit . . . Other unplanned services EUR 2,000 Fourth possibility: Limit EUR 100,000 Model spec A200 Model spec B320 ABC Software Ltd. 10 Software consulting – Junior consultant – Senior consultant – Head consultant If an overall limit exists and sub-limits are defined, you can enter unplanned services within the sub-limit amounts. However, the overall limit must not be exceeded. The service specifications are not created until the services are actually entered in the service entry sheet. Within the limits defined above, services up to EUR 60,000 can be entered against model service specification A200, EUR 50,000 for model specification B320, and any other services up to EUR 10,000. The overall limit of EUR 100,000 must not be exceeded. These limits are appropriate if you have a firm idea of the services involved. At the same time, this allows for various contingencies. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-13  SAP AG 2003 You are now able to: Procurement of Unplanned Services: Unit Summary Apply value limits to control costs in the procurement of goods and services Create a service specification with value limits for unplanned services I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-14 Exercises Unit: Procurement of Unplanned Services At the conclusion of this exercise, you will be able to: • Set up value limits for the procurement of unplanned services and for controlling their cost • Create a service entry sheet for unplanned services Often it is not possible to estimate the exact scope of services to be performed at the beginning of the procurement process for maintenance and repair work or for consulting services. It is also sometimes not clear which spare parts will have to be replaced and what cost will be incurred. Therefore you must permit unplanned services in procurement processes, but you can limit the cost by setting value limits. You can combine the procurement of planned and unplanned services. 1-1 You have signed a long-term maintenance contract with your service provider T- K540A##. In addition to regular maintenance work on your equipment that can be scheduled, he must also be available immediately when malfunctions occur. You want to be able to quickly and easily procure unplanned services to have the malfunctions corrected. Create a framework order for these repairs. Do not enter any services in the item because you don't know yet which specific tasks will need to be performed. Merely enter a value of EUR 5,000 as overall limit. The expected value should be EUR 1,000. The framework order is valid from the beginning of the current month until the end of next year. Order Type: FO Framework order Vendor: T-K540A## Purchasing Org: 1000 Purchasing Grp: Y## (SCM540-##) Item category: D Acct. assgt. cat.: U Plant: 1200 (Dresden) Material group: 007 What order value does this item have? ______________________________ Save the purchase order. Framework order number: ____________________________________ Add the information to your worksheet. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-15 1-2 The service provider was called by telephone to correct a malfunction. The repair work took two hours. Among other things, a special washer, individually priced at EUR 25, had to be replaced. Enter these unplanned services into a service entry sheet referencing the framework order you have just created. The hourly wage is EUR 70. All costs are covered by cost center 4220. For this reason, use the Automatic repeat account assignment function. Track the increase in entered costs on the Values tab. Accept and save the service entry sheet. Service entry sheet number: ___________________________ 1-3 Display the updated purchase order. Which documents are displayed in the purchase order history? Do you see the costs that have already been entered in the Item details screen area of the Limits tab? _______________________________________________________________ 1-4 You enter into a long-term contract with your service provider concerning regular maintenance work on your machines. In addition to maintenance, your service provider T-K540A## will also perform other services, as needed. Create a contract for the procurement of these services. Vendor: T-K540A## Agreement type: MK Purchasing Org: 1000 Purchasing Grp: Y## (SCM540-##) Item category: D Acct. assgt. cat.: U Plant: 1200 Material group: 007 Validity end: End of next year Enter an item with any description. Create a set of service specifications with the following information: The first service should be the regular maintenance of a machine. For the second service, use the first service master record you had created in the Master data unit. Enter the third service with any short text (without master record). Permit a price change in the entry sheet only for the first service. Complete the units of measure. Enter the quantity 100 for all three service lines. Enter different prices for the three services. Save your contract. Contract number: ________________________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-16 1-5 The first regular maintenance is due. In addition, you want other services to be performed. However, your service provider will not know the exact cost (the number of spare parts and the additional labor that will be provided) until after the service has been completed. Create a standard purchase order with reference to the contract. Order Type: NB (standard purchase order) Vendor: T-K540A## Purchasing Org: 1000 Purchasing Grp: Y##-(SCM540-##) Acct. assgt. cat.: U Item category: D Material group: 007 Plant: 1200 1-5-1 Adopt only the first service from your contract. For the release order quantity, enter the number one (1). 1-5-2 For the additional second service, use the second service master record you had created in the Master data unit. Enter a purchase order quantity of 100. What was the source of the price? _________________________________________________________ 1-5-3 Maintain limits for the unplanned services for the PO item (Limits tab). • The overall limit is EUR 10,000. This is the maximum value of all unplanned services. • The expected value is EUR 9,000. This value can be used, for example, for release procedures. • Set the Price change during entry allowed indicator on the Contract limits tab. Enter the number of the contract you created above with the item number 10 and a limit of EUR 7,000. This limit is a sub-limit for unplanned services with reference to the contract. • On the Other limit tab, enter EUR 5,000. This value is a sub-limit for additional unplanned services (without reference to the contract). 1-5-4 Take a look at the item overview. What is the net price? _________________________________________________________ Which values were added together to obtain this figure? _________________________________________________________ 1-5-5 Save the purchase order. Purchase order number: ____________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-17 1-6 Next, enter the planned and unplanned services for the purchase order you have just created. The account assignment category is K (Cost center). Assign all services to cost center 4110. Use the Automatic repeat account assignment function. Choose the Values tab to be better able to track the changes in the four value fields. 1-6-1 First, adopt the two planned services from your purchase order. Adopt all of the quantities. Which indicator tells you that these are planned services? _________________________________________________________ Are you able to increase the quantities? Are you able to change the prices? Why? _________________________________________________________ Which value fields contain the costs of the services planned? Does this also apply to an increase in price for the first service? _________________________________________________________ 1-6-2 Enter additional services, now with reference to your contract. Adopt only the second and third service from the contract (the maintenance service is already contained in the service entry sheet). Which indicator tells you that these are unplanned services from the contract? _________________________________________________________ What quantities are suggested? _________________________________________________________ Can the prices for these two services be changed? Why? _________________________________________________________ Which value field displays the costs of these unplanned services? _________________________________________________________ Increase the quantities and prices for these two services. What are the maximum total costs allowed? _________________________________________________________ Reduce the quantities and prices for both services so that the value in the Unplanned portion field is EUR 2,000. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-18 1-6-3 Enter an additional service without reference to your purchase order and without reference to your contract. Enter a short text, a quantity, a unit of measure, and a price. Which indicator tells you that this is an unplanned service without reference to the contract? _________________________________________________________ Increase the quantity or price for this service. What are the maximum total costs allowed? _________________________________________________________ Are you still able to enter total costs in the amount of EUR 7,000 for the unplanned services with reference to the contract? _________________________________________________________ What is the maximum total amount allowed for the costs of all unplanned services? _________________________________________________________ Save your service entry sheet. Record the number of the service entry sheet. Service entry sheet number: _____________________ 1-7 Display the updated purchase order. Do you see the costs that have already been entered for unplanned services in the Item details screen area of the Limits tab? _______________________________________________________________ _______________________________________________________________ I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-19 Solutions Unit: Procurement of Unplanned Services 1-1 You have signed a long-term maintenance contract with your service provider T- K540A##. In addition to regular maintenance work on your equipment that can be scheduled, he must also be available immediately when malfunctions occur. You want to be able to quickly and easily procure unplanned services to have the malfunctions corrected. Create a framework order for these repairs. Do not enter any services in the item because you don't know yet which specific tasks will need to be performed. Merely enter a value of EUR 5,000 as the overall limit. The expected value should be EUR 1,000. The framework order is valid from the beginning of the current month until the end of next year. From the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Purchase order → Create → Vendor/supplying plant known Enter the following information into your purchase order: Order type FO (framework order) Vendor T-K540B## Purchasing Org 1000 Purchasing Grp Y## (SCM540-##) Enter the following header data on the Additional data tab: Validity start Beginning of this month Validity end End of next year Enter the following information on the item overview: Acc. assgt. cat. U Item Category D Short text Any description Material group 007 Plant 1200 In the Item details screen area, select the Limits tab. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-20 Enter the following information: Overall limit 5000 Expected value 1000 What order value does this item have? Save the purchase order. The item's order value is EUR 1,000. The expected value is adopted as net price. Select the purchase order header data. The Status tab, among other things, displays the order value. Click Save. 1-2 The service provider was called by telephone to correct a malfunction. The repair work took two hours. Among other things, a special washer, individually priced at EUR 25, had to be replaced. Enter these unplanned services into a service entry sheet referencing the framework order you have just created. The hourly wage is EUR 70. All costs are covered by cost center 4220. For this reason, use the Automatic repeat account assignment function. Track the increase in entered costs on the Values tab. Accept and save the service entry sheet. From the SAP Easy Access menu, select the following: Logistics → Materials Management → Service Entry Sheet → Maintain Select icon Other Purch. Order, and enter the PO number from exercise 1-1. Click Continue. Choose Create entry sheet. Enter a short text to describe the services performed. Choose the account assignment category K (Cost center). Select the Values tab. Enter the first service for the repair. Enter the following information: Short text Repairs Quantity 2 Unit of measure H (hour) Price 70 I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-21 Enter the following information for the account assignment: G/L account 417000 Cost center 4220 Click Icon Automatic repeat account assignment. Enter the replacement of the special washer/the special washer itself as the second unplanned service. Enter the following information: Short text (Replacement) Special washer Quantity 1 Unit of measure pc (piece) Price 25 Click Enter. The Values tab shows the entered costs of EUR 165 in all four value fields. Click Accept. Click Save. Do not exit this transaction yet. 1-3 Display the updated purchase order. Which documents are displayed in the purchase order history? Do you see the costs that have already been entered in the Item details screen area of the Limits tab? In the display area of the service entry sheet, choose PO display. In the Item details screen area, select the Purchase order history tab. The service entry sheet you have just entered is displayed. Select the Limits tab. You can see the total costs of all unplanned services that have been entered so far in the Actual value field (below the Expected value field) as well as in the Actual value field on the Other limits tab. 1-4 You enter into a long-term contract with your service provider concerning regular maintenance work on your machines. In addition to maintenance, your service provider T-K540A## will also perform other services, as needed. Create a contract for the procurement of these services. From the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchasing → Outline agreement → Contract → Create I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-22 Enter the following data on the initial screen: Vendor T-K540A## Agreement type MK Purchasing Org 1000 Purchasing Grp Y## (SCM540-##) Item Category D Acc. assgt. cat. U Plant 1200 (Dresden) Material group 007 Enter the following data on the header data screen: Validity end End of next year Enter an item with any description. Create a set of service specifications with the following information: The first service should be the regular maintenance of a machine. For the second service, use the first service master record you had created in the Master data unit. Enter the third service with any short text (without master record). Permit a price change in the entry sheet only for the first service. Complete the units of measure. Enter the quantity 100 for all three service lines. Enter different prices for the three services. Enter a short text for the line item. Enter the following information on the item overview: Short text Any description In the Item details screen area, select the Services tab. Enter the following information for the first service: Short text Maintenance … Quantity 100 Unit of measure SU (service unit) Price any Set the Price change allowed indicator for this service. Enter the following information for the second service: Service no. Number of your first service master record Quantity 100 Price any I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-23 Enter the following information for the third service: Short text Any description Quantity 100 Unit of measure SU (service unit) Price any Save your contract. Click Save. 1-5 The first regular maintenance is due. In addition, you want other services to be performed. However, your service provider will not know the exact cost (the number of spare parts and the additional labor that will be provided) until after the service has been completed. Create a standard purchase order with reference to the contract. From the SAP Easy Access menu, select the following: Logistics → Materials Management → Purchase order → Create → Vendor/supplying plant known Enter the release order using the document overview in the purchase order transaction. Click icon Document overview on. Select Selection Variant. Select the selection variant you had created in the Services in Purchasing Documents unit. Select the document type Standard PO. Select your contract from exercise 1-4 and drag it into the shopping cart. Alternatively you can select your contract in the document overview and then click Adopt. Close the document overview. Click icon Document overview off. 1-5-1 Adopt only the first service from your contract. For the order quantity, enter the number one (1). In the Item details screen area, select the Services tab and click icon Service selection. Choose From contract. Select only the first service from your contract and click icon Adopt services. Adopt the suggested purchase order quantity of one (1). I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-24 1-5-2 For the additional second service, use the second service master record you had created in the Master data unit. Enter a purchase order quantity of 100. What was the source of the price? Enter the following information for a second service: Service no. Number of your second service master record Quantity 100 Select the second service and choose Conditions. Choose icon Pricing Log. In the area on the left, choose PRS as the condition type. Expand the folders. The icon indicates the condition record found. The gross price came from the service's condition record for the vendor. Click Back. 1-5-3 Maintain limits for the unplanned services for the PO item (Limits tab). • The overall limit is EUR 10,000. This is the maximum value of all unplanned services. • The expected value is EUR 9,000. This value can be used, for example, for release procedures. • Set the Price change during entry allowed indicator on the Contract limits tab. Enter the number of the contract you created above with the item number 10 and a limit of EUR 7,000. This limit is a sub-limit for unplanned services with reference to the contract. • On the Other limit tab, enter EUR 5,000. This value is a sub-limit for additional unplanned services (without reference to the contract). In the Item details screen area, select the Limits tab. Enter the following information: Overall limit 10000 Expected value 9000 Select the Contract limits tab. Set the Price change during entry allowed indicator on the Contract limits tab. Enter the following information: Contract Number of your contract from exercise 1-4 Item 10 Limit 7000 Select the Other limit tab. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-25 Enter the following information: Limit 5000 Deactivate the Unlimited indicator. 1-5-4 Take a look at the item overview. What is the net price? Which values were added together to obtain this figure? The net price is the sum of the purchase order values for the two planned services and the expected value. 1-5-5 Save the purchase order. Click Save. 1-6 Next, enter the planned and unplanned services for the purchase order you have just created. The account assignment category is K (Cost center). Assign all services to cost center 4110. Use the Automatic repeat account assignment function. Choose the Values tab to be better able to track the changes in the four value fields. From the SAP Easy Access menu, select the following: Logistics → Materials Management → Service Entry Sheet → Maintain Select icon Other Purch. Order, and enter the PO number from exercise 1-5-5. Click Continue. Choose Create entry sheet. Enter a short text to describe the services performed. Choose the account assignment category K (Cost center). 1-6-1 First, adopt the two planned services from your purchase order. Adopt all of the quantities. Choose icon Service selection, select From PO, set the Transfer entire quantity indicator, and click Continue. Select all services of the purchase order and choose icon Adopt services. Enter the following information for the account assignment: G/L account 417000 Cost center 4110 Click icon Automatic repeat account assignment. Which indicator tells you that these are planned services? For these two services, the Planned services indicator is set in the corresponding column. Are you able to increase the quantities? Are you able to change the prices? Why? The quantities entered must not exceed the purchase order quantities. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-26 The price of the first service can be changed because the Price change allowed indicator was set in the contract for this service. Which value fields contain the costs of the services planned? Does this also apply to an increase in price for the first service? Choose the Values tab and take a look at the four value fields. The costs for the planned services entered are displayed in the two value fields Net value incl. tax and Total value. If the price of the first planned service is increased, the values in these two value fields increase as well. 1-6-2 Enter additional services, now with reference to your contract. Adopt only the second and third service from the contract (the maintenance service is already contained in the service entry sheet). Choose icon Service selection, choose From contract, and click Continue. Select the second and the third service from your contract and click icon Adopt services. Which indicator tells you that these are unplanned services from the contract? For these two services, the Unplanned services from contract indicator is set in the corresponding column. What quantities are proposed? The system suggests the Standard release quantity 1 for both services from the contract. Can the prices for these two services be changed? Why? You can change the price for both services because you set the Price changed during entry allowed indicator in the purchase order on the Contract limits tab. Which value field displays the costs of these unplanned services? The costs for the unplanned services with reference to the contract that have been entered are displayed in the Unplanned portion value field. At the same time, the values in the fields Net value incl. tax and Total value have increased by the same amount of costs. Increase the quantities and prices for these two services. What are the maximum total costs allowed? The maximum costs allowed for the two unplanned services with reference to the contract is EUR 7,000 (your limit for unplanned services referencing the contract). You can test this by changing the quantities and prices. Reduce the quantities and prices for both services so that the value in the Unplanned portion field is EUR 2,000. Change the quantities and prices of the two unplanned services referencing the contract accordingly. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 9-27 1-6-3 Enter an additional service without reference to your purchase order and without reference to your contract. Enter a short text, a quantity, a unit of measure, and a price. Enter a service with a short text, a quantity and unit of measure as well as a price. Which indicator tells you that this is an unplanned service without reference to the contract? The Unplanned service indicator is set for this service in the corresponding column. Increase the quantity or price for this service. What are the maximum total costs allowed? The maximum costs allowed for this service are EUR 5,000 (your limit for other unplanned services). The costs entered for unplanned services without reference to the contract are displayed in the Portion w/o contract value field. Are you still able to enter total costs in the amount of EUR 7,000 for the unplanned services with reference to the contract? No. If the value in the Portion w/o contract field already is EUR 5,000, any unplanned services referencing the contract that are entered cannot exceed the maximum amount of EUR 5,000. What is the maximum total amount allowed for the costs of all unplanned services? EUR 10,000 The sum of the two cost portions for unplanned services (unplanned services with reference to the contract and unplanned services without reference to the contract) must not exceed EUR 10,000 (your overall limit). Save your service entry sheet. Record the number of the service entry sheet. Click Save. Do not exit this transaction yet. 1-7 Display the updated purchase order. Do you see the costs that have already been entered for unplanned services in the Item details screen area of the Limits tab? In the display area of the service entry sheet, choose PO display. Select the Limits tab. The total costs of all unplanned services that have been entered are displayed in the Actual value field (below the Expected value field). On the Contract limits tab, the costs of all unplanned services with reference to the contract are displayed in the Actual value field. On the Other limits tab, the costs of all unplanned services without reference to the contract are displayed in the Actual value field. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-1  SAP AG 2003 PM maintenance plans Project systems Customer Service Cross-application time sheets Data exchange with vendors Integration with Other Processes Contents: I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-2  SAP AG 2003 Describe the integration of external services into other processes At the conclusion of this unit, you will be able to: Integration with Other Processes: Unit Objectives I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-3  SAP AG 2003 Integration with Other Processes: Course Overview Diagram Services in Purchasing Services in Purchasing Documents Documents Integration with Other Integration with Other Processes Processes Course Overview Course Overview Entry and Acceptance Entry and Acceptance of Services Planned of Services Planned Invoice Verification Invoice Verification Summary Summary Optimized Procurement Optimized Procurement Invoice Verification ? ? = = The Procurement Process The Procurement Process for Services for Services Invoicing Plans Invoicing Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Data Master Data Procurement of Procurement of Unplanned Services Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-4  SAP AG 2003 In several areas of your company, the employees responsible commission an external service provider directly with repair and maintenance orders. Your task is to organize an effective procurement of services together with these employees. Integration with Other Processes: Business Scenario I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-5  SAP AG 2003 Maintenance orders have operations that can be performed by external service providers Plant Maintenance For services that have to be performed on a periodic basis (for example, the monthly service of fork lift trucks) you can record the service specifications in a maintenance order that references a maintenance plan Maintenance orders can create purchase requisitions. Each operation in the order has a control key. Control key PM03 allows purchasing of services for external operations. In Customizing, you can define a control key for internal processing with services (service packages) and service entry sheets. External services can be described with service specifications, including service masters, outlines and value limits. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-6  SAP AG 2003 Invoice Invoice Basic/Accelerated Process for Plant Maintenance Maintenance (servicing) plan Main- tenance order PReq. Purchase order Service entry sheet Maintenance (servicing) plan Service entry sheet Generate service entry plan from maintenance/service plan Basic process Accelerated process PM MM Externally procured Source determination Is generated automatically on a regular basis Acceptance In the basic process, maintenance plans are created. As you generate maintenance orders from the plans on a periodic basis, requisitions are created. These requisitions are converted into purchase orders in Purchasing. The services are entered after the work has been completed. The Accelerated process stores service specifications in a PM maintenance plan. A purchase order is not required each time. The service entry sheets are generated on a predefined cycle. These must simply be compared with the service provider's data. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-7  SAP AG 2003 Framework order FO Jan. 01 – Dec. 31 Value limit 15,000 on contract 46...11 PM MM Quarterly servicing of company fleet vehicles Weekly cleaning work Stipulation of account assignment = (released) maintenance order Specification of prices via conditions or contracts Acceleration through Elimination of requisition Source determination PO generation Manual service entry Acceptance = manually Automatically Generated on a regular basis Service entry sheet Maintenance (Servicing) plan Cat. MM Enter framework order as source Accelerated Process for Regular Maintenance Specs. Using the maintenance plan category MM in the standard system, you can use automatically generated service entry sheets to simplify service procurement in purchasing. 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, 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 maintenance plan category. A blanket purchase order connected to the maintenance plan replaces multiple purchase orders. A PM order is connected to the maintenance plan to update the costs.. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-8  SAP AG 2003 Mech. breakdown! Maintenance order PM MM PReq. Framework order Jan. 01 – Dec. 31 Value limit 10,000 on contract 46...13 Numerous transactions covered by a single purchase order Is generated Assign and process source Enter framework order as source Save/ release Service entry sheet Acceptance = manually Automatically generated Conversion of Requisitions into Service Entry Sheets You can automatically convert requisitions for external services stemming from plant maintenance operations into service entry sheets. 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, for example, when machines break down. In these cases, there is seldom enough time to process purchase orders in the normal way. 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. 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. The SAP system will create service entry sheets instead of purchase orders for maintenance orders. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-9  SAP AG 2003 Projects include multiple activities in networks. Activities with external processing include service specifications. Project System Project 000000902345 Quotation Phase II Project 000000902345 Quotation Phase II Projects are complex, unique, and part of the internal processes of your company. Projects are structured by organization (Work Breakdown Structure) and by the processes involved (Networks). 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 from the activity and creates a purchase requisition which is processed by the 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. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-10  SAP AG 2003 Internal processing Internal processing Customer Service Service order Service order Without specs. Without specs. Repair pump Operation quantity 1 pc Cost element 417000 Vendor 1010 … Repair pump Labor time 4 H Activity type 1410 Work center PC-REP … With specs. With specs. External processing External processing Specs. Specs. (Operations) (Control keys) SM01 SM02 SM04 SM03 Service Management enables service activities such as processing maintenance and service tasks, repair and replacement of products under warranty, or call management. These functions are closely related to Sales and Distribution. Sales orders can generate service orders. Customer Service uses service contracts, quantity contracts, and warranty agreements for the long term, and service orders and spare parts orders for the short term. Service orders can contain internally and externally processed operations. Internally processed operations (internal operations) refer to own employees and a work center responsible (control key SM01). The activity to be performed is described by a short and a long text. Alternatively, the activities to be performed can be described by service numbers and quantities assigned to the operation (control key SM04). You can structure the operations using subactivities. Externally processed operations (external operations) are performed by a third party and can also be described using the respective operation's short and long text (control key SM02) or using service numbers and quantities (control key SM03). I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-11  SAP AG 2003 Service Orders with Service Specifications Internal processing Internal processing Service order Service order External processing External processing Specs. Op. Short text for operation 10. Repair pump Labor time 4 H Activity type 1410 Work center PC-REP Service activity number Qty/UoM 432156 0.5 H 432187 3.0 H 432144 0.5 H 432233 1 SU … Service activity number Qty/UoM 432156 0.5 H 432187 3.0 H 432144 0.5 H 432233 1 SU … Specs. Op. Short text for operation 10. Repair pump Operation quantity 1 pc Cost element 417000 Vendor 1010 Externally processed operations can only be described by the operation's short and long texts or, in more detail, by service activity numbers and service quantities. External service operations are entered with the default control key SM02. The external service is described by the operation's text. The system generates purchase requisitions with the item category Normal. Service-external service operations are entered with the default control key SM03. The external service is described by one or more service activity numbers that are assigned to the operation. The system generates purchase requisitions with the item category Service. You can enter and accept the external operations using service entry sheets. To coordinate the planning process for internally and externally processed operations, you can use service specifications also for internally processed operations. You can describe the work steps in more detail in a service package. In this case, there is no limit particularly in regard to the units of time. You can enter service specifications for operations that are to be processed internally and structure services into an unlimited number of steps, uniformly define them and plan them in units of measure of all dimensions. This allows you to describe work contents more accurately and to use service catalogs. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-12  SAP AG 2003 Customer Service with External Services Invoice Invoice verification verification Service Service acceptance acceptance Entry Entry of of services performed services performed Purchase Purchase order order Order Order release release Purchase Purchase requisition requisition Operation Operation with with external processing external processing Service order Company Invoice x y z When service orders also involve external operations from service providers, a structured and detailed set of specifications can be included in the service order. For consumption postings (at the time of service acceptance and invoice verification), you can manually assign a default account for each service line through automatic account determination. Purchase requisitions are generated depending on the order type either when the service order is saved or released. Each service line in the purchase requisitions is assigned to the service order (default: account assignment category F). In Purchasing, the orders issued to service providers (purchase orders) are generated from the purchase requisitions. The service order must be released before you can create service entry sheets for the tasks performed. When the performed services are accepted, the service order is debited with the order value (only for evaluated goods receipt). When you post the incoming invoice, any invoice differences that may arise are debited or credited to the service order. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-13  SAP AG 2003 Time Sheets in the SAP System CATS Mini master Data entry profile Authorizations Time data recording (Release) (Approval) Transfer MM MM PS PS CO CO CS CS PM PM HR HR The SAP Time Sheet is used to record the actual labor times of individual or multiple persons in a central time sheet. To use the SAP Time Sheet, you should have: A human resources mini-master with a personnel number and personal data A data entry profile The authorization to work with the time sheet The time sheet process includes entering data in the time sheet, releasing the time data, approving the time data and transferring the data to the target component. Release or approval could be automatic. You can use the SAP time sheet to transfer data to the following components: External Services: Entry of services performed Controlling: Internal activity allocation Human Resources: Attendance and absences Plant Maintenance, Customer Service and Project Systems: Confirmations for orders, networks, work breakdown structure elements, and so on. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-14  SAP AG 2003 Time Sheet Data Time Sheet Defaults (infotype 0315) Personnel number From Time Sheet Defaults Production Elevators Machine hours 1000 Sender cost center 4290 1420 Activity Type 01/01/2005 12/12/2005 Service number Plant 1300 Vendor Sending Purch. Order 4500004483 0010 Sending PO item 100140 Frankfurt - 12345 C.E.B. Berlin Each employee must have been assigned a personnel number. It is created through the human resources entry screen even if this component is not implemented. The HR mini-master includes the following: Personnel Actions: Infotype 0000 holds initial data such as status and validity period. Organizational Assignment: Infotype 0001 includes data on their position, company code and cost center. Personal Data: Infotype 0002 contains their name, birth data, and language key. Time Sheet Defaults: Infotype 0315 stores data used for default values in the time sheet (if required). Data Entry Profiles determine the layout of the screen and the required data entry in the time sheets. The data entry profile could hide any fields not needed by external services. The profile definition lets you release or approve automatically as you save the time sheet. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-15  SAP AG 2003 Time Sheet Transfer to MM Transfer report SAPMLCT MM-SRV Temp.file CATSMM MM-SRV Time data entered, released and approved (if required) Send.PO Service Activity Number Mon Tue 000000000000100140 8.00 Item 0010 4500004483 Service Service entry sheet entry sheet With the help of an entry profile, the time sheet data is entered for one or more employees. The release of the data makes it available for approval or transfer. If release and approval are omitted, then the data has a status of approved when it is saved. Data is transferred to External Services Management if the Sending Purch. Order, Sending PO item or Service Activity Number field is filled in accordingly. After SAP time sheet data has been transferred into service entry sheets, the data must be accepted or approved in the External Services component. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-16  SAP AG 2003 MM-SRV Service provider’s system Medium for data transfer Disk/CD File transfer protocol (FTP) SAP e-mail RFQ Quotation Specs. Purchase order Contract Specs. Specs. Service master data Service entry sheet Exchange of Data with Service Provider (1) Specs. Processes can be accelerated by the adoption of service provider’s data on performed services using data transfer. The following data can be imported or exported with your service provider: Requests for quotations, quotations Contracts Purchase orders Service entry sheets Service master data CATS Data (SAP Time Sheet data) The information can be transferred using any of the following methods: File transfer protocol (FTP) Internet mail, SAPOffice mail Data media (diskettes, CDs) I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-17  SAP AG 2003 MM-SRV Service provider’s system SAP enhancement (user exit) SRVESI converts the data Service entry sheet Purchase order Specs. Contract Specs. Specs. Service master records BAPI creates the data Service provider's data formats For example: GAEB (Germany) for construction services . Data format can be adjusted as desired Exchange of Data with Service Provider (2) The interface for the exchange of RFQs, quotations, service master data, contracts and service entry sheets is based on the Business Application Interface (BAPI) for service documents or the SAP data model, for example BAPI_REQUISITION_CREATE. The data is 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 ABAP Dictionary. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-18  SAP AG 2003 Self-Service Procurement Create requirement for services Approve requirement Enter services performed Approve services Enter invoice The person responsible at the buyer's end (role: employee) creates a shopping cart as per his requirements. You can also create items with a value limit and runtime. This enables you, for example, to carry out low-value procurement transactions in a quick and easy manner. These planned procurements are entered in the form of a general description with a value limit. You can enter confirmations for goods or services received as well as invoices up to this value limit. If you have not been able to find the desired good or service in the catalog, you can enter a description for it. The manager approves the shopping cart. The materials management system (MM system) automatically creates a purchase requisition. The buyer creates a purchase order based on the requisition. The MM system uses the SAP Exchange Infrastructure (XI) to send the purchase order to the SAP Supplier Self-Services System (SUS System) where a purchase order is generated automatically for the vendor (role: order processor). The entry and acceptance of the service itself is performed in the MM system. The vendor (role: invoice processor) creates an invoice based on the current purchase order. The SUS System sends the invoice to the MM system via XI. In MM, invoice verification is performed automatically and concludes with the invoice's settlement in the accounting system. The vendor (role: invoice processor) verifies the payment status of an invoice that has been received. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-19  SAP AG 2003 Recording of Performed Services via the Internet Internet browser SAP ERP MM-SRV Easy-to-use interface Purchase order Validity Jan. 1 – June 30 Acc. assgt. cat. Logon to SAP system via EBP Services Relating to PO 45...123 – Service 12345 – Service 37748 Service description Cost center 2345 Adopt planned service Possible use: Service entry by service provider Specs. An employee creates a requirement request from a description, service master, or catalog search in the EBP System. The request is approved and a purchase order document is created in the SAP EBP System and the backend system. After the service provider has performed the service, he can enter the services via Internet: After he has logged on to the system, the purchase order for which he is allowed to enter services is displayed. He assigns a title to the entry sheet and can adopt planned services from the purchase order into the service entry sheet. If a value limit has been provided in the purchase order, he can enter unplanned services and their prices. Acceptance of the services entered is performed by the employees of your company. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-20  SAP AG 2003 Release via the Internet Internet browser Entry of services performed Logon to SAP system via EBP 1. Requestor release Entry sheet 2. Manager release Acceptance posted The standard SAP system procedure for the Collective Release of Service Entry Sheets Internet application component is as follows: The user logs on to the system through the appropriate home page. All service entry sheets that have to be released by him are displayed on the Web page. The user selects a service entry sheet. The services and some of the header data are displayed. The user can also view detailed information about the release, such as the release prerequisites and any previous releases. The user releases the service entry sheet. As a result, it immediately receives the status Released in the SAP system. The released service entry sheet is displayed in an overview list. If the user wants to undo the release, he can select the service entry sheet from the overview list. The services and some of the header data are displayed. The user undoes the release. As a result, the service entry sheet immediately receives the status To be released in the SAP system. The service entry sheet is displayed again in the list of service entry sheets to be released. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-21  SAP AG 2003 Describe procured services within other processes You are now able to: Integration with Other Processes: Unit Summary I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-22 Exercises Unit: Integration with Other Processes At the conclusion of this exercise, you will be able to: • Create service entry sheets based on maintenance plans To maintain and service your machines, you frequently require services that you sometimes have to request at very short notice. You would like to keep the procurement process for these recurrent services as simple as possible. Therefore you would like to generate the service entry sheets for the regular maintenance work at the time you schedule the maintenance plan. 1-1 Create a maintenance plan for regular maintenance on one of your machines. The maintenance service is performed by an external service provider. Select the maintenance plan category MM (Service Provided). 1-1-1 Maintain a description for the maintenance plan in the header as well as for the maintenance item. 1-1-2 For testing purposes, specify that the maintenance should be conducted daily. 1-1-3 For the automatic creation of the service entry sheets, assign the framework order and item used in the Procurement of Unplanned Services unit. 1-1-4 Assign the services to the G/L account 417000 and use a settlement order (the latter will be specified by your instructor). 1-1-5 Maintain a set of service specifications containing the detailed maintenance services. 1-1-6 Save the maintenance plan. Record the number of the maintenance plan. Maintenance plan: __________________________________________ 1-2 Schedule the maintenance plan. The next maintenance is due today. Use the automatic scheduling function. Save the maintenance date that is generated. 1-3 Display your maintenance plan. Display the service entry sheet that has been generated automatically as well as the updated information in the purchase order (purchase order history and actual values of unplanned services). I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-23 Solutions Unit: Integration with Other Processes 1-1 Create a maintenance plan for regular maintenance on one of your machines. The maintenance service is performed by an external service provider. Select the maintenance plan category MM (Service Provided). From the SAP Easy Access menu, select the following: Logistics → Plant maintenance → Preventive maintenance → Maintenance planning → Maintenance plans → Create → For Service Procurement Click Continue. 1-1-1 Maintain a description for the maintenance plan in the header as well as for the maintenance item. Enter a description for the maintenance plan at header level as well as a description for the maintenance item. 1-1-2 For testing purposes, specify that the maintenance should be conducted daily. Enter the following information: Cycle 1 Unit D (day) 1-1-3 For the automatic creation of the service entry sheets, assign the framework order and item used in the Procurement of Unplanned Services unit. In the Service data area, specify your purchase order number and the item number from the Procurement of Unplanned Services unit. 1-1-4 Assign the services to the G/L account 417000 and use a settlement order (the latter will be specified by your instructor). Enter the following information: G/L account 417000 Settlement order Will be specified by instructor I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-24 1-1-5 Maintain a set of service specifications containing the detailed maintenance services. Choose Create entry sheet. Enter as many services as you like (at least one) manually or with reference to an existing set of service specifications. Use your service master records if applicable. Complete the data (quantity, unit of measure and price). Click Back. 1-1-6 Save the maintenance plan. Click Save. 1-2 Schedule the maintenance plan. The next maintenance is due today. Use the automatic scheduling function. Save the maintenance date that is generated. From the SAP Easy Access menu, select the following: Logistics → Plant maintenance → Preventative maintenance → Maintenance planning → Maintenance plans → Display Specify the number of your maintenance plan, if available. Click Continue. Select Maintenance plan → Schedule. Click Continue. Click icon Start. The next maintenance date is determined automatically, and a corresponding service entry sheet is created when you save the data. Click Save. Click Back. 1-3 Display your maintenance plan. Display the service entry sheet that has been generated automatically as well as the updated information in the purchase order (purchase order history and actual values of unplanned services). From the SAP Easy Access menu, select the following: Logistics → Plant maintenance → Preventative maintenance → Maintenance planning → Maintenance plans → Display Specify the number of your maintenance plan, if available. Click Continue. Click Position last call object. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 10-25 The service entry sheet contains all services that you have maintained in the maintenance plan. Only acceptance must still be performed. Choose PO display. The changed value of the released services and the service entry sheet are visible in the Actual value field on the Limits tab and in the purchase order history. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 11-1  SAP AG 2003 Summary Services in Purchasing Documents Integration with Other Processes Course Overview Entry and Acceptance of Services Planned Invoice Verification Summary Optimized Procurement Invoice Verification ? ? = = The Procurement Process for Services Invoicing Plans MM MM PS PS CO CO CS CS PM PM HR HR 12 9 6 3 11 1 7 5 8 4 2 10 Master Data Procurement of Unplanned Services PO 4523 Item 10 Require- ment I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 11-2  SAP AG 2003 You are now able to: Course Objectives Create service master data Create and maintain service specifications Incorporate services into the procurement process Based on service entry sheets, enter and accept services performed Customize the SAP system for external services I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 11-3  SAP AG 2003 Recommended Follow-up Courses SCM550 – Cross Functional Customizing in MM PLM120 – Document Management System PLM130 – Classification PLM140 – Variant Configuration Part 1 I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 11-4  SAP AG 2003 Recommended Follow-up Activities Go through the exercises using IDES data or your own data. Read the on-line documentation. Read the IMG documentation. Read the release notes. I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 12-1  SAP AG 2003 Menu Paths Contents: Appendix I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 12-2 Frequently-Used Menu Paths Procurement of External Services Activity Menu Path Master Data: Maintain service master data Logistics → Materials management → Service master → Service → Service master Create service conditions without vendor Logistics → Materials management → Service master → Service → Service conditions → For service → Add Create service conditions with vendor without plant Logistics → Materials management → Service master → Service → Service conditions → For vendor without plant → Add Create service conditions with vendor and plant Logistics → Materials management → Service master → Service → Service conditions → For vendor with plant → Add Create service conditions with purchasing organization Logistics → Materials management → Service master → Service → Service conditions → Others → Add Create model service specification Logistics → Materials management → Service master → Model service specification → Create Create standard service catalog Logistics → Materials management → Service master → Standard service catalog → Create Modify vendor master data Logistics → Materials management → Purchasing → Master data → Vendor → Purchasing → Change (current) I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 12-3 Documents: Create purchase requisition Logistics → Materials management → Purchasing → Purchase Requisition → Create Create purchase requisitions automatically Logistics → Materials management → Purchasing → Purchase Requisition → Follow-on functions → Create purchase order → Automat. via Purchase Requisitions Assign and process purchase requisitions Logistics → Materials management → Purchasing → Purchase requisition → Follow-on functions → Assign and process Create request for quotation (RFQ) Logistics → Materials management → Purchasing → RFQ/Quotation → Request for Quotation → Create Maintain quotation Logistics → Materials management → Purchasing → RFQ/Quotation → Quotation → Maintain Price comparison list Logistics → Materials management → Purchasing → RFQ/Quotation → Quotation → Price comparison Create purchase order Logistics → Materials management → Purchasing → Purchase order → Create → Vendor/supplying plant known Create contract Logistics → Materials management → Purchasing → Outline agreement → Contract → Create Maintain service entry sheet Logistics → Materials management → Service entry sheet → Maintain Enter invoice Logistics → Materials management → Logistics invoice verification → Document entry → Enter invoice Create PM maintenance plan Logistics → Plant maintenance → Preventive maintenance → Maintenance planning → Maintenance plans → Create → Single cycle plan Create PM maintenance order Logistics → Plant Maintenance → Maintenance processing → Order → Create (General) Create PS network Logistics → Project System → Project → Special Maintenance functions → Network → Create Modify customer service orders Logistics → Customer service → Service processing → Order → Service order → Change Enter time sheets Human Resources → Time Management → Time sheet → CATS Classic → Record Working Times I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 12-4 Reports and Lists: Service list Logistics → Materials management → Service master → Service → Service list Standard service catalog Logistics → Materials management → Service master → Standard service catalog → List display Automatic settlement of invoicing plans Logistics → Materials management → Logistics invoice verification → Automatic Settlement → Invoicing Plan Settlement Evaluated receipt settlement Logistics → Materials management → Logistics invoice verification → Automatic Settlement → Evaluated Receipt Settlement (ERS) Collective release of service entry sheets Logistics → Materials management → Service entry sheet → Collective release Data transfer during service entry Logistics → Materials management → Service entry sheet → Data transfer Purchasing lists for external services Logistics → Materials management → Purchasing → Purchase order → List displays → External services → by service Planned/actual comparison for purchase order for external services Logistics → Materials management → Purchasing → Purchase order → List displays → External services → Planned/actual comparison Lists relating to service entry sheets Logistics →Materials management → Service entry sheet → List Analyses → For purchase order I n t e r n a l U s e S A P P a r t n e r O n l y I n t e r n a l U s e S A P P a r t n e r O n l y © SAP AG SCM540 12-5 Customizing: All menu paths begin with: Tools → Customizing → IMG → Execute Project SAP reference IMG SAP Customizing Implementation Guide → Materials management → … Service master, service categories, number ranges, field selection for service master data External Services Management → Service Master Screen layout for services in documents External Services Management → Define Screen Layout Settings for source determination and for default values for documents External Services Management → Source Determination & Default Value → For Client Define condition schemas External Services Management → Maintain Conditions for Services Define formulas External Services Management → Formulas for quantity determination → Define Formulas Specify names for formula variables External Services Management → Formulas for quantity determination → Specify names for Formula variables Define combinations of account assignment categories and item categories Purchasing → Account Assignment → Define combination … Maintain release procedure for service entry sheets External Services Management → Define Release Procedure for Service Entry Sheet