Service Procurement

• Service procurement is the procurement of services.
• Service procurement in SAP happens in following steps

Step 1: Create PO

• Create a PO with ME21N Add vendor name, Purchasing Organization, Company Code & Purchasing Group.
• In PO there will always be account assignment category because service can not be stored physically and it is always consumption. Hence account assignment category in PO is always present.
• Item category used in PO is “D” i.e. services
• For the example given below, we have taken account assignment category as K i.e. cost center and item category as D i.e. services

• At the item level we mention only one item.
• Detailed services are mentioned in Services tab in the item details section of the PO.
• After maintaining the service lines, pop up window will appear to maintain the account assignment details for each service lines.

• Maintain the account assignment.
• There is auto repeat account assignment button, which can copy the same account assignment to all items
• Enter the details and save the PO which will generate PO number.

Step 2: Create Service Entry Sheet

• Transaction code to create the service entry sheet is ML81N
• After entering in the transaction, it will show the last PO or SES (Service Entry Sheet) created.
• Click on Other Purchase Order button in application toolbar and enter the PO no. as shown in screen below.

• Click on continue from this window.
• To create a new SES for this PO, click on the New Button in application toolbar, this will create a new entry sheet for the PO.
• Enter the other details required in the SES as shown below.

• After entering the header level details, we need to select services from PO. For this click on the service selection button at the bottom of the screen.
• A pop up will appear selecting the PO no. Click on continue.

• Next screen will show the services available in PO. Select the services and click on copy services button in the application toolbar.

• After copying the required services in SES, we can change the quantity of the individual services and then save the SES

Step 3: Release SES (Service Entry Sheet)

• SES created needs the approval or release. Then only the account posting happens and the liability is generated.
• For releasing / approving the SES, click on change button(Button having Pencil image with a glass) . The status of the PO now is ‘No acceptance’ which can be seen the SES after SES number
• Click on release flag(Green color flag) . Status of the PO will become, ‘will be accepted’ i.e. it will be released after saving. Save the SES.
• Now the SES is approved and the status becomes  ‘Accepted’ i.e released.
• Invoice Verification is same as normal Goods receipts i.e. through transaction MIRO. It can be done with reference to PO or SES.
• SES Created is also updated in Purchased Order History Tab in PO.
• Invoice posting will complete the Service procurement cycle.

Regards,

Ritesh Kumar Madhukar