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Author's profile photo Kumar Chockalingam

Lean Service Procurement in SAP S/4HANA

Contents

  • Overview
  • New in Lean Service Procurement in SAP S/4HANA
  • Business Scenario
  • Process Flow
  • New fields in Purchase Requisition and Purchase Order
  • Lean Services Apps for Purchase Requisition – standard & enhanced limits
  • App for Service Entry Sheet
  • Configuration for Lean Services
  • Conclusion
  • Reference

Overview

Lean services is newly introduced process in SAP S/4HANA to simplify service procurement. Here, service entry sheet is not the same as service entry sheet created via ML81N.

Idea behind Lean services is to simplify the process of booking of service entry sheet. This documents covers insights and scenarios supported in Lean Services.

New in Lean Service Procurement in SAP S/4HANA

  • New master data object “Product type” is to differentiate between material and service
  • New material type SERV in combination with “Product type”
  • Flexible workflow for service entry sheets approval
  • Simplified limit (Enhanced Limits E) for PO with value limits (no quantity) and receipt or confirmation of service via SAP Fiori app “Service Entry Sheet”. By this 3-way match for limit PO items can be achieved for unplanned service procurement.

Business Scenario

Lean services uses “Manage Service Entry Sheet” app for confirmation of services. This can mapped for approval process via flexible workflow.

Following purchasing scenarios are possible:

  • Planned Services are services where quantity and value are known while purchase requisition creation with:
    • Item: free text
    • Item: service material (SERV material type)
  • Unplanned services are services where only value is known while purchase requisition creation with:
    • Enhanced Limit Item: new item category (E-Enhanced Limit) and actual quantity are filled while confirmation of services in the “Manage Service Entry Sheet”

Start and end date of services can be maintained at item level, this is suitable for consultation charges, maintenance charges, office rental etc.

 Process Flow

Lean Service PRs are identified by ‘product type group’ as Service (2). Standalone purchase orders cannot be created for Lean service. This has to be initiated with purchase requisition only.

A quick comparison of scope of item and limit item purchase requisition can help to understand the fitment of Business scenarios for Lean Services.

Scope is narrated based on 1909 release using following apps for above mentioned business scenarios:

  • App: Manage Purchase Requisition-Professional
  • App: Create Purchase Requisition (Employee Self-Service)
  • App: Manage Service Entry Sheet – Lean Services

Note: Lean services with limits are not possible for Self-service procurement.

New fields in Purchase Requisition

  • Lean services Purchase requisition and Purchase orders are identified by product type group – Services (2) (EBAN-PRODUCTTYPE and EKPO-PRODUCTTYPE)

       Start and end date of service is mandate at line item

  • Expected value and over all limits are maintained at line item if the services are managed in limits.

Lean Services Apps (standard)

  1. App: Manage Purchase Requisition – Professional : To create Purchase Requisition for Lean Service

Product type is defaulted to Service (2) and start & end date are filled at line item

  1. App: Create Purchase Requisition (Employee Self-Service) : To create Purchase Requisition for Lean Service for SSP

New fields Product type is Service (2) and start & end date are filled at line item

Lean Services Apps (enhanced limits)

  1. App: Manage Purchase Requisition – Professional : To create Purchase Requisition for Lean Service with Limits

New fields expected value and overall limit are filled along with product type group and start & end date

App for Service Entry Sheet

  1. App: Manage Service Entry Sheet

Confirmation of services are allowed only using ‘Manage Service Entry Sheet’ app. Following are the key features.

  • Change of account assignment in service entry sheet is possible
  • Approval via Flexible Workflow is allowed from 1709 (a new approval mechanism in SAP S/4HANA)
  • Goods receipt document is created once SES is approved. The same can be changed or cancelled with the option ‘withdraw the approval’
  • Approver can be given in manage service entry sheet app and the email will trigger to that person and it works without activating flexible workflow. However, this functionality is no longer valid after SAP S/4HANA 1709 as flexible workflow set up was activated
  • Date of service performance can be entered
  • Service entry sheet is simplified so it can be exposed to supplier to maintain and same can be integrated with approval by the Business users
  • While SES creation, item description can also be maintained in case of limit items. Further, issues warning if expected value exceeds and an error if aggregated booked amount exceeds the overall limits

Configuration for Lean Services

Define for Service Material Type SERV

IMG > Logistics General > Material Master > Basic Settings > Material Types > Define Attributes of Material Types

Allowed Item Categories E for Enhanced Limits for Purchase Requisition

IMG > Materials Management > Purchasing > Purchase Requisition > Define Document Types

New Field Selection with PTAB for Purchase Requisition with Enhanced Limits

IMG > Materials Management > Purchasing > Purchase Requisition > Define Screen Layout at Document Level

New Field Selection with PTAF for Purchase Order with Enhanced Limits

IMG > Materials Management > Purchasing > Purchase Order > Define Screen Layout at Document Level

Number range for Service Entry Sheet

IMG > Materials Management > Purchasing > Service Procurement – Lean Services> Service Entry Sheet – Define Number range

Flexible Workflow Activation for Service Entry Sheet

Refer help.sap.com for complete Flexible Workflow Setup for Service Entry Sheet

https://help.sap.com/viewer/af9ef57f504840d2b81be8667206d485/1909.000/en>US/4600eddee13847cb985eaa72e5865656.html

IMG > Materials Management > Purchasing > Service Procurement – Lean Services > Flexible Workflow for Service Entry Sheets > Activate Flexible Workflow for Service Entry Sheets – Lean Services

Conclusion

In lean service, service entry sheet creation is possible only through “Manage service entry sheet” Fiori app. Unplanned and planned business scenarios for services are supported. This process is well aligned with service procurement in Ariba buying and integration with SAP S/4HANA would be seamless. This process would bring a change in the way the service procurement is executed.

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      47 Comments
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      Author's profile photo Prabhakaran Mohan
      Prabhakaran Mohan

      Nice narrated.

      Author's profile photo shanmuga priya
      shanmuga priya

      Brilliant, one of the best blog posts I’ve ever read!

      Author's profile photo Kavitha Thangaraj
      Kavitha Thangaraj

      I could see this is the first blog in SDN on “Lean Services” and it covers all aspects like possible business scenario, configuration, features in nut shell. Thanks for sharing your experience.

      Author's profile photo Goy Nair
      Goy Nair

      Hi Kumar, Really a wonderful document and it's the first. Thank you.

      I have one query, can you please extend to the part of acceptance, Goods Receipt/ service Entry Sheet level of details.

      In fact, my query is wen we use Lean Services are we using Service Entry Sheets or Goods Receipt (just like DIEN). Please advise.

      Regards,

      Goy

      Author's profile photo Kumar Chockalingam
      Kumar Chockalingam
      Blog Post Author

      Hi Goy,

      For lean services, acceptance is only via app "manage service entry sheets".

      Lean service procurement is identified with product type "2". It can be free text or with material (only material type :SERV).

      Regards

      Kumar

      Author's profile photo HUBAIB NEDUVANCHERI
      HUBAIB NEDUVANCHERI

      This is quite worthy to read. I can now comprehend nuance of lean service procurement in S/4HANA.

      Author's profile photo Paul Oesterwitz
      Paul Oesterwitz

      Thanks for the great summary and customizing information, that's really helpful.
      Do you know if the lean services procurement is supported for maintenance orders aswell?

       

      Kind regards

      Paul

      Author's profile photo Kumar Chockalingam
      Kumar Chockalingam
      Blog Post Author

      Hi,

      The functionality of lean service procurement in Maintenance Orders is available from S/4HANA 2020 after implementing the note # 2897493

      Please refer the below links

      https://launchpad.support.sap.com/#/notes/2897493

      https://launchpad.support.sap.com/#/notes/0002946698

       

      Regards

      Kumar

       

      Author's profile photo Ravi Hariharan
      Ravi Hariharan

      Very well written. Thanks.   Gives a good overview of the functionality.

      Author's profile photo Sameer Mohammed
      Sameer Mohammed

      Good Overview of Lean Services

      Author's profile photo Jay Hoffman
      Jay Hoffman

      Is it possible to use the lean services procurement for blanket orders as well where multiple invoices can be submitted over the validity period?

      Author's profile photo Aleem Daya
      Aleem Daya

      hi Kumar,

      This is a great blog and has helped me explore this functionality.

      One question - is it possible to post goods receipts for limit items that are product type group = 1 (materials)?  Or can invoices only be posted?

      I noticed that in my system when I use product type group = 1 (materials) with limit items (even if I set the GR flag in the Requisition), once I convert the Req to PO, the GR flag gets de-selected and is greyed out.  If I use product type group = 2 (services), I can set the GR flag to ON or OFF (i.e. control whether or not I use service entry sheets or invoice only).

      Let me know.

      Aleem

      Author's profile photo Kumar Chockalingam
      Kumar Chockalingam
      Blog Post Author

      Hi Aleem,

      Goods receipt is not possible for limits with product type group "1" (Select material under limits)

      If the receipt (service entry sheet using app) is required for limits, then select services under limits which in turn picks product type group as "2"

      Regards

      Kumar

       

       

      Author's profile photo Aleem Daya
      Aleem Daya

      Thanks Kumar.

      I have another question - for regular lean services items (i.e. not limits), is it possible to use non-valuated service entry/goods receipts?  I tried this in my system (1909 FPS01) and it doesnt allow me (it returns an error message "for items with Product type group "service", the checkbox GR non-valued must not be selected.  Message no. MMPUR_SPROC020").

      Is it possible to by-pass this?  It sounds like if I want to use lean services GRs must be valuated.

      Let me know.

      cheers,

      Aleem

      Author's profile photo Alain Rivet
      Alain Rivet

      Hello Kumar/Aleem,

      I'm facing the same situation and getting the same message same as Aleem. Is there somehow a resolution for this non-valuated service entry/GR ?

      Thank you.

      Alain

      Author's profile photo horacio montecino
      horacio montecino

      Thanks for the great detail, that's really helpful.
      Do you know if the lean services acceptance can be printed in a form.

      Author's profile photo Nabanita Barua
      Nabanita Barua

      Thanks for sharing . Can you pls suggest in case of free service how we can achieve this in po level . Because product type 2 invoice receipt is mandatory so can’t enter zero as a net price . What is the way out of business wants to enter zero value for services . Pls suggest

      Author's profile photo Ashish Shah
      Ashish Shah

      Hi Kumar,

      Thanks for sharing, This is really a first blog on how to configure and use Lean services.!!

      Is there a way to create lean service entry sheet from any SAP GUI tcode? if yes please share.

      I have 2 suggestions -

      1. I could create a lean service Purchase Order without Purchase requisition ,You should update this statement in the blog - "Standalone purchase orders cannot be created for Lean service. This has to be initiated with purchase requisition only."
      2. Lean services with limits are not possible for Self-service procurement - in S4 HANA 2020 SAP has provided a way called Enhanced limit, so this limitation is taken care of now https://blogs.sap.com/2020/11/30/leveraging-enhanced-limits-to-simplify-service-procurement/

      Regards,

      Ashish Shah

      Author's profile photo Gokul Koyangodu
      Gokul Koyangodu

      Hi Kumar,

      Awesome blog outlining the Lean services.

      On SES app, Personnel number is mandatory. Do we have an way around it.

      Thanks & Regards,

      Gokul

      Author's profile photo Luis Felipe Ramos Estrada
      Luis Felipe Ramos Estrada

      I would like to know if this requirements is possible

       

      Thanks & Regards,

      Luis

      Author's profile photo Gokul Koyangodu
      Gokul Koyangodu

      This is solved in On Prem 2021.

      Author's profile photo Francisco Dominguez Parra
      Francisco Dominguez Parra

      Hello Gokul,

      How could it be done? I can't find a way to do it.

       

      Thanks.

      Author's profile photo Gaurav Grover
      Gaurav Grover

      Hi Kumar and other members,

       

      We are using S4HANA cloud 2102. I have tried the Lean service procurement and it works. So what happened to DIEN material type? Like can i not use the "Advanced" Purchase requisition (similar to ECC) for services anymore? As soon as i create SERV material i cannot use the "Advanced" PR screen. In 2102 i can't even see DIEN in material types.

       

      Thanks!

      Gaurav

      Author's profile photo Kumar Chockalingam
      Kumar Chockalingam
      Blog Post Author

      Hi Gaurav Grover,

      DIEN material still works the same way as in ECC.

      Difference is service material with SERV allows service entry sheet in app “manage service entry sheet” and service material with DIEN allows goods receipt in MIGO / app “post goods receipt”

      In addition below options allows service entry sheet in app “manage service entry sheet” when purchase requisition is created as below

      1. free text with product type “service”
      2. catalog for service with “reference to service” marked as yes

      Thanks!

      Kumar

      Author's profile photo Craig Hume
      Craig Hume

      HI,

      Does anyone have a view of when SAP will be integrating Lean Service Procurement into Outline Agreements and Source Lists. Manage Purchase Contracts app and ME31K TCode look like they are committing the document when you save however the system just rolls back and doesn't actually create the document.

      Thanks

      Craig

      Author's profile photo Mateusz Szydlowski
      Mateusz Szydlowski

      Hi,

      Great material.

      You have mentioned - "The functionality of lean service procurement in Maintenance Orders is available from S/4HANA 2020 after implementing the note # 2897493"

      But still, it is not official solution and you can implement on your own responsibility.

      Have you implemented these notes? Is solution is stable?

      Second thing:

      As we know gr is not possible for enhanced limit.

      Maybe you can correct your diagram where "GR for PO" Fiori App is mentioned for "E" Item category and material type "1".

      Big thanks for your article !

      Author's profile photo Salman Shahid
      Salman Shahid

      Hi, can we have negative quantity (GR) posted in Manage SES App. again a PO line? Thank you.

      Author's profile photo Amit Hundekari
      Amit Hundekari

      Hi Salman ,

      you have to consider the usage of tolerances on the Purchase order Item . This was originally designed for Material items and quantity.

      As lean services inherits the same workflows and features as material ,you can configure tolerances for lean service items and consider if this serves your business purpose.

       

      Author's profile photo Omkar Todkar
      Omkar Todkar

      Hello

       

      I copied NB document type and added E as item category for allowed doc type. but unfortunately PTAB itself is not available hence could not proceed with PR creation with unplanned scenario.

      Is there any business function required for field selection? if have any insight please let me know

      Author's profile photo Tom Käser
      Tom Käser

      Hi Kumar Chockalingam

      Thank you very much for your effort and sharing.

      You wrote 'Service entry sheet is simplified so it can be exposed to supplier to maintain and same can be integrated with approval by the Business users'

      -> How can the SES be exposed to the supplier for maintenance?

      Author's profile photo Rohit Garg
      Rohit Garg

      Hi Kumar Chockalingam

      Thanks for the great blog. Is Lean Services with Self Service procurement now available with 2021? Can we utilize service contracts when using lean services?

      Regards,

      Rohit

      Author's profile photo Amit Hundekari
      Amit Hundekari

      Hi Rohit ,

       

      Please refer to the scope item "BMD" for Contracts and "22Z" in rapid.sap.com which explains how to use service procurement E2E in S/4HANA.

      Regards,

      Amit

      Author's profile photo Jose Paul
      Jose Paul

      Great article! Kudos Kumar Chockalingam !

      Can you please elaborate how to expose SES to supplier for entry. Any options available as standard with S/4 HANA?

      Service entry sheet is simplified so it can be exposed to supplier to maintain and same can be integrated with approval by the Business users'

       

      Author's profile photo Amit Hundekari
      Amit Hundekari

      Hi Jose,

      SES is offered for user Persona "Purchaser" only. If you want to offer to your Suppliers a possibility to submit the service performance times , there are two ways.

      1. you can use either the SES Create Inbound ODATA API and create your own custom App /portal and give access to Suppliers .
      2. You can consider using SAP Fieldglass SES Submission under the best practice scope item 4R2. Link

      As SAP has a solution for suppliers to submit SES via SAP Fieldglass , we will not offer a duplicate option within S/4HANA.

      Hope this helps.

      Author's profile photo Nagy Farag
      Nagy Farag

      Hi Kumar

      First of all Really a wonderful document. Thank you.

      but I have some questions here

      1-  Lean Service PRs are identified by ‘product type group’ as Service (2). Standalone purchase orders cannot be created for Lean service. This has to be initiated with purchase requisition only. so this means I can't create Direct PO without oi for lean?

      Planned Services are services where quantity and value are known while purchase requisition creation with:

      • Item: free text

      2- I'm already training to do this scenario ( free text ) and it's fine and give me a correct product type       1 this is fine, but if I'm going to MIGO it will post no issue so please can you clarify to me how can I prevent this like if I select a service ( SERV ).

       

      thanks,

      Nagy

      Author's profile photo Amit Hundekari
      Amit Hundekari

      Hi Nagy,

      For Lean services receipt posting "Manage Service Entry Sheet " Fiori App should be used. There is no SAP GUI equivalent to post SES . Hope this explains what you are trying to achieve.

      Regards,

      Amit

      Author's profile photo Sarath Kumar
      Sarath Kumar

      Hi Kumar,

      Thanks for sharing. We are using S/4HANA 2020 system. Is it possible to generate Lean service PR from project?  please suggest incase, if we need to do any settings for generating auto Lean service PR.

      Thanks,

      Maqdoom

      Author's profile photo Amit Hundekari
      Amit Hundekari

      In S/4HANA 2020 On-Prem release you can not generate a PR out of a Project System / network WBS element in standard way.

      OSS note 2897493 - Lean Service Procurement in Maintenance Order is offered to customers to activate Lean PR creation from Asset Mgt Work orders. As asset mgt and PS share some code together , this note can help you create a PR from a PS Network order. 

      However this note does not support creation PR with lean service having free text description and Limit items . Also the note is modification ,so implementation team has to do custom code if required and test it thoroughly before deploying in production.

      Hope this helps.

      Regards,

      Amit

       

      Author's profile photo Sabbineni Mounika
      Sabbineni Mounika

      Hello,

       

      Thanks for sharing the info on Lean service procurement topic.

       

      Currently I am facing an issue with Personnel number Field in Service entry sheet. I have created Employee as business partner using PA30 transaction. But still values are not populating for personnel number field in fiori app "Manage Service Entry sheets Lean Services".

       

      Can anyone please help me to resolve this issue.

       

      Thanks,

      Mounika

      Author's profile photo Amit Hundekari
      Amit Hundekari

      Hi Mounika ,

       

      The newly created business partner should have role SAP_BR_EMPLOYEE.

      Here steps to follow in Fiori setup.

      Step 1 : Create employees with a uniqueue user name

      • Logon as user ADMINISTRATOR / Welcome1!
      • Open the app “Import Employees”
      • Select Import Type: Employee and Employment Import

      Step 2

      After you have imported Employees , please assign the new user name with following role.

      • Open the app “Maintain Business Users”
      • Search the new user
      • Go to the details
      • Click on the button “Add Business Roles”
      • Select role SAP_BR_EMPLOYEE
      Author's profile photo Abdallah Hamdini
      Abdallah Hamdini

      Excellent Blog, my respect

      Author's profile photo Amit Hundekari
      Amit Hundekari

      Thanks Kumar for all your contributions to Lean Services in SAP S/4HANA

      As a next chapter to Lean Services, SAP has released item hierarchies to build upto 5 levels of logically interdependent items with parent child relationship , also popularly known as complex services,  in S/4HANA Cloud 2202 to start with.

      Here is the link to detailed Blog.

      On behalf of Product Team for SAP Service Procurement

      Author's profile photo Nicolas Baravalle
      Nicolas Baravalle

      Hi,

      I'd like to know if it's possible to create a PR Lean Service using internal catalogs.

      When I create a new item catalog from the "Manage Catalog Item" App, the product type is always set as Material, there is no option to create an item catalog as Product Type Service.

      So when I create the PR through lean Service option I can't find the catalog item created previously.

      Is it possible to use this functionality of catalogs in Lean Services?

      Thanks,

      Author's profile photo Andrew Warren
      Andrew Warren

      Hi Kumar, my customer is using Service Masters in ECC and they're upgrading to S4HC 2021.  I think the functionality is still available i can see it in config, They use ML81n for the Service Entry Sheets.

      For Self Service Requisitioning for Services (Create Requisition App), and Manage Service Entry Sheets Lean Services for the SES, I'm guessing I can't use Service Masters ?

      So in this case i would require one process for materials and one process for services?  alternatively shut down the old service masters and create new 'SERV' materials for services and we could use the same process for both materials and services?  ie Create Requisition (Self Serv Req) & Manage Service Entry Sheets Lean Services.

      Regards

       

       

       

      Author's profile photo Tom Käser
      Tom Käser

      Additional information for the readers of this blog:

      SAP introduced a Final Service Entry Sheet indicator in the Fiori App 'Manage Service Entry Sheet'.

      https://blogs.sap.com/2022/08/22/sourcing-procurement-in-sap-s-4hana-cloud-2208/#ses

      Author's profile photo Amit Hundekari
      Amit Hundekari

      Hello All,

      With the 2022 On-prem Release of SAP S/4HANA , we support unto 5 levels of item hierarchies . For more details pls see the blog .

      Regards,

      Amit Hundekari

      SAP Product Manager for Services Procurement

      Author's profile photo Christoph Hahn
      Christoph Hahn

      Hi Kumar,

       

      thanks for the nice Blogpost.

       

      Is there an recommended migration approach from MM-SERV - to LeanService?

      Service Items in PO´s

      An Service Entry Sheets?

       

      Thanks ahead

       

      Chris