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Author's profile photo Ramani Thinakaran

S/4HANA Service: Expense Item

In S/4HANA Service Service Order, there are many types of postings possible

  • Material
  • Labor
  • Expense Item

This blog is about how expense items are created and posted in a Service Order. Typically expense items are unplanned – travel expense, flight, car rental, etc. In various industries they capture different expenses. In Automotive third party subcontractor costs are expensed and is referred to as “Sublet”.

                                  SERV material set up

In S/4HANA Service as material and labor, expense item is a set up material with material type SERV. It has to be set up first before it can be used in a Service Order.


Entry in Service Order

Expense item is entered in the items section.

Service Order


When you create the Service Order, manual condition is used to enter the value of the expense item if the value is dynamic in nature. If you are creating static you can use VK11 to derive the pricing.

Click the pencil, pricing totals and Add to enter pricing. In standard system PMP0 is set up as a manual price condition. Enter value of your expense item.



Manual Pricing of Expense item

Save the Service Order and release. On release, system will create an internal order. This is old “OP 2020”. In this release Internal Order is the cost collector. In newer Cloud and C4 releases, Service Order itself is the cost object.

Service Confirmation

The next step is create a follow up Service Confirmation from Service Order.

Here the expense item is copied into confirmation.


Service Confirmation view of Expense Item

On completion of Service Confirmation expenses will be posted in the internal order.

Internal Order posting of Expense Item


Internal Order posting


There is no difference with EBDR or billing process. Billing is not discussed here.


Configuration CE/GL account

Here expense item is assigned to Cost Element (GL account)


Expense Item to Cost Element


GL Account/CE 

The CE category should be 1,


CE category

Assigned Tags

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