SAP Service Configurations in SAP MM

SAP Service Configurations In SAP MM - Part 1 created by Dibyendu Patra on Nov 28, 2013 12:30 PM, last modified by Dec 3, 2013 7:23 AM

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Service: Service in a intangible goods, which can be procured by a vendor. Sap Service known as External Service Configuration (ESM) Its a well tested business process in SAP. ESM is a component of MM module, It support the complete cycle with procurement as well as invoice verification.

SERVICE MASTER CONFIGURATION Service Master Service master contains the service number, description, characteristics etc. This is also called master data in External Service Management. It play as master data when you create a service entry sheet. Step 1 : Service Number Range configuration A service number is a unique number for each service entry sheet. It can be maintain internally or externally. T-code = ACNR Configuration Path = SPRO-IMG-MM-External Services Management-Service Master-Define Number Ranges

Maintain Number range and assign group as per your requirement. (little bit same as material master number range) Step 2 : Maintain Account Category Reference and valuation Class. As we know, Account Category Reference is used for group together many valuation class, so that we can use these valuation class for service master under service category. Valuation class is used to group together several material or service with their same attributes. So that we don't need to maintain G/L for every service master. T-code OMSK

Configuration path = SPRO-IMG-MM-Valuation and Account Assignment-Account Determination-Account Determination Without Wizard-Define Valuation Classes Click on Account Category Reference

Give the ACR code ans description, and save your data. Then click back and press on valuation class.

Here maintain valuation class and maintain the account category reference (which you have created in previous screen). Step 3 : Service Category Configuration Service category is a most important area for service master record. A. Define Organizational Status for Service Categories Organizational status describe the attributes of service category, It specify the organizational unit on where the service master will stored. T-code OMV2 Configuration Path = SPRO-IMG-MM-External Services Management-Service Master-Define Organizational Status for Service Categories

Maintain Organizational status as per your requirement. This will be assign to Service category. So Maintain these as per your requirement.

B. Define Service Category According to uses of service service category is maintain different.It has control function and its define the attributes of services. T-code OMV1

Configuration Path = SPRO-IMG-MM-External Services Management-Service Master-Define Service Category

Here you have to maintain the service category. Give the Service Category, give the organization status(which is created previous step), tick the number range uses(External number range uses or not). Give the access sequences and description. Maintain the Account Category Reference which you have created in Step 2. Give the description and save your data. Step 4 : Maintain Field Selection Field selection is used for how the field are looking to you. It can set as editable/ non-editable and hide. you can set the field selection as per your business requirement. There are two steps for field selection of service entry sheet. 1. Define Field Selection for Service Master (Individual Maintenance) 2. Define Field Selection for Service Master (List Entry) 1. Define Field Selection for Service Master (Individual Maintenance) Here you can maintain field selection for individual service master record.

Maintain here as per your requirement. 2. Define Field Selection for Service Master (List Entry) Here you can maintain field selection for a large number of service master record with list entry.

Also maintain this portion as per your business requirement. Step 5 : Maintain Attributes of System Messages As we know system messages can maintain the message attributes as Warning/Error.

Configuration Path = SPRO-IMG-MM-External Services Management-Define Attributes of System Messages

You can set up the system message attributes here as per your business process. You can more on clicking New Entries. Message Contains E for Error, W for Warning, Blank for not populate. Step 6 : Maintain Screen layout In this step, you can maintain how your screen will be looking. You can maintain here any field as suppress mode, optional entry mode, Mandatory entry mode.

Also this screen is depend on your business requirement. Maintain here and save your data. Step 7 : Source Determination and Default Values In this step you can maintain Source determination facility, default value of unit of measure for service item level, material group for service, service specification line number etc..... There are two steps for that: Client Level

Purchase Organization Level. A. Client Level You maintain the configuration here for all purchase organizations. Configuration path = SPRO-IMG-External Services Management-Source Determination and Default Values-for Client

Maintain Service specification, default material group, default unit of measure and following data as per your requirement. B. Purchase Organization Level If you maintain here any default value, then this is apply for only certain purchase organization which you have used. Configuration path = SPRO-IMG-External Services Management-Source Determination and Default Values-for Purchasing Organizations

Maintain here your default data for service master. Note : If you maintain default value here, it will be the first prior of service master. Save your data. Step 8 : Service Group Configuration Service group is used for group together several service with their same attributes. Service material group is similar to material group. T-code OMSF Configuration Path = SPRO-IMG-Logistics - General-Material Master-Settings for Key Fields-Define Material Groups

Here maintain the service group (as material group) Save your data. Step 9 : Division Configuration Division is grouping several materials, products or services to determine the sales area and business place. T-code OVXB Configuration Path = SPRO-IMG-Enterprise Structure-Definition-Logistics - General-Define, copy, delete, check division-Define Division

Create you division and save your data. Then You have to assign the division to plant and valuation area. T-code OMJ7 Configuration Path = SPRO-IMG-Enterprise Structure-Assignment-Logistics - General-Assign Business Area to Plant/Valuation Area and Division

Choose the option and assign Division, then save your data. Step 10 : Calculation Formula The calculation formula in service master can be used to calculate the quantity of variable-size items. Suppose for hoarding, if you have rate per inch, then with this formula service master will auto calculate the total quantity. T-code ML89 Configuration Path = SPRO-IMG-MM-External Services Management-Formulas for Quantity Determination-Define Formulas

Maintain the formula as per your business requirement. Now we have to specify the variable definition for formula calculation in service line. T-code ML99

Configuration Path = SPRO-IMG-MM-External Services Management-Formulas for Quantity Determination-Specify Names of Formula Variables

Maintain the Formula Number, Variable, Base UoM and Description for each variable.

Do as per your requirement for every variable.

Service Master configuration has been done. Now we have to do Service Document

Configuration and Service Pricing Procedure andService Release Strategy.

SAP Service Configurations In SAP MM - Part 2 created by Dibyendu Patra on Nov 29, 2013 12:26 PM, last modified by Sep 22, 2014 2:15 PM

Dibyendu Patra

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Document continue... from SAP Service Configurations In SAP MM - Part 1 As we have already discuss about Service Master Configuration on previous document, now we are going to next configurations.

Service Document Configuration Service documents are used during the service process at different stages Like Purchase Order, Service Entry Sheet, invoice varification. Purchase order is used as a instruction document to vendor or service provider to perform service with all terms and conditions.

Service Entry Sheet is used to confirm the service which is provided by the service vendor or provider. And the invoice verification used for to confirm the invoice raised by the service provider with reference to the given purchase order. Step 1 : Service Purchase Order Configuration A purchase order is a legal document for service provider/vendor to record individual purchase with all terms and conditions. Its also provide to vendor with the reference document link to goods receipt and invoice verification. Purchase Order has many types of Item category. Like Standard, subcontracting, Stock transfer, Consignment, service etc etc.... We have to go with Service, which is on item category as D. Number range : We have to assign a number range to each Service Purchase order.. This a unique number for each order. We can use existing number or we can create a new number range to differentiate service Purchase order. We can use both external and internal number range for service purchase order. New number range creation as follows: Configuration Path = SPRO-IMG-Materials Management-Purchasing-Purchase Order-Define Number Ranges

Here is the existing number range, You can create new number range from

also.

Document Type We can use existing document type for service PO, or we can also create our won document type for service purchase order. Document type control these following areas: Item Intervals External and internal Number range Field selection Item category.

Configuration Path = Configuration Path = SPRO-IMG-Materials Management-Purchasing-Purchase Order-Define Document Types

Here I have created Create a Z document type and assign all control areas like item intervals number range (assign the new, if you have created), field selection (You can use FOF, which is provided by SAP or you can create your own by coping existing). You can restrict to use only item category D for this document type. Just select the document type, the double click "Allow Item Category" (in left side)

Here I have allowed only item category D. Purchase Order is ready to use for service entry. Step 2 : Service Entry Sheet Configuration The Service Actually performed (which have been done already) by a service vendor are recorded in Service Entry Sheet with reference to a PO. The Invoice of services can be entered only when the service has been accepted. After service acceptance the value will be automatically updated in specified G/L accounts. We have assign a unique number for each service entry sheet. For that we need a number range for service entry sheet. Number Range

T-code OMH9

Configuration path = SPRO-IMG-Materials Management-External Services Management-Number Ranges-Define Number Ranges for Service Entry Sheet Click on edit intervals.

Here you can create your own number range and maintain it as external or internal, or you can use existing one. As similar you have to maintain number range for Service package Configuration path = Configuration path = SPRO-IMG-Materials Management-External Services Management-Number Ranges-Define Internal Number Range for Service Specifications

Here you can create your own number range and maintain it as external or internal, or you can use existing one. Number Range Assignment with service entry sheet. Configuration Path = Configuration path = SPRO-IMG-Materials Management-External Services Management-Number Ranges-Assign Number Ranges

Maintain the number ranges here for service package and service entry sheet. Now our service document configuration has been done.

SERVICE RELEASE STRATEGY There are a document already exists for service release strategy. Please go though this document for service release strategy. http://wiki.scn.sap.com/wiki/display/ERPSCM/MM-SRV+Release+Strategy+for+Service+Entry+Sheets

SERVICE PRICING PROCEDURE When we enter Service PO, the pricing procedure is fetched from PO pricing procedure, which has been describe on this blog Pricing procedure Details and Steps in SAP MM Buy whenever we have entered in service entry sheet in ML81N, it fetch a pricing procedure. It's configuration done via service pricing procedure. As we have all idea about pricing procedure. It's also little bit same as other pricing procedure. We have to maintain Condition types, Access Sequence, Condition Table, Calculation Schema, Schema assignment. We know about all these above details.

Configuration Here we have to maintain Condition table, Access Sequence, Condition Type, Calculation Schema and Schema assignment. Step 1 : Maintain Condition Table As SAP has maintained already maximum condition tables. Generally we not need to maintain new condition table, but If your requirement is different and you need to create new condition table, then follow the process: T-code M/13 Configuration path = SPRO-IMG-MM-External Services Management-Maintain Conditions for ServicesCreate Condition Table (Service)

Here you have to enter new condition table and also you can copy existing condition table.

Double click on the field name which you want to use on this condition table. When you double click on the field the field will come to left side and the field colour will be blue. Now save your data. Step 2 : Maintain Access Sequence T-code M/11 Configuration Path = SPRO-IMG-MM-External Services Management-Maintain Conditions for ServicesAccess: Maintain (Price Services)

There are some maintained access sequence here, You can maintain the new condition table in existing access sequence or you can create your own. Just Click on new entries and create your access sequence. Then maintain the condition table on your newly created access sequence.

Step 3 : Maintain Condition Type T-code M/10 Configuration path = SPRO-IMG-MM-External Services Management-Maintain Conditions for ServicesConditions: Condition Types

The condition type PRS and PRSX is for gross price. PRS is automatic price determination and PRSX is manual price determination. You can use this, or you can create your own condition types. maintain the access sequence as per your requirement. For more understanding I refer this link SAP Online Help Also maintain the discount, surcharges, etc etc as per your requirement. Step 4 : Maintain Schema T-code M/12 Configuration path = SPRO-IMG-MM-External Services Management-Maintain Conditions for ServicesConditions-Schema for Services

As you can see, there are some calculation schema has already created by sap. You can use the existing one or create your own. Just click on New entries

As we know about how the calculation schema is calculating, against that calculation you have to enter the condition types and other values.

Maintain the condition types as per your requirement. Step 5 : Schema Assignment per Document type In this step we can assign the calculation schema to the document type for purchase document for service entry sheet. T-code M/16 Configuration path = SPRO-IMG-MM-External Services Management-Maintain Conditions for ServicesConditions-Variable Calculation Schema for Services

Here you can maintain your own calculation schema for purchasing document type. First column for Purchase document category You have to choose like RFQ, PO, PR, Contract. Then choose your Document type as per combination of document category. Then enter your calculation schema. Now our pricing procedure for service is done.

Test

Now we are going to create a service entry sheet.

We can see our pricing procedure is flowing like as our calculation schema.

Very basics of SAP External Service Management By Willem Hoek These notes are based on SAP ERP Central Component (ECC) 5.0

Firstly -- SAP External Service Management (ESM) must not be confused with SAP Service Management (SM). ESM is the procurement of services. SM is to provide services to a client. With External Services, you have a PO for services with Goods Receipt taking place. The Goods Receipt is called Service Entries. In contrast with goods (stock or non stock) where receiving is typically done by the inventory management group, the Service Entries are done by business themselves. The logic is that the business generated the request for the service, that is where it was done, it will be best if they do confirmation that service took place. Lets look at the traditional SAP purchasing cycle vs SAP purchasing cycle for External Services.

The big difference is that the item category is D (services) is used. For the item, detail Service to be performed can be specified. The receiving is a 2 step process. Create and then Accept Service Entry Sheet Lets step through the process and look at the documents. The steps are Step 1 - Create Purchase Requisition Step 2 - Convert to Purchase Order Step 3a - Service Entry Sheet Step 3b - Acceptance of Service Entry Sheet Step 4 - Invoice and payment (not shown here) ----------------- DETAIL -------------------

Step 1 - Create Purchase Requisition What makes the PR a ESM PR is the Item category. For goods it is blank. For ESM it is D (Service). if the item category D is selected, it is mandatory to provide the account assignment.

Step 2 - Convert to Purchase Order The PR is converted to a PO. If me59 (automatic creation of PO) is used, the Material Group must also be entered in the selection criteria, otherwise it doesn't work. Step 3a - Service Entry Sheet

When creating a SES, the planned services can be copied from the original Purchase Order.

Where: - P Plan - Items copied from Purchase Order - C Unplanned from Contract - Items copied from Contract (was not in PO) - U Unplanned - Items was not in PO

Step 3b - Acceptance of Service Entry Sheet This is the equivalent of a Goods Receipt. The result of accepting a SES will be a material document with movement type 101 (GR against PO). Depending of process the SES can be created and Accepted by different people. Typically the acceptance is done by a more senior person.

A traffic light indicate the status of the SES - Red = Not yet accepted -- only SES - Yellow = Accepted but still to be saved - Green = accepted and saved

Additional notes on External Service Management

Release procedure and SES Release procedures can be build in PR, PO and Service Entry Sheets. (Also possible on Outline Agreements and RFQ's) Service Outlines The services in the PR / PO can be specified in a hierarchy. See this post [sap123.com] for more information on this.

Outline Agreement (Contracts) Services specified in PR / PO as well as Unplanned Services entered in SES can be pulled from a contract (Outline Agreement).

Service masters & Service Conditions The services can either be free text or Services Masters (similar to material masters for goods). The prices for these services are stored in Service Conditions. Lots of SAP customers start using ESM without Service Masters. And even if Service Masters are used, one do not need to use Service Conditions. Lets look at a simple Service Master

Account Assignment U Under special cases (if allowed), an account assignment U (Unknown) can be selected when creating the PR / PO. In this case the correct account assignment category must be provided when the service entry sheet is created. Configuration The focus on this post is to introduce the concept, so no configuration options are discussed. See below for config options related to this functionality. Config Menu: IMG > Materials Management > External Services Management

Transactions The following transactions were used for above screens: ME51N - Create PR ME21N - Display PO ML81N - Create Service Entry Sheet ML82N - Change Service Entry Sheet (Acceptance) AC03 - Maintain Service Master