"Expense" of service master

[Former Member]

Hi Experts,

I need the expert advice...!!

I have just registered a new service. But, I don't know the meaning of the check box "Expense"....

Could you tell me the meaning of "Expense" in service master?

And, does it use in any case? If possible, please tell me an actual example?

Warm Regards,

Ryota Ichida

[Former Member · Accepted solution]

Dear Ryota,

Basically there are two types of services; Service which collects revenue & service as expense. When you mark  a service as expense, then that service is active for valuation in finance.

Thanks

Lokesh Sharma

[Former Member · Accepted solution]

Dear Lokesh,

Thank you for you advice.

I was understanding as follows. Is it correct?

If I don't mark a service as expense, it is treated as cost.

If I mark a service as expense, it is treated as expense.

Warm Regards,

Ryota Ichida

[Former Member · Accepted solution]

Hi Ryota,

Use case is if you want to use a service into a sales order then it is required that the service is marked as expense.

If you do not mark it as expense then for example; you can use in Shopping carts.

It makes a difference when you are ordering. So basically they are service products only but they carry additional tag of expense.

Thanks

Lokesh Sharma

[serchbrher]

Hello Experts, quick question... do you know why if I'm selling an expense the system does not take the cost of the valuation view of h expense? the system is taking the cost from the price list

Valuation view

Thanks in advance

[former_member186555]

Hi Ryota,

Let me explain the difference in the context of a Professional Service Provider (PSP) using ByD.

PSPs sell services (say "Senior Consultancy", e.g.) to their customers via sales order items.

• These services are set up in the Work Center "Product and Service Portfolio" (without the "expense" indicator being set).
• Usually the "process controls" "Purchasing", "Sales", and "Valuation" are active.
• In addition, sales prices and service cost rates are defined for those services.

In order to render their services the consultants also need to travel. Such Expenses usually need to be charged to the PSP's customer

• Travel is either some uplift contained in the services sold, then the PSP is done and does not have to care about "expenses".
• If however, the PSP charges travel explicitly to their customers, then they need expenses that are set up in the Work Center "Product and Service Portfolio" as services with the expense indicator being checked.
  They would, for example, create an expense "Travel" with base-unit "each" and include it as one item (item type "Expense - Time and Material (Project)") in the sales order. Then, later on, they can use this expense for invoicing expenses of an expense report or a supplier invoice to their customers.

Best regards

  Otfried

[marlene_katzschner]

Dear Ryota,

have you already checked the help on this topic? There is a pretty good explanation on this topic.

If there are concrete additional question, please ask.

Best regards

Marlene