External Service Procurement

[Former Member]

Hello Experts,

What are the various steps involved in the extrenal service procurement. ( Creation service order to settlement of the order )?

Accounting entries posted during the each steps in service procurement ( from the perspective of automatic account determination)?

Best Regards,

ss

Edited by: sp sap on Oct 20, 2009 1:41 PM

[BijayKumarBarik · Accepted solution]

Hi,

If vendor provides service for you and you can procure the service and pay to vendor.

The configuration required are:

1.1. Define organization status for service category

SPRO u2013>MM-> ESM->Service master- >Define organization status for service category

1.2. Define Number Ranges

SPRO u2013>MM-> ESM->Service master- >.Define Number Ranges

1.3. Define Service Category

SPRO u2013>MM-> ESM->Service master- > Define Service Category

& you can do assignment of cost object ( cost center, project, sales order) with co.code with G/L account in OKB9 t.code and in t.code OBYC account assignment of WRX with G/L.

*****After above you can create Master data as Service master AC03

& the transactions are

A. Create PO in ME21N

When ur creating service PO (ME21N), u have to maintain item Category "D" and an account assignment category as per ur requirement (K or C). U can not enter ur material here only u have to maintain short text of material. Also u have to enter ur material group and plant .This is in item Overview details.In the "Item Details" u enter your service master or activity number u created in Service master then quantities, gross price.

A. The detail u have enter are:

a) Maintain Item Category as D

b) Keep material code field blank.

c) Enter description of service & other fields in the PO Item Overview level {assignment category as per ur requirement (K or C or P), material group and plant} Press Enter.

d) System will prompt you to maintain services at Item Level. Maintain your service master number / service description you created in AC03 & other fields (quantity / rate ) and then cost center or sales order number or WBS element.

e) Save the PO.

B. Create SES w.r.t. PO in ML81N

C. MIRO w.r.t. SES

D. Payment to vendor in F-53

E. Reports-> Use T. Code MSRV6 and execute it( can use also ML84).You can get actual quantity in service entry sheet. Or got to Display PO (ME23N) and check Purchase Order History and get the details of service details

The Accounting entries( without TAX) are:

F. SES

Consumption Trading A/C: Dr

GR/IR: Cr

G. MIRO

GR/IR: Dr

Vendor A/C: Cr

H. Payment:

Vendor A/C: Dr

Bank A/C: Cr

For more Check the link:

http://sapmm.wordpress.com/category/esm/

Regards,

Biju K

[pardeep_malik]

HI,

External Services Can be of two types

1. Services Procurement(Consumable in Nature)

2. Subcontracting PO(Provide Material to vender and get finished Goods)

1. For Service PO, the Item Category has to be "D" - Service.

The various steps are given below:

1. PO creation using T code ME21 / ME21n

2. Service Entry Sheet creation using T code ML81n

3. Release of SES using T code ML85.

4. Invoice verification using T code MIRO (For MIRO, the SES has to be first release ie GR generated).

2. Subcontaracting PO

Sub-contract business process:

You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .

Vendor shall process the item / use the item provided & supply the final item.

SAP process:

1.Create the finished goods material code.

2.Maintain the BOM for the material(CS01).

3.Create PO with item category as "L" .

4.Issue material to vendor with movement type 541

5.Receive the material against the PO with movement type 101.

6.MIRO to account for vendor's invoice for the service charge& material used by him.

Acct enteries key as

DR FG Stock/ SC By-Product Stock

CR Change in Stock (FG/ SC By-Product )

(for finished goods received)

DR Subcontracting Charges

CR GR/IR Clg

(for moneys payable to Subcontractor)

DR Consumption (Components)

CR Change in Stock (FG/ SC By-Product )

(material provided to Vendor is now charged to expense)

[Former Member]

Check

[former_member222362]

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