Complete process overview, key concepts, and implementation guidelines
Service Procurement in SAP is the process of buying services from external vendors. Unlike material procurement, services are directly consumed rather than stored in inventory. Examples include:
Machine repairs, facility maintenance, equipment servicing
Consulting, training, IT support, legal services
Cleaning, security, catering, transport
Building services, painting, renovations
Key Difference from Material Procurement: Services are consumed directly rather than being stored as inventory. They are generally assigned directly to cost objects (cost centers, projects, etc.).
There are multiple ways to procure services in SAP systems:
The simplest approach where services are described as text in a purchase order, without creating a service master.
Best for: One-time services or when detailed tracking by service code is not required.
Creating a material master record with material type that represents a service.
Best for: When you want to leverage your existing material processes for services.
Comprehensive approach using service master records and service entry sheets.
Best for: Complex services where detailed tracking, documentation and approval of actual service performance is required.
New approach in S/4HANA combining aspects of the other methods.
Note: This process is only supported through SAP Fiori and not available in classic SAP GUI.
Service procurement with a Service Master provides better tracking and reporting capabilities. The service master contains standard information about commonly procured services.
Create, change, or display service master records
Best Practice: Create service masters for frequently used standard services to enable better reporting and analysis.
Define standard services with details like unit of measure, valuation class, and service group.
Create PR with item category D and reference the service master. Assign to cost center or other cost object.
Create PO with item category D. Specify services and limits. Account assignment to cost center or project.
Document actual services performed. Can create multiple sheets against one PO as services are delivered.
Approve the service sheet. This creates accounting entries (similar to goods receipt).
Process vendor invoice with reference to service entry sheet.
Process payment to vendor.
Configure service categories and account reference settings:
Configure number ranges and screen layouts for service entry sheets:
Configure accounting settings for service procurement:
When a service entry sheet is accepted, the system debits the expense account and credits the GR/IR clearing account.
Service procurement without Service Master is useful for one-time or unique services where maintaining master data is not practical.
Important: When procuring services without a service master, you need additional configuration to enable automatic account determination.
For Automatic G/L Account Determination: Assign valuation classes to material groups in configuration.
To enable automatic G/L account determination without service master:
Materials Management → Purchasing → Material Master → Entries with Items without Material Master
Process Step | With Service Master | Without Service Master |
---|---|---|
Service Description | Retrieved from service master | Entered manually as text |
Unit of Measure | Retrieved from service master | Entered manually |
G/L Account Determination | Via valuation class in service master | Via valuation class assigned to material group |
Service Entry Sheet | Same process | Same process |
Reporting | Better reporting by service code | Limited reporting capabilities |
Best Practice: Use procurement without service master for one-time or unique services only. For frequently used services, create service masters for better tracking and reporting.
The Service Entry Sheet (SES) is a key document in service procurement and functions similar to a Goods Receipt in material procurement.
You can create multiple service entry sheets against one PO as services are delivered in parts:
The "Set Final Entry" option closes a service for further entries:
If needed, you can revoke acceptance of a service entry sheet:
Create, change, or display service master records
Create service PR with item category D
Create service PO with item category D
Create, change, display service entry sheets
Process vendor invoices for services
Configure automatic account determination
Pro Tip: For recurring services (e.g., security, cleaning), consider using framework agreements (contracts) to lock in prices for longer periods and simplify the ordering process.
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