Po For Services

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PURCHASE

ORDERFOR
SERVICES

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External services procurement will progress with
A purchase order for
services,
Service entry
and acceptance,
Invoice verification
And payment

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It is always not known the actual
specifications of services while
procuring a service.
Some parts also may require during
the service, which are not known
while placing the order.
So services are difficult to preplan as
we do in case of goods.

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We can specify a limit for
unplanned services.
Possible to control the cost of
unexpected services.
We also can combine many
types of work in to one service
purchase order.

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Account assignment is
compulsory for service PO.
Account assignment “U” is
permitted in PO for item
category D.

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Procurement of services
can be made with or without
service master record.
Service specification of a
service item can be
structured in a maximum of
four hierarchy levels

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Unplanned service
can be entered only if
a value limit has been
specified in the PO
and that too if the cost
does not exceed the
limit.

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Service entry sheet
Serves the purpose of GR.
Prepared with reference to PO like GR.
Can be subjected to release procedure.
Invoice entry possible only for accepted
service entry sheets.

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Postings not recorded in
financial records on saving
of the service entry sheets.
Only upon acceptance
postings are made in
financial records.