SAP Material Management Service Procurement

SAP Material Management Service Procurement

1. SAP Material Management www.necsws.com/india Presented By, Mr. Sameer Chaudhari

2. Service Procurement Service procurement takes place when a company hires a vendor for external services, which are tasks carried out by an external contractor. External service procurement is like consumable materials procurement because services are also procured for consumption. First, you create and send a service PO to the vendor, and then the vendor performs the services for you. There are no goods receipts in service procurement; instead, you need to maintain a service entry sheet for the work completed by the vendor. Types of Service Procurement Planned Service Procurement Unplanned Service Procurement

3. Planned Service Procurement In planned services at the time of procurement specifications like quantity and price are known in advance. It means nature and scope of service is clear before procurement. Process Steps Identify service requirements Issue a purchase requisition Approve and convert to a purchase order Create a service entry sheet Service delivery and acceptance Invoice processing and payment

4. Unplanned Service Procurement In unplanned services at the time of procurement specifications like quantity and price are not known in advance. It means nature and scope of service is not clear before procurement. These services can be extended as per the requirement. Process Steps Immediate identification of service need Direct purchase order creation Expedited approval process Create a service entry sheet Service delivery and acceptance Invoice processing and payment

5. Comparison of Planned and Unplanned Service Procurement Planning: Planned: Structured and scheduled Unplanned: Ad-hoc and immediate Cost: Planned: Typically lower, negotiated Unplanned: Often higher, less negotiation Approval Process: Planned: Standard approval workflow Unplanned: Expedited approval needed Budget Impact:  Planned: Easier to budget and control  Unplanned: Can disrupt budget allocation

6. Conclusion Benefits of Service Procurement Streamlined Processes Cost Savings Compliance and Risk Management Enhanced Vendor Management Improved Data Accuracy Real-time Reporting and Analytics Flexibility and Scalability Integration with Other Modules Planned service procurement allows for better cost control and resource planning. Unplanned service procurement is necessary for urgent and unforeseen needs but can be more costly.