The document discusses the procurement process for services from external vendors. It involves determining requirements, creating service specifications, selecting vendors, issuing purchase orders, monitoring the orders, accepting delivered services, verifying invoices, and making payments. Service master records contain key information about services and are used in various SAP applications. Service master records and conditions can be created, changed or displayed using transaction code AC03 and are used to determine prices for external services over longer periods.

1. Service master records S A P

2. Service can be procured from external vendor. Purchasing and invoice verification departments involved in process of procurement.

3. Procurement process of service Determination of requirement – at user department or project site. Creation of service specification – PR with details of service to be performed. Determination of source of supply – RFQ, Contracts etc., Vendor selection – compare quotations, accept or reject quotations.

4. Procurement process of service Purchase order – manual or adopting data from PR or RFQ. Monitor PO – Through PO history. Service entry and service acceptance. Invoice verification – as per value from accepted service entry sheet. Payment – automatic after checking and release of Invoice.

5. Service Master Records ( activity number ) Service master record contain Service number Service category Descriptive texts Base unit of measure Material group Valuation class

6. Service master records are also available in the following applications in addition to purchasing. Project system (PS) Plant Maintenance (PM) Customer service (CS)

7. Service master records can be created, changed or displayed by T code AC03. service condition record prices for external services, valid over a longer period.

8. Service master conditions can be defined in the following levels: Service level – market price or own estimated price At the level of service, vendor and purchase organization. At the level of service, vendor, purchase organization and plant.

9. System pulls the conditions for price determination in PO. Thank you