Management Exam > Management Videos > SAP MM Training - Procurement of External Services (Video 7) | SAP MM Material Management
SAP MM Training - Procurement of External Services (Video 7) | SAP MM Material Management Video Lecture
FAQs on SAP MM Training - Procurement of External Services (Video 7) - SAP MM Material Management Video Lecture
| 1. What is SAP MM Training? |  |
Ans. SAP MM Training refers to a comprehensive training program designed to provide individuals with the necessary skills and knowledge to effectively manage materials and procurement processes using SAP's Material Management module.
| 2. What is the significance of procuring external services in SAP MM? | |
Ans. Procuring external services in SAP MM allows organizations to efficiently manage and track the procurement of services from external vendors. This includes activities such as creating service purchase orders, managing service contracts, and tracking service delivery and invoicing.
| 3. How can I procure external services in SAP MM? | |
Ans. To procure external services in SAP MM, you can follow these steps:
1. Create a service purchase order by entering the necessary details such as vendor, service description, and quantity.
2. Ensure that the necessary service entry sheet is created for the service delivery.
3. Upon service delivery, enter the details in the service entry sheet to confirm the receipt of services.
4. Verify and process the vendor's invoice for the services received.
5. Finally, make the necessary payment to the vendor.
| 4. What are the benefits of using SAP MM for procurement of external services? | |
Ans. Using SAP MM for the procurement of external services offers several benefits, including:
1. Streamlined procurement process: SAP MM provides a centralized platform to manage all aspects of service procurement, from creating purchase orders to processing invoices, resulting in a more efficient and organized process.
2. Improved vendor management: With SAP MM, organizations can effectively manage their relationships with external service providers, ensuring timely delivery of services, tracking performance, and managing contracts.
3. Enhanced cost control: SAP MM enables organizations to monitor and control costs associated with external services, allowing for better budgeting and cost management.
4. Increased transparency: By utilizing SAP MM, organizations can gain real-time visibility into the service procurement process, enabling better decision-making and improved overall transparency.
5. Integration with other SAP modules: SAP MM seamlessly integrates with other SAP modules, such as Financial Accounting (FI) and Controlling (CO), providing a holistic view of the entire procurement process.
| 5. What are the key features of SAP MM for managing the procurement of external services? | |
Ans. Some key features of SAP MM for managing the procurement of external services include:
1. Service purchase order creation: SAP MM allows users to create service purchase orders, specifying details such as vendor, service description, quantity, and pricing conditions.
2. Service entry sheet management: Users can create and manage service entry sheets to confirm the receipt of services and trigger the invoicing process.
3. Vendor performance evaluation: SAP MM enables organizations to evaluate and track the performance of external service providers based on predefined criteria, ensuring quality service delivery.
4. Contract management: SAP MM facilitates the management of service contracts, including creating and maintaining contract terms, monitoring contract performance, and managing contract renewals.
5. Invoice verification and payment processing: SAP MM provides functionalities to verify vendor invoices against service entry sheets and process payments to external service providers, ensuring accurate and timely payments.
Text Transcript from Video
welcome back to our spamm training again
and today we
going to start our next topic within mmm
training which is procurement of
external services is a lot of external
services that we can procure using the
NCP system so the topics that we're
going to cover today they are what is
the important master data used in
procurement of external services basic
procurement process for external
services Service Master record and
service conditions what about the
structure of the purchase order item for
services service entry sheet referencing
amper in a purchase order and unplanned
services during the service entry
process and finally accept and recently
service entry sheet and finally create
an invoice for the service purchase
order so let us start our topic first
with external services in procurement
now before we start I would like to give
you a real-time example that in which
scenario you're really going to use it
ok so just a right business example so
suppose in your company maintenance work
such as a replacement of defective fans
of fluorescent tubes are to be carried
out by an external service provider ok
so if you working in a company and they
need to do some repair work
okay so repair work can be something
like to call any electrician to call a
plumber to call a cleaners can be
anything okay can be one-off or can be a
regular service as well okay so this
type of service we can create in in a CP
system and we can also create a purchase
order for that so that's the scenario
and then you have been asked to create a
service master record in SP system and
then create a service purchase order and
all the subsequent functions okay so as
a project remember you are supposed to
do setup all the master data and the
purchase order process and all the
following function in the invoicing and
everything okay so let's see how we can
do it in SP system so first part we'll
start with
ServiceMaster record ok ServiceMaster
record so before we start this one let
me explain you something else as well so
previously when we have seen the topic
like procurement of stock or consumable
materials ok
so in that one we have seen the process
flow as first we create a purchase order
right
so what purchase order will do it will
get that data from master data like
vendor master and material master and
all all that okay so first we create the
purchase order and then we created good
received ok using my go and then finally
we create an invoice using my row ok so
that was the that with the process we
have seen earlier ok now this time
there's little bit difference here and
the difference is when I say procurement
of of external services ok so the only
difference will be here that will be let
me copy this one in the step number two
okay so here everything is same only the
step number 2 is different ok here we'll
create a service purchase order that is
fine it will also get the data for
massara that is fine but in the second
step okay we do not create a good shape
but what we do is we create a thing
called service entry sheet and
acceptance okay so that's extra stuff
that I am going to show you in a minute
as well and finally we'll do then was so
first and third step they are common but
the middle step is only different okay
and also the middle step which is called
service entry sheet and acceptance what
you can do is
you can divide the second step into
parcels one that's optional
okay so I'll explain you later how you
can do it but for now what we'll do
we'll create one more step or our second
step
notice I acceptance as a third step so
second step is divide into two part
which is service entry shape and
acceptance so let's have a look so first
of all we'll discuss the master data
used in external services okay and then
we'll move on to purchase order service
empty sheet and all that so master data
so service master record with a service
master record so as you know why what is
master data like we have seen in a lot
of previous classes that we need the
master data to get the record or get the
more data Amana create a purchase order
okay same is the case of service so we
can also create a service master data so
service master data can be created and
it can not only be you can use it in in
things like in in mmm okay but you can
also use in other modules in a city like
project system PS and also plant
maintenance and all that okay but for
now we'll be only discussing mm so how
and we can use the service master data
in the mmm purchasing process so the
transaction code that is for master data
is a c03
okay you can follow this menu but if you
want low distich material management
service master service and service
master okay a c03
so if I show you this one you can go to
logistic material management service
master service and a c03 or you can
directly type here is C 0 C so when you
go to this transaction you can see this
this is the unique transaction for
master not only for services look alike
for other master data we have seen
before we used
when the master different transaction
with your master different direction but
the service master is only one
transaction which is a c03
so in the system you can see on the left
hand side you have a lot of services
already curated here right now the whole
service already curated you can double
click on any services on the left hand
side it will say this is cleaning
services if I double click on that on
the right hand side it will show you
that cleaning services detail ok so
that's a description there's activity
number it is assigned a service category
which is service and based on unit of
measure is day okay and this also assign
the material group of the service group
and the valuation class and all that
okay so you can see all the data is
assigned here ok if I see another one
say maintenance if I double click on
maintenance you will see a different one
maintenance whose activity number is
that it also has a base in the major as
HR which is ours and material group and
volition class and all that in so I
could do some test services here if you
look at the bottom on test cleaning
services I forgot click on that that's
the one I created earlier GS
ok so here what we'll do is we'll be
creating some master data here ok
suppose I'm working in a company and and
I was told to procure the external
services for say over right here say
electrician right the electrician we
need to call the location to fix a
machinery or to fix electrical
appliances could be anything okay so
what the best thing you can do is when
you create a new master that you can
copy the existing master data either I
can copy this one or if I click on copy
see if I click on copy it's very easy I
just need to need give a new name and
description everything else will be
copied or if I go back one step
you can if I need to go to back into the
transaction or you can click on this
little create button okay to create a
new one if I click on this create button
it will open a blank screen for me here
you can give some small ID okay like I
can see I can call it say electrician
gonna come and he is that person is
going to replace maybe the machinery or
maybe it could be a fan could be a lamp
would be anything okay so I can call
it's a fan
okay fan is not working I need to call
it and if we need to fix a fan so we
need to call the narration we need to
fix a fan and also we need to fix up say
a lamp or can be machined it could be
anything
okay so called a fan and here I'll give
them say electrical fan okay
you
and today we
going to start our next topic within mmm
training which is procurement of
external services is a lot of external
services that we can procure using the
NCP system so the topics that we're
going to cover today they are what is
the important master data used in
procurement of external services basic
procurement process for external
services Service Master record and
service conditions what about the
structure of the purchase order item for
services service entry sheet referencing
amper in a purchase order and unplanned
services during the service entry
process and finally accept and recently
service entry sheet and finally create
an invoice for the service purchase
order so let us start our topic first
with external services in procurement
now before we start I would like to give
you a real-time example that in which
scenario you're really going to use it
ok so just a right business example so
suppose in your company maintenance work
such as a replacement of defective fans
of fluorescent tubes are to be carried
out by an external service provider ok
so if you working in a company and they
need to do some repair work
okay so repair work can be something
like to call any electrician to call a
plumber to call a cleaners can be
anything okay can be one-off or can be a
regular service as well okay so this
type of service we can create in in a CP
system and we can also create a purchase
order for that so that's the scenario
and then you have been asked to create a
service master record in SP system and
then create a service purchase order and
all the subsequent functions okay so as
a project remember you are supposed to
do setup all the master data and the
purchase order process and all the
following function in the invoicing and
everything okay so let's see how we can
do it in SP system so first part we'll
start with
ServiceMaster record ok ServiceMaster
record so before we start this one let
me explain you something else as well so
previously when we have seen the topic
like procurement of stock or consumable
materials ok
so in that one we have seen the process
flow as first we create a purchase order
right
so what purchase order will do it will
get that data from master data like
vendor master and material master and
all all that okay so first we create the
purchase order and then we created good
received ok using my go and then finally
we create an invoice using my row ok so
that was the that with the process we
have seen earlier ok now this time
there's little bit difference here and
the difference is when I say procurement
of of external services ok so the only
difference will be here that will be let
me copy this one in the step number two
okay so here everything is same only the
step number 2 is different ok here we'll
create a service purchase order that is
fine it will also get the data for
massara that is fine but in the second
step okay we do not create a good shape
but what we do is we create a thing
called service entry sheet and
acceptance okay so that's extra stuff
that I am going to show you in a minute
as well and finally we'll do then was so
first and third step they are common but
the middle step is only different okay
and also the middle step which is called
service entry sheet and acceptance what
you can do is
you can divide the second step into
parcels one that's optional
okay so I'll explain you later how you
can do it but for now what we'll do
we'll create one more step or our second
step
notice I acceptance as a third step so
second step is divide into two part
which is service entry shape and
acceptance so let's have a look so first
of all we'll discuss the master data
used in external services okay and then
we'll move on to purchase order service
empty sheet and all that so master data
so service master record with a service
master record so as you know why what is
master data like we have seen in a lot
of previous classes that we need the
master data to get the record or get the
more data Amana create a purchase order
okay same is the case of service so we
can also create a service master data so
service master data can be created and
it can not only be you can use it in in
things like in in mmm okay but you can
also use in other modules in a city like
project system PS and also plant
maintenance and all that okay but for
now we'll be only discussing mm so how
and we can use the service master data
in the mmm purchasing process so the
transaction code that is for master data
is a c03
okay you can follow this menu but if you
want low distich material management
service master service and service
master okay a c03
so if I show you this one you can go to
logistic material management service
master service and a c03 or you can
directly type here is C 0 C so when you
go to this transaction you can see this
this is the unique transaction for
master not only for services look alike
for other master data we have seen
before we used
when the master different transaction
with your master different direction but
the service master is only one
transaction which is a c03
so in the system you can see on the left
hand side you have a lot of services
already curated here right now the whole
service already curated you can double
click on any services on the left hand
side it will say this is cleaning
services if I double click on that on
the right hand side it will show you
that cleaning services detail ok so
that's a description there's activity
number it is assigned a service category
which is service and based on unit of
measure is day okay and this also assign
the material group of the service group
and the valuation class and all that
okay so you can see all the data is
assigned here ok if I see another one
say maintenance if I double click on
maintenance you will see a different one
maintenance whose activity number is
that it also has a base in the major as
HR which is ours and material group and
volition class and all that in so I
could do some test services here if you
look at the bottom on test cleaning
services I forgot click on that that's
the one I created earlier GS
ok so here what we'll do is we'll be
creating some master data here ok
suppose I'm working in a company and and
I was told to procure the external
services for say over right here say
electrician right the electrician we
need to call the location to fix a
machinery or to fix electrical
appliances could be anything okay so
what the best thing you can do is when
you create a new master that you can
copy the existing master data either I
can copy this one or if I click on copy
see if I click on copy it's very easy I
just need to need give a new name and
description everything else will be
copied or if I go back one step
you can if I need to go to back into the
transaction or you can click on this
little create button okay to create a
new one if I click on this create button
it will open a blank screen for me here
you can give some small ID okay like I
can see I can call it say electrician
gonna come and he is that person is
going to replace maybe the machinery or
maybe it could be a fan could be a lamp
would be anything okay so I can call
it's a fan
okay fan is not working I need to call
it and if we need to fix a fan so we
need to call the narration we need to
fix a fan and also we need to fix up say
a lamp or can be machined it could be
anything
okay so called a fan and here I'll give
them say electrical fan okay
you
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Nov 29, 2024 Last updated |
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