External Services Management (MM-SRV)

This section provides a general introduction to MM External Services Management.

It provides an overview of the functionality, shows how MM External Services Management is
integrated into the Purchasing application within the Materials Management module, and
indicates the interfaces to other applications.
Purpose
MM External Services Management (MM S!" is an application component within the Materials
Management (MM" module. It supports the complete cycle of #id invitation, award$order
placement phase, and acceptance of services, as well as the invoice verification process.
Features
MM External Services Management provides a #asic process for the procurement of externally
performed services. This #asic process comprises the following functionality%
Service master records, in which descriptions of all services that may need to #e
procured can #e stored. In addition, a standard service catalog and model service
specifications are availa#le.
& separate set of service specifications can #e created for each concrete procurement
pro'ect in the desired document (e.g. PM maintenance plan or maintenance order( PS
networ)( MM purchase re*uisition, +,, contract, purchase order, or service entry
sheet".
o Service specifications can include items representing materials in addition to
those representing services or activities.
o -hen creating voluminous sets of service specifications, you need not
la#oriously enter each individual service manually. Instead, you can ma)e use of
the referencing techniue and the selection function to copy *uic)ly and
simply from existing master data and documents.
MM External Services Management offers two #asic ways of specifying services%
o &s planned services with description, *uantity, and price.
.y /planned services/ we mean services whose nature and scope is )nown to
you at the start of a procurement pro'ect or transaction.
&t the time the services are re*uested, the individual specifications are entered
either with the aid of a service master record or directly as short and long texts.
Price and *uantity are specified in #oth cases.
o &s unplanned services with the setting of a value limit only.
.y unplanned services, we mean services that cannot #e specified in detail
#ecause their precise nature and scope are not initially )nown, or services which
0 for various reasons 0 you do not wish to plan. 1nplanned services therefore
have no descriptions.
They are entered in the form of monetary limits. Services may #e performed up
to a value not exceeding these value limits. This allows you to exercise a
degree of cost control in such situations.
2ou can analy3e data already availa#le in the system in order to find suita#le sources of
suppl! for certain services.
2ou can also carry out a #id invitation process and evaluate the #ids su#mitted in
response using the price comparison list function. 2ou can then award a contract to (or
place an order with" the desired vendor.
4uring the phase of service performance (execution of wor)", various lists and totals
displa!s ena#le you to retain an up0to0date overview of your service specifications, the
progress of the wor), and the costs #eing incurred.
2ou can record the performance of services or wor) in service entr! sheets.
2ou can indicate your acceptance of the wor) set out in the entry sheets in various
ways.
+ollowing acceptance, the vendor5s invoice can #e verified and released for pa!ment.
&s an alternative to this #asic process, various accelerated and simplified processes are made
availa#le to you for use if desired in connection with specific procurement transactions.
"ntegration
MM External Services Management is completely integrated into the Materials Management
system. The master data for the procurement of services can #e stored in service master records,
for example, which su#se*uently provide default data for the purchasing documents. Service
specifications for a concrete procurement pro'ect are not created and processed separately each
time (e.g. as #id invitation or contract specifications", #ut entered directly in the purchasing
documents (e.g. in a re*uest for *uotation, *uotation, purchase order or contract".
The following graphic demonstrates the degree of integration of MM External Services
Management%
The External Services Management component is lin)ed to the S&P modules PM Plant
Maintenance and PS Pro'ect System. &s a result, it is possi#le to create purchase re*uisitions for
external services within the framewor) of maintenance measures or a pro'ect and then transmit
them to Purchasing without incurring additional data maintenance wor).
The interaction of the $6 modules MM, PS and PM, 78 and +I saves time and effort and
reduces the fre*uency of errors. This is #ecause data need #e entered once only, after which it is
availa#le for all follow0on activities within a #usiness process.
&n example of the integration of MM and 78 is purchase order commitments. The expected
value of unplanned services is forwarded to 78 from within MM so that a commitment figure can
#e esta#lished and monitored. This ena#les the relevant #udget for procurement measures to #e
prepared in good time.
MM - EXTERNAL SERVICES MANAGEMENT
STEPS IN THE PROCUREMENT OF SERVICES
Site Map: [ Materials Management [ E!ternal Ser"i#es Management
T$e %r&#'rement &( ser"i#es ma) in"&l"e t$e (&ll&*ing %$ases+
Creati&n &( %'r#$ase re,'isiti&n
-eterminati&n &( %&ssi.le s&'r#es
In"itati&n t& %&tential ser"i#e %r&"i/ers t& s'.mit .i/s 0#reati&n &( RF12
Entr) &( ,'&tati&ns 0.i/s2
Anal)sis an/ e"al'ati&n &( ,'&tati&ns
A*ar/ &( #&ntra#t 0&r/er %la#ement2
Entr) &( ser"i#es a#t'all) %er(&rme/
A##e%tan#e &( ser"i#es %er(&rme/
C$e#3ing an/ a%%r&"ing in"&i#es s'.mitte/ .) "en/&rs (&r ser"i#es %er(&rme/
T$e (&ll&*ing se#ti&ns /es#ri.e t$ese ste%s in m&re /etail+
Creating a purchase requisition
A %'r#$ase re,'isiti&n is #reate/ in &r/er t& in(&rm P'r#$asing t$at a #ertain ser"i#e ist
nee/e/4 5&' #an s%e#i() *$i#$ #&ns'm%ti&n a##&'nt is t& .e #$arge/4 It is t$'s %&ssi.le t&
ma3e %r&"isi&n in t$e re,'isiti&n (&r t$e #&sts &( %r&#'rement t& .e assigne/ t& a #ertain #&st
#enter &r a sales &r/er6 (&r e!am%le 0.) s%e#i()ing t$e rele"ant a##&'nt assignment
#ateg&r)24 5&' #an enter t$e a##&'nt assignment #ateg&r) in t$e re,'isiti&n &r in t$e
%'r#$ase &r/er4
Determining possible sources
I( a %&ssi.le s&'r#e e!ists (&r t$e %r&#'rement &( a #ertain ser"i#e6 )&' #an
7 $a"e t$e s)stem a't&mati#all) (in/ t$e s&'r#e an/ assign t$e re,'isiti&n t& it6 &r
7 #$&&se t$e /esire/ s&'r#e (r&m a list generate/ .) t$e s)stem
5&' #an a/&%t a %&tential s&'r#e &( a ser"i#e s'ggeste/ .) t$e s)stem6 .'t )&' are n&t
&.lige/ t&4
Source determination in the system
8$en /etermining %&ssi.le s&'r#es &( a re,'este/ ser"i#e6 t$e s)stem re(ers t& t$e (&ll&*ing
in(&rmati&n in t$e se,'en#e s$&*n+
1. Vendor service conditions
T$e s)stem (irst #$e#3s *$et$er master #&n/iti&ns *$&se "ali/it) %eri&/ #&"ers t$e /eli"er)
/ate s$&*n in t$e re,'isiti&n e!ist (&r t$e ser"i#e
I( master #&n/iti&ns e!ist (&r &ne &r m&re "en/&rs6 t$e s)stem s'ggests t$is "en/&r as t$e
s&'r#e4 T$e %ri#es an/ #&n/iti&ns &( t$e rele"ant master #&n/iti&ns are t$en s'ggeste/ *$en
)&' #reate a %'r#$ase &r/er *it$ re(eren#e t& t$e assigne/ re,'isiti&n4
2. Contracts
I( #&ntra#ts relating t& eit$er t$e material gr&'% &r t$e ser"i#e s$&*n in t$e re,'isiti&n e!ist6
t$e s)stem s'ggests t$ese #&ntra#ts as s&'r#es4
I( a re,'isiti&n $as .een assigne/ t& a #&ntra#t6 t$e s)stem #an generate release &r/ers against
it4
Via t$e C'st&mi9ing (a#ilit) in P'r#$asing6 )&' #an /e(ine $&* t$e s&'r#es (&r ser"i#es are
t& .e /etermine/4 F&r e!am%le6 )&' #an s%e#i() t$at a #&ntra#t is s'ggeste/ as a s&'r#e i( it
#&ntains at least &ne ser"i#e (r&m t$e re,'isiti&n4 H&*e"er6 )&' #an als& s%e#i() t$at a
#&ntra#t is &nl) t& .e s'ggeste/ i( it #&"ers all t$e ser"i#es set &'t in t$e re,'isiti&n4
5&' #an als& enter t$e s&'r#e &( t$e ser"i#es set &'t in a re,'isiti&n /ire#tl)4 F&r e!am%le6
*it$ t$is ('n#ti&n )&' #an assign t$e re,'isiti&n t& a "en/&r (r&m *$&m )&' $a"e n&t )et
%r&#'re/ an) ser"i#es t& /ate4
Inviting bids (creating an RFQ
I( a .i/ in"itati&n %r&#ess is t& .e initiate/ (&r ser"i#es6 )&' m'st set &'t t$e ser"i#e
/es#ri%ti&ns in a re,'est (&r ,'&tati&n 0RF124 In /&ing s&6 )&' #an sim%li() an/ s%ee/ '% t$e
/ata entr) %r&#ess .) 'sing /ata (r&m t$e ser"i#e master re#&r/4 :Planne/: ser"i#es #an .e
entere/ *it$ %re#ise /es#ri%ti&ns4 Alternati"el)6 it is e,'all) %&ssi.le t& enter ;'st a m&ne)
"al'e limit #&"ering :'n%lanne/: ser"i#es4 :Un%lanne/: ser"i#es are ser"i#es *$&se e!a#t
nat're is n&t #lear at t$e time &( t$e .i/ in"itati&n %$ase4 Entering "al'e limits t& #&"er s'#$
#ases ens'res t$at #&st #&ntr&l #an still .e maintaine/4
A .i/ in"itati&n ma) in"&l"e %lanne/ ser"i#es &nl)6 'n%lanne/ ser"i#es &nl)6 &r s&me
#&m.inati&n &( .&t$4 T$e RF1 is entere/ &nl) &n#e6 an/ #an t$en .e assigne/ t& an) n'm.er
&( %&tential .i//ers4 T$e s)stem #reates a se%arate RF1 *it$ a 'ni,'e n'm.er (&r ea#$
.i//er4
!ntering quotations
8$en a ,'&tati&n is re#ei"e/ (r&m a .i//er6 t$e latter<s %ri#es an/ #&n/iti&ns are entere/ in
t$e RF1 t$at alrea/) e!ists in t$e s)stem4 T$e stat's &( t$is RF1 is t$en #$ange/+ t$e RF1
in (a#t .e#&mes a ,'&tati&n4 In t$e SAP S)stem6 t$e RF1 an/ t$e ,'&tati&n are e((e#ti"el)
&ne an/ t$e same /&#'ment4
"nalysis and evaluation o# quotations
8$en all ,'&tati&ns $a"e .een re#ei"e/ an/ entere/6 t$e m&st (a"&ra.le &ne is /etermine/
'sing t$e %ri#e #&m%aris&n list4 Re;e#ti&n letters #an .e sent t& 'ns'##ess('l .i//ers4
"$ard o# contract (order placement
T$e s'##ess('l .i//er #an .e sent a %'r#$ase &r/er as a /&#'ment &( #&ntra#t'al nat're (&r a
&n#e-&nl) transa#ti&n4 T& minimi9e t$e time an/ e((&rt e!%en/e/ in entering /ata6 %'r#$ase
&r/ers 0POs2 #an .e #reate/ .) re(eren#ing a ,'&tati&n4 I( a l&nger-term #&&%erati&n *it$ a
"en/&r is %lanne/6 a #&ntra#t *it$ ,'antities an/ "al'es #an .e set '%4 5&' #an t$en release
#ertain ser"i#es against t$is l&nger-term #&ntra#t &n t$e /esire/ /ates .) iss'ing release
&r/ers (r&m time t& time4 5&' als& $a"e t$e &%ti&n &( st&ring %ri#es (&r #ertain ser"i#es4 T$at
is t& sa)6 )&' #an 'se t$e #&ntra#t as a %ri#e list4
!ntering services actually per#ormed
5&' enter ser"i#es t$at $a"e a#t'all) .een %er(&rme/ .) means &( ser"i#e entr) s$eets4 In
/&ing s&6 )&' #an re(eren#e t$e PO4 T$is %r&#e/'re is s'ita.le (&r t$e entr) &( %lanne/
ser"i#es4 At t$e time &( entr)6 ea#$ in/i"i/'al item &( t$e entr) s$eet is re#&r/e/ t&get$er
*it$ its a#t'al "al'e4 Un%lanne/ ser"i#es #an .e %re#isel) s%e#i(ie/ as in/i"i/'al items at t$e
time t$e) are entere/ as $a"ing .een %er(&rme/4 T$e) are re#&r/e/ *it$ t$eir e!a#t "al'e an/
are #$e#3e/ *it$ regar/ t& a/$eren#e t& t$e "al'e limits s%e#i(ie/ in t$e PO4 5&' #an
e"al'ate t$e ,'alit) an/ timeliness &( t$e ser"i#es %r&"i/e/ .) )&'r "en/&rs4 T*& semi-
a't&mati# #riteria are a"aila.le in MM Ven/&r E"al'ati&n (&r t$is %'r%&se4
Releasing (approving the service entry sheet
5&' #an ma3e ser"i#e entr) s$eets s'.;e#t t& a release 0a%%r&"al2 %r&#e/'re4 In t$e %r&#ess6
)&' #an release ea#$ in/i"i/'al entr) s$eet 0in/i"i/'al release2 &r se"eral entr) s$eets at
&n#e 0#&lle#ti"e release24 Ass'me an entr) s$eet t& t$e "al'e &( =>?6??? is s'.;e#t t& release
strateg) S@6 in *$i#$ t$ree /i((erent %&ints 0in/i"i/'als &r /e%artments2 in )&'r #&m%an)
m'st gi"e t$eir a%%r&"al4 T$e entr) s$eet #&'nts as $a"ing .een a##e%te/ *$en t$e t$ir/
release %&int $as release/ 0a%%r&"e/2 it4 I( a release %r&#e/'re $as .een /e(ine/6 an
in/i"i/'al entr) s$eet #ann&t .e /ire#tl) man'all) a##e%te/4
"ccepting services per#ormed
In t$e ne!t ste%6 t$e ser"i#es liste/ in t$e entr) s$eet as $a"ing .een %er(&rme/ are a##e%te/4
T$e a##e%tan#e an/ entr) &( ser"i#es #an .e /e(ine/ as se%arate ste%s4 H&*e"er6 it is als&
%&ssi.le t& $a"e entr) an/ a##e%tan#e #arrie/ &'t .) t$e same in/i"i/'al &r /e%artment4
Chec%ing invoices #or services
T$e (inal %$ase &( t$e ser"i#e %r&#'rement #)#le is "eri(i#ati&n t$at in"&i#es s'.mitte/ .)
"en/&rs &r s'.#&ntra#t&rs are #&rre#t4 In t$e %r&#ess6 t$e $ig$est-le"el "al'e limit (r&m t$e
a##e%te/ entr) s$eet is ta3en an/ #&m%are/ *it$ t$e in"&i#e4 T$e ta!es s$&*n in t$e in"&i#e
are #$e#3e/4 I( t$e "al'e limit is e!#ee/e/6 t$e s)stem iss'es a *arning message4
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