Very basics of SAP External Service Management

By Willem Hoek
These notes are based on SAP ERP Central Component (ECC) 5.0
Firstly -- SAP External Service Management (ESM) must not be confused with SAP Service
Management (SM). ESM is the procurement of services. SM is to provide services to a client.
With External Services, you have a PO for services with Goods Receipt taking place. The Goods
Receipt is called Service Entries. In contrast with goods (stock or non stock) where receiving is
typically done by the inventory management group, the Service Entries are done by business
themselves. The logic is that the business generated the request for the service, that is where it was
done, it will be best if they do confirmation that service took place.
Lets look at the traditional SAP purchasing cycle vs SAP purchasing cycle for External Services.

The big difference is that the item category is D (services) is used. For the item, detail Service to be
performed can be specified. The receiving is a 2 step process. Create and then Accept Service Entry
Sheet.
Lets step through the process and look at the documents. The steps are:
Step 1 - Create Purchase Requisition
Step 2 - Convert to Purchase Order
Step 3a - Service Entry Sheet
Step 3b - Acceptance of Service Entry Sheet
Step 4 - Invoice and payment (not shown here)
----------------- DETAIL ------------------Step 1 - Create Purchase Requisition
What makes the PR and ESM PR is the Item category.
For goods it is blank. For ESM, it is D (Service). If the item category D is selected, it is mandatory to
provide the Account assignment.

Step 2 - Convert to Purchase Order

PR is converted to a PO. If ME59 (automatic creation of PO) is used, the Material Group must also be
entered in the selection criteria, otherwise it doesn't work.
Step 3a - Service Entry Sheet

When creating a SES, the Planned Services can be copied from the original Purchase Order.

Where:
- P Plan - Items copied from Purchase Order
- C Unplanned from Contract - Items copied from Contract (was not in PO)
- U Unplanned - Items was not in PO

Step 3b - Acceptance of Service Entry Sheet

This is the equivalent of a Goods Receipt. The result of accepting a SES will be a Material document with
Movement type 101(GR against PO). Depending on process, SES can be created and Accepted by
different people. Typically the acceptance is done by a more senior person.

A traffic light indicate the status of the SES

- Red = Not yet accepted -- only SES
- Yellow = Accepted but still to be saved
- Green = accepted and saved

Additional notes on External Service Management

Release procedure and SES
Release procedures can be built in PR, PO and Service Entry Sheets. (Also possible on Outline
Agreements and RFQ's)
Service Outlines
The services in the PR / PO can be specified in a hierarchy. See this post [sap123.com] for more
information on this.
Outline Agreement (Contracts)
Services specified in PR / PO as well as Unplanned Services entered in SES can be pulled from a
contract (Outline Agreement).
Service masters & Service Conditions
The services can either be free text or Services Masters (similar to material masters for goods).
Prices for these services are stored in Service Conditions. Lots of SAP customers start using ESM
without Service Masters. And even if Service Masters are used, one do not need to use Service
Conditions.
Lets look at a simple Service Master

Account Assignment U
under special cases (if allowed), an account assignment U (Unknown) can be selected when
creating the PR/PO. In this case the correct account assignment category must be provided when
the Service entry sheet is created.

Configuration
The focus on this post is to introduce the concept, so no configuration options are discussed. See
below for config options related to this functionality.
Config Menu: IMG > Materials Management > External Services Management

Transactions
The following transactions were used for above screens:
ME51N - Create PR
ME21N - Display PO
ML81N - Create Service Entry Sheet
ML82N - Change Service Entry Sheet (Acceptance)
AC03 - Maintain Service Master

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Auto create SES in maintenance order

Please look at below query which is I wanted to implement my client.

As I already go through this thread: http://scn.sap.com/thread/1193356

But I am trying to do this process according to above thread. But not getting
properly.

My question is that there is any PM configuration required for doing this? if no

then please can anybody let me know
What is step by step process to create SES through maintenance order.

Please clarify the same in clearly, so that I can implement in the system.

If i understand correctly, you want to create a Service Entry sheet just like Preventive
maintenance orders.

For this create a P.O with account assignment as U-Unknown for example one year or two
years period.

Then go to IP01/IP41 and create a maintenance plan with "Maint.Plan Category" as "MM
Service procurement" to create a service entry sheet as per your frequency.

In this step you need to assign the

1)

P.O details and

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2) Cycle unit.

Here you need to specify the validity start and validity end dates. System will create
Service entry sheets between this period only.

Then schedule the maintenance plan.

System generates Service entry sheet as per plan date.

Create a Maintenance order on technical object and assign the same Order at the time of
creating service entry sheet.

Assign "Account assignment category" as "F".

Then system captures the actual cost for the Maintenance Order.

As discussed in the earlier thread, you need to create Frame Work Order or maintenance
plan with service procurement category.

For Frame work order do check with MM consultant.

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For Maintenance plan, hope Pardhu has given sufficient details.

Please note that I am not concentrate SES create through maintenance plan.

As per provided thread, I already tried to do this

like I have created maintenance order with external service using frame work
order including P.O with account assignment as U-Unknown.

and as per the given thread after do this run the transaction me58 with only tick
mark on entry sheet. but not getting that properly.

Please clarify this step by step process, so that I can implement the same with my
client.

and my other question is that there is any configuration setting for PM.

Procedure:
Create AMC for example P.O for one year (Account assignment should be U OR F).
Then create a Maintenance plan using IP40 or IP01.
Assign P.O number and item number
G/L and Settlement order

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Then do scheduling using IP30 or IP10, then system generates service entry sheet.

Now you can see the service entry sheet created

Service entry sheet from maintenance order

Framework order shall be created in the T code ME21N where you have to specify the
document type FO .There you can specify the Order no, to which cost to be accounted.

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Then while creating the new order double click on the operation no, you will reach the new
screen
(Check in the entire tab) where you can specify the FO number.

Then run the T code ME58 with Service entry sheet tick marked, and then your SES will
create automatically.

Kindly refer the following links:

http://help.sap.com/saphelp_47x200/helpdata/en/09/363fd3051311d2a3c10000e8a522f1/c
ontent.htm

http://help.sap.com/saphelp_47x200/helpdata/en/c3/72cbca55cd11d189660000e8323c4f/c
ontent.htm

For service entry sheet creation automatically, for which you have to create a Framework
order and specify the same in the operation details screen, and then run the T code ME58
for your Framework order.
Or Create a Maintenance plan for Service procurement, which will create the same.

Framework order shall be created in the T code ME21N where you have to specify the
document type FO, where you can specify the order no to which cost to be accounted.

Then while creating the new order, double click on the Operation no, you will reach the new
screen
(check in the entire tab) where you can specify the FO number.

Then run the T code ME58 with Service entry sheet tick marked, and then your SES will be
created automatically.

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Kindly refer the following links:

http://help.sap.com/saphelp_47x200/helpdata/en/09/363fd3051311d2a3c10000e8a522f1/c
ontent.htm

http://help.sap.com/saphelp_47x200/helpdata/en/c3/72cbca55cd11d189660000e8323c4f/c
ontent.htm

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