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Lean Service Procurement

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99 views2 pages

Lean Service Procurement

Uploaded by

G SURESH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Lean Services in S4HANA

SAP MM Lean Services refers to a simplified and streamlined approach to handling the
procurement and management of services within the SAP Materials Management
(MM) module. It focuses on improving the efficiency of the procurement process for
services, ensuring better management, faster processing, and reduced overhead by
eliminating unnecessary complexity in handling services compared to traditional
materials procurement.

Previously in ECC we have the DIEN material type which is used for the service. If I
create a material in SAP with DIEN material type I couldn’t be able to create the service
entry concept.

Now In S4HANA there is concept called lean services, which is introduced to solve the
above practice of service entry creation with material. New material type SERV got
introduced and we can be able to create a material. There is new Fiori based application
introduced “Manage Service entry sheet - lean services” to create the service entry
sheet.

Key Features of SAP MM Lean Services:


1. Simplified Service Management:
o The Lean Services functionality in SAP MM allows organizations to procure and
manage services in a more straightforward manner, minimizing the need for
complex master data and configuration.
o This process eliminates the need to create long and complicated service
specifications for each service, reducing the manual effort involved in service
procurement.
2. Automatic Matching:
o The Lean Services functionality supports automatic invoice matching for
services, similar to the process of three-way matching in traditional material
procurement. This involves matching the service entry sheet with the purchase
order and invoice.
o This helps to ensure that the service is delivered as per the terms of the
purchase order before payments are made, reducing errors and manual
intervention.
3. Integration with Purchasing (ME21N) and Invoice Verification (MIRO):
o In Lean Services, purchase orders are created for services in a simplified
manner (using a basic service PO without complex structure).
o The invoicing process is also streamlined through automatic or semi-automatic
service entry sheets, improving overall processing speed and accuracy.
o MIRO (Invoice Receipt) in Lean Services can automatically verify and process
service invoices against purchase orders and service entry sheets.
4. Minimal Master Data Requirements:
o Unlike traditional materials procurement, where detailed material master data
is required, Lean Services requires fewer data points for service procurement.
o The focus is on the service specification and service descriptions, which
simplifies the setup.
5. Time-Based Services (e.g., consulting, maintenance):
o Lean Services is especially useful for services that are time-based (such as
consulting hours, maintenance work, etc.). It allows organizations to record
service deliveries in terms of time units or quantities.
o The service entry sheet in Lean Services can be configured to accept time
entries, such as hours worked or units of service performed.
6. Flexibility with Service Codes and Descriptions:
o Instead of creating detailed service specifications for every service, Lean
Services allows the use of service codes and descriptions that can be defined
in the system.
o This minimizes complexity and makes it easier for users to enter and track
services.
7. Simplified Reporting and Monitoring:
o The Lean Services scenario allows simplified reporting on services rendered,
payments, and consumption, with minimal configuration required. This includes
tracking pending service entry sheets, purchase order statuses, and payments.
o Lean Services also offers real-time reporting and analysis via SAP’s standard
reporting tools.

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