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SAP Recommended Procedure: External Service Procurement

SAP Recommended Procedure: External Service Procurement A need for certain services arises in a user department. The department will ... thumbnail 1 summary

SAP Recommended Procedure: External Service Procurement


A need for certain services arises in a user department. The department will raise a requirement, via a framework requisition. The framework requisition will contain a set of service specifications with details of the necessary service(s) that have been planned. The concerned authority, by means of a release strategy, will approve the framework requisition. The framework requisition will be created using document type NS.

The Purchase Department will run the open and approved framework requisition list and raise RFQs (document type AN; number range: 60000000000 - 69999999999), referencing the requisition, and float them to various vendors. When quotations are received, the prices and rates will be maintained in the system. The purchase manager will run the price comparison list, and select the best-quoted price based on price and quality. The framework order is placed with reference to the quotation.


The framework order will be created using document type JSO. The number generated will range from (4200000000 – 4299999999). The validity dates for the Framework order will be maintained, so that service not performed within the validity period can be monitored. The total value of the service will be specified and charged to the requesting cost centre during the placement of the order. As the complete details of the total service are not known, value limits will be defined, which will ensure that costs are not exceeded. All other terms and conditions will be mentioned in the framework order.

The framework order is approved by the concerned authorities, based on predefined conditions and sent out to the vendor.

The services will be executed at the requesting department. The department will maintain all details of the service that have actually been performed by means of a service entry sheet. In doing so, the framework order is to be referenced. This procedure accelerates the entry of planned services in particular. Each individual service is recorded together with quantities and values.

Due to the value limits defined for unplanned services in the framework order, service specifications for such services can be recorded at the time of their actual performance. The services are recorded with their precise value, and the system checks that the limit has not been exceeded.

The Commercial Department receives service verification from user department and an invoice from the contractor and will forward this to the finance department.

At the conclusion of the procurement process, the service provider’s invoices are checked for correctness. This will involve comparing the value from the accepted entry sheet with that shown in the invoice. The invoice can be entered with reference to the framework order.  Payment will be made against this invoice.

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