Product determination in case of Professional Services in SAP S/4HANA Cloud

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The purpose of this blog is to provide a comprehensive overview on the workings of Product determination in case of Professional Services in SAP S/4HANA Cloud.

Item category determination entries for sales order type SO01 cannot be changed and are not shown in SSCUI Assign Item Categories, 102807.

The existing entries are:

Item category group can be found in Display Material under Sales org. 2.

Item category group of material must be:

• PSFP
• PSPS
• PSTE

  1. Fixed Price (PSFP)

  If choosing contract type Fixed Price the item category of the sales order item is PS01.
  
  

  The product list offered will show all materials that would lead to a successful determination for PS01.

  This means that both PSFP and PSTE materials will be part of the product list!

  2. Time and Expenses (PSTE)

  If choosing contract type Time and Expenses the item category of the sales order item is PS02.
  
  

  The product list offered will show all materials that would lead to a successful determination for PS02.

  This means that only materials with PSTE will be part of the product list!

  3. Periodic Service (PSPS)

  If choosing contract type Periodic Service the item category of the sales order item is PS06.
  
  

  The product list offered will show all materials that would lead to a successful determination for PS06.

  This means that both PSPS and PSTE materials will be part of the product list!

  Additional information:

  When creating an item in the project app (section Billing), the user first chooses a Contract Type. The system then by “hard-coded” logic will determine a standard product for each contract type, for example P001 for Fixed Price.

  If the there is a business reason to change the value of P001 to another one, it is possible to open the value-help for product and choose another entry, maybe even an entry that was previously created using “Create Product..:”.

  For entries to be shown in the value-help, the products require to have the right item category group (for example PSFP).

  By copying P001 (or the other products), the item category group is also part of the copy and can work in the value-help. While creating a product from scratch, it is possible to enter another value for item category group, for example SERV and then the system will never find the product in the value-help as SERV is not part of the item category determination settings in SSCUI Assign Item Categories, 102807.

  Based on this, as a best practice, it is recommended to create/copy own materials based on the standard materials P001, P002, P003 to avoid any mistakes!