- SAP Managed Tags
Contributors: Michael Uhl, Penny Jiang, Alex Kadel, Lindsey McGowen
Efficient and flexible service procurement is essential for organizations aiming to streamline their operations and maintain agility. Integrating(scope item 22K or 4R2 depending customer needs) SAP Fieldglass with SAP S/4HANA introduces a powerful mechanism to handle service orders and cost allocations even when full details are not immediately available. This blog explores how leveraging the "Unknown Account Assignment" feature in SAP S/4HANA enables quicker procurement processes while maintaining robust cost controls.
Addressing Unknown Cost Allocations
When creating a Work Order or Statement of Work (SOW) in SAP Fieldglass, a cost collector is typically required. However, buyers may not always know where to allocate these funds at the time of the request. In such cases, the "Unknown Account Assignment" feature provides an effective solution.
By using this functionality, SAP Fieldglass buyers can:
- Secure a Purchase Order (PO) in an unplanned state, allowing them to move forward with requisitions and purchases without delays.
- Adjust cost allocations once the required details become available, ensuring accurate cost accounting.
This capability significantly enhances flexibility and efficiency in service procurement processes.
Key Features and Benefits
1. Ad Hoc Cost Allocation Updates
Once the unknown Purchase Order is secured, buyers can adjust cost entries at a granular level, including resource and task-level details. Key functionalities include:
- Adding Cost Objects: Service entry management against workers can include new cost objects as needed.
- Time Entry Adjustments: Time entries can be posted against updated cost objects.
During replication to SAP S/4HANA, this feature provides:
- Flexibility in assigning cost objects against the Unknown PO.
- Seamless cost object updates without disrupting the procurement process via SES posting.
2. Revising Purchase Orders
If a Purchase Order adjustment is needed prior to invoicing, buyers can revise it to ensure proper cost allocation. This applies as long as no payments have been made
Key functionalities include:
- Work Order or SOW Revisions: Buyers can update the Work Order or SOW to reflect the correct cost centers.
- New Cost Center Assignments: Time entries can be reallocated to updated cost centers on the Work Order or SOW.
This feature ensures accurate cost allocation without impacting the onboarding of resources or service delivery timelines.
Business Benefits
By leveraging the integration of SAP Fieldglass and SAP S/4HANA, organizations can achieve the following benefits:
- Faster Hiring and Onboarding: Avoid delays in procurement approvals and secure Purchase Orders quickly.
- Enhanced Flexibility: Maintain control over spend while allowing for changes to cost allocations when needed.
- Simplified Revisions: Make corrections at any time, ensuring accurate accounting without disrupting ongoing processes.
Quick note cost allocation:
The cost allocation can be in any of the following objects in SAP S/4HANA even though they are known in SAP Fieldglass as cost center.
- Cost Centers
- WBS elements (projects)
- Internal Orders(applicable for SAP S/4HANA only. It is deprecated in SAP S/4HANA public cloud and WBS elements from project are recommended to be used
Conclusion
The integration of SAP Fieldglass with SAP S/4HANA, supported by the "Unknown Account Assignment" feature, empowers organizations to streamline service procurement. By enabling faster approvals and flexible cost allocations, this solution ensures operational efficiency without compromising on financial accuracy. Embrace these capabilities to drive agility in your service procurement processes.
