SAP Newby - What PO type/process to follow - Ongoing Contractor Services

[Former Member]

Hi

I am working with a company that engages ten 3rd party service providers to perform tens of thousands of pieces of work each year. Each piece of work relates to a program and a location (tens of programs and thousands of different locations). The company wants to report costs down to location level and report both committed and spent (ie GRNed) amounts. Each piece of work is unique and it's cost varies. The details of the work to be performed under each program is not known at the begining of the year, however a total estimate of costs is available per service provider.

Rather than use a seperate Purchase Order per piece of work, what other type of Purchase Order is suitable?. They have previously used a Service Purchase order per service provider for a quarter, however this has been problematic. They want to minimize administration work. Any recommendations?

[former_member186385]

Hi,

You can go with the Standard PO type with different Account assignment category D for service

and while your service is confirmed you can create service entry sheet using ML81N where you can always edit the cost

How do you capture Plan cost , if you are not sure while process at the beginning?

Not sure, if you can get cost per activity using PO, I believe your scenario can be more optimized if you use Service order with Control Key indicator where Service PO is generated automatically for each activity and finally cost can be shown at service order through standard reports

regards,

santosh