Difference between SERVICE HIERARCHY and LIMIT PO's in SRM

[Former Member]

Hi all,

SRM 5.0 SP12,ECS.

Can anyone explain when do we need to create SERVICE HIERARCHY PO's and LIMIT PO's in SRM?

Thanks.

[Former Member]

Hi,

First of all, SRM 5 does not support service hierarchy in Purchase Order. Only, SRM7.01 onwards, service hierarchy is supported in purchase order.

service will be created when the external requirement from backend systems come to SAP SRM for sourcing. The followon document with hierarchy can be created either in SAPSRM or MM depending on system configuration.

Limit PO is created in SAPSRM for low value items such as office supplies where one can have multiple goods receipt over a time period.

Thanks and regards,

Ranjan

[Former Member]

Hi Rajan ,

Thanks for teh reply.

I'm but confused with your answer....

We have SRM 5 implemented at our place and I see that service carts created in the system using the link "ORDER" when converted to PO's in Sourcing create Purchase orders with HIERARCHY structure i.e. 1 header and 1 item(with the actual service line) but when they are replicated to ECC,we have done an enheancement to create LIMIT PO's for service orders.

Hence I wanted to know when do we need to create SERVICE HIRERACHY based PO's in SRM and when we need to create LIMIT PO's directly in SRM?

Also I understand that in SRM,for limit PO's,when the PO item is deleted in PROCESS PO trasnctions,the items are not returned back to sourcing.We dont want this to happen for all types of PO's(both material and Service).We want that when a PO item is deleted,the item should return back to sourcing.

But other then above functionality,what are the advantages of creating SERVICE based HIERARHCY PO's v/s LIMIT PO's in SRM?

Please advise.

Any inputs from Experts on this forum will be appreciated.

Thanks in advance.

[Former Member]

Hi Experts,

Any inputs?