In the below document I would cover procurement of service and material for a project from external supplier.
You may have planned services for the project that need to be completed but for which you do not have the staff.
You can select a service in this view and create a purchase request for a service agent to complete the work. In the same way, you can plan and purchase the necessary service and materials from an external supplier for the project.
a.) Procurement of service from external supplier
b.) procurement of material from external supplier
Example Process Description:
1. The Buying company (Almika SA ) procure service and material from the supplier Worldwide Consulting.
2. Because we have not enough free employees and material, so we have to procure from our external supplier.
3. We will purchase those employees for our project and they will tracked via time recordings. In the same way material for our project and it will tracked via goods and service receipts, supplier invoice.
To start the implementation, you first need to activate this option on your implementation project.
1. In the Scoping step of the project, ensure that Project Procurement should be scoped.
2. In the Question steps ensure to scope below questions.
A. Project Procuremnet - Do your project managers procure time-based services for projects?
B. Time recording - Purchase Orders with Time Sheet Recordings for Projects
C. Time Recording - You have chosen to record employee times in order to integrate them with Projects.
Under Business Partner Data you have to maintain the buying company as Company and the external supplying company as Supplier.
Execution of Procurement process :
Plan the Project
Plan the project and project task with required services and materials. There are 2 approaches to plan project with service agent.
1. Under Work Tab you can plan the estimated work effort , services, service agent etc... as shown below.
2. Under Team and Staffing view you can assign the team members both internal external you want to work on your project so that they can record time to the project.
In the Products Overview you can select services and materials related to the task and create project purchase request for them by clicking Create Purchase Requests with or without reference to List Price . You can also create the shopping cart which will be converted to Project Purchase Request.
You can create a purchase request for:
- The whole project
- The released project tasks
- The service/supplier
Selected 1st option,you can enter details, such as a preferred service agent or supplier, requested amount of work or requested amount of material, the delivery location, attachments, and notes, then choose button Finish and Submit.
In case you expect that the quantity of service will be more than the quantity requested in the purchase request you can select the Over-Delivery Allowed checkbox.
SAP ByDesign will automatically create the purchase request out of project purchase request and if configured right, it will also directly create the purchase order.
If the following conditions are fulfilled, a purchase order is created automatically by the system:
- A contract or list price exists for the purchased product.
- Automatic purchase order creation is enabled for the product category to which the purchased product belongs. This can be done using the common task Define Automatic Creation of Purchase Orders in the Purchase Requests and Orders work center.
- If a preferred supplier has been entered in the purchase request, this supplier must correspond to the supplier determined by Supplier Relationship Management.
If you create a purchase request for a service directly from the project, the Time Recording Required checkbox is automatically selected in the purchase order and cannot be changed, if you are creating the purchase request or purchase order directly then ensure to enable the Time Recording Required check box so the service agents procured for that project must record their time using time sheets.
Add a second item material of item type Non Stock and assign the account assignment as project to the purchase order and Send Update to supplier.
Service Time Confirmation:
The project purchase order will be defaulted in service agent time sheet and released time recoding go for approval by defaults irrespective of time recoding approval not required in project.
Once the time confirmation is approved by the project manager internally system creates the goods and service confirmation document.
Material Delivery Confirmation:
Using goods and service receipt confirmation enables you to track the goods delivered to the project .
Create goods confirmation for them by clicking New Goods and Service Receipt.
Project Time and Expense :
This business option enables the project manager to track all the actuals delivered against the project.
This business option enables the purchasing department to trigger the invoice to supplier.
In the following screen shot you can see the project manager can track the complete purchasing process, including purchase requests, purchase orders, goods and service acknowledgements, and invoices.