Procure to Pay for Service Items

Best Practice Scenario: Procure to Pay for Service Items

The Procure-to-Pay for Services Items business scenario allows you to procure services, such as consulting and training services, temporary labor, or engineering services. It can be triggered by employees who create shopping carts for services, by project managers who need a certain service for their project, or directly by the buyer using a purchase order. Project-related services are usually recorded in a time sheet and the costs are directly transferred to the project tasks in financial accounting. If a purchasing contract or a list price for the ordered service exists, the purchase order can be created automatically. If no source of supply exists, a request for quotation can be sent out to determine an appropriate supplier. Alternatively with this scenario, it is possible to order external resources to provide services for customer demands that cannot be fulfilled by internal employees. In this case, the procurement process is triggered when a sales order or a service order has been created.

Process Flow details Procure to Pay for Service Items

Roles involved to Procure to Pay for Service Items

• Operational Buyer
• Supply Planner
• Strategic Buyer
• Warehouse Manager
• Accounts Payable Accountant

Business Value of Procure to Pay for Service Items

For midsized companies, who staff their projects with external resources, the process of Procure to Pay for Service Items integrates service procurement for improved project execution and greater customer satisfaction
You can grow profits by utilizing integrated service procurement and time confirmation processes.

SAP Business ByDesign helps efficiently manage the procure-to-pay process: From project planning, service procurement, job execution, time recording through financial settlement.

Key Benefits of Procure to Pay for Service Items

• Automated sourcing and purchase order creation, which can be tailored to your business;
• Automated Invoice verification where user interaction is only for exception handling;
• Workload monitoring and reporting that drives process transparency supported by spend analytics;
• Alerts and exception handling for fast handling of non-standard requests;
• Integrated SAP Interactive Forms software (by Adobe®); collaboration support;
• Payments to suppliers are highly automated to achieve the highest possible  payment discounts taking the current liquidity situation into consideration;
• Built-in analytics that enable the purchasing department to supervise the full supplier life cycle by monitoring the supplier base.

Application

• SAP Business ByDesign

Continue to review the other Business Processen SAP Business ByDesign

Related Business Processes related to Procurement

• Procure to Pay for Stock Items
• Procure to Pay for Non-Stock Items
• Procure to Pay for Service Items

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