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Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ)

Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ)

This scope item manages the end-to-end process where the headquarters procures the project-based services from a subsidiary.

The headquarters (using SAP S/4HANA Cloud, on-premise, or an SAP ECC system) requests the subsidiary (using SAP S/4HANA Cloud) to provide project-based services via a purchase order. On a purchase order basis, the project execution is handled by the subsidiary. The purchase order created at the headquarters is used as a reference in the project sales order and invoices can be created. The customer invoice creation triggers the generation of the supplier invoice at the headquarters. The supplier invoice is settled by the headquarters, leading to subsidiary payment.

The scope item combines the scope items Customer Project Management РProject-Based Services (J11), Sales Order Processing РProject-Based Services (J14), and Integration of Sales with External Buyers (2EL)  at the subsidiary, and requires scope items Service and Material Procurement РProject-Based Services (J13) or Procurement of Direct Materials (J45) and Integration of Procurement with External Suppliers (2EJ) at the headquarters (provided that the headquarters uses SAP S/4HANA Cloud).

Key Process Steps Covered

  • Create a purchase order with details such as delivery schedule, supplier, and so on at the headquarters
  • Manage customer project (headquarters in this scenario) during the planning and execution phase at the subsidiary
    • Maintain work package staffing of customer project
    • Procure external services for customer project (optional)
    • Record times for customer project
    • Maintain customer project billing
    • Create customer invoices
  • Generate supplier invoice at the headquarters
  • Approve the supplier invoice
  • Perform accounting and financial close activities at the HQ and Subsidiary


  • Implement projects effectively
  • Get project visibility, managed in the subsidiary system (SAP S/4HANA Cloud)
  • Reduce manual intervention in the business process between headquarters and subsidiary
  • Automate the invoicing process between subsidiary and headquarters in real-time

Where is Project-Based Service Procurement in Headquarter-Subsidiary Model(3TQ) being used?

This Scope item is used in the following way:

  • As a core function of General within Professional Services Scope Item Group

Process flow of Project-Based Service Procurement in Headquarter-Subsidiary Model (3TQ)

Find below the process flow of the scope item Project-Based Service Procurement in Headquarter-Subsidiary Model as it is defined for release s4hc-2108.


Ref: Professional Services of SAP S4HC-2108

Best Practices related to S/4HANA

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