SAP Learnings - #12

Dear all,

Today's topic is related to Service contract management in SAP.

Ever come across instances where the PO rate is different from approved rates. What is the risk, how does it occur and how it can be mitigated? Let's dive deep.

For services, breakdown of services have to be provided in services tab in PO.

?In the above screenshot, the company is updating the activity without service activity code and rates are updated manually. This poses the risk of wrong rates being updated.

The risk can be mitigated to a larger extent by creating activity code in SAP and create rate condition.? The rates will automatically flow from SAP when the required service code is given in system.

How can we verify this?

SAP references:

Tcode: ME2S - PO with services.

Tables in SE16N:

ASMD - Service master

A104 - Purchase condition record (rates are stored as conditions in SAP)

KONP - provides rate updated in the condition.

?1. Analyse ME2S - Whether all activities are referred to a service activity code. Non- usage of activity code can be raised as observation.

?2. If codes are used, compare PO rates (ME2S rates) with master rates. (by linking ASMD - A104 - KONP tables). If approved rates by committee or agreement rates are available, the rates can also be compared with approved rates.

3. Check whether rates can be edited in SAP in the PO screen.

?Please let me know in comments if you have performed this check in some other company.

Thanks for reading!

Until next time.

Signing off,

Balaji M