SAP Lean Services aims to streamline the overall service procurement process with the SAP S/4HANA system. Once implemented, you will no longer have to post your service procurement with a specific item category (D) in your purchase order’s screen. Instead, you can create simplified Service Entry Sheets (SES) for the ordered and procured services using the updated Fiori app: Manage Service Entry Sheets – Lean Services.

As a result, your material management and procurement process will be easier to manage and more efficient. Today, we will look closely at SAP Lean Services and how you can utilize it with SAP S/4HANA operations for an improved procurement process.

What is Lean Services in SAP

Lean Services is a new feature introduced with SAP S/4HANA that can potentially eliminate the usage of the service master. With the introduction of this updated business process, with its accompanying Fiori Apps, we end up with a procurement process and a data migration process similar to purchasing stock materials. You can use lean services to manage and create service orders in several relevant areas, such as purchase orders, service entry sheets, and supplier invoices. Lean services are also integrated with the Plant Maintenance and Project systems module.

The lean service feature lets you maintain the service records in your regular material master as a service product by indicating the product type as SERV material type. The SERV product type differentiates the services from materials procurement by assigning the designated material type in the material master as SERV:

Business Benefits of Using Lean Services

The whole idea of using SAP lean services is to simplify your procurement process through automation and greater flexibility. Some of the core benefits are:

• Streamlining the service procurement through better efficiency and cost-effective measures.

• Helping you reduce manual entries through automation

• Facilitating real-time notification and supervision of service fulfilment

• Allowing you to effortlessly keep an eye on the purchase order items through the analytical list page.

Classifications of Lean Services

Primarily, you can classify the SAP lean services in two ways – planned and unplanned – depending on your use scenario at the purchase requisition placement.

1. Planned Services: If you know the quantity and value of your planned procurement services at the time of purchase requisition placement, it will fall under the category of planned services and is denoted by SERV as its material type. The item category is indicated as a Non-stock item (N).

1. Unplanned Services: In contrast, you may opt for an unplanned lean service when you do not know the exact value or quantity of the procured service at the time of purchase requisition placement. You can then denote the item category as E or Enhanced limit. It allows you to indicate an upper limit for procured services instead of specifying a fixed value. The system then automatically checks and ensures the limit is maintained for procurement and recording in the service entry sheet.

Key Features and Functionalities of Lean Services

SAP has introduced lean services with some specific use cases in mind. There are times in your business operation or production process when you need to procure a small number of services from highly specialized external suppliers who may not be a part of your regular supply chain or procurement process.

Here are some of the primary functionalities and features that SAP lean services offer with the Service Entry Sheets Management app on SAP Fiori.

• Creation or modification of service entry sheets to reflect your purchase requisition:  You can do it for both planned and unplanned entries. The system lets you create multiple service sheets for one purchase order or requisition.

• Using notes for specific entries: The SAP Lean Services lets you create custom notes for external and internal parties. You can use the Header note and Item note fields to refer to your internal team. In contrast, the Header text and Item text fields are intended for the external parties who are part of your supply chain and procurement process flow, including those within the subcontracting process.

• Documents attachments and adding links: On many occasions, you might find notes inadequate to convey detailed information. The lean service lets you attach documents on links within your internal or external service notes. You can also remove an existing attachment when they are no longer relevant.

• Managing account assignment: The Service Entry Sheets – Lean Services app lets you assign and manage your account access for specific purchase orders and requisitions. You can add or remove certain restrictions depending on the HR user hierarchy. The app supports single and multiple account assignments, where you can vary your multiple accounts based on the amount, quantity, and percentage of the procured services.

• Managing approval process: Flexible workflow is one of the core advantages of SAP lean services. You can customize the procurement process flow in many ways instead of adhering to a rigid structure for all your service items. You can add or remove users with approval authorization and even change it in the middle of the process. The system lets you revoke an approval until the moment of confirmation of receipt from your suppliers.

• Visualizing process flow: After posting the service entry sheet, the app lets you visually see the entire process flow along with the attached links and documents, facilitating informed decision-making for sourcing and procurement.

• Editing pricing and quantity details: You can customize the price and quantity details during your procurement process for planned items and change the reference limit for unplanned ones.

You can also use the Final Entry indicator to mark the service entry sheet as complete upon delivery completion.

Adding Lean Service in SAP S4/HANA 2022

Now, we will quickly guide you how to add the SAP lean services on S/4HANA. You can create a new field for purchase requisition with the following three steps.

• Step 1: Define the product type group as Services, listed in the second from the top.

• Step 2: Indicate the beginning and ending date of your planned procurement for the service item.

• Step 3: Input the expected value and total limits for your managed services.

Configuring the Lean Services Step-by-step

Once you add the lean services, it’s time to configure it correctly. Configuration of the lean service depends on the SAP app you are using for your business. The basic configuration process for the service entry sheet is as follows:

1. Navigate to Define Attributes of Material Types, listed under the Material Master section and indicate SERV as your service material type.

2. Indicate E if you want to allow the enhanced limit.Set your desired screen layout using the indicators listed under the Purchase Order menu.

3. Set your desired screen layout using the indicators listed under the Purchase Order menu.

4. Set your desired number range for the service entry sheet from the purchasing menu.

5. You can also activate the Flexible workflow from the purchasing and service procurement menu.

Final Thoughts

SAP Lean Services offer excellent convenience and functionalities to streamline your sourcing and procurement process. SAP’s Lean Service Procurement documentation is an ideal place to start if you are looking for further technical details. If you ever find configuring the SAP lean services challenging, don’t hesitate to reach out to SpendWizard, as we can connect you to industry-leading and certified SAP consultants and practitioners.