Services : Possible Sources

Maintain services in the

requisition

Assign source

Specs.

Contract
___
___
___ ____
___ ___

Hour
%
Conditions
$

Service master
record conditions

Vendor

Suggested Sources
Vendor
Miller Co.

Purchase
requisition

RFQ

Service
1580

- M gr. Software
Consulting
- Service 1580
Senior consultant

Price $250

Vendor ?
Contract
4711
Mat. Gr.
Software
consulting

Possible sources

Rel. order

Existing
NO
- Master conditions
- Contracts for
material group
-Contracts for
service

YES
X
X
X

Contract
Service
1580

Rel. order

$260

Sourcing Suggestion ( Customizing)

Purchase
requisition
-Mat gr.
-Software consultg.
-- 1580
-- 15xx

Contract
1580
15xx
15yy

Contract
1580
15xx

Customizing
-At least 1 service
- All service

Master conditions
Vendor Miller Co.
1580 price in $
15xx price in $
15yy
15zz

Master conditions
Vendor Smith Co.
15xx
15zz

Chapter 6 Value Limits

1 Cost control in the procurement of unplanned services

using value limits.
1 Differences betwwen the procurement of planned and
unplanned services at the time of planning (ordering)
and at the time of performance (service entry)

Chapter 6 Objectives

1 Course participants are shown how to work with

value limits as na instrument of cost control in the
procurement of services.
1 They are familiarized with the different procedures
applied in the procurement of planned and
unplanned services.

Limits in the Planning/Entry of Services

Service entry sheets
01 Selection of software components
01 Definition of requirements
Consultant K4 10 days $2,100.00

02

Adjustment of components

01 Component A

01 Selection of software components

Consultant K3 5 days $1,900.00

01 Definition of requirements

02 Testing configuration/settings
Consultant K3 4 days $1,900.00

Consultant K4 10 days $2,100.00

Unplanned services up to
Max. $60,000.00

02

Adjustment of components
01 Component A
Consultant K3 5 days $1,900.00

02 Testing configuration/settings
Consultant K3 4 days $1,900.00
Modification
Consultant k4 10 days $ 2,100.00

Value Limits for Unplanned Services

PO # 12345

Jan. 27

Item 10 Repair printing press

-Exact service decription
-Order quantity
-Account assignment
Cost contral
via

-Contracts
-Limits

Service entry sheet

L1 Oil filter replaced

CC 123

Feb. 3

Item 10
1 hr 75.00

?
?
?

?
?
?

Limit adhered to
Release procedure

Acceptance

Overall Limit, Contract Limit, Limit w/o Ref. to Contr.

Contract 1200
Contract 1000
Service entry
sheet
<- $60,000.00
from conctract

ABC Software Co.

Software consulting
Junior consultant K2
Senior consultant K3
managing consult.K4

no. 1000
Contract

Purchase order
ABC Software Co.

Planned

Software
implementation K4

Via limit

Limit
$100,000.00

Limit definition
Overrall limit
$100,000.00
Limits on conctrats
No. 1000 $60,000.00
No. 1200 $50,000.00
Limit w/o conctract
$10,000.00

Limits: Service Entry

Contract
Contract

Purchase order

- Target qty. 100 days

10
10 days $1,200.00

- Price $ 2,000.00/day

Limits

Quantity check
Adoption of price

Service entry sheet

Value check
Overall limit
Contract limit

Planned service
10 days $12,000.00
Unplanned service
8 days $16,000.00

Target quantity check

Adoption of price

Planned Procurement of Services

Purchase order

Service entry sheet

- Service 1580

- Service 1580

- Service 1540

- Service 1540

No limit
Only planned
services

Partially Planned Procurement of Services

(Unplanned Procurement via Contracts)

Purchase order

Service entry sheet

- Service 1580

No service
specifications
Limit
Contract 1 $20,000.00
Contract 2 $ 15,000.00

- Service 10
from contract 1
-Service 24
from contract 2
- Service 57
from contract 2

No planned services,
but reference to
contract

Unplanned Procurement of Services

Purchase order

Service entry sheet

No service
specifications

Service 1
- Service 2

Limit
Unlimited

:
:
:
:

Only unplanned
services

Spcs.

Not created until

entry of services
performed

Chapter 7 Entry and Acceptance of Services

Performed
1 Recording services actually performed on the service
entry sheet.
1 Manual acceptance of service entry sheets (one-step,
multi-step).
1 Automatic acceptance of services using the release
(approval) procedure for entry sheets.

Chapter 7 Obectives

1 Course participants learn to record services that have

actually been performed, using the service entry sheet.
1 They become familiar with the different procedures
for accepting service entry sheets.

Creation of na Entry Sheet for Services

Performed
01 Selection of software components

Service entry sheets

01 Definition of requirements
Consultant K4 10 days $2,100.00

02

Adjustment of components

01 Component A

01 Selection of software components

Consultant K3 5 days $1,900.00

01 Definition of requirements

02 Testing configuration/settings
Consultant K3 4 days $1,900.00

Consultant K4 10 days $2,100.00

Unplanned services up to
Max. $60,000.00

02

Adjustment of components
01 Component A
Consultant K3 5 days $1,900.00

02 Testing configuration/settings
Consultant K3 4 days $1,900.00
Modification
Consultant k4 10 days $ 2,100.00