"Limit" tab on service PO

Question

Hi,
May i know what is the function of"Limit" tab under Item for a service
po?
1)What is the overall limit purpose.
2)There is a sub-tab call"Other limit" with "No limit" ticked.
What is the impact if i unticked the No limit?
Thank you.

Answer 1

Hi,
Hi, Please refer to the Online documentation: Material Management -> External Services Management -> Procurement of Services: Processes -> Accelerated and Simplified Processes -> Use of Value Limits (for Unplanned Services) Inside this documentation, it is stated that there is a variety of limits (combinations) to be used:- - Overall limit only - Overall limit and limit on services covered by contract item(s) - Overall limit, limit on services covered by contract item(s), - and other limit - Overall limit and other limit - Overall limit on services from model specifications or standard service catalog - Expected value.
The expected value is used in the update of the PO item value and this is the value used in the release strategy. Here is the f1 help: Expected value - ESUH-COMMITMENT Value that the unplanned services (or the materials) covered by this item are not expected to exceed. Use If you are working with the release (approval) procedure for purchasing documents, this value serves as the basis for a release strategy applied to this document.
If you tick 'No limit',you don't need to enter 'Overall limit',but must enter 'Expected value'. Because 'Expected value' will affect the release strategy. Please read the note 440601 connected to this:
The expected value has to be mandatory in case only limits are     
maintained in a purchasing document due to release strategie and commitment figures.   
The expected value is added to the total value of planned services        
of the purchasing document.                                               
For example, a PO with ONLY unplanned services /materials                 
(only limits maintained), the expected value builds the net value.        
In such a case Controlling derives the purchase commitment figure         
only from this value.
Concerning the variability of actual cost of a purchase order,                 
expected value means that the unplanned services (or materials)                
covered by this item are not EXPECTED to exceed.                               
It is not mandatory that it has the same value like total limit value.         
Expected value can exceed, it is used for comparison with total limit          
value in cost control.                                                         
Expected value can also be combined with unlimited total limit in a            
purchasing document.                                                           
Regards, Edit