Service Master vs. Material Master - Type DIEN (Service)

Question

We currently use Material Masters (type: DIEN) for procurement of all external services. I've been told it wasn't a good practice and that Service Masters should be adapted for this purpose. Is that so? I am now preparing a business case for implementation of Service Masters. What benefits are there for using the Service Masters and Service Type Purchase Orders instead of DIEN Material Masters?

Answer 1

Hi,
Material type DIEN is used for when you offer "SERVICE" to your customer.
For procurement of service from vendor you can use process of External Services Management where you have service master (AC03). In this process Purchase order/Service order( you can have separate PO document type)created with  Acc. assignment ' K' ( or C or P of F as requirement) and Item category 'D' , the system automatically pick UOM is "1" activity unit in Item Overview and in item details you need to maintain the service master ,UOM, quantity & price /unit and then G/L account with cost center created .
Next steps you create Service Entry Sheet (SES), here you are just recognizing vendor performed service where you can see cost object (cost center), quantity of service to be provided already & save the document. No FI document created after creating/maintaining the Service Entry Sheet but once you release the Service Entry Sheet, then only FI document created.
Now you can do MIRO with respect to Service Entry Sheet which already recognized and accepted.
Finally you can do payment to service vendor in F-53.
NOTE:
You can create u201CNu201D numbers of Service Entry Sheet (SES) with respect to Service order, till the all quantity received.
You can create MIRO w.r.t Service Entry Sheet and pay to vendor based on part service completed.
For more check the link:
How to make GL account field in SES to be made in display only
Regards,
Biju K