Purchase Order Account Assignment For Service Items – Simplified Steps

Understanding Purchase Order Account Assignment For Service Items

In SAP Materials Management (MM), Purchase Order (PO) Account Assignment For Service Items is handled differently compared to material items with material numbers. When dealing with text-based services—services without material master records—the concept of account assignment still applies, but with a few custom configurations.Whether you’re purchasing goods with a material number or services described purely as text, the account assignment process ensures that the costs are properly tracked, posted, and managed across your organization.

How Account Assignment Works for Text-Based Service Items

When procuring services that are entered as text rather than linked to a material master:
  • Account assignment categories such as Cost Center (K), Internal Order (F), or Project (P) can still be used.
  • This ensures that service-related costs are allocated correctly in financial accounting.
  • The assigned account determines how SAP posts the value of the service item.

Configuration Path for Services Without Material Master

To configure services without a material number:
  1. Navigate through SAP IMG:

  2. Materials Management → Purchasing → Material Master → Entry Aids for Items Without a Material Master
  3. Create Material Groups and Valuation Classes:

  4. Define material groups for various types of text-based services. Assign valuation classes to control how services are posted in accounting.
  5. PO Entry:

  6. When creating the PO, assign the material group linked to the service. SAP automatically derives the appropriate account assignment based on your customization.

Systematic Process: Creating a Service Purchase Order in SAP

To ensure proper account assignment and seamless PO management, follow these structured steps:

Step 1: Create Purchase Order for Services

T-Code: ME21N
Set Item Category to 'D' (Service Item).

Step 2: Create a Service Master Record

T-Code: AC03
Define service specifications that you plan to procure.

Step 3: Add Service Line Items in PO

Go to the Services Tab. Specify:
  • Description of the service
  • Quantity
  • Price

Step 4: Set Validity Period

Mention the start and end date in the PO header for when the service is expected to be delivered.

Step 5: Record Service Entry

Once the service is delivered:
  • Use T-Code: ML81N to create a Service Entry Sheet.
  • Reference the PO to verify delivered services.

Step 6: Perform Invoice Verification

Verify invoice using the PO. System automatically references the service entry sheet for validation.

Step 7: Process Vendor Payment

Once verified, process payments as per your organization’s payment schedule.

Why Account Assignment is Crucial for Services

  • Ensures accurate cost allocation.
  • Facilitates internal cost tracking for projects or departments.
  • Enables financial compliance and auditing by associating expenses to defined cost objects.

Frequently Asked Questions (FAQs)

1. Can I assign a cost center for a service without a material number?

Yes, cost centers or any account assignment objects can be used with service items that are purely text.

2. What is the item category for service procurement?

Use item category 'D' for all service items.

3. Do I need a service master record for every service?

It's recommended but not mandatory. You can still enter services as text, but service master provides more control and reporting.

4. Which T-Code is used for service entry?

Use ML81N for creating and managing service entry sheets.

5. How are services posted in accounting without a material number?

Through the material group and valuation class, which link to account assignment settings.

6. Is invoice verification different for service POs?

Yes, the verification references the service entry sheet instead of goods receipt.

Conclusion

Handling Purchase Order Account Assignment For Service Items in SAP is straightforward when you understand the role of item categories, material groups, and account assignment categories. By customizing your SAP environment and following a systematic approach, you can manage service procurement with precision and compliance.

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