What is Structured Service Procurement in SAP

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Learn about Structured Service Procurement in SAP

🏗️ What is Structured Service Procurement in SAP?

Structured service procurement refers to the organized and detailed way of purchasing external services in SAP. Instead of just buying a service as a single line item (like “Consulting – 10 hours”), structured procurement uses a hierarchical service specification to define what exactly is being done, how much, and at what rate.

✅ Key Features of Structured Service Procurement:

Feature	Description
Service Specifications	A detailed breakdown of services into tasks, quantities, units, and prices.
Outline Structure	Uses a hierarchical structure (outline levels) to organize services logically.
Service Master Records	Reusable service definitions (e.g., “Installation per hour”, “Wiring per meter”).
Service Entry Sheets	Actual performed services are confirmed using `ML81N` based on service specs.
Item Category “D”	In Purchase Orders, item category D = Service is used to trigger this process.

🛠 Example:

Instead of:

“Construction Work – $10,000”

You define:

Earthwork – 50 m³ – $15/m³
Foundation – 20 m³ – $100/m³
Wall construction – 30 m² – $50/m²

This allows:

Transparent billing
Easier verification
Better control and audit

structure service

🔄 Difference From Unstructured (Simple) Service Procurement:

Feature	Structured	Unstructured
Service Detail	Detailed line items (specs)	Single general line item
Reusability	Uses service master records	Ad-hoc descriptions
Entry Sheet Validation	Based on service specs	Manual validation
SAP Material Type Used	`SERV`	`DIEN`