3031552 - "Products w/ item group Expense - time and material not supported for location of srv provision On-Site" Error when Using Service Type XACT in Service Order

When adding a Service of type XACT (Expense - Time and Material) in a Service Order, the system is throwing error "Products w/ item group Expense - time and material not supported for location of srv provision On-Site", even though this scenario should be supported.

SAP Business ByDesign

1. Go to the Service Orders work center.
2. Open the Service Order Processing view.
3. Find Service Order ABC (Where ABC Represents the Service Order ID).
4. Open it and click on View All.
5. Navigate to the Items tab and add a new Service of type XACT.

The system will display error "Products w/ item group Expense - time and material not supported for location of srv provision On-Site" even if this item type should support the Location of Service Provision "On-Site".

The system is throwing this error due to a missing scoping configuration.

To Scope the correct configuration, follow these steps:

1. Go to the Business Configuration work center.
2. Select the Implementation Projects view.
3. Select the respective implementation project.
4. Click on the Edit Project Scope button.
5. Select the following path: Service > Product and Service Portfolio for Service and Repair > Offered Services.
6. Scope question "Do you intend to invoice expenses based on receipts that result from sales or services, taking actual costs from the service confirmation?"

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