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Condition or Service Material

Dear Gurus,

My client offereing drilling services from RIG. Just give the standard practice for the below scenario.

Client charge hourly rate for the Drilling ($1000/hr), Non Operating hours ($2000/hr), Standby Hours ($3000/hr), Repair Hours ($500/hr), Force Majeure ($1000/hr), Testing & Completion Hours ($9000/hr).

Option 1:

Should I represent all the factors as a service material in the system. Like, Drilling is one material, Non Operating Hour is another material and so on. and create one condition type for the rate that apply to all material at line item wise. or

Option 2:

Create one material as a RIG as a service material, and create multiple conditions for like, driiling is one condition, non operating hours is another condition, standby is another condition and so on..

Please suggest the best business practice.

Looking for the gurus response.

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1 Answer

  • Sep 06, 2013 at 06:08 AM


    You can do this with both approaches but I think creating material masters are good approach. Why? Because in future if they need to add more services then you can do this activity on front end and you just need to create a material master and maintain its price. If you go for conditions option then you will be creating new condition, assign in pricing procedure, assign G/L determination, testing in DEV then transport and all that. So it is better to do this at front end level.

    Create material masters using DIEN material type and maintain pricies in one condition only.


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