Maintenance cost for outsourcing services

[former_member68116]

Hi all,

Our client buys an outsourcing service to maintain their equipment.

Period of the contract is 1 year and they will maintain every month. They will pay 50% at the beginning and 50% at the end of the period.

A maintenance plan will be created and SAP will generate maintenance order every month.

How can I record the actual cost for each maintenance order = total cost of the contract / 12

Thanks

[former_member697729]

Isn't it in the contract already? the cost?

[former_member521542]

Hi,

They are already using Contracts for costs management. Actual cost capturing though maintenance order level would not be possible in this case as total costs are actually being posted at the completion of Contract. Also, actual cost for each maintenance order would not give a clear picture of 'actual' costs incurred every month, you can take this as reference (i.e., total cost of the contract / 12) to show 'Average' costs, however.

Regards,

Ankur

[peter_atkin]

support ets

As Kayley states above, the costs will be consumed via the MM contract.

However, since 50% of the costs will not be posted until the contract ends, then you cannot do anything with these costs.

Ther is functionality in SD called revenue recognition which can be used in billing customers, but I dont think there is anything similar for MM..

Try talking to you MM and FICO teams.

.

PeteA

[peter_atkin]

Support ETS

How do you purchase these services from the vendor (e.g. PO, Contract, schedule agreement etc)?

PeteA

[former_member68116]

They use PO to buy that kind of service.

Actually, PM is implementing while the others are implemented already, so we have to follow identified processes to buy goods and services