Refurbishment Process

[Former Member]

Dear All,

Can anyone please tell me the meaning of 'Refurbishment'.

How to map this process in SAP.

Detailed answer will help me a lot.

Points will be rewarded accordingly.

Regards,

Rashmi

[Former Member]

Hi,

Could someone please help by outlining the steps in the process:

1. Create refurbishment order

2. Goods issue of the main item? (is this required)

3. Issue of components to refurbish the main item?

4. Confirmation of time etc to the repair

5. Goods receipt of the repaired main item

Thanks for your help.

JP

[Former Member]

Hi Pierre

The treatment of refurbishment process in SAP is same as the processuing of a normal maintenance order. The following steps should be taken into consideration

1. Create a separate order type

2. You have to decide the cost of incoming damaged componet that would be taken into stock. Valuation Class "Used"

3. Process the maintenance order as usual. Main Item that is the used material is to be issued to the order. If any other component is required it is to be issued to the order. The order value would settle into the material

4. After completion of order ( Time confirmation & Material confirmation through IW42) the material is repaired and is to be taken to stock. Run T-code IW8W for posting of reapired assembly. Now the valuation class would be "Refurbished"

Hope I am clear

Regards

Alok

[Former Member]

Hi,

Thanks for response.

In my case, when we refurbish the item, we also recover components. How do you suggest to do this, just enter the components with a 'negative' quantity on the compoonent overview, so that you do a 262 movement for them?

Also, when I issue the main item to the order, why does the serial number not copy from the order to the MIGO transaction, is this a bug?

Thanks.

JP

[Former Member]

Hi

Refurbish process is handled in SAP in the following way.

When you repair a piece of equipment the cost of maintenance is normally booked to the maintenance cost centre of the plant/ equipment. That is a revenue kind of expenditure. There are scenes when component of an equipment is repaied and can be reused, and its value in term of its life gets extended. Think about a Gas turbine component which underwent a major repair and in the mean time a new component was installed to keep the machine running. Let us treat this process through refurbishment route. In refurbishment process the maintenance order is not created on a technical object but on a material with separated valuation. Now what does this valuation mean? The component which was removed has a different value from a new component since it is now damaged. Its value would be less than a new component. After the material is repaired it will have another value different from the new as well as the damaged. Its value would be less than new but ore than the damaged. Therefore we can think of three valuation class for one material: New, Damaged & Repaired/ refurbished.

After completion of refurbished order on material the services performed and resources used (like manpower , material & contract) is settled directly to the material. When this material is taken into warehouse recalculation of the average moving price of the material happens. Because the new price would be the average price of New material price & refurbished price.

Hope I am able to clear your concept of refurbishment in SAP. Award points if useful.

Regards

Alok Sengupta

[Former Member]

Dictionary meaning: repairing, improving and bringing an object's features to very close to original.

In SAP: Normally maintenance is done on the field. The other maintenance is done in the service center. The second is called refurbishment.

In the second case the equipment moves from the field and appears in the stock of the company. And this is refurbishment. In the first case the engineer/technician goes to the site where the equipment is and hence the machinery need not appear in the stock.

thanks

Bala

[Former Member]

Refurbishment - reconditioning the equipment / technical object to meet the desired function.

It is generally used for repairing the motors / pumps / assemblies. This will be handy while managing the inventory. Assume that the plant is having a 15 KW motor of 20 motors. In this case, maintaining a spare. \

Pre requisites: Material / assemblies that are to be refurbished are to be activated for split valuation with C as valuation category. There are three standard valuation types are available as follows.

C1 - good or new

C2 - repaired / refurbished

C3 - defective

This is to be maintained in accounting view of material master.

Detailed step for processing a refurbishment order:

Create a refurbishment order type PM04 using transaction IW81

Enetr the material number, planning plant

Maintain the work center, planner group and other details like normal Pm orders

Enter the current plant, SLOC and valuation type as C3

Enter the plant in which the repair is to be performed, its SLOC and the valuation type as C2

Process the order and send the material to the plant where the equipment is to be repaired. award PO if its an external operation.

Repair activity is completed.

receive the material using transaction IW8W ie GR

TECO.

Settle the order. Please note that the settlement receiver for refurbishment order is Material.

Trust this will help you.

Regards

SRN

[Former Member]

Hi,

I have the following scenario:

1. Receive in 100 units of product A

2. We want to salvage not product A, but components in product A

Could you advise the use of the refurbishment process for this, for example:

1. Create a refurbishment order for product A

2. Enter components that are to be received for product A

My concern here is that I want to 'issue' product A after the components are received (like a reverse sub-contracting process)

Please advise.

Thanks.

JP

[Former Member]

Hi Rashmi,

Refurbishment process will come into picture when something got repaired.There are two process one is Internal and other one is external.If it is internal,refurbishment order can be created PM04(sap std) and spare parts needed for operation and do repariing internally and restock the equipment after it`s completed.then planner/mechanics will book the time thru IW41 and it will be transferred to service entry sheet and atlast cost will be calculated and teco itat the end.if it is going to be external..purchasr order will be created and transport to supplier for reparing and once repair is done it will come to the plant and moving average price will be calculated.Most of things were done by purchasing team using split valuation by running MRP process.It will be customized in metrial master data in valuation type category.

Hope this helps.

Regards,

VIjay