Mapping of customer equipment repair process through PM

[vivek_varun2]

Hi all,

My client has a scenario in which for the equipment of sister concern company, they raise invoice to the company for the repair work which they have done in there own workshop. Now there is no CS module there, so how to map this scenario through PM module.

Thanks & Regards

Vivek Varun

[Former Member · Accepted solution]

Vivek,

To make sure I understand the scenario correctly, your client (Company "A") repairs the equipment of a sister company ("B"). Company "A" wishes to invoice "B" and collect payment. Is sister Company "B" also using PM in the same instance of SAP?

If company "B" is not in the same instance, you already know that CS is the best way to accomplish this.

Using PM instead of CS, you will need some costing object (Cost Center, CO Order, or Project WBS) to capture the costs from the PM Order through settlement, then do a Miscellaneous Invoice in Account Receivable connected to the same costing object. That will require setting up a Customer Business Partner for "B". Also, if you have the Technical Object (FLoc/Equip) mandatory on your PM Order Type, you will need to create a FLoc/Equipment for Company B's equipment.

So essentially, you are doing the work of setting up Customer Service in order to work around not using it.

Even if Company "B" is using PM in the same instance as "A", to create a real invoice (not intercompany clearing) you need CS or the Miscellaneous Invoice work around. If just intercompany charges are OK, you may be able to just use PM, but no revenue collection.

TRE

[vivek_varun2]

Hi TOM,

I have both scenario. one scenario is that sister concern company is not using the PM in same instance and in second scenario there is plant of same company code, not sister concern company . So plant to plant subcontracting process will be there. So now my question is for 1st scenario, I got your point that equipment master will be created with category as customer equipment and whenever fleet or machine will be received for maintenance then maintenance order will be created and cost will be booked on cost center of that machine/fleet. Now when manual invoice will be raised through finance, will that include have detail of cost of material & labor charge. Sorry , if I am asking silly question regarding finance, as I don't have any idea about finance module.

In second scenario, process is like sending site, 1st try to repair the machine by own, if not possible then send to central workshop. central workshop will repair it in house or will get repaired by third party and raise invoice to sending plant with detail like material installed and labor cost.

So how to map this whole second scenario

Thanks & Regards

Vivek Varun

[Former Member]

Vivek,

In both scenarios, I am not hearing why you need an Invoice. Cross-company settlement is less effort overall. Formal invoices are better to charge as revenue with margin.

1st Scenario [sister company that does not use PM]--If you go with the manual Invoice, it will not contain the detail for the cost of the materials and labor. Alternatively, you can use CS and create the invoice automatically and include the detail.

In the 1st Scenario, is the Sister company on SAP for Finance in the same instance? If yes, then I would talk to the Finance team about why they have need a formal invoice. If the sister company is in another instance or not on SAP, I would use CS.

2nd Scenario [Main Plant (sending site) using PM needs support from central workshop, which is another plant in the same company]-- Multiple Options. You get history by writing a Work Order to the Equipment/FLoc.

Use existing Main Plant Work Order and create one or more Operations for the Central Workshop Work Centers. Confirmations, Materials, and POs costed to these operations.

Create Sub Order in the Central Workshop Planning Plant that flows the costs to the existing Main Plant Work Order.

Create (regular) Work Order to the Equipment with Central Workshop Planning Plant and Maint Plant for the Main Plant (sending site). Settlement to the Tech Object's normal cost object.

If for some reason you need a Formal Invoice for Plant-to-Plant costs in the same company, use CS.

If the machine being repaired is a Rotable/Repairable Spare, can use Refurbishment Orders written on the Central Workshop Planning Plant.

In all the above 2nd scenario options, repairs by a third party can be charged via a PO into the Work Order.