This blog shares highlights on SAP S/4HANA Cloud, private edition for Service | 2023 FPS1 release:
- Service Price Items
- Execution order items with multiple connected maintenance orders
- Project integration for Service with Advanced Execution
- Event-based revenue recognition for ad-hoc billing plan of service orders with advanced execution
- Enhancements in Resource-related Billing for Execution Order items
Service Price Items
Using Service Price items, we are now able to support price increases or changes to the service scope in service quotations and service orders. Service price items are always sub-items below another service quotation or order item. These price items are not relevant for confirmation and are billed with fixed-price (order-based billing). The additional revenue is booked on the same Accounting Object as the main item. This allows consolidated financial reporting and revenue recognition across service items and service price adjustment items.
Service price items provide additional commercial flexibility while keeping consistent financial reporting.
Picture: Service Price Items
Execution order items with multiple connected maintenance orders
As of release 2023 FPS1, it is now possible to connect multiple maintenance orders to one single (commercial) execution order item in the service order. This allows to split detailed planning and execution of services across multiple maintenance orders, while providing consolidated financial reporting of revenue and costs at the level of the service order item (by re-using a single accounting object).
A first maintenance order is created when an Execution Order item in the Service Order is released. Afterwards, additional maintenance orders can be created in 3 possible ways:
- Create new maintenance order as a copy of the first maintenance order
- Create new maintenance order as a follow-up of the first maintenance order
- Create new maintenance order as a sub-order
This new capability in Service with Advanced Execution delivers more detailed planning of complex, long-running service jobs by splitting planning and execution across multiple maintenance orders. It allows financial reporting and revenue recognition at the level of one single execution order item in the Service order.
Picture: Execution Order item with multiple maintenance orders
Picture: Execution Order item with multiple maintenance orders
Project integration for Service with Advanced Execution
The maintenance orders created out of the Service with Advanced Execution process are called “Billable Maintenance Orders”. We have now enabled WBS assignment in billable maintenance orders on the “additional data” tab.
This WBS assignment makes the costs of the maintenance order visible in the Project reporting.
Picture: Billable maintenance order in Project reporting
Event-based revenue recognition for ad-hoc billing plan of service orders with advanced execution
The determination of a revenue recognition key for execution order items with ad-hoc billing plan has been enabled in customizing.
Picture: Revenue Recognition Key derivation
Enhancements in Resource-related Billing for Execution Order items
Resource-related billing has been enhanced with these features:
- Copy of Terms of payment from Service Order to Debit Memo Request (DMR)
- Copy of External reference from Service Order to Debit Memo Request (DMR)
- Copy of Business partners of execution order item to Debit Memo Request (DMR)
- Alternate tax classification (from Service Order Header level)
- Copy of SEPA mandate reference from Service Order to Debit Memo Request (DMR)
- Copy of Contract Account reference (FICA active) from Service Order to Debit Memo Request (DMR)
- Expenses captured on Execution Order item accounting object can be included in Resource-related billing
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