Treating service as material or utilize CS processes?

[Former Member]

I work for a small manufacturing company that provides some of its manufacturing services as a 3rd party service to other manufacturers. So, in addition to selling physical products, we may also sell a service such as Product Development Engineering. We have been handling these services manually outside of SAP, but would like to utilize SAP. These services may be billed based on milestones or could be billed based on time and materials. Since we are small and try to keep things simple, it seems that the simplest option is to create materials (DIEN or LEIS) for these services and treat them as we do other products. I believe that we could also use service orders in CS. I think that use fo project systems would really be overkill. What kinds of requirements would drive towards use of service orders and other parts of the CS processes rather than just a straightforward DIEN/LEIS material within SD? Are there any white papers or overview documents that may address this?

[Former Member]

Closing thread

[Former Member]

So, one of the questions I should be considering is how much traceability of the service is required? CS Service Agreements allows for more traceability than simply putting a DIEN material on a Sales Order. Another may be the duration of the service - quick, unrelated services may be better suited to being a DIEN or LEIS on a sales order than more involved services that have interdependencies.

Thanks! Any other differentiators?

[kenneth_chong]

Hi,

yes one of the question which you need to consider is the tracibility or should I say the resources used. I basically had some presentation which I have prepared once, I you would like I dont mind sharing. Problem here is that we are not allowed to share mail's id.

anyway I ca be contacted via skype : chongyuken

Regards

Ken

[kenneth_chong]

Thought !!!!.... is you 'Product Development Engineering' services long term or short term.

CS processes can be viewed as follows:

Service Processing u2013 Its meant for u2018Short Termu2019(i.e. Customer raises a request to repair an equipment/item for instance. The scenario can also varies whereby a replacement item is issued out temporarily while the equipment/item is repaired. Finally once the repair process is completed a billing process will take place).

Service Agreement u2013 Its Meant for u2018Long Termu2019 (i.e. A contract for warranty, maintenance for instance).

If you want to have indept tracibility in areas like servicing .. this is a good choice to consider.

skype: chongyuken