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Service and Maintenance Contract

Hi Experts,

Please go through the below requirement.

Equipment is billed and delivered to the Customer in a standard sales process ( ... --> Sales order --> Delivery) and installation / commissioning is done by Customer Service team. Equipment is having 1 year warranty and maitained at free of cost.

Under / after warranty, There is a service contract called O & M (Operation & Maintenance Contract) to

operate and maintain the equipment by the service provider's personal. During the contract, initially we are not charging the customer (only terms and conditions are defined) but monthly bill will be generated based on the productivity irrespective of Labor and materials consumed.

Terms

i. Rs.7 / unit + Rs.1 / unit as bonus if the ouput Quantity is more than 2000

ii. Rs.7 / unit - Rs.1.50 / unit as penalty if the ouput Quantity is less than or equal to 2000

iii. No material or labour will be charged to the customer (but the labor and material cost to be settled to the contract)

iv. Down time due to Customer will be charged @ Rs.500 / hour

v. Down time due to Service provider (ourselves) will be penalized @ Rs.250 / hour

Eg1: BONUS case

For the month of January,

Total output produced = 2100 units.

Down time due to Customer = 30 hrs

Down time due to Service provider = 20 Hrs

Labor + Material cost for operation & maintenance = Rs.50000

Bill amount = 2100x7 + 2100x1 + 0 for material + 30 X 500 - 20 X 250 = Rs. 26800.00

For the month of February,

Total output produced = 1500 units.

Down time due to Customer = 40 hrs

Down time due to Service provider = 10 Hrs

Labor + Material cost for operation & maintenance = Rs.40000

Bill amount = 1500x7 - 1500x1.50 + 0 for material + 40 X 500 - 10 X 250 = Rs. 25750.00

I am capturing the output units and down times by using Measuring points / counter in Equipment.

Where do I capture the Terms and conditions in the Contract?

How do I link the reading from measurement document and the billing document?

How do I make monthly billing with reference to the Contract?

How do I settle the cost of Service orders ( Service orders for maintaining the equipment)?

Please help me...

Thanks & Regards,

Babu.K

Former Member
Former Member replied

Babu,

Billing plan u2013 Periodic

IMG  SD  Billing  Billing Plan

a. Define Billing Plan types

Choose Periodic Billing Copy and create your periodic billing prefixed with u201CZ1 u2013Periodc billingu201D

b. Define Date Descriptions

c. Define Date and Assign Categories

1. Maintain Date category for Billing Plan Type

Here you are assigning billing plan type to Date category, Click New Entries and enter new data.

2. Whatever assignment you carry out above will be reflected here.

d. Maintain Date Proposals for Billing Plan Types

e. Assign Billing plan Types to sales documents

f. Assign Billing plan types to Item categoride

(Note: This execution goes along with Project System so consult your PS Consultant for u201Cmaintaining Billing Plan Settingsu201D)

Periodic Billing Configuration:

1. Create New Sales Order Type, say ZOR (Copy of OR) through T.Code: VOV8 Maintain Delivery Type as LF & Billing Type As 'F1' - Order Related / 'F2' Delivery Related.

IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Documents Types

2. Assign New Sales Document Type to Sales Area, For Eg: 1000 (S.Org) / 10 (D. Channel) / 10 (Division) / ZOR (S.O Type)

IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Assign Sales Area to Sales Document Type

3. Create New Item Category, say ZTAN - Copy of TAN (For delivery Related) / ZTAD - Copy of TAD (For Order related) / ZTAS - copy of TAS (For Third Party) Maintain as under (others remaining same) Billing Relevance: I Billing Plan Type: 02

IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item Category

4. Assign Item Category, for ex (assuming Usage & higher level item category as blank): Sales Document Type | Item Category Group | Default Item Category ZOR | NORM | ZTAN ZOR | DEIN | ZTAD ZOR | BANS | ZTAS

IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Assign Item Category

Note: In the above Billing Type '02' plays the main controller for periodic billing. In Sales order, at item level, we require to maintain the billing plan. Follow the Sales cycle as normal sales cycle for particular Scenarios

Check http://help.sap.com/saphelp_46c/helpdata/en/dd/560fdd545a11d1a7020000e829fd11/content.htm

Resource related Billing

The PDF I have mentioned is good

SERVICE Notification and Order

Resource related billing is used if you consume any materials during maintenance which should be accounted against a particular service order against a customer in the form of Debit memo Request.

If the customer is in warranty then also you should show the material consumed and its accounting details.

We also need COST & FI Consultant to work closely with you because cost element has to be created and cost ccenters has to be assigned.

We will have to create settlement Profile for carrying forward the values against G/L account or SDI or Cost center.

General Order Settlement:

IMG  Plant Maintenance and customer service  Maintenance and service processing  Basic settings  General Order settlement 

a. Maintain settlement profile - for CS customer service

b. Allocation Structures u2013 Choose CS and double click u201CAssignmentsu201D you will have to assign Primary and secondary cost elements

Choose primary Element and Double click u201CSourceu201D Enter Controlling area and give from

and To cost element. Similarly follow for secondary element

No assessment cost elements filling

Choose primary cost of Element and double click u201CSettlement cost elementsu201D

Receiver cat by cost element

CTR YES

G/L YES

SDI YES

Similarly follow it in secondary element

c. Maintain PA transfer structure

d. Maintain No ranges for settlement Documents

Service Notification

a. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service notifications  Notification Creation  Notification Types  Define notification types

Click u201CNew Entriesu201D - for Problem notification/ Activity report / Service request

b. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service notifications  Notification Creation  Notification Types  Define No. Ranges

c. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service notifications  Notification Creation  Notification Types  Assign Notification types to Order Types

d. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service notifications  Notification Creation  Notification Types  Partners

Define partners through partner determination procedure

Service Orders

a. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders  configure order types

b. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders  No. ranges

c. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders Assign order types to maintenance plants

d. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders  Settlement Rule: define Time and Creation of Distribution Rule

e. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders  Assign IM assignment key to Order types

f. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders  Define default order types for Maintenance Items

g. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders  Define Notification and Order Integration

h. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders  Define Partners

i. IMG  Plant Maintenance and customer service  Maintenance and service processing Maintenance and service orders  Assign default values for settlement areas to order

This is an integration of SD,CS, PM, Fi and CO so check with your counter parts.

Regards

Sathya

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