Service Item Delivery and PGI

[Former Member]

Hi All,

We have scenario where our client is involved on building real estate properties. I have the following questions :

1) should the item be created as DIEN (service with delivery ) or NLAG (non stock material). the item we are selling will be 'service to build superstructure'.

2) I read in many thread here that for service items, there is no PGI, rather there is confirmation of serives. how can i post my cost accounts without any movement type or PGI in this case?

3) We are creating Sales order with service item rather than creating customer service order (CS).

Please suggest how we should go ahead.

Thanks,

Binita

[Former Member]

Hello Joshi,

In my present client I have same kind of requirement, can you please help me out how you resolved the issue.

Thanks in advance!

Regards,

Arun

[Former Member]

Binita,

If you are doing the PGI the costs will get updated for the materials which is havinf stock and value. As it is a DIEN material it will not have any cost and inventory. Since it is a service, why do you want to do PGI?

You can use condition type EK01 to capture the cost, maintian same in pricing procedure.. What do you think?

Regards,

SAM

[Former Member]

Hi Sam,

thanks for replying. the only reason why i want to do PGI is because I want the cost accounts to be posted automatically. If i capture actual cost with EK01 in my pricing procedure, will I be able to hit cost account along with offset account with a single account key (just like what happens when you do PGI of stockable item)? I mean I am not sure how this should be done.

Thanks,

Binita

[Former Member]

Binita,

I am not sure about your process. But I still believe you don't maintain any inventory for the materials which you are creating using DIEN. If it is so, then where is the question of COGS (Cost of goods sold) gets updated when you do the PGI?

If you want to do this, then check with MM team bout the account determination settings in MM (OBYC) and check your valuation class of your material master.

Coming to EK01, it is a statstical condition, which will not have any impact on pricing.

Regards,

SAM

[Former Member]

The process is, one company builds a bungalow. and the for the services that they are selling to customers in building this property, they need to show the cost (WIP) over period of time (just as we hit COGS account by doing PGI while selling a stock material.) for this, I have created a material with type DIEN and did what i explained in previous steps. now I am clueless on whether what I am doing is totally wrong or there is any configuration lapse.

Thanks,

Binita Joshi

Edited by: Binita Joshi on Nov 24, 2011 11:18 AM

[Former Member]

Hi,

Do you have stock for this material? Did you maintain cost of this material in material master accounting view1?

What is the valutation class you maintained in the material master accounting view1? Check the account determination against this valuation class in OBYC.

Regards,

SAM

[Former Member]

No , this is DIEN category so stock is not there. in accounting 1 view - we put price control as S and maintain some cost there. also the standard service valuation class is maintained. in OBYC, we have done the setting for the same.

As per Srinivas's suggestion, we tried creating a service material with moving average price control and created a dummy PO and MIGO for it. the moving price does not get updated in material master. accounting document did get generated.

[Former Member]

Binita,

As this is a DIEN material type, then normally consumption account gets updated when you do a service PO. check in OMS2 whether for the material type Value/Qty updating is checked properly or not. If not, then MAP will not get updated (I believe, sorry not very strong in MM

Regards,

SAM

[Former Member]

Hi,

Yes you are right; I think you have to deal with Project systems (PS-Module of SAP) with regards to your requirement please maintain the following:

1, Profit centre in Material Master for u201CService Itemu201D in Sales General & Plant Tab. Also at u201CCosting 1u201D Tab.

2, A WBS Element/ Cost Element (as the case may be) for the service Item to be maintained in u201CMaterial determination of DIP Profile in u201CODP1u201D, after checking consistency of this DIP profile in u201CODP2Au201D just assign it in u201CSales Bu201D tab in u201CGo tou201D menu of Sales order (VA01) under u201CItem u201C submenu.

3, Maintain proper relevant copy controls between the Doc. Types.

4, I hope you have also maintained cost centre as well.

5, Do assign proper G/L sto the WBS element / Cost elements.

Now run the scenario and test it. It should work out. Pls visit the link for more information.

http://www50.sap.com/businessmaps/55090D1F1C324D09A8F8A91418179C0F.htm

Regards

DSR

Edited by: D.Srinivasa Rao on Nov 23, 2011 10:46 AM

[Former Member]

Thanks for the detailed information Srinivasa, the main issue is , PS is not getting implemented here as of now. we have to do it without PS.

further, the posting to cost accounts (WIP) should occur at different stage and with different cost. when you do PGI, it is usually the standard or moving average price with which the COGS get posted but here the item is service item and the total service cost (standard price) should not get posted to cost account every time part of the service is provided to customer. customer should have the control on the amount to be posted. is there any way to deal with this through delivery of service?

thanks,

Binita

[Former Member]

Hi,

Then Using SD Module only you can do this.

Can you maintain "Service Items" as Purcheased Services and configure to post it in "COGS"

Rather, you have to raise a dummy purchase orderfor purchase of services and do MIGO to process.

Please try this

Reagrds

DSR

[Former Member]

I tried creating an item with DIEN item category and did both delivery and PGI. the document flow showed 'confirmation of services' as expected. but no accounting document generated. OBYC setting is there but i guess all GBB and BSX are meant for stockable materials only.

Can anybody suggest how should we configure OBYC for DIEN - service material that should hit account while doing PGI ? i read in this forum ,when the item category is DIEN, system does not check the movement type.

[Former Member]

Did you maintain Item category determination, please check, and also as you are maintaining Profit centre / cost centre please assign a cost element for the service Item and assign it to G/L of COGS.I hope you use "OBYC" and or "VKOA" for these assignment.

Reagrds

DSR

[Former Member]

Hi Srinivasa,

We have determined the item category. we have copied DIEN to make a new category and have kept the type as Service with delivery. we are able to make delivery and PGI (confirmation of service) but while saving it says "No accounting document generated." it gives no error.

OBYC setting for GBB and cost element for COGS account is maintained.

Before making Sales order and delivery, We also did dummy PO for this service item and did MIGO which generated account posting as expected. But PGI does not hit accounts.

Can anything be wrong with movement type?

Thanks,

Binita