External Refurbishment Goods Issue

[Former Member]

Dear Experts,

I am doing External Refurbishment Process, I get one confusion why we need to Issue repairable spare against the Refurbishment  order ( having only external Operation with control key PM03). In Service we already maintain the service activity.

Here can be two cases I called the external Vendor inside my factory Premises and perform the service then in this case

what we need to do where I need to Issue repairable spare parts, "Refurbishment Order which is already created"? or something else if i am not issuing to Refurbishment Order it is showing gap in costing.

Second case is If we need some service from some external vendor then we need to issue Repairable spare part, where we need to issue this Repairable spare parts "Refurbishment Order"? or Issue to Service PO to External Vendor with Mvmt type 541.

Goods Issue with reference to Service PO is Possible?

what is the difference between Service PO and Sub-Contracting PO

Kindly help me to understand this process.

Thanks in advance.

[Former Member]

Hi,

Check

Posting a Goods Issue for Material to be Refurbished - Customer Service (CS) - SAP Library

Regards

Vivek

[Former Member]

Thanks Vivek for the Response but both given post does not solve the purpose of doing sub- Contracting with reference to PM Order. I checked other thread as well but unable to resolve this Sub Contracting issue.

I am unable to get Item Category in Purchase requisition refering to Maint Order.because of this while I am converting the PR to PO(In PO I am selecting the Item category as L) then a message of Doc type and item category not matching with PO Order.

I read in thread that that the BF LOG_EAM_ROTSUB),"Refurbishment and Subcontracting 2" (LOG_EAM_ROTSUB_2) and "Serial Numbers in Purchasing" (LOG_MM_SERNO) need to activate then only Sub Contracting process with reference to the maintenance Order work.

How I am doing I am explaining here

Create Maintenance Order and select PM02 control key,

assign equipment and component appear in component tab

check Operation tab and external tab as well, Purchaing Gp, vendor etc is maintained

save the Order and get the PR No and this PR dont have Item category but account assignment category as F ( Order).

While converting PR to PO assign Item Category L in PO Header. Now getting error (

doc type and item category not matching with PO Order).

Please help it is urgent. I believe somebody in the forum successfully did sub-contracting process with reference to PM Order.

Thanks

Vikas

[Former Member]

Vikas,

I have generally seen and used either Refurbishment Orders or Sub-contracting POs.  Sounds like SAP has expanded the options further.  Have you activated the business functions that you mention? 

From the process you describe and getting the subcontracting error, you may need to configure the Purchasing Document Type to allow Item Category L and account assignment F.  SPRO>Materials Management>Purchasing>Purchase Order>Define Document Types.  Within the Purch. Doc. Type, check Allowed Item Categories and Link Purchase Requisition - document types.

For Account Assignment: SPRO>Materials Management>Purchasing>Account Assignment>Define Combination of Item Categories/Account Assignment Categories. 

SAP has several options for handling refurbishment [Refurbishment Orders, Sub-contracting POs, PM Orders (non-refurbishment)].  You can use a single option or combinations, depending on your requirements (including valuation classes, serialization, and costing) and business process.

Your first case: I called the external Vendor inside my factory Premises and perform the service then in this case.

what we need to do where I need to Issue repairable spare parts, "Refurbishment Order which is already created"? or something else if i am not issuing to Refurbishment Order it is showing gap in costing.

Advantages of using a Refurbishment Order (instead of a non-refurbishment PM Order) and doing the goods movements are for tracking and costing.  Refurbishment Orders also allow for one method for both internal and external service (or combined internal and external service).

Refurbishment Orders settle the costs to the Material value in inventory.  Those costs include the vendor on-site service PO, POs for other materials, and any repair parts issued from inventory.  Issuing the unserviceable item to the Refurb Order puts the cost of the item to the order (C3 is using split valuation).  Receiving to inventory from the Refurb Order brings the C2 valuation into inventory.  The repair costs are offset by the increase in value.  Settlement updates the value in inventory (or goes to variance) depending on accounting decisions.  Even if you decide to not use split valuation or serialization, doing the goods movements for the unserviceable and repaired items helps track the inventory.

If you are not tracking the unserviceable items in inventory, then you do not need to issue the item to the refurbishment order.

If you are not keeping the repaired items in SAP inventory, you can use a non-refurbishment PM Order type and settle the costs to a cost center (or other object).  You do not need to do any goods movements for the item.

Tom

Message was edited by: Tom Evans 10/21/2015