Date post: | 21-Dec-2015 |
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Parts Dispositionon Service Orders
- a custom solution
Pieter de Bruyn
Session: 4005
Topics to Cover
• Company Background• The Service Order Life Cycle @
Heidelberg• Completion Confirmation and Parts
Disposition• Special Cases when using Customer
Consignment Orders• Summary and Questions
Company Background
Our Mission: To be the world marketleader in solutions for theprinting and publishingbusiness.
The Heidelberg Group
The Heidelberg Group
Heidelberg is the world's leading solutions provider for the print media industry with nearly 25,000 employees in 170 countries. Heidelberg manufactures sheetfed, digital and web press systems as well as prepress and postpress components, software and consumables for all printing applications. Heidelberg has the largest manufacturing and support network in the industry with 18 manufacturing sites and 250 support centers worldwide providing 240,000 customers with service and knowledge.
•Heidelberg Market Center North America is made up of 2 companies, i.e. Heidelberg USA and Heidelberg Canada
• Main Business Process focus areas = Sales, Service, Marketing (Consumables, Service Parts, Equipment)
• Live with SAP since 1998 (started on 3.0F, now on 4.6C + BW)
– Approx. 800 SAP users
Market Center North America
• Corporate headquarters:Atlanta, GA
• Technical Centers/Sales & service offices: located across North America
• Over 1,000 employees
Market Center North America
The Service Order Life Cycle @ Heidelberg
The Service Order Life Cycle: Overview
Service LifecyleSystem(SAP)
Data Warehouse(SAP)
Service Activity Data
Machine Data
InvoicingCustomer Reports
Call Center
Customer interaction:Create Service Request,Provide Feedback and
Register Complaints
Create Service Order
Assign Technician
Service Technician
DataMining
Customer
Dispatcher
1 2 3 4 5
Call Entry
Call Dispatch/Escalation
Reporting
Service andCall
Completion
Billing/Receivables
Dispatching and CallCompletion through multiple
channels
The Service Order Life Cycle: Components
Customer/ Equipment Overview Screen
(Custom Solution)
Service Notification
2 types:
-Internal Requests
-External Requests
Service Order
3 types:
-External jobs
-Contract jobs
-Internal jobs
Advance Shipment Parts Order
-Customer Consignment
-Standard delivery and transfer order
Call Completion:
-Technical Reporting (Notification)
-Time and Expense (custom solution)
-Parts Disposition (custom solution)
Other Components:
-Service Contract
-Warranty Contract
-Maintenance Plan
Preliminary Service Invoice
(debit memo request)
Service Invoice
(debit memo)
The Service Order Life Cycle: Advance Shipment
ADVANCE SHIPMENT
CONSIGNMENT
The Service Order Life Cycle: Customer Consignment
Notes:
•Consignment Movement: Inventory remains in Plant – moves from storage location to customer location (MT 631W – no financial implication)
•The Advance Shipment order is not relevant for billing
Completion Confirmation and Parts Disposition
Completion Confirmation and Parts Disposition
A Custom Transaction is used as one point of entry for all confirmations
1. Technical Reporting
2. Time and Expense (Custom Solution)
3. Parts Disposition (Custom Solution)
Three Components of Completion Confirmation
Completion Confirmation: Technical Reporting
Note: Technical Reporting is carried out in the Notification
General Comments
Fault/Cause Codes
Measurement Documents
Completion Confirmation: Access to 3 components
Status of Technical Reporting
Status of Technical Reporting and Time & Expense Reporting per operation
Completion Confirmation: Time & Expense Reporting
Note:
Some features:
Configurable per work center (normal time, overtime etc.)
Travel Zones
Modify Account indicator on line item
Why a Custom solution?
original 3.0F limitations
expenses on Service Orders
Automatic determination of overtime and more
1. Activity type used for cost determination and determination of service material used for charges.
2. Maintenance Activity type in combination with Account indicator is used for billing decisions (through RRB)
Completion Confirmation: Parts Disposition – a custom solution
Why did we create a custom solution for Parts Disposition on Service Orders?
Business Process: Service Parts on Service Orders are only billed to the customer when used on the job. Therefore Parts are shipped to customer locations on consignment
Visibility of Consignment parts assigned to Service Order when performing completion confirmation
Automate portions of the Service Parts process
Consumption and Return of all Service Parts handled in one screen
Parts Disposition:Advance Ship Order Created
Information relating to the Service Order
Returnable Part?(warranty or repair-exchange)
Quantity on the Advance Shipment Consignment Order
Technician assigned to order operation
Movement Type to be used for consumption – linked to Maintenance Activity type
Delivery status of Parts
Notes:• When Parts have
been Delivered (Goods Issue posted), parts become available for Consumption in Parts Disposition
• MT 261W for consumption from consignment; MT 261 for consumption from carstock
Parts Disposition: Parts Delivered
Consumption Status
Quantity Delivered:Visibility of partial deliveries
Delivery Number
Delivery Status of Parts (visibility of parts on back-order, partial delivery etc.)
Parts Disposition: Parts Consumption
Notes:• Consumption is
posted on SAVE• Possible to perform
partial consumptions• Service Order TECO
only possible after full completion of Parts Disposition (ref. User Status)
Consumption:1. Consume 2 of
item 1; return 32. Consume 1 of
item 2; Repair exchange part to be returned; change Technician responsible
3. Consume 4 items from Carstock (Technician specific)
Possible to assign "Reason for Movement", e.g. Repair or PM
Consumption is linked to Operation Number for Reporting (Note: not supported by standard SAP
It is possible to modify the Movement type to be used when posting consumption; typically used when different GL account required – can be done per item
Delivery Status for Items:1. Parts to be returned2. Repair Exchange part to be returned3. Carstock consumed
Parts Disposition: Consignment Pick-up
Notes:• Warehouse
personnel create delivery when returned goods are received in the warehouse
• Return documentation include reference to original Consignment Order
Automatic Creation of "Consignment Pick-up" at time of first posting of consumption in Parts DispositionNote: Created with reference to "Advance Shipment Consignment Order"
Items not consumed being returned as "NEW"
Repair Exchange Item – returned to repair plant/storage location (non-valuated stock)Note: these parts are not returned from
consignment – treated as returns from customer
Parts Disposition: History
Consumption and Returns history shown for Service Order
Information relating to the Service Order
Special Cases when using Customer Consignment Orders
Drop-ship on Consignment Orders Cross-company shipping and consumption
Drop-Ship on Customer Consignments: Overview
• Issue: Items ordered on drop-ship need to be received in inventory before it can be moved into customer consignment
• Solution: Perform Goods Receipt into a Drop-Ship storage location at time of receipt of shipping notification after which items are available for "delivery" to customer consignment
Drop-Ship on Customer Consignment: DetailScenario:• Service Order in Plant A, Advance Shipment Consignment Order in
Sales Org A, parts not in stock or only available from Vendor• Trigger drop-ship purchase requisition through schedule line in
Consignment Order
• Note: Consignment order does not create consumption and is not relevant for billing – it only moves parts to a customer consignment location in inventory.
• Therefore, Consignment drop-ship parts need to be taken into inventory (note: normal drop-ship parts are not relevant for deliveries in the system and
therefore do not trigger any material movements).
• Issue: Consumption on the service order cannot be confirmed until the drop-ship parts are reflected in the system in the specific customer consignment location.
COMPANY A
Service
Order
Advance Ship
Consignment
Order
(Drop-ship)
Vendor PQR
Inventory
•Direct Delivery
to Customer
•Invoice to
Company A
Drop-Ship on Customer Consignments: Detail
COMPANY A
Service
Order
Advance Ship
Consignment
Order
(Drop-ship)
Vendor PQR
Inventory
•Direct Delivery
to Customer
•Invoice to
Company A
Possible solutions:
1. Do not use Drop-ship as a process when dealing with consignment orders
(pre-requisite: another process is required for handling out-of-stock items when dealing with consignment)(advantage: normal controls for goods movements)(disadvantage: logistical issues, customer satisfaction issues due to multiple processes)
2. Trigger a virtual goods receipt for consignment drop-ship parts at time of shipment from vendor.
(pre-requisite: need to be notified at time of shipment, process required for separation of virtual receipts from real receipts)
(advantage: process can be automated, drop-ship can be used effectively in a customer consignment environment)
(disadvantage: stricter control on goods movements because the concept of virtual receipts can be transferred into other areas)
Advance Ship ConsignmentOrder
(Sales Org A/Customer XYZ)Service Part (Plant A/Storage Loc DS)Note: Drop ship Item Category required
Delivery(Sales Org A/Shipping Point DRP)
Service Part (Plant A/Storage Loc DS)
COMPANY A
Goods MovementMovement 631 WInventory Origin: Plant A/Storage Location DS
Inventory Destination:
Plant A/Customer Location XYZFinancial: None
Service Order(Plant A/Customer XYZ)
(PartsDisposition)
Consumption?
Yes
Consignment Pick-up(Sales Org A/Customer XYZ)
Returns Delivery(Sales Org A/Shipping Point RET
Service Part (Plant A/Customer Loc XYZ)
No
Consumption:Movement 261 W
Drop-Ship Purchase Order
Special Delivery instructionsVENDOR
Purchase Requisition
Goods Movement(virtual receipt)
Movement 101Inventory Origin: Purchase Order/Vendor PQR
Inventory Destination:
Plant A/Storage Loc DSFinancial: Standard Goods Receipt
Goods MovementMovement 632 WInventory Origin: Plant A/Customer Location XYZ
Inventory Destination: Plant A/StorageLocation AFinancial: None
SHIPPING NOTIFICATION
Drop-Ship on Customer Consignments: Diagram
Virtual delivery
Note: The Shipping Notification can trigger an automatic goods movement and delivery if posted electronically
Cross-company Consumption on Consignment: Overview
• Issue: How to Consume and/or Return customer consignment parts when the parts are shipped from another company code
• Solution: Move items to customer consignment in ordering company at time of Consignment Delivery Goods issue
Cross-company Consumption on Consignment: DetailScenario:• Service Order in Plant A (company A), Advance Shipment
Consignment Order in Sales Org A (Company A), parts available in Plant B (company B).
• NOTE: When parts are shipped from Company B the delivery is created in Company B. With Customer consignment the result is that the parts are moved to a customer consignment location in Plant B!
• Consumption of parts is onto a service order (CO object). Cross-company consumption is possible if cross-company configuration (clearing accounts) is in place.
• Issue: Returning unused parts directly to Plant A is not possible (Consignment parts are in plant B in a customer consignment location)
COMPANY A
Service
Order
Advance Ship
Consignment
Order
COMPANY B
Inventory
Advance Ship
Delivery
Cross-company Consumption on Consignment: Detail
Possible solutions:
1. Return parts to plant B(pre-requisite: cross-company clearing account configuration needs to be in place)(advantage: no system changes required for processing returns)(disadvantage: logistical nightmare)
2. Perform cross-company goods movement before parts are returned to Plant A
(pre-requisite: cross-company clearing account configuration needs to be in place)(advantage: additional goods movements only for new parts being returned) (disadvantage: parts remain in shipping plant's inventory until consumption/returns are processed)
3. Set up Company B as a drop-ship vendor* (pre-requisite: drop-ship and intercompany processes need to be defined and configured)(advantage: standard vendor/purchasing drop-ship process used; consumption from company B is to an
intercompany customer and standard intercompany SD process can be used)(disadvantage: additional processing steps, inventory assignment can only be confirmed at time of receipt
of shipping notification)
4. Perform cross-company goods movement at time of initial shipment
(pre-requisite: cross-company clearing account configuration needs to be in place)(advantage: parts move into receiving company's inventory at time of shipment)(disadvantage: additional goods movements for all cross-company shipments)
COMPANY A
Service
Order
Advance Ship
Consignment
Order
COMPANY B
Inventory
Advance Ship
Delivery
*Note: Heidelberg also uses this option
Advance Ship ConsignmentOrder
(Sales Org A/Customer XYZ)Service Part (Plant B/Storage Loc B)
Delivery(Sales Org B/Shipping Point B)
Service Part (Plant B/Storage Loc B)
COMPANY A COMPANY B
Post Goods Movement
Movement 631 WInventory Origin: Plant B/Storage Location B
Inventory Destination:
Plant B/Customer Location XYZFinancial: None
Service Order(Plant A/Customer XYZ)
USER EXIT:MB_CF001
Step 1: 632 W movementInv. Origin: Plant B/Customer Loc XYZInv.Destination: Plant B/Storage Loc ICCTFinancial: None
Step 2: 301 cross-company movementInv. Origin: Plant B/Storage Loc ICCTInv.Destination: Plant A/Storage Loc ICCTFinancial: 3 accounting documents
Step 3: 631 W movementInv. Origin: Plant A/Storage Loc ICCTInventory Destination:
Plant A/Customer Loc XYZFinancial: None
(PartsDisposition)
Consumption?
Yes
Consignment Pick-up(Sales Org A/Customer XYZ)
Returns Delivery(Sales Org A/Shipping Point RET
Service Part (Plant A/Customer Loc XYZ)
No
Consumption:Movement 261 W
Post Goods MovementMovement 632 WInventory Origin: Plant A/Customer Location XYZ
Inventory Destination: Plant A/StorageLocation AFinancial: None
Cross-company Consumption on Consignment: Diagram
Reference: Transaction OBYA: Automatic Posting - Clearing Accounts
Note: You have to comply with IRS guidelines when managing these clearing accounts
Parts Disposition on Service Orders
Summary• Custom solution for Parts Disposition on Service Orders• Visibility of advance shipment of Customer consignment
items• Automated processing of consignment pick-up • Some limitations in SAP for handling customer
consignments, e.g. drop-ship
Thank you for attending!Please remember to complete and return your evaluation form following this session.
Session Code: 4005