x72_bpp_en_au

SAP ECC 6.00 June 2007 English

X72: Rotable Management

SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf Germany

Business Process Procedure

SAP Best Practices X72: Rotable Management - BPP

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Contents

Rotable Management: Business Process Procedure ........................................................................... 6 1 Purpose ......................................................................................................................................... 6

1.1 Scenario Overview ................................................................................................................. 6 2 Prerequisites ................................................................................................................................. 6 3 Process flow .................................................................................................................................. 7

3.1 Rotable Management Process Selection ............................................................................. 10 3.1.1 Changing Damaged Equipment’s Valuation Type to “Damaged” ................................. 11 3.1.2 Dismantling Damaged Equipment and Moving it to a Storage Location ....................... 13 3.1.3 Installing New/Repaired Equipment .............................................................................. 14 3.1.4 Displaying Damaged Material ....................................................................................... 15 3.1.5 Creating Refurbishment Work Order ............................................................................ 16

3.2 Equipment Exchange ........................................................................................................... 18 3.2.1 Dismantling the Damaged Equipment .......................................................................... 20 3.2.2 Changing the Valuation Type ....................................................................................... 20 3.2.3 Moving the Damaged Engine to a “Scrapped” Location ............................................... 21 3.2.4 Setting the Equipment Inactive ..................................................................................... 23 3.2.5 Creating Info Record ..................................................................................................... 23 3.2.6 Procuring the New Item ................................................................................................ 24 3.2.7 Creating Purchase Order .............................................................................................. 27 3.2.8 Goods Receipt .............................................................................................................. 28 3.2.9 Updating Equipment Master ......................................................................................... 29 3.2.10 Installing the New Equipment ....................................................................................... 30 3.2.11 Settling the Cost of the Maintenance Order .................................................................. 31

3.3 Internal Refurbishment/Repair ............................................................................................. 32 3.3.1 Planning Operations ..................................................................................................... 33 3.3.2 Planning Components .................................................................................................. 34 3.3.3 Issuing Permits & Release the Work Order .................................................................. 35 3.3.4 Issuing Damaged Equipment ........................................................................................ 36 3.3.5 Scheduling the Refurbishment Order ........................................................................... 37 3.3.6 Material Issues .............................................................................................................. 38 3.3.7 Material Purchase Receipts .......................................................................................... 39 3.3.8 Refurbish the Equipment .............................................................................................. 39 3.3.9 Labor Confirmation ....................................................................................................... 40


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3.3.10 Service Receipts ........................................................................................................... 40 3.3.11 Returning Refurbished Equipment to Stock .................................................................. 41 3.3.12 Attaching Workshop Failure Report .............................................................................. 42 3.3.13 Completing the Refurbishment Order ........................................................................... 43 3.3.14 Settling the Refurbishment Order Cost ......................................................................... 44

3.4 External Refurbishment/Repair ............................................................................................ 45 3.4.1 Planning Operations ..................................................................................................... 46 3.4.2 Issuing Permits & Release the Work Order .................................................................. 49 3.4.3 Issuing Damaged Equipment ........................................................................................ 49 3.4.4 Request Refurbishment Quotation ............................................................................... 50 3.4.5 Updating and Approving Refurbishment Cost .............................................................. 51 3.4.6 Creating the Purchase Order ........................................................................................ 52 3.4.7 Releasing and Placing Purchase Order ........................................................................ 53 3.4.8 Refurbishing the Equipment and Inspect the Work Quality .......................................... 53 3.4.9 Returning Refurbished Equipment to Stock .................................................................. 54 3.4.10 Service Receipts ........................................................................................................... 55 3.4.11 Attaching Vendor Failure Report .................................................................................. 56 3.4.12 Updating Warranty Details ............................................................................................ 57 3.4.13 Completing the Refurbishment Order ........................................................................... 58 3.4.14 Settling the Refurbishment Order Cost ......................................................................... 58

3.5 Replacement ........................................................................................................................ 59 3.5.1 Checking the Material Status ........................................................................................ 60 3.5.2 Creating Purchase Requisition ..................................................................................... 61 3.5.3 Request for Quotation ................................................................................................... 63 3.5.4 Moving the Equipment .................................................................................................. 64 3.5.5 Deactivating the Damaged Equipment ......................................................................... 64 3.5.6 Creating Purchase Order .............................................................................................. 65 3.5.7 Goods Receipt .............................................................................................................. 66 3.5.8 Updating Equipment Master ......................................................................................... 67 3.5.9 Checking the Material Status ........................................................................................ 68

3.6 Scrapping ............................................................................................................................. 69 3.6.1 Moving the Equipment .................................................................................................. 69 3.6.2 Deactivating the Damaged Equipment ......................................................................... 71


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Rotable Management: Business Process Procedure

1 Purpose

1.1 Scenario Overview The rotable management scenario consists of five independent sub-scenarios or processes. Each time a damaged rotable or repairable piece of equipment needs to be processed one of the five processes must be selected. Each sub-scenario or process is a complete process managing the repair, replacement and/or scrapping of the damaged equipment.

The rotable management scenario is structured as follows:

• The first set of process steps of the rotable management scenario are aimed at obtaining the

damaged equipment and choosing the appropriate rotable management sub-scenario. These process steps are fundamental to all five the sub-scenarios and are referred to as the “Rotable Management Process Selection” process.

• The five rotable management sub-scenarios or processes that forms the main parts of the

rotable management scenario are the following:

v Equipment exchange process: This process allows a vendor to swap damaged equipment for new equipment. The cost of the new equipment can be based on an agreed price or the cost to repair the damaged equipment.

v Internal refurbishment/repair process: Damaged equipment is refurbished internally, typically by the workshop. The repair is managed as a normal maintenance job – similar to the corrective maintenance scenario.

v External refurbishment/repair process: The refurbishment of the damaged equipment is outsourced to a vendor.

v Replacement process: The damaged equipment is beyond repair (will be scrapped) and must be replaced to maintain stock levels and the required item availability.

v Scrapping process: The damaged equipment is beyond repair (will be scrapped) but replacement is not required typically due to sufficient stock level.

2 Prerequisites You have entered the master data required to go through the procedures of this scenario. Ensure that the following scenario-specific master data exists before you test this scenario:

The following building blocks form the basis of all SAP Best Practices for Mining scenarios in system.

Building Blocks Comment


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Baseline Building Blocks (Layer 0)

B32 – Best Practices Installation

J02 – Organization Structure

N69 – FI Basics

N70 – FI Local

N71 – CCA

J05 – Materials Management

J04 – Sales and Distribution

Baseline Building Blocks (Layer 1)

J06 – Production Planning and Control

J18 – Product Cost Planning

J19 – Batch Management

J07 – Quality Management

Quick Guide

Industry-Generic Building Blocks

X02 - Generic ORG Structure

X10 - FI CO Delta

X11 - MM Delta

X03 - Generic Master Data

X15 – PM

3 Process flow The Rotable Management Scenario is subdivided into the following sub-scenarios:

1. Rotable Management Process Selection: Choosing the appropriate rotable management sub-scenario to exchange, refurbish, replace or scrap the damaged equipment.

2. Equipment Exchange: New equipment is swapped for the damaged equipment it replaces. a. Damaged equipment is scrapped and given to the vendor who supplied the new

equipment. b. New equipment replacing the damaged equipment is procured at an agreed price or the

cost to repair the damaged equipment.


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3. Internal Repair/Refurbishment: Damaged equipment is refurbished internally, typically by the workshop.

a. The repair is managed as a normal maintenance job – similar to the corrective maintenance scenario.

4. External Repair/Refurbishment: The refurbishment of the damaged equipment is outsourced to a vendor.

a. The repair is managed as a normal maintenance job where a vendor is responsible for the performance of the work – similar to the corrective maintenance scenario where a service is procured.

5. Replacement: The damaged equipment is beyond repair and must be replaced to maintain stock levels and the required item availability.

a. The damaged equipment is scrapped. b. Replace the damaged equipment by procuring new equipment.

6. Scrapping: The damaged equipment is beyond repair but replacement is not required typically due to sufficient stock level.

a. The damaged equipment is scrapped.

The rotable management scenario, its sub-scenarios and the detailed steps are shown in the following process flow diagram:


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3.1 Rotable Management Process Selection

Continues to R20

Continues to R4

Continues to R8

Continues to R20

Continues to R4

Continues to R8

Continues from R3

Continues to R60

Continues to R42

Continues to R27

Continues from R49 & R64

Continues from R24

Continues to R61

Continues to R73

Continues from R24

Continues to R61

Continues to R73


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This sub-scenario is triggered by a need to replace and subsequently repair a damaged rotable item with a new or repaired one (for example, excavator engine failed and must be replaced to sustain the equipment’s production capability).

Ref T-Code Purposes Key Points R1 - Equipment replacement required:

Request for the replacement of the damaged equipment is raised to initiate the process.

1) The damaged equipment can be repaired – is identified as a rotable/repairable. 2) Replacement must be requested (notification raised against equipment).

This scenario assumes that the new engine is either available in stock or obtained from the vendor. We will obtain the new item from stock or the vendor, install it, and dismantle the damaged one. To demonstrate these sub-scenarios, we must already have an excavator engine installed at the appropriate excavator functional location.

This sub-scenario focuses on the procedure of how to deal with the damaged item. The demonstration case assumes that the details of the corrective and/or preventive maintenance scenarios are understood and need thus be referred to only at a high level.

Ref T-Code Purposes Key Points R2 - Replace damaged equipment:

The replacement is performed by following the corrective and possibly also the preventive maintenance scenarios.

1) If the equipment is received from stock: v Create a reservation. v Issue rotable equipment at item's

price (value in stock). 2) Equipment received from supplier as an exchange: v Create a direct material purchase

requisition (PR) to procure the new equipment. The equipment material number must be referenced and item category set to “N” (non-stock).

v PR for equipment exchange at cost of contract or estimated value (no contract in place – to be updated based on RFQ results).

Some detailed steps may subsequently not be included in these scenario and sub-scenarios.

3.1.1 Changing Damaged Equipment’s Valuation Type to “Damaged”

Use The valuation type of the damaged equipment is changed to the batch indicating it is damaged. This enables the identification of all damaged equipment.


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Ref T-Code Purposes Key Points R20 IQ02 Change damaged equipment’s

valuation type to Damaged.

The valuation type of the damaged equipment is changed to the batch indicating it is damaged. This enables the identification of all damaged equipment.

1) Change valuation type to C3. 2) C3 identifies damaged equipment.

Procedure

1. Access the activity using one of the following navigation options:

Transaction Code IQ02

SAP Menu Logistics → Plant Maintenance → Management of Technical Objects → Serial Numbers → Change

2. In the Material field, input ENGIN_001.

Valuation Type Codes

C1 = New Item

C2 = Repaired Item

C1 = Damaged Item

3. In the Serial number field, input the serial number of the equipment that has valuation type C1 or C2 and also currently installed and active on functional location: EXC1RT2-D-ENG. Refer to the note below on how to select the right serial number.

For step 3 above, ensure that you select an active engine installed at functional location: EXC1RT2-D-ENG. You can check for an active installed engine by executing transaction: IQ09, on the material field, input ENGIN_001, on batch field input C1 to C2.

On functional location field input: EXC1RT2-D-ENG then choose .

4. Choose to switch to change mode

Note the equipment number. ________________

Note the serial number ________________

5. Choose the SerData tab.


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6. Update Stock batch and Master batch fields to valuation type C3 (Accept any warning message by choosing Yes).

7. Choose Save.

3.1.2 Dismantling Damaged Equipment and Moving it to a Storage Location

Use The damaged equipment is dismantled and moved to a storage location to indicate that it has been transported from the site to the store/rotable management area.

Ref T-Code Purposes Key Points R21 IE4N Dismantle damaged equipment

and move it to a storage location:

The damaged equipment is dismantled and moved to a storage location to indicate that it has been transported from the site to the store/rotable management area.

1) Dismantle the damaged equipment from the functional location. 2) Record the exact date and time when the equipment was removed/replaced. 3) Move damaged equipment to appropriate storage location. 4) Damaged equipment is physically transferred to the storage location.

Procedure 1. Access the activity using one of the following navigation options:

Transaction Code IE4N

SAP Menu Logistics → Plant Maintenance → Management of Technical Objects → Equipment → Dismantling/Installation with Goods Movement

2. Choose the Dismantling option.

3. Maintain the following data:

Field name Description User action and values Note

Equipment Damaged equipment’s number For this example, use the one recorded on section 3.1.1 (step 4 above).

Movement Type 202

Plant BPM1


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Storage Location

0007

Cost Center 5000

4. Choose Enter.

5. Choose Save.

6. Choose Back.

3.1.3 Installing New/Repaired Equipment

Use The purpose of this activity is to install the new/repaired equipment received from stock to capture movement history.

Ref T-Code Purposes Key Points R22 IE02 Install new/repaired equipment:

Install the new/repaired equipment received from stock to capture movement history.

1) Install the new/repaired equipment (in SAP) received from stock (issue) on the functional location where it is working. 2) Record the exact date and time when the equipment was installed to replace the damaged equipment.


Transaction Code IE02

SAP Menu Logistics → Plant Maintenance → Management of Technical Objects → Equipment → Change

2. Next to the equipment field, click on . On the next window, click on , then select Equipment by serial number list. In the Material field, input ENGIN_001, on Status included field

input AVLB. On batch field input C1 to C2 then choose .

The system will give you the list of all new/repaired engines that are available and ready for installation.

Note the serial number______________

Note the equipment number______________


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Select (by highlighting) one of the serial numbers on the screen, then choose . Choose to switch to change mode

3. Choose the Structure tab.

4. Choose Change InstLoc.

5. On the screen that appears, enter the following data:


Functional loc. Enter functional location’s number, for example, EXC1RT2-D-ENG

6. Choose Enter.

7. Choose Confirm.

8. Choose Save.

3.1.4 Displaying Damaged Material

Use The purpose of this activity is to display the list of damaged equipment to identify the units requiring repair or replacement.

Ref T-Code Purposes Key Points R23 IQ09 Display damaged equipment:

Display the list of damaged equipment to identify the units requiring repair or replacement.

1) Transaction to be run daily. 2) Decisions required for each unit (damaged equipment) on the list. 3) Availability of rotables is directly impacted by the efficiency of the rotable management selection process.



SAP Menu Logistics → Plant Maintenance → Management of Technical Objects → Serial Numbers → List Editing → Display

2. On the Display Material Serial number screen, enter the following data:


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Material Material master number of the equipment:, ENGIN_001

Storage Location

0007

Batch Valuation type, for example, C3

3. Choose Execute.

4. On the next screen, the damaged materials with the serial numbers of the equipment are displayed.

5. From the list, identify one of the equipments that require refurbishment and note it’s serial number, Serial No.___________.

Ensure that you don’t choose an engine that is installed at a scrap functional location: SCRAP01.

6. Choose Back twice to return to SAP Easy Access Menu.

3.1.5 Creating Refurbishment Work Order

Use If the repair of the equipment is required a refurbishment order (PM04) must be created to enable the planning and scheduling of the refurbishment work.

Ref T-Code Purposes Key Points R24 - Repair damaged equipment→

Decision point to determine appropriate action.

1) Evaluate feasibility of repairing compared to replacing. v Repair versus replacement cost.

R25 IW81 Create refurbishment work order (PM04):

If the repair of the equipment is required a refurbishment work order must be created to enable the planning and scheduling of the refurbishment work.

1) Damaged equipment reference on the refurbishment work order: v Material number. v Serial number.

2) Default settlement rule to settle cost to defective equipment's material number. 3) Warranty status is based on equipment master information. 4) Enter supply/material/rotable manager’s main work center code.



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Transaction Code IW81

SAP Menu Logistics → Plant Maintenance →Maintenance Processing → Order → Create (Special) → Refurbishment Order

2. On the Create Order screen, maintain the following data:


Order Type PM04

Priority 3-Medium

Material Number

ENGIN_001

Planning plant BPM1

3. Choose Enter.

4. On the next screen, maintain the following data:


Description of the order

Refurbishment of Rotable Item

PlannerGrp Y01

Mn.wk.ctr MEC02/BPM1

From Plant BPM1

From Stor. Loc 0007

From Val. Type C3

To Plant BPM1

To Stor. Loc 0007

To Val. Type C2

5. Choose the Location tab and maintain the following data:


MaintPlant BPM1

Company Code BP01

Cost Center 5000

6. Choose Save.

When attempting to save the maintenance order, the serial number screen message will be displayed since the equipment is a serialised item. Now we need to specify the exact


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item that has to be reserved for the order. Enter the serial number of the active damaged equipment (material: engine_001, valuation type: c3, located in storage

location: 0007) to be repaired. (Enter the serial number noted in

7. Choose continue to proceed

8. Accept all warning messages by pressing Enter

9. Note the Refurbishment Order number: ……………………….

Now, you have to take the decision whether the rotable equipment will be

1. exchanged

2. internally repaired/refurbished

3. externally repaired/refurbished

4. replaced

5. scrapped.

Depending on your decision, you perform one of the following 5 sections in the document.

Equipment Exchange

Internal Repair/Refurbishment

External Repair/Refurbishment

Replacement

Scrapping

3.2 Equipment Exchange In the equipment exchange case, a new piece of equipment is procured from the vendor (not from stock).

Ref T-Code Purposes Key Points R3 - Equipment received from stock →


1) Received from stock or exchanged by the vendor.

The damaged equipment currently installed at the functional location must now be dismantled, and the procurement process must be completed and the new equipment installed. The request to replace the Damaged Equipment is handled via a maintenance notification (notification type: M1). The maintenance order is then created (order type: PM01) from the notification and processed further.


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To demonstrate this scenario, a damaged/failed item is currently installed at an engine functional location: EXC1RT2-D-ENG. It is further assumed that a notification (M1 type) and corrective maintenance order (PM01 type) have already been created to change the failed unit.

Continues from R3

Continues from R13

Continues to R14

Refer to the Corrective Maintenance scenario for process steps on the creation of a maintenance notification, maintenance order and how to process them.


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3.2.1 Dismantling the Damaged Equipment

Use The purpose of this activity is to ddismantle the damaged equipment to capture movement history.

Ref T-Code

Purposes Key Points

R4 IL02 Dismantle damaged equipment:

Dismantle the damaged equipment to capture movement history.

1) Dismantle the equipment from the functional location. 2) Record the exact date and time when the equipment was removed/replaced.


Transaction Code IL02

SAP Menu Logistics → Plant Maintenance → Management of Technical Objects → Functional Location → Change

2. In the Functional loc. field, input EXC1RT2-D-ENG.

3. Choose Enter.


5. Choose Sub-equipment. and note the Equipment Number.___________.

6. On the InstallLoc: Equipment Overview screen, highlight the equipment to be dismantled and choose Dismantle equipment.

7. Choose Confirm.

8. Choose Back.

9. Choose Save.

3.2.2 Changing the Valuation Type

Use The valuation type of the damaged equipment is changed to Damaged to indicate that it is not suitable for use.

Ref T-Code

Purposes Key Points


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Ref T-Code

Purposes Key Points

R5 IE02 Change damaged equipment’s valuation type to Damaged:

The valuation type of the damaged equipment is changed to Damaged to indicate that it is not suitable for use.

1) Set valuation type to Damaged. 2) Damaged unit is considered scrapped.




2. In the Equipment field, input the equipment number noted in section 3.2.1, step 5.

3. Choose Enter.

4. Choose the Serdata tab.

5. On the new screen, maintain the following data:


Plant BPM1

Storage Location

0007

Stock batch C3

Master batch C3

6. Choose Save.

7. Choose Back.

3.2.3 Moving the Damaged Engine to a “Scrapped” Location

Use The damaged equipment is installed on a virtual functional location created to contain all scrapped equipment. Physically, the damaged equipment is transported to the vendor location in return for the new unit supplied in accordance with the exchange agreement. Since the received equipment replaces the damage unit, the damaged unit is considered scrapped.


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Ref T-Code Purposes Key Points R6 IH01 Install damaged equipment on

"Scrapped" functional location:

The damaged equipment is installed on a virtual functional location created to contain all scrapped equipment. Physically, the damaged equipment is transported to the vendor location in return for the new unit supplied in accordance with the exchange agreement. Since the received equipment replaces the damage unit the damaged unit is considered scrapped.

1) Install the damaged equipment on the functional location created for scrapped equipment. 2) Damaged equipment is physically transferred to the vendor. 3) Damaged unit is considered scrapped and will remain at the vendor location - becomes the vendor’s property. 4) These damaged equipments have no value within SAP for they have been expended when issued and never returned to stock (remains installed on the functional location for scrapped equipment).


Transaction Code IL02

SAP Menu Logistics → Plant Maintenance → Management of Technical Objects → Functional Location → Change

2. In the Functional Location field, input SCRAP01.

3. Choose Enter.


5. Choose Sub-equipment.

6. On the InstallLoc: Equipment Overview screen, choose Installation.

7. On the screen, enter the following data:

Equipment EqInstDisD EqInDiTime

In the Equipment field, input the equipment number noted in section 3.2.1, step 5 above.

Enter installation date

for an example: Current date

Enter installation time

for example, Current time

8. Choose Back.

9. Choose Save.


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3.2.4 Setting the Equipment Inactive

Use The purpose of this activity is to change the equipment status to Deactivated to prevent future maintenance on or use of the equipment.

Ref T-Code Purposes Key Points R7 IE02 Deactivate equipment:

Change the equipment status to “Deactivated” to prevent future maintenance on or use of the equipment.

1) Deactivate the equipment.




2. In the Equipment field, input the equipment number noted in section 3.2.1, step 5 above

3. Choose Enter.

4. In menu path, choose Equipment → Functions → Active<> Inactive → Deactivate.

5. Choose Save.

6. Choose Back.

In this example it is assumed that the new equipment has already been received from vendor and physically installed. Now, we will proceed updating the system to enable the procurement of the new item. Since the cost center of the functional location where the damaged component was installed should incur the cost of purchasing a new item, the maintenance order that was created to “replace the excavator engine”, will be used. Remember that the maintenance order has already been created. (See note under section 3.2). If the order has not been created, follow the steps defined in the Corrective Maintenance scenario.

3.2.5 Creating Info Record

Use The purpose of this activity is to create/display info record for material ENGIN_001 and vendor CAR_FL1.


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Transaction Code ME11

SAP Menu Logistics → Materials Management → Purchasing → Master Data → Info Record → Create

2. On the Create Info Record: Initial Screen screen, maintain the following data:


Vendor CAR_FL1

Material ENGIN_001

Purchasing Org.

BP01

Plant BPM1

If the info record already exists, then you can display it by running transaction ME13 then populate the fields as explained in step 2 above, then proceed to step 3 below.

3. Choose Standard and Enter.

4. On the Create/Display Info Record: General Data screen, choose Purch. Org. Data 1, and maintain/view the following data:


Net Price 1

5. Choose Save.

3.2.6 Procuring the New Item

Use The PR for the received equipment is created on the work order to enable the receiving and payment of the new equipment.

Ref T-Code Purposes Key Points R8 IW32 Purchase requisition (PR):

The PR for the received equipment is created on the work order to enable the receiving and payment of the new equipment.

1) The PR can be linked to a contract displaying the contract price or be a text order with no or an estimated price. 2) Any price changes will trigger workflow irrespective of whether it has already work-flowed for approval or not.

Procedure


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SAP Menu Logistics → Plant Maintenance → Maintenance Processing → Order → Change

2. In the order number field, input the number of the PM01 maintenance order (Refer to a note on section 3.2).

3. Choose Enter.

4. Choose the Components tab.



Component Material, for example, ENGIN_001

Description Excavator Engine

Reqmnt Qty 1

UM EA

IC N

SLoc 0007

Plnt BPM1

Batch C1

6. Still on the Components tab, choose first line item created on step 5 above and choose

Purchase Data.

7. On the new Component Detail Purchasing Data screen, maintain the following data:


Price 180

Vendor CAR_FL1

Goods Recipient

Own User Name

Unloading Point

Str Loc 0007

Requisitioner Own User Name

Tracking number

Own User Name

Pl. Deliv. Time 7


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8. Choose Back.

9. Choose the Header Data tab.

10. Choose Release

11. . Accepting any information messages by clicking Continue.

12. Choose Save.

13. Choose Enter to go into the order again.

14. Choose the Components tab.

15. Choose the line item.

16. Choose Purc. Data.

17. The generated requisition number will be displayed.

Note the PR number: ________________.

In this example it is assumed that the price for the new unit has been pre-agreed and thus there is no need for the requesting of quotations, price updating and re-approvals (RFQ – step R9, R10 & R11).

Ref T-Code

Purposes Key Points

R9 ME41 Request quotation for received equipment (that replaced damaged equipment):

Determine the price to be paid for the received equipment that replaces the damaged equipment.

1) The quote is typically based on the cost to repair the damaged unit. 2) The cost can, however, also be based on an agreed price (contract) – in this case quotations are not required.

R10 IW32 Update cost of purchase requisition on work order:

The purchase requisition needs to workflow to obtain approval for the actual price to be paid for the received equipment.

1) If the requisition is RFQ based (no contract) the cost of the purchase requisition needs to be updated to match the quoted price.

R11 - Requisition approved→


1) If not approved – re-quote and/or negotiate with vendor.


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3.2.7 Creating Purchase Order

Use The purpose of this activity is to create a PO based on the approved PR to enable the procurement transaction.

Ref T-Code Purposes Key Points R12 ME21N Create purchase order (PO):

Create a PO based on the approved PR to enable the procurement transaction.

1) PO should match PR (be within set tolerance limits).


Transaction Code ME21N

SAP Menu Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known

2. Choose Expand Item.

3. Scroll to the right and on Purchase Req. field, input the recorded purchase requisition number.

4. Choose Enter, all information from the Purchase Requisition will be copied into the Purchase Order. Accept any warning messages. Ensure that the Net Price is 180 AUD in the Purchase Order.

5. Choose Check to ensure that there are no missing or erroneous entries in the PO.

6. Choose Save.

7. Note the PO Number: ______________.

In this example it is assumed that the release of purchase orders is not required (step R13). Placing the PO can be manual or via fax or e-mail, and is assumed to be manual for this case (step 13).

Ref T-Code Purposes Key Points R13 ME22N Release & place purchase order:

Inform the vendor of the established arrangement by sending the vendor the approved PO.

1) Release/approve the PO. 2) Send the PO documentation to the vendor (preferably via e-mail).


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3.2.8 Goods Receipt

Use Assuming that the PO has been approved, now proceed to perform the Goods Receipt. Goods receipt will automate the issue of the equipment to the maintenance order.

Ref T-Code Purposes Key Points R14 MIGO Equipment delivery - material

receipt, valuation type New:

Receive the equipment to create a goods receipt note and enable the automatic issue of the equipment to the work order.

1) Create goods receipt. 2) Automatic issue of received unit to work order. 3) Set valuation type to New.

The MIGO transaction automatically registers the equipment in SAP by creating an equipment master record in the back ground for the received equipment (item) thus enabling installation, serialization and tracking.

Ref T-Code Purposes Key Points R15 MIGO Create equipment record:

The MIGO transaction automatically registers the equipment in SAP by creating an equipment record in the back ground for the received equipment thus enabling installation, serialization and tracking.

1) Create equipment record in background.

Serialize the equipment to enable tracking (enable creation of movement history).

Ref T-Code

Purposes Key Points

R16 MIGO Serialize equipment:


1) Serialization enables tracking of the equipment’s movements.


Transaction Code MIGO

SAP Menu Logistics → Materials Management → Inventory Management → Goods Movement → Goods Movement (MIGO)

2. In the Purchase Order field, input the recorded PO number.

3. Choose Enter.


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4. All entries from the PO are copied across to the Goods Receipt input screen.

5. Choose the Item OK field.

6. Choose the Serial Numbers tab.

7. In the Serial Number field, enter the serial number in the following format: EXCAV_ENG_NNNN (where NNNN represent any four digits of your choice).

Ensure that you don’t enter the serial number that already exists in the system

8. Choose Check Entries to verify that there are no errors.

9. Choose Save to proceed with the posting.

10. Ignore any information or warning messages.

This “Goods Receipt” process automatically creates the equipment master in the background.

3.2.9 Updating Equipment Master

Use Update the equipment's warranty status to enable the tracking and claiming of warrantees should the equipment fail prematurely, update the maintenance plant the equipment is associated with, and update the valuation type (master batch).

Ref T-Code

Purposes Key Points

R17 IQ02 Update equipment master:

Update the equipment's warranty status to enable the tracking and claiming of warrantees should the equipment fail prematurely.

Update the maintenance plant the equipment is associated with.

Update the valuation type (master batch).

1) Warranty information must be maintained. 2) Identify premature failures that are within the warranty period. 3) Manage equipment use and maintenance to ensure premature failures are covered by the warranty.



SAP Menu Logistics → Plant Maintenance → Management of Technical


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Objects → Serial Numbers → Change

2. In the Serial number field, input the serial number of the created equipment.

3. Choose Enter.

4. Choose General tab.

5. Maintain the warranty details on the Vendor/manufacturer warranty sub-screen. (The details about warranty are not included in this scenario example, you may ignore this step).

6. Choose Location tab.

7. Maintain the MaintPlant by entering the relevant plant (that is, BPM1).

8. Choose SerData tab.

9. Note the created Equipment Number: ………………………..



Plant BPM1

Stock Batch C1

Master Batch C1

11. Choose Save.

12. Choose Back.

3.2.10 Installing the New Equipment

Use The purpose of this activity is to install the new equipment to capture movement history.

Ref T-Code

Purposes Key Points

R18 IE02 Install new equipment:

Install the new equipment to capture movement history.

1) Install the new equipment (in SAP) on the functional location where it is working. 2) Record the exact date and time when the equipment was installed to replace the damaged equipment.




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2. In the Equipment field, input the created equipment number from step 9 in section 3.2.9 above.

3. Choose Enter.


5. Choose ChangeInstLoc.

6. On the screen that appears, enter the following data:


Functional loc. EXC1RT2-D-ENG

7. Choose Enter.

8. Choose Confirm.

9. Choose Save.

3.2.11 Settling the Cost of the Maintenance Order

Use The purpose of this activity is to run settlement to debit relevant cost center. Settlement rules are preset.

Ref T-Code Purposes Key Points R19 KO88 Settle work order cost:

Run settlement to debit relevant cost center. Settlement rules are preset.

1) Daily settlement of costs. 2) Timely cost center budget impact visibility.

Procedure

In this example it is assumed that the PM01 order should be technically completed already. If not, use IW32 and enter the order number you want to do the settlement.

Then choose Complete Technically.

This Step should be cooperated with Corrective maintenance scenario.


Transaction Code KO88


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SAP Menu Logistics → Production – Process → Process Order → Period-End Closing → Settlement → Individual Processing

2. If a Controlling Area window appears, input BP01, then choose continue

For this scenario, settlement will be run manually (it’s also possible to processes settlement as a batch using transaction ko8g),.

3. and make the following entries:


Order Number recorded

Settlement period

Current period The Australia fiscal year starts at July. For example, 2006 Aug is period 1, fiscal year 2007.

So for 2007 Apr: should use period 10 (fiscal year is still 2007).

Fiscal Year Current Fiscal Year

Posting Period Current period

Processing Type

Automatic

4. Uncheck the Test Run under Processing Options sub-screen

5. Choose Execute.

6. Choose Back twice to go back to the SAP Easy Access Menu.

3.3 Internal Refurbishment/Repair In this case the decision is made to refurbish the damaged engine of the excavator internally, that is, by the workshop.

Ref T-Code Purposes Key Points


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Ref T-Code Purposes Key Points R26 - Internal repair →


1) Should the repair/ refurbishment be performed internally by the workshop → v Evaluate capability & cost.

2) Should the repair/ refurbishment be performed externally by a vendor (refurbishment outsourced) → v Evaluate capability & cost.

Continues from R26 Continues

from R31Continues from R36

Continues to R32

Continues to R37

Some steps may not be included in this sample scenario.

3.3.1 Planning Operations

Use


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The purpose of this activity is to plan internal labor & services required (service purchase requisition). Workshop plans the operations and labor required to perform each task.

Ref T-Code Purposes Key Points R27 IW32 Plan operations: Internal labor &

services required (service purchase requisition):

Workshop plans the operations and labor required to perform each task.

1) Planning of the refurbishment managed by the workshop/internal repair department. 2) Plan internal labour. 3) Plan services (if required) – create purchase requisition (PR for services) on the work order.

Procedure Access the activity using one of the following navigation options:



1. In the Order field, input the order number created in section 3.1.5, step 9 above

2. Choose Enter.

3. To plan the labour required to perform this job, choose the Operations tab.



Operation Short Text

Internal Refurbishment of Rotable Item

Work 4

Number 1

5. Choose Determine costs

6. Do not close the order, proceed to step 2 in section 3.3.2.below.

3.3.2 Planning Components

Use The purpose of this activity is to plan for the use of materials required. Workshop plans the material required - supplied from stock and/or purchased from vendors needed to execute this job.

Ref T-Code

Purposes Key Points


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Ref T-Code

Purposes Key Points

R28 IW32 Plan components: Catalogued materials and/or material direct purchases:

Workshop plans the material required - supplied from stock and/or purchased from vendors.

1) Plan stocked materials. 2) Plan non-stocked materials – create purchase requisition (PR for goods) on the work order.

Procedure

In this example, for the sake of simplicity, no stock or non-stock spares were planned to be consumed during the execution of this job. If you need to assign stock, non-stock and/or external services to the maintenance order, refer to Corrective Maintenance Process.




2. To view planned costs, choose Cost tab.

3. Choose Req. Plan/Act to view the planning cost.

4. Choose Back.

5. Choose Set User Status .

6. Choose PLND Planning Performed User Status.

7. Do not close the order; proceed to step 2 in section 3.3.3.below.

3.3.3 Issuing Permits & Release the Work Order

Use Safety permits are issued to the work order to allow further processing and ultimately, the release of the order. At the point of release of the work order, purchase requisitions for goods and services are generated as well as reservations.



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Ref T-Code Purposes Key Points R29 IW32 Issue permits:

Indicate that the refurbishment work and the cost thereof are approved.

1) Approval of cost. 2) Approval that safety requirements are complied with. 3) Approval of maintenance work.

R30 IW32 Release work order:

Release refurbishment work order to put it in process. Generate purchase requisitions (goods & services). Generate reservations. Ready for scheduling.

1) Refurbishment work order in process – to be scheduled. 2) Purchase requisitions created (goods & services). 3) Reservations created.




2. Choose to release the work order.

3. Choose Save.

4. Choose Continue if a warning message screen appears.

In this example, for the sake of simplicity, permits have not been set up requiring issue prior to release.

3.3.4 Issuing Damaged Equipment

Use The damaged equipment is issued to the refurbishment work order so that it can be refurbished or repaired.

Ref T-Code Purposes Key Points R31 MB11

261 Issue damaged equipment to refurbishment work order:

The damaged equipment is issued to the refurbishment work order to indicate that it is in the process of being refurbished or repaired.

1) Issue damaged equipment from stock to refurbishment work order. 2) Ensure correct equipment is issued (serial number).


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Transaction Code MB11

SAP Menu Logistics → Plant Maintenance → Completion Confirmation → Goods Movement → Goods Movement

2. Choose To Order.

3. On the Reference: Order screen, enter the created refurbishment order number created in section 3.1.5, step 9.

4. Choose Continue.

5. Choose Save.

When attempting to save, the serial number screen message will be displayed since the equipment is a serialised item. Now we need to specify the exact item that has to be reserved for the order. Enter the serial number of the damaged equipment to be repaired.

6. Note the number of the document posted. Document Number: ………………………..

3.3.5 Scheduling the Refurbishment Order

Use The purpose of this activity is to schedule the refurbishment work orders taking work priority, material availability and labor availability into account.

Ref T-Code Purposes Key Points R32 CM25 Schedule refurbishment work:

Schedule the refurbishment work orders taking work priority, material availability and labor availability into account.

1) Work priority 2) Material availability (reservations & procurement status) 3) Labour availability


Transaction Code CM25

SAP Menu Logistics → Plant Maintenance → Capacity Requirements Planning → Leveling → Variable


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2. Choose profile SAPCRPG002 and choose Continue.

3. On the next screen, enter the following:


Work Center MEC02

Plant BPM1

4. Choose Continue.

5. On the next screen, check the refurbishment order that must be scheduled, the work center capacity row and the date.

6. Choose Dispatch (dispatch manually).

7. In the Dispatch Manually box, enter the start and end time.

8. Choose the item and choose Dispatch.

9. Choose Save.

10. Run transaction IW32

11. On Change Refurbishment order screen, choose Set User Status .

12. Choose SCHD Planning Performed User Status.

13. Choose Backet User Status and choose SCHD Scheduled.

3.3.6 Material Issues

Use The purpose of this activity is to issue the stock item (s) required for the execution of refurbishment work.


261 Cost feedback (refurbishment work order): Material issues:

Issue the materials required for the performance of the refurbishment work.

1) Issue reserved materials.

Procedure

In this example, for the sake of simplicity, no stock spares were planned to be consumed during the execution of this job. Thus no issuing of materials is required. If you need to issue stock item(s), refer to the Corrective Maintenance Process.


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3.3.7 Material Purchase Receipts

Use The purpose of this activity is to receive materials procured for the refurbishment work.

Ref T-Code Purposes Key Points R34 MIGO Cost feedback (refurbishment

work order): Material purchase receipts:

Receive and issue the materials ordered (purchased) for the job.

1) Receive and issue procured materials.

Procedure

In this example, for the sake of simplicity, no non-stock spares were planned to be consumed during the execution of this job. Thus no material receipt is required. If you need to receive non-stock and/or external services to the refurbishment order, refer to Corrective Maintenance Process.

3.3.8 Refurbish the Equipment

Use The purpose of this activity is to refurbish the damaged equipment.

Ref T-Code Purposes Key Points R35 Work execution: Perform

refurbishment:

Physical execution of the refurbishment work to restore the equipment’s condition / function.

1) Refurbish equipment to specification. 2) Ensure design capability is restored.

Procedure

This task entails the physical execution of the refurbishment work and as such is not a system transaction.


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3.3.9 Labor Confirmation

Use The purpose of this activity is to capture actual hours worked per artisan/technician.

Ref T-Code Purposes Key Points R36 IW41 Cost feedback (refurbishment

work order): Confirm labor hours:

Capture actual hours worked per artisan.

1) Capture actual hours spent performing the refurbishment work. 2) Capture hours per artisan (individual).



SAP Menu Logistics → Plant Maintenance → Maintenance Processing → Completion Confirmation → Entry → Individual Time Confirmation

2. In the Order field, input the recorded number of the refurbishment order.

3. Choose Enter.

In the Personnel no field, enter the personnel number of the person(s) who executed this job. (In this scenario, since the HR master data has not been included, just ignore this step. Alternatively, users can create the HR master data by themselves.)

4. Update the defaulted Actual Work hours if required.

5. Choose Final Confirmation checkbox if all hours have been recorded.

6. Choose Save.

3.3.10 Service Receipts

Use The purpose of this activity is to rrecord the details of any service that has been performed during the refurbishment of the equipment.



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Ref T-Code Purposes Key Points R37 ML81N Cost feedback (refurbishment

work order): Service receipts:

Record the details of any service that has been performed – service entry sheet (SES) against a purchase order (for example, hours work by the contracting company who delivered the procured service).

1) Enter a service entry sheet against the purchase order. 2) Purchase order originated from the work order (PR on work order) 3) The service entry sheet confirms what was actually delivered – invoice must match the SES.

Procedure

In this example, for the sake of simplicity, no services were planned to be used during the execution of this job. Thus no receiving of a service is required. If you need to receive external services to the refurbishment order, refer to Corrective Maintenance Process.

3.3.11 Returning Refurbished Equipment to Stock

Use After the maintenance technician has refurbished (reconditioned) the engine, it needs to be returned (with valuation type: C2 repaired) back to stock.

Ref T-Code Purposes Key Points R38 IW8W Return refurbished equipment

with valuation type Repaired to stock:

Increase the stock level and ensure availability of rotables. The equipment movement history is updated

1) The repair is completed successfully. 2) Change the refurbished equipment’s valuation type to Repaired. 3) Return repaired/refurbished equipment to stock.


Transaction Code IW8W

SAP Menu Logistics → Plant Maintenance → Maintenance Processing → Completion Confirmation → Goods Movement → Refurbishment Goods Receipts

2. In the Order field, input the recorded refurbishment order number.


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3. Choose Enter.

4. Choose the Deliv. Compl. checkbox.

5. Choose the Serial Number Data on the bottom of the screen.

6. Choose Save to finalise the goods receipts and postings.

7. Note the document number: _______________.

3.3.12 Attaching Workshop Failure Report

Use The purpose of this activity is to attach the workshop failure report to the equipment master to ensure history completeness.

Ref T-Code Purposes Key Points R39 IQ02 Attach workshop failure report

to equipment master:

To enable easy access to the results of failure investigations it is necessary to capture all RCA findings against the equipment master record (link documents).

1) Capture findings in SAP. 2) Attach documentation.






Serial number Enter the serial number of the item that was being refurbished

3. Choose Enter.

Note that the valuation type has changed to C2, and this item is in the warehouse (system status: ESTO).


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4. To attach the documents, choose Location tab and scroll down. Under the heading linked documents, the document type, document number, the document part and the document version can be specified.

In this example, for the sake of simplicity, we did not attach any documents.

5. Choose Back twice to return to SAP Easy Access Menu.

3.3.13 Completing the Refurbishment Order

Use The purpose of this activity is to set the user status to indicate the status of the maintenance work at completion.

Ref T-Code

Purposes Key Points

R40 IW32 Refurbishment completion: TECO work order:

Set the user status to indicate the status of the maintenance work at completion. Technically complete (TECO) the refurbishment work order once the work is complete, and the feedback has been checked and accepted.

1) Set user status before completion. 2) Ensure refurbishment is completed successfully. 3) Ensure all feedback has been done (accurate & complete). 4) System status change.




2. In the Order number field, input the recorded refurbishment order number.

3. Choose Enter.

4. Choose Cost tab.

5. Choose Rep. Plan/Act to view the details of the cost and then choose Back.

6. Choose Set User Status.

7. Choose the appropriate status, that is, CTNM.


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8. Choose Back.

9. Choose Complete (technically).

10. Choose Continue on the Complete window

3.3.14 Settling the Refurbishment Order Cost

Use The purpose of this activity is to run settlement to debit relevant cost center.

Ref T-Code

Purposes Key Points

R41 KO88 Settle work order cost:

Run settlement to debit relevant cost center. Settlement rules are preset up and automated.

1) Daily settlement of costs. 2) Timely cost Center budget impact visibility.




2. If a Controlling Area window appears, input BP01.

3. For this scenario, settlement will be run manually, and make following entries:


Order Number recorded

Settlement period

Current period The Australia fiscal year starts at July. For example, 2006 Aug is period 1, fiscal year 2007.

2007 Apr should use period 10 (while fiscal year is still 2007).

Fiscal Year Current Fiscal Year

Posting Period Current period

Processing Type

Automatic


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4. Choose Execute.

5. Choose Back.

3.4 External Refurbishment/Repair In this case the decision is made to send the damaged engine of the excavator out for refurbishment, that is, to have it refurbished by a vendor.

Ref T-Code Purposes Key Points R26 - Internal repair →


1) Should the repair/ refurbishment be performed internally by the workshop v Evaluate capability & cost.

2) Should the repair/ refurbishment be performed externally by a vendor (refurbishment outsourced) → v Evaluate capability & cost.


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Continues from R53

Continues to R24

Continues from R47

Continues from R26

Continues to R54

Continues to R48

Some steps may not be included in this sample scenario.

3.4.1 Planning Operations

Use A purchase requisition is created on the refurbishment order to allow for the procurement of the refurbishment service.

Ref T-Code

Purposes Key Points


© SAP AG of 72

Ref T-Code

Purposes Key Points

R42 IW32 Plan operations: Create an external operation (control key: PM03) service purchase requisition (PR):

A purchase requisition is created on the refurbishment work order to allow a vendor to quote for the repair/refurbishment of the damaged equipment.

1) Planning of the refurbishment process managed by the supply/rotables department. 2) Create purchase requisition for the refurbishment of the damaged equipment.

R43 IW32 Choose fixed vendor: Add item for strip & quote; Add item for repair:

Damaged equipment is typically sent to a preferred vendor to enable the vendor to assess the damage (usually by stripping the unit) and quote for the refurbishment. Unless the quote is unacceptable, this vendor will also refurbish the equipment.

1) Choose fixed/preferred vendor. 2) Provide for both the strip & quote, and the repair/refurbishment of the equipment.

Procedure

This sub scenario assumes that the refurbishment order has already been created by following steps 1 to 9 in section 3.1.5. After the order has been created, proceed to step 1 below to plan operations on the order.




2. In the Order field, input the refurbishment order number created

3. Choose Enter.

4. To plan the service required to perform this job, choose the Operations tab.

5. On the screen, maintain the following data:


Operation Short Text

External Refurbishment of damage engine

Control Key PM03


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6. Choose Enter.

7. Choose Confirm on the Error screen that pops up.

8. On the Create/Change Refurbishment Order xxxxxxxx: External Processing Operation screen, maintain the following data:

Material Group

007

Purch. Group BP1/BP01

Vendor CAR_FL1

Requisitioner Own User Name

Tracking number

Own User Name

9. Choose Enter.

10. Choose the Operation. by highlighting it.

11. Choose External on the bottom of the screen.

12. At the bottom of the screen under the Service Tab, maintain the following data:

Line 10

Short Text External Refurbishment of damaged engine

Quantity 1

Un H

Gross Price 70

Cost Element 501700 (might need to scroll to the left to find this field)

13. Choose Back.


15. Choose PLND Planning Performed.status

16. Choose Enter.

17. Choose Save and accept information messages


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3.4.2 Issuing Permits & Release the Work Order

Use Permits are issued to indicate the refurbishment and its cost is approved, and the order may be released. The refurbishment order is released to put it in process. Purchase requisitions for goods and services are generated as well as reservations.

Ref T-Code Purposes Key Points R44 IW32 Issue permits:

Indicate that the refurbishment work is approved.

1) Refurbishment work is approved. 2) Costs will need to be updated once the quote for the refurbishment is received from the vendor.

R45 IW32 Release work order:

Release refurbishment work order to put it in process. Generate purchase requisition for refurbishment.

1) Refurbishment work order in process. 2) Purchase requisitions for refurbishment (service) created.




2. In the Order field, input the same order number.

3. Choose Enter

4. Choose Release to release the refurbishment order.

5. Choose Save.

6. Choose Continue if the warning message screen pops up.

If there were any safety permits assigned, they need to be issued first before the order can be released. In this example, there were no permits assigned.

3.4.3 Issuing Damaged Equipment

Use The damaged equipment is issued to the refurbishment work order to indicate that it is in the process of being repaired.


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261 Issue damaged equipment to refurbishment work order:

The damaged equipment is issued to the refurbishment work order to indicate that it is in the process of being repaired.

1) Issue damaged equipment from stock to refurbishment work order. 2) Ensure correct equipment is issued (serial number). 3) Physical unit is transported to the vendor.


Transaction Code MB11

SAP Menu Logistics → Plant Maintenance → Completion Confirmation → Goods Movement → Goods Movement

2. Choose To Order.

3. On the Reference Order screen, enter the created refurbishment order’s number. and choose Enter

4. Choose Save.

When attempting to save, the serial number screen message will be displayed since the equipment is a serialized item. Now we need to specify the exact item that has to be reserved for the order. Enter the serial number of the damaged equipment to be repaired.

5. Choose Enter

6. Note posted Document number……………………….

3.4.4 Request Refurbishment Quotation

Use The purpose of this activity is to obtain the cost to refurbish from the vendor as well as the cost to strip and quote.

Ref T-Code Purposes Key Points R47 ME41 Request quotation for repair

(RFQ):

Obtain the cost to refurbish from the vendor as well as the cost to strip and quote.

1) Obtain quote from vendor.


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SAP Menu Logistics → Materials Management → RFQ/Quotation → Request for Quotation → Create

For this example it is assumed that the quotations are obtained by the procurement department and the accepted quote’s cost sent to the workshop who will update the PR on the refurbishment order.

3.4.5 Updating and Approving Refurbishment Cost

Use The purpose of this activity is to update and approve the refurbishment order service costs to include the strip & quote cost, and repair cost of the refurbishment work.

Ref T-Code

Purposes Key Points

R48 IW32 Update work order service costs: Strip & quote cost, and repair cost:

Update the purchase requisition cost on the refurbishment work order – work order cost is updated automatically. True cost reflected – ready for approval.

1) Refurbishment work order cost updated – possible additional permits requiring issue prior to completion (TECO) of work order. 2) Purchase requisition cost updated and requires approval – will workflow for approval if workflow is active.




2. In the Order field, enter the refurbishment order number.

3. Choose Enter.

4. Choose the Operations tab.

5. Choose Act. Data.

6. Update the Gross Price to 100.


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7. Add an additional line for the Strip & Quote cost:

Line 20

Short Text Strip & Quote

Quantity 1

Un H

Gross Price 20

Cost Element 501700

8. Choose Back.

9. Choose Save.

10. Ignore the information message (if any).

11. Go to this order again, choose Operations tab, choose Act. Data, note the Requisition number in the middle of the screen and then exit. PR number :_________________

3.4.6 Creating the Purchase Order

Use The purpose of this activity is to create the purchase order for the service that the vendor will deliver, that is, to refurbish the damaged equipment, after the requisition has been approved.

Ref T-Code Purposes Key Points R49 - Requisition approved→


1) Approval of refurbishment cost required.

R50 ME21N Create service purchase order (PO):

Create a PO based on the approved PR to enable the procurement of the refurbishment service.






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2. Expand the Item.

3. In the Purchase Req. field, input the recorded PR number.

4. Choose Enter, all information from the Purchase Requisition will be copied into the Purchase Order. Accept any warning messages.

5. Choose Check first in order to ensure that there no missing or erroneous entries in the PO.

6. Choose Save.

7. Note the PO Number: _____________.

8. Choose Back.

3.4.7 Releasing and Placing Purchase Order

Use The purpose of this activity is to rrelease and place the purchase order for the refurbish the damaged equipment by the vendor.

Ref T-Code Purposes Key Points R51 ME29N Release & place service

purchase order:

Inform the vendor of the acceptance of the refurbishment service by sending the vendor the approved PO.




SAP Menu Logistics → Materials Management → Purchasing → Purchase Order → Release → Individual Release

In this example it is assumed that the release of purchase orders is not required. It is further assumed that the placing of the PO is done by the procurement department. Proceed to steps below.

3.4.8 Refurbishing the Equipment and Inspect the Work Quality

Use


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The vendor refurbishes the damaged equipment and the quality of the refurbishment is checked.

Ref T-Code Purposes Key Points R52 - Work execution: Vendor

performs refurbishment:

Physical execution of the refurbishment work to restore the equipment’s condition / function.

1) Refurbish equipment to specification. 2) Ensure design capability is restored.

R53 - Inspect refurbished equipment at vendor location and/or store:

Ensure the refurbishment has been completed successfully and the equipment condition complies with the set standard.

1) Hold/witness points arranged with vendor to allow for effective inspections. 2) Adherence to standards and agreement confirmed.

Procedure

These tasks entail the physical execution and inspection of the refurbishment work, and as such are not system transactions.

3.4.9 Returning Refurbished Equipment to Stock

Use After the vendor has refurbished the engine, it needs to be returned (with valuation type: C2 repaired) back to stock.

Ref T-Code Purposes Key Points R54 IW8W Return refurbished equipment

with valuation type Repaired to stock:

Increase the stock level and ensure availability of rotables. The equipment movement history is updated

1) The repair is completed successfully. 2) Change the refurbished equipment’s valuation type to Repaired C2 3) Return repaired/refurbished equipment to stock.


Transaction Code IW8W

SAP Menu Logistics → Plant Maintenance → Maintenance Processing → Completion Confirmation → Goods Movement → Refurbishment Goods Receipts


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2. In the Order field, input the recorded refurbishment order number.

3. Choose Enter.

4. Choose the Deliv. Compl. checkbox.

5. Choose the Serial Number Data at the bottom of the screen by highlighting it.

6. Choose Save to finalise the goods receipts and postings.

7. Note the document number: _______________.

3.4.10 Service Receipts

Use The purpose of this activity is to rrecord the details of any service that has been performed during the refurbishment of the equipment.

Ref T-Code Purposes Key Points R55 ML81N Cost feedback: (refurbishment

work order) service receipts (SES):

Record the details and cost of the refurbishment service that has been performed – service entry sheet (SES) against a purchase order.

1) Enter a service entry sheet against the purchase order. 2) Purchase order originated from the work order (PR on work order) 3) The service entry sheet confirms what was actually delivered – invoice must match the SES.


Transaction Code ML81N

SAP Menu Logistics → Materials management → Service Entry Sheet → Maintain

2. Choose Other Purchase Order.

3. In the Purchase Order field enter the recorded PO number.

4. Choose Continue.

5. Choose Create Entry Sheet.

6. Choose Service Sel at the bottom of the screen

7. Choose Continue on the Service Selection screen.

8. Choose the line items by highlighting them and choose Adopt Services.


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9. Choose Accept.

10. Choose Save (accept any information messages) by choosing Yes.

In this example, for the sake of simplicity, no services were planned to be used during the execution of this job. Thus no receiving of a service is required. If you need to receive external services to the refurbishment order, refer to Corrective Maintenance Process.

3.4.11 Attaching Vendor Failure Report

Use The purpose of this activity is to attach the vendor failure report to the equipment master to ensure history completeness.

Ref T-Code

Purposes Key Points

R56 IQ02 Attach vendor failure report to equipment master:

To enable easy access to the results of failure investigations performed by the vendor it is necessary to capture all RCA findings against the equipment master record (link documents).

1) Capture findings in SAP. 2) Attach documentation.






Serial number Input the serial number of the equipment that was being refurbished in section 3.1.10

3. Choose Enter.


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4. Note that the valuation type (under Serdata tab) has changed to C2, and this item is in the warehouse (system status: ESTO).

5. To attach the documents, choose the Location tab and scroll down. In the subscreen Linked Documents, the document type, document number, the document part and the document version can be specified.

In this example, for the sake of simplicity, we did not attach any documents.

3.4.12 Updating Warranty Details

Use The purpose of this activity is to update the warranty status of the equipment.

Ref T-Code Purposes Key Points R57 IQ02 Update equipment's warranty

status:

Enable warranty claims management should the equipment fail prematurely.





2. In the Serial number field, enter the serial number of the refurbished equipment.

3. Choose Enter.

4. Choose General tab.

5. Under Vendor/manufacturer warranty sub-screen, update warranty details (begin and end warranty dates).

6. Choose Save.


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3.4.13 Completing the Refurbishment Order

Use The purpose of this activity is to set the user status to indicate the status of the maintenance work at completion.

Ref T-Code Purposes Key Points R58 IW32 Refurbishment completion: TECO

work order:

Set the user status to indicate the status of the maintenance work at completion. Technically complete (TECO) the refurbishment work order once the work is complete, and the feedback has been checked and accepted.

1) Set user status before completion. 2) Ensure refurbishment is completed successfully. 3) Ensure all feedback has been done (accurate & complete). 4) System status change.




2. In the Order number field, input the recorded refurbishment order number.

3. Choose Enter.


5. Choose the appropriate status, that is, CTNM.

6. Choose Back.

7. Choose Complete (technically).

8. Choose Continue on the Complete window.

3.4.14 Settling the Refurbishment Order Cost

Use The purpose of this activity is to run settlement to debit relevant cost receiver.



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Ref T-Code Purposes Key Points R59 KO88 Settle work order cost:

Run settlement to debit relevant cost receiver. Settlement rules are preset up and automated.

1) Daily settlement of costs.




2. If a Controlling Area window appears, input BP01, then choose continue

3. Choose continue



Order Enter the relevant refurbishment order number

Settlement period

Use the relevant settlement period (month and fiscal year)

Posting period Use the relevant settlement period (month and fiscal year)

5. Ensure that the Test Run box under Processing Options sub-screen is unchecked

6. Choose Execute.

7. Choose Back twice to go back to SAP Easy Access Menu.

3.5 Replacement In this sub-scenario the decision is made not to repair the damaged equipment (damaged excavator engine) but to replace it by procuring a new unit. The damaged unit will be scrapped.

Ref T-Code Purposes Key Points R60 - Replace damaged equipment→


1) The repair/ refurbishment of the damaged equipment is not feasible (for example, cost of refurbishment to high – typically more than 80% of a new unit’s price). 2) Should the damaged equipment be replaced → v Evaluate stock level & equipment

availability.


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Continues from R60

Continues from R68

Continues to R69

Some steps may not be included in this scenario.

3.5.1 Checking the Material Status

Use The purpose of this activity is to view the Moving Average Price (MAP) and quantity of new items.


Transaction Code MM03

SAP Menu Logistics → Materials Management → Inventory Management → Display


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3. Choose Enter.

4. Choose the Accounting 1 view.

5. Choose Enter.

6. On the screen that appears, maintain the following data:


Plant BPM1

Valuation type C1

7. Choose Enter.

8. Note the Moving Average Price……………………..

9. Note the Total Stock Quantity………………………..

10. Note the Stock Total Value…………………………..

So after the purchase of one additional unit, it is expected that the total stock quantity to rise by one and the total value is expected to rise.

3.5.2 Creating Purchase Requisition

Use The purpose of this activity is to create a direct purchase requisition to procure a new excavator engine.

Ref T-Code Purposes Key Points R61 ME51N Create purchase requisition

(stock replenishment):

Manually create a purchase requisition to replenish stock – replace the scrapped equipment.

1) Manually create a purchase requisition to replace scrapped equipment. 2) Do not use MRP for rotables.


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Ref T-Code Purposes Key Points R62 ME52N Add additional items to purchase

requisition (for example, delivery):

The price of the new equipment does not necessarily include delivery costs, customs charges, taxes, and so on. It might be necessary to provide separately for these costs on the purchase requisition.

1) Provide for addition costs associated with the purchase of the new equipment.

In this example no additional line items are added to the purchase requisition.



SAP Menu Logistics → Materials Management → Purchase Requisition → Create

You may need to close the EnjoySAP – Purchase Requisition screen

2. Expand the header area and input Purchasing a new engine in the description field.

3. Expand the Item Overview area and enter the following data:


Material ENGIN_001

Quantity 1

Plant BPM1

Storage Location 0007

PGr BP1

Requisnr Own User Name

Tracking no Own User Name

Fixed Vendor CAR_FL1

POrg BP01

4. Choose Enter.

5. Accept the warning message in the left corner.


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6. Ensure that Valuation Type C1 is maintained at the bottom of the screen under the Material Data tab.

7. Choose Save.

8. Note the PR number: ____________.

9. Choose Back.

3.5.3 Request for Quotation

Use The purpose of this activity is to obtain the cost of a new unit.

Ref T-Code

Purposes Key Points

R63 ME41 Request for quotation (price of new equipment):

Obtain at least 3 quotes to evaluate the cost impact of the purchase, and to enable vendor selection.

1) Evaluate cost. 2) Vendor selection.

R64 - Requisition approved→


1) Approval of purchase required. 2) If not approved: v Re-quote and re-evaluate. v Re-evaluate decision not to repair.



SAP Menu Logistics → Materials Management → RFQ/Quotation → Request for Quotation → Create

For this example it is assumed that the quotations are obtained by the procurement department and the PR is updated with the accepted quote’s cost. It is further assumed that the PR is approved and thus followed by the steps to create the PO and scrap the damaged equipment.

It is highly recommended to use Workflow to manage the approval of Purchase Requsitions.


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3.5.4 Moving the Equipment

Use The purpose of this activity is to move the damaged equipment that will be scrapped to the storage location.

Ref T-Code Purposes Key Points R65 MB1B

313 Move damaged equipment to storage location for scrapped equipment:

If the purchase of new equipment is approved, move the damaged equipment to a storage location for scrapped equipment since it will remain unfit for use.

1) Move damaged equipment to a storage location for scrapped equipment. 2) The equipment will remain unfit for use. 3) Valuation type will remain Damaged, and will not change.

Procedure

See the Scrapping sub-scenario.

3.5.5 Deactivating the Damaged Equipment

Use The purpose of this activity is to deactivate the damaged equipment so that no maintenance can be planned or performed on this item.

Ref T-Code Purposes Key Points R66 IQ02 Deactivate equipment:

Change the equipment status to “Deactivated” to prevent future maintenance on or use of the equipment.


Procedure

See the Scrapping sub-scenario.


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3.5.6 Creating Purchase Order

Use The purpose of this activity is to procure the new item based on the approved purchase requisition.

Ref T-Code Purposes Key Points R67 ME21N Create purchase order:

Create a PO based on the approved PR to enable the procurement of the new equipment.





You may need to close the EnjoySAP – Purchase Order screen

2. Choose Expand Items

3. In the Purchase Req. field, input the PR number recorded in section 3.5.2, step 8 above.

4. Choose Enter, all information from the Purchase Requisition will be copied into the Purchase Order. Accept any warning messages.

5. Expand the header area and choose the text tab.

6. Input the description Purchasing a new Excavator Engine in the description area.

7. Choose Check first to ensure that there are no missing or erroneous entries in the PO.

8. Choose Save.

9. Note the PO Number: ______________

In this example it is assumed that the release of purchase orders is not required. Placing the PO can be manual or via fax or e-mail, and is assumed to be manual for this case.



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Ref T-Code Purposes Key Points R68 ME22N Release & place purchase order:

Inform the successful vendor of the acceptance of their quote and the commitment to procure the new equipment according to the agreed terms from them by sending the vendor the approved PO.


3.5.7 Goods Receipt

Use Assuming that the PO has been approved, now proceed to perform the “Goods Receipt”. Receive the equipment to create a goods receipt note and enable the automatic issue of the equipment to the maintenance order.

Ref T-Code Purposes Key Points R69 MIGO Equipment delivery - material

receipt, valuation type New.

Receive the equipment to create a goods receipt note (proof of receipt required for payment).

1) Create goods receipt (proof of delivery acceptance). 2) Set valuation type to New.

The MIGO transaction automatically register the equipment in SAP by creating an equipment master record in the back ground for the received equipment thus enabling installation, serialization and tracking.

Ref T-Code Purposes Key Points R70 MIGO Create and serialize equipment

record:

Register the equipment in SAP by creating an equipment record for the received equipment thus enabling installation, serialization and tracking.


1) Automatic creation of equipment record. 1) Serialization enables tracking of the equipment’s movements.


Transaction Code MIGO

SAP Menu Logistics → Materials Management → Inventory Management


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→ Goods Movement → Goods Movement (MIGO)

2. In the Purchase Order field, input the PO number recorded in section 3.5.6, step 9 above.

3. Choose Enter.

4. All entries from the PO are copied across to the Goods Receipt input screen.

5. Choose the Item OK field.

6. Choose the Serial Numbers tab.

7. In the Serial Number field, enter the serial number in the following format: EXCAV_ENG_NNNN (where NNNN represent any four digits of your choice).

Ensure that you don’t enter the serial number that already exists in the system

8. Choose Check Entries to verify that there are no errors.

9. Choose Save to proceed with the posting.

10. Ignore any information or warning messages.

This Goods Receipt process automatically creates the equipment master in the background.

3.5.8 Updating Equipment Master

Use The purpose of this activity is to update the equipment's warranty status to enable the tracking and claiming of warrantees should the equipment fail prematurely, and update the maintenance plant the equipment is associated with.

Ref T-Code Purposes Key Points R71 IQ02 Update equipment's warranty

status:

Enable warranty claims management should the equipment fail prematurely.




SAP Menu Logistics → Plant Maintenance → Management of Technical


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Objects → Serial Numbers → Change

2. In the Serial number field, input the serial number of the entered in section 3.5.8, step 7 above

3. Choose Enter.

4. Choose the General tab.

5. Maintain the warranty details on the Vendor/manufacturer warranty sub-screen. (not included in this sub scenario)

6. Choose the Location tab.

7. Maintain the MaintPlant by entering the relevant plant (for example: BPM1).

8. Choose the SerData tab.

9. Note the created equipment number: ____________.

10. Choose Save.

11. Choose Back to go to the SAP Easy Access Menu.

3.5.9 Checking the Material Status

Use The purpose of this activity is to view the Moving Average Price (MAP) and quantity of items after procurement of one additional excavator engine.

Ref T-Code

Purposes Key Points

R72 MM03 Review moving average price after receipt:

Review the new moving average price after receipt to evaluate the cost impact.

1) Display moving average price.


Transaction Code MM03

SAP Menu Logistics → Materials Management → Inventory Management → Display


3. Choose Enter.

4. On Select Views screen, choose the Accounting 1 view.


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5. Choose Enter.

6. On the screen that appears, maintain the following data:.


Plant BPM1

Valuation type C1

7. Choose Enter.

8. Note the Moving Average Price……………………..

9. Note the Total Stock Quantity………………………..

10. Note the Stock Total Value…………………………..

11. Compare the above quantity and value with values recorded in step 8, 9 and 10 in section 3.5.1 above

3.6 Scrapping In some instances, the decision is made that a piece of equipment is no longer fit for use. In this case, the item has to be scrapped. This sub-scenario covers the scrapping procedure.

Continues from R60

3.6.1 Moving the Equipment

Use The purpose of this activity is to move the damaged equipment that will be scrapped to the storage location.

Ref T-Code

Purposes Key Points


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Ref T-Code

Purposes Key Points

R73 MB1B 313

Move damaged equipment to storage location for scrapped equipment:

If the stock level and availability of the item (the item the equipment belongs to) is sufficient, there is no need to repair or replace the damaged equipment – a cost saving can be realized.

1) Move damaged equipment to a storage location for scrapped equipment. 2) The equipment will remain unfit for use. 3) Valuation type will remain Damaged and will not change.


Transaction Code MB1B

SAP Menu Logistics → Materials Management → Inventory Management → Goods Movement → Transfer Posting



Movement Type

311

Plant BPM1

Storage Location

0007

3. Choose Enter.



Rcvg SLoc Y100

Material ENGIN_001

Quantity 1

Storage Location

0007

Batch C3

Plant BPM1

5. Choose Enter.


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6. On the Serial Number screen, enter the serial number: of the damaged engine (valuation type C3) that is in the storage location 0007 that has to be permanently scrapped. Serial Number____________.

7. Choose Save.

On the Serial Number screen, enter the serial number: of the damaged engine (valuation type C3) that is in the storage location 0007 that has to be permanently scrapped.

8. Choose Enter.

9. Choose Save to finalise the Goods Movement process.

10. Choose Back.

3.6.2 Deactivating the Damaged Equipment

Use The purpose of this activity is to deactivate the damaged equipment so that no maintenance can be planned or performed on this item.

Ref T-Code Purposes Key Points R74 IQ02 Deactivate equipment:

Change the equipment status to Deactivated to prevent future maintenance or use of the equipment.







Material ENGIN_001

Serial number Enter the serial number recorded in step 6 in section 3.6.1 above

Choose the equipment to be deactivated.

3. Choose Enter.


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4. In Menu bar, choose MatSerialNo → Functions → Active → Inactive → Deactivate.

5. Accept any warning message by choosing Yes.

6. Choose Save.

After deactivation, the item will have a system status INAC, meaning the object has been deactivated.