SAP AG 2003
PLM330 Service Contracts
THE BEST-RUN E-BUSINESSES RUN SAP © SAP AG 2002
PLM330
Service Contracts
SAP R/3 Enterprise 2003/Q4 Material number 50063097SAP AG 2003
Copyright 2003 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
without prior notice.
All rights reserved.
Copyright
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Prerequisites
PLM301 - Customer Service
Basic knowledge and experience of
the service business processes
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Target Group
Audience
Project team leaders
Members of the project team in charge of implementing CS - Customer Service
Duration: 3 days
Notes to the user:
The training documentation and materials are not designed as a self-teach program. They should be used in conjunction with the explanations of the instructor. Your documentation provides space for you to note down additional information.
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z
Course goals
z
Course objectives
z
Course content
z
Course overview diagram
z
Main business scenario
Contents:
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This course will prepare you to:
z
Obtain an overview of the different options
available for structuring service contracts in the
R/3 System
z
Describe service products, service contracts,
price determination and billing
z
Model the business processes for contract
processing
z
Make the Customizing settings for service
contracts
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At the conclusion of this course, you will be able to:
z
Create service products and service contracts
in the R/3 System
z
Bill, settle and evaluate service contracts
z
Make the necessary system settings for
service products and service contracts
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Unit 5
Price Determination
Unit 6
Billing
Unit 7
Contract Settlement
and Controlling
Unit 1
Course Overview
Unit 2
Introduction
Unit 3
Service Products
Unit 4
Service Contracts
Preface
Appendix
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Billing
Billing
Course Overview Diagram
Service Contracts
Service Contracts
Price Determination
Price Determination
Service Products
Service Products
Introduction
Introduction
Contract Settlement
and Controlling
Contract Settlement
and Controlling
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z
Our company provides different services for the
customers.
z
Long-term agreements exist with the customers
for these services.
z
The customers make regular payments, which
cover these services wholly or in part.
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Categorization and description of services
Characterization of service agreements
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At the conclusion of this unit, you will be able to:
Describe the different types of service
List the different types of service agreement
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Billing
Billing
Course Overview Diagram
Service Contracts
Service Contracts
Price Determination
Price Determination
Service Products
Service Products
Introduction
Introduction
Contract Settlement
and Controlling
Contract Settlement
and Controlling
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Our company provides various services.
It also uses services from external companies.
Different service agreements are made.
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Categorization and Description of Services:
Topic Objectives
Describe the different types of service
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Technical services
Installed base Preventive maintenance RepairGeneral services
Hotline Consulting Training Rent/leasingService Categories
Services can be sub-divided based on their content into technical and general services. The R/3 System provides you with various options for describing the different services and supporting the complete process of providing services.
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Frequency of Services
Time
One-time/sporadic services
Installed base RepairRegularly recurring services
Preventive maintenance Cleaning Consulting TrainingPermanent services
Hotline Rent/leasingServices can be differentiated by how frequently they are provided.
One-time or sporadic services are performed once and probably will not occur again in the same form.
Recurring services are proivded at certain intervals. Some of the dates when the services are provided can be fixed in advance.
Permanent services are provided, or requested by the customer, continuously within a particular period.
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Description of Services in R/3
Material masters
Purchase of services Sale of servicesService masters
Used exclusively for the purchase of services
Texts
Used exclusively for the purchase of services
Material masters are used to describe services that are purchased in MM and sold in SD. Whenever you want to sell services, you have to create material master records.
If you purchase services, you can alternatively use service masters in external services management. You can also create service purchase orders with text items.
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Providing Services in R/3
Sales orders
Agreement of services and conditions with the customer
Service orders
Planning, scheduling, executing, monitoring and settling service tasks, including recording of costs and billing
Service notifications
Preparing, executing and monitoring service tasks without recording of costs and billing
Projects
Planning, scheduling, execution, monitoring and settling complex service tasks, including recording of costs and billing
Depending on the contents and scope of the service work, you can use various documents to provide services in the R/3 System.
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Characterization of Service Agreements:
Topic Objectives
List the different types of service agreement
At the conclusion of this topic, you will be able to:
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Distinguishing Between Service Agreements
Type of agreement
Objects in R/3
One-time agreement
Long-term agreement
Warranties for serviceable
items
Service level agreement
Sales order
Service order
Contract / outline agreement
Master warranty with
assignment to technical
object
Response and
service profiles
One-time agreements are represented as sales orders and/or service orders. Long-term agreements are stored as contracts or outline agreements.
Warranties are issued to the customer for the serviceable items sold. They are created as master warranties in the CS component and assigned to the respective master records for the technical objects.
In a service level agreement, the service provider commits themselves to respond to a customer problem within a certain time. The response and service windows are entered in the response and service profiles.
This course deals with long-term agreements and the options for setting up and monitoring a service level agreement.
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Verification of Services Provided
Service notification activities
Activity reports
Completion confirmations for
service order
Hours worked
Material withdrawals External services
Other resources required
Contract release orders
In the same way as for a normal sales order, the R/3 System also provides various options for documenting services that have been provided.
You can use activity reports and activities for a service notification to document the service work provided without generating cost or billing information. Activity reports can be created with reference to a service order.
Completion confirmations are used to document the resources required to execute a service order. The completion confirmations result in costs and can be used as the basis for resource-related billing. Services released are documented using contract release orders with reference to a value or
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There are different ways of representing services
and service agreements in the R/3 System.
Depending on your requirements, you can use
these methods individually or in combination.
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Fixed service product
Configurable service product
Configured service product
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At the conclusion of this unit, you will be able to:
Describe the different types of service product
Create the different types of service product
List the necessary system settings for creating
service products
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Billing
Billing
Course Overview Diagram
Service Contracts
Service Contracts
Price Determination
Price Determination
Service Products
Service Products
Introduction
Introduction
Contract Settlement
and Controlling
Contract Settlement
and Controlling
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Our company provides various services.
These services are represented and described in
the system.
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Fixed Service Product: Topic Objectives
Describe the features of fixed service products
Create fixed service products
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Overview of Service Products
Fixed
service product
Configured
service product
Configurable
service product
• Characteristic values to be entered in contract • Conditions depend on characteristic values
• Characteristic values from values in material master • Conditions in accordance with price determination • No characteristic valuation
• Conditions in accordance with price determination
Fixed, configured, or configurable service products can be entered as contract items.
No valuation is possible for fixed service products. The conditions are established using standard price determination.
For configurable service products, the values of the characteristic values must be entered in the contract. The conditions can be dependent on the characteristic values.
For configured service products, the characteristic values come from the valuation in the material master record. They cannot be changed in the contract.
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Fixed Service Product
Non-configurable material
Material master for each product
No variations possible
Price is based on service quantity and time
Examples:
Standard repair service Standard hotline service Standard maintenance service
The standard material type for service materials is DIEN. The services are described using the material text.
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Standard material type: DIEN = Service
No inventory managementItem category group: LEIS = Service without delivery
No deliveryOrder-related billing
Material master views:
Basic data
Classification: Optional Sales data
Purchasing: Only if the service is purchased from an external provider Accounting: Only for internal valuation with prices
Characteristics of Fixed Service Product
Materials of material type DIEN are not managed as items held in the inventory.
The item category group in the material master influences the determination of the item category in the sales document. Item categories for services do not result in deliveries. They make order-related billing possible.
When you create a material master, the system proposes various views, depending on the material type. Some of these views need only be created under certain conditions.
The view "Classification" need be created only if an assignment should be made to one or more classes and a characteristic valuation performed.
The purchasing views need to be created if the same service product should also be purchased. The accounting views need only be created if an internal price is to be stored for the service product.
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Configurable Service Product: Topic Objectives
Describe the features of configurable service
products
Create configurable service products
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Configurable Service Products
Indicator "Configurable"
Assignment to one or more classes
Characteristics are assigned to classes
Valuation made in the service contract,
not material master
Attributes of characteristics and characteristic
values can be stored in object dependencies
Sales conditions can be defined for characteristic
values
Configurable materials either have the material type "KMAT”, for which the system automatically sets the indicator ”Configurable", or another material type, for which you must set this indicator when creating the material master.
You can describe different variations of a service using the material number and the respective characteristic valuation.
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Classification: Definitions
A
class
is a group of objects with the same or
similar features.
An
object
is an entity that can be classified (for
example, material, equipment...).
A
characteristic
describes the features of an object
(for example, response time, servicing site).
A
characteristic value
describes the features of a
characteristic (for example, 1 hour, at the customer
site).
The
classification
of objects contains the
assignment to one or more classes and the
allocation of values to the characteristics.
The variant configuration is used to describe complex products, which can exist in several variants. All variants are represented using a variant product, the configurable material.
When a class is assigned, characteristics, which are used to describe a specific variant, are assigned to the variant product.
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Characteristics
Characteristics are used to describe and classify
objects.
Any feature of an object is described using a
characteristic.
Characteristics are used in:
Classification systemQuality assurance
Variant system with the respective configuration options
Proposal of standard values, and so on Site Size Service Execution Response time
Characteristics are used in the classification system to describe the features of objects. The individual features of a characteristic are represented using characteristic values.
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Contents of a Characteristic
Basic data
• Name of characteristic:
SERVICE_OBJECT
• Description:
Serviceable item
• Format:
10-character field, character format
• Entry required:
Yes
Permitted values
Additional data
• Reference to table field
• Value assignment procedure
PC
Copier
Printer
Default
Format: Data type, number of characters, units, single or multiple values.
Possible data types: Character formats, numeric format, date format, time format, currency format. Further types can be defined by the user.
You can define permitted values directly, or use tables or function modules to check them. You can define a reference for a table field in the additional data section. Documents can also be included in a characteristic. The value assignment procedure controls interface attributes for the characteristic (not input ready, no display, display permitted values).
Further characteristic data includes the restriction of class types allowed (this means you can only assign the characteristic to classes of these class types) and the classification of characteristics.
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Linking Characteristic to Table Field
Response
profile
Response
Response
profile
profile
Characteristic
Table
HIER
Link to additional data of characteristic Link to Link to additional data additional data of characteristic of characteristicExamples:
Response and service profiles Variant conditions
Can also be used for
customer-specific tables
T355E Response profile
Client
ESCAL
Response profile
MANDT
Hierarchy level
You can assign a characteristic to a table field for the following purposes:
The characteristic value entered during the characteristic valuation is transferred to the table field (for example, response and service profiles for determining the tasks in the service notification, variant conditions for price determination).
The characteristic value is copied from the table field (for example, characteristic "Manufacturer" for equipment, the value is copied from the corresponding field in the equipment master record).
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Classes
Site
Strategy
Serviceable
item
Inspection services
Class:
Characteristics:
The purpose of a classification system is to describe objects using characteristics. Similar objects are grouped in classes (classified) according to freely definable criteria.
In the variant configuration, a class contains the features that describe a configurable material. By linking the class with the configurable material, the material can be configured using the class characteristics.
To use a class in the variant configuration, it must be created in a class type that supports the variant configuration. To do this, the indicator "Variant class type" must be set for the class type in the Customizing for the classification system. In the standard system, this is class type 300.
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Content of a Class
Basic data
•
Class:
INSPECTION_SERVICE
•
Class type:
300 (variants)
•
Description:
Class for inspection services
•
Other
Characteristics
Keywords
Other
Serviceable item
Service strategy
Service site
Service scope
The class type is a central term in the classification system. The class type is used to control the processing of classes, as well as classification and object search functions in these classes. Class types are always created for a particular object type (for example, material). Objects of this type can then be classified in classes of this class type.
Other basic data includes the assignment to a class group, validity period, response in the case of the same classification, and authorizations.
In the characteristic assignment, the characteristics are entered that should be used to classify the objects in this class. It is possible to change characteristics specifically for one class.
Keywords are used to search for classes using matchcodes.
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Material
Configuration
profile
Class 1
Class 2
Object dependenciesConfiguration Profile for Material
The configurable material is assigned to one or more classes in the configuration profile. These classes contain the characteristics that describe the material.
The configuration profile is also where the parameters for the configuration are defined. It is also possible to assign object dependencies in the configuration profile.
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Object dependencies describe the
interdependencies between characteristics,
values and objects.
The following three functions are involved:
Object dependencies check the consistency of the configurationObject dependencies check the completeness of the configuration
Values can be derived using object dependencies
Object Dependencies
Object dependencies can be stored globally or locally.
Global storage is performed using a specific menu function; this means that the object dependencies can be used more than once. Object dependencies are maintained centrally.
Local storage is valid for one specific location only (for example, characteristic, class, configuration profile, operation, BOM item).
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Types of Object Dependency
Precondition
: ensures that
A characteristic value may be set OR A characteristic can be assigned a valueSelection condition
: ensures that
A characteristic must be assigned a value OR A BOM item or operation must be selected
Procedure
: derivation of characteristic values
Constraints
: monitoring of consistency
Preconditions can be created for characteristics and characteristic values. You can use a
precondition to determine whether a characteristic value may be set or whether a characteristic can be assigned a value.
Example of a precondition: You can only assign a value to the characteristic Service radius if the characteristic Service site has been evaluated with At customer.
You can assign Selection conditions to characteristics, operations in task lists, and BOM items. Example of a selection condition: The operation Install Windows is only selected if the characteristic
Operating system has been evaluated with Windows.
You can assign Procedures to characteristic values, characteristics, and the configuration profile. A procedure may include a series of statements that are evaluated in the exact sequence in which they appear. It therefore has the character of a program.
Example of a procedure: If you enter a value between 10 and 20 for the characteristic Number of
PCs, the characteristic Network scope is valued with A.
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Inspection tasks
Inspection locations
Configurable Service Products - Context
Configur-able
Material
Classes
Characteristics Values
Configuration
profile
Printer PC Copier Monthly Quarterly Yearly Internal At customer's < 1000 km > 1000 km Inspection service Inspection service Object Interval Location DistanceA configuration profile must be created for each configurable material. This profile defines certain characteristics of the configuration.
In the configuration profile or in the material master, the material is assigned to one or more classes. Each class contains one or more characteristics.
You can define possible values (characteristic attributes) for each characteristic.
Interactions between individual characteristics and characteristic values are represented using object dependencies.
You can also assign sales conditions, in other words, prices or surcharges/discounts for
characteristic values. The system takes these variant conditions into account during pricing in the order.
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Creating Configurable Materials - Procedure
1. Create material master
2. Create characteristics
3. Create class and assign
characteristics
4. Create configuration profile for
material and assign class(es) to
profile
5. Define and assign object
dependencies
6. Assign conditions to the
characteristic values
Characteristics and permitted values are created in the classification system.
Classes are also created in the classification system. The characteristics are assigned to each class. Configuration profiles for configurable materials are created in the variant configuration.
Object dependencies can be defined centrally and then assigned to the configuration profile, class or characteristic. Alternatively, object dependencies can be created locally for the respective object. You can assign sales conditions (prices, surcharges, discounts) to the characteristic values as variant conditions. The procedure is described in the "Price Determination" unit.
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Configured Service Product: Topic Objectives
Describe the features of configured service
products
Create configured service products
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Configured Service Product
Configured service product is a variant of the
configurable service product
Material master exists for each variant, with reference
to configurable material
Characteristic valuation made in material master
Valuation of variant (description of service product)
specified in material master record and cannot be
changed in service contract
A configured service product is a variant of a configurable service product. This enables frequently-used variants to be defined in the system.
A material becomes a configured material when it is assigned to a configurable material in view "Basic Data 2" (at client level) or the view "Materials Planning 3" (at plant level) of the material master. The material number of the configurable material is entered.
The variants are then valuated, in other words, the characteristic values are entered for the characteristics of the configurable material.
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Configured Service Products: Example
Configurable material: Hotline service Characteristics: 1. Service profile 2. Response profile Features: Monday - Friday 08.00 - 17.00 Monday - Friday 24 hours per day
Monday - Sunday 24 hours per day
4 hours 2 hours 2 hours
The characteristics "Service profile" and "Response profile" are assigned to the configurable material "Hotline service".
Since not all possible combinations of service and response profiles should be offered to the customer, configured materials are created with the relevant valuations.
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Creating Configured Materials - Procedure
Create a configurable material and assign
characteristics
Create the configured material
Reference to the configurable materialCharacteristic valuation in the material master
Result: Configured material as variant of
configurable material
The configuration can be client-specific (entry in the material master view Basic Data 2) or plant-specific (entry in the material master master view MRP 3).
A plant-specific configuration should only be selected if the product has different features in different plants.
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The service products offered are created as fixed,
configurable or configured material masters.
Characteristic valuation is performed in the sales
document for configurable service products.
Characteristic valuation is performed in the
material master for configured service products.
Dependencies can be described using object
dependencies.
Data Used in the Exercises
Data
Data in the Training
System
Data in the IDES System
Sales organization
1000
1000
Distribution channel 10 = End customer sales
14 = Service
10 = End customer sales
14 = Service
Division
00 = Cross-division
00 = Cross-division
Customer masters
1171
T-CSD##
1171
Fixed service
product
REPAIR_SERVICE REPAIR_SERVICE
Configurable
Service Products
INSPECTION_SERVICE
HOTLINE_SERVICE
INSPECTION_SERVICE
HOTLINE_SERVICE
Configured Service
Products
HOTLINE_SERVICE_A
HOTLINE_SERVICE_B
HOTLINE_SERVICE_C
HOTLINE_SERVICE_A
HOTLINE_SERVICE_B
HOTLINE_SERVICE_C
Service Products:
Exercises
Unit: Service Products
Topic: Fixed Service Product
At the end of these exercises, you will be able to: • Create fixed service products
Fixed services that do not vary are provided for the customer.
1 Creating a Fixed Service Product Create a fixed service product. Material type: Service
Material number: PR##1 (## = your group number)
Industry sector: Mechanical engineering
Views:
Basic data 1, sales: Sales organization data 1 and 2
Organizational data:
Plant 1200, sales organization 1000, distribution channel 14 Short text: Simple repair service
Unit of measure: LE
Division: 08 (Services) Delivering plant: 1200 (Dresden)
Tax classification: 1 (full tax)
Unit: Service Products
Topic: Configurable Service Product
At the end of these exercises, you will be able to: • Create configurable service products• List the contexts in which configuration is used
Services that differ in the service contract are provided for the customer.
1 Creating a Configurable Service Product Create a configurable service product. Material type: Service
Material number: PR##2
Industry sector: Mechanical engineering
Views: Basic data 1 and 2, sales: Sales organization data 1 and 2
Organizational data: Plant 1200, sales organization 1000, distribution channel 14 Short text: Maintenance service
Unit of measure: LE
Division: 08 (Services)
Set the indicator material is configurable and confirm the warning message using Enter.
Delivering plant: 1200 (Dresden)
Tax classification: 1 (full tax)
Statistics group: 1 (relevant for statistics)
2 Creating Characteristics Create two characteristics. First characteristic:
Characteristic name: CH##1
Description: Maintenance scope
Data type: Character format Number of characters: 1
Value assignment: Multiple values
Entry is required.
Possible characteristic values:
M = Maintenance
I = Inspection Save the characteristic. Second characteristic:
Characteristic name: CH##2
Description: Wear and tear parts included
Data type: Character format Number of characters: 1
Value assignment: Single-value
Possible characteristic values:
Y = Yes
N = No
Save the characteristic.
3 Creating a Class Create a class:
Class: CL##
Class type: 300 (material - variants)
Description: Maintenance group ##
Assign the characteristics CH##1 and CH##2 to this class. Save the class.
4 Creating a Configuration Profile for the Material Create a configuration profile for your material PR##2. Profile name: PR##
Class type: 300
Assign your class CL##.
5 Creating and Assigning a Relationship Create the following single dependency:
The characteristic CH##2 should then only be assigned once the characteristic
CG##1 has been given the value M.
Relationship: DE##
Description: Precondition – Wear and tear parts Relationship type: Precondition
Syntax: CH##1 eq ‘W’
Status: 1 (release)
Assign the relationship to your characteristic CH##2.
6 Testing Object Dependencies
Test the object dependency in the configuration simulation. Plant: 1200
Unit: Service Products
Topic: Configurable Service Product
At the conclusion of these exercises, you will be able to:
• Create configured service products as variants of the configurable service products
Fixed variants of particular services are provided for the customer.
1 Creating a Configured Service Product Create a configured service product. Material type: Service
Material number: PR##3
Industry sector: Mechanical engineering
Views:
Basic data 1, sales: Sales organization data 1 and 2, MRP 1 and 3
Organizational data:
Plant 1200, sales organization 1000, distribution channel 14
Short text: Maintenance/inspection without wear and tear parts
Unit of measure: PU
Division: 08 (services) Delivering plant: 1200 (Dallas)
Tax classification: 1 (full tax)
Statistics group: 1 (relevant for statistics)
MRP type: ND (no materials planning)
Assign your material PR##2 as the configurable material (cross-plant). Perform the characteristic valuation for the variant:
Scope of maintenance:Preventive maintenance and inspection Wear and tear parts: No
2 Creating Material Prices
Create material prices for your three service products. Condition type: PPSV
Key combination: Material
Sales organization: 1000
Service Products:
Solutions
Unit: Service Products
Unit: Fixed Service Product
1 Creating a Fixed Service ProductMenu path: SAP menu
→
Logistics→
Materials Management→
Material Master→
Material→
Create (Special)→
Service(s)Field Name or Data Type Values
Material PR##1
Industry sector Mechanical engineering
Enter
Select the views Basic Data 1, Sales: Sales Org. Data 1 and 2, and choose
Continue.
Field Name or Data Type Values
Plant 1200
Sales organization 1000
Distribution channel 14
Enter
Field Name or Data Type Values
Material short text Simple repair service
Base unit of measure PU
Division 08 Enter
Field Name or Data Type Values
Delivery plant 1200
Tax classification 1
Enter
Field Name or Data Type Values
Statistics grp. Material 1 Save
Unit: Service Products
Unit: Configurable Service Product
1 Creating a Configurable Service ProductLogistics
→
Materials Management→
Material Master→
Material→
Create (Special)→
Service(s)Field Name or Data Type Values
Material PR##2
Industry sector Mechanical engineering
Enter
Select the views Basic Data 1 and 2, Sales: Sales Org. Data 1 and 2, and choose
Continue.
Field Name or Data Type Values
Plant 1200
Sales organization 1000
Distribution channel 14
Enter
Field Name or Data Type Values
Material short text Maintenance service
Base unit of measure PU
Division 08 Enter
Field Name or Data Type Values
Material is configurable Select Enter (x 2)
2 Creating Characteristics
Cross-Application Components → Classification System → Master Data →
Characteristics
Field Name or Data Type Values
Characteristic CH##1 Create
Field Name or Data Type Values
Char. description Maintenance scope
Data type Character format
Number of characters 1
Value assignment: Multiple
values Select
Entry required Select
Values
Field Name or Data Type Values
Char. value / Description M / Maintenance Char. value / Description I / Inspection Save
Field Name or Data Type Values
Characteristic CH##2 Create
Field Name or Data Type Values
Char. description Wear and tear parts included
Data type Character format
Number of characters 1
Values
Field Name or Data Type Values
Char. value / Description Y / Yes Char. value / Description N / No Save
3 Creating a Class
Cross-Application Components → Classification System → Master Data →
Classes
Field Name or Data Type Values
Class CL##
Class type 300
Create
Field Name or Data Type Values
Description Maintenance group ##
Characteristics
Field Name or Data Type Values
Characteristic CH##1 CH##2 Save
4 Creating a Configuration Profile for the Material
Logistics → Central Functions → Variant Configuration → Configuration
Profile → Create
Field Name or Data Type Values
Select Configurable Object Material Continue
Field Name or Data Type Values
Material PR##2 Enter
Field Name or Data Type Values
Profile name PR##
5 Creating and Assigning a Relationship
Logistics → Central Functions → Variant Configuration → Dependency →
Single Dependency → Create
Field Name or Data Type Values
Dependency DE## Enter
Field Name or Data Type Values
Description Precondition - Wear and tear
parts Dependency editor
Field Name or Data Type Values
Code in line 000010 CH##1 eq ‘M’
Save
Field Name or Data Type Values
Status 1 Save
Cross-Application Components → Classification System → Master Data →
Characteristics
Field Name or Data Type Values
Characteristic CH##2 Change
Extras → Object dependencies → Assignments
Field Name or Data Type Values
Dependency DE## Save
6 Testing Object Dependencies
Logistics → Central Functions → Variant Configuration → Environment →
Configuration Simulation
Field Name or Data Type Values
Plant 1200 Continue
Field Name or Data Type Values
Material PR##2 Configuration
If you only select the maintenance scope Inspection, the characteristic Wear and
Unit: Service Products
Unit: Configured Service Product
1 Creating a Configured Service ProductLogistics
→
Materials Management→
Material Master→
Material→
Create (Special)→
Service(s)Field Name or Data Type Values
Material PR##3
Industry sector Mechanical engineering
Enter
Select the views Basic Data 1, Sales: Sales Org. Data 1 and 2, Materials
Planning 1 and 3 and choose Continue. Field Name or Data Type Values
Plant 1200
Sales organization 1000
Distribution channel 14
Enter
Field Name or Data Type Values
Material short text Maintenance/inspection without wear and tear parts
Base unit of measure PU
Division 08 Enter
Field Name or Data Type Values
Delivery plant 1200
Tax classification 1
Enter
Field Name or Data Type Values
Statistics grp. Material 1 Enter
Field Name or Data Type Values
Field Name or Data Type Values
Configurable material PR##2
Assign value to variant
Field Name or Data Type Values
Maintenance scope Maintenance
Inspection Wear and tear parts included No
Save
2 Creating Material Prices
Logistics
→
Sales and Distribution→
Master Data→
Conditions→
Select Using Condition Type→
CreateField Name or Data Type Values
Condition type PPSV
Enter
Field Name or Data Type Values
Key combination Material
Choose
Field Name or Data Type Values
Sales organization 1000
Distribution channel 14
Material PR##1 PR##2 PR##3
Amount Enter an amount for each
SAP AG 1999
Definition of service contracts
Hotline service contract
Maintenance contract
Repair contract
Value contract
SAP AG 1999
At the conclusion of this unit, you will be able to:
Make the necessary Customizing settings
for service contracts
List the different types of service contract
Create service contracts
SAP AG 1999
Billing
Billing
Course Overview Diagram
Service Contracts
Service Contracts
Price Determination
Price Determination
Service Products
Service Products
Introduction
Introduction
Contract Settlement
and Controlling
Contract Settlement
and Controlling
SAP AG 1999
Different service contracts are drawn up with
customers.
The contracts contain the services to be
performed and how these services will be
settled.
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Definition of Service Contracts: Topic Objectives
List the contents and features of contracts
Make the Customizing settings for service
contracts
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In a service contract, you define
for whom
in which period
which services
on which conditions
should be performed.
Contents of Service Contract
For whom: This refers to the different kinds of customer (sold-to party, ship-to party, bill-to party, payer, and so on).
In which period: The period is determined by information regarding the contract validity period and cancellation rules.
Which services: The services are described by service products in the contract items.
Conditions: These include the contract fees that must be paid regularly and the price agreements for resource-related billing.
SAP AG 1999
Contracts - Sales Document Types
Outline agreements
Scheduling
agreements
•
LP Scheduling agreement•
LZ Scheduling agreement with release•
LK External agent scheduling agreement•
. . .Contracts
•
WV Service and Maintenance•
WK1 Value contract - general•
WK2 Value contract - material-related•
KM Quantity contract•
MV Rental contract•
GK Master contractOutline agreements play an important in almost all business processes. In outline agreements, customers and vendors make agreements, through which certain goods or values for defined conditions are accepted over a specific period of time. Outline agreements enable better planning of business processes for both partners.
In the R/3 System, contracts are represented as sales document types. The standard R/3 System provides a number of different document types, which you can use directly or as references for your own processes.
Outline agreements can be divided basically into scheduling agreements and contracts.
The scheduling agreement is an outline agreement with the customer, in which delivery quantities and dates are fixed.
These contracts comprise the following forms: Service contract, value contract, rental contract and group master contract. Contracts can deal with goods as well as services.
The quantity contract is a contract, for which the acceptance of a certain number of goods or services is agreed.
The group master contract is a document, under which you can group contracts as sub-contracts. The group master contract represents the general framework conditions for the sub-contracts.
SAP AG 2001
Structure of a Service Contract
Data at item level
ServicesConfiguration Technical objects
Data at header and item level
Sales data Contract data Billing data Billing plan Conditions Account assignment Partners Texts Purchase data Status Price agreements Output
The contract is a special form of sales document. It consists of an contract header and one or more items.
The following principle applies to data that can be entered at header and item level: Header data applies to all items for which no other data has been specified.
Contract-specific data can only be found in contracts, not in other sales documents. This data includes contract data, price agreements, and the assignment of technical objects to the contract item.
SAP AG 1999
Contracts - Customizing
Basic functions
Determination of prices, taxes, accounts,
output, partners and texts
Incompletion control
Header data:
Control using the
sales document type
Item data:
Control using
item categories
Contract data:
Default values from
contract profiles
Billing plan:
Control using
billing plan type
The basic functions include the automatic determination of: Prices or conditions (see the unit on "Price Determination") Taxes (for example, output tax)
Accounts for updates in financial accounting
Output (for example, confirmation that orders or invoices have been printed) Partners (sold-to-party, ship-to party, contact person and so on)
Texts (for example, additional texts for quotations or orders)
In the incompletion control function, you can determine which data must be entered for a sales document to receive the status "Completed" so that it can be processed.
SAP AG 2001
Sales Document Types for Contracts
Document pricing procedure
Incompleteness procedure
Billing type
Billing plan type
Contract profile
Pricing procedures
Referencing procedure
Sales doc. category G = contract
Transaction flow
Reference to master contractBilling document
Contract data
Contract data header/item Check partners authorized for releaseFollow-up actions Update sub-contracts
The sales document type is internally identified as a contract by the sales document category. The document pricing procedure is used to determine a pricing procedure for the price determination.
In the incompleteness procedure, you determine the data that must be entered in the contract header for the sales document to receive the status Completed.
The billing type for resource-related billing is used when the contract fee is invoiced during periodic billing.
The billing plan type entered here is used to create a billing plan at header level. The contract profile contains default values for the contract data.
The pricing procedures assigned in the contract data are used for selecting the condition types in the contractual price agreements.
You can use the Contract data allowed field to control whether contract data for this sales document type can be entered and how changes in the header data affect the item data.
SAP AG 2001
Item Categories for Contracts
Billing plan type
Incompleteness procedure
Business data
Completion rule Relevance for billing Price determination DIP Profile
Transaction flow
Value contract
Value contract material Contract release controlThe completion rule determines when an item is complete. (After the full quantity is referenced, after the full value is referenced, or from the first reference by a contract release order).
Billing relevance 'I': Relevant for order-related billing using a billing plan.
Billing plans are created for the billing plan type entered here in the contract items.
The DIP profile and billing type control control resource-related billing with contract reference. The incompleteness procedure determines which data must be entered in the contract item for the item to receive the status Completed.
The material entered in the field Value contract material is transferred to the value contract item. It supports technical control with reference to tax determination, statistical update, division, and other values derived from the material master.
The contract release control determines how the system responds when the call-off value for a value contract item exceeds the open target value (warning, error message or no reaction). The revenue recognition controls the deferral of revenues from periodic billing to the correct accounting period. It is set in the basic functions under Account assignment, and you use the item category to control it.
SAP AG 1999
Service Contract - Contract Data
Validity period
StartEnd
Date determination rules
Activities to be performed when contract ends
Cancellation
Cancellation procedure/conditions Cancellation data
The data concerning the contract validity period includes the contract start and end dates, the validity period and further date information (contract signature, installation, acceptance, dismantling).
Contract start and end dates can be established using date determination rules.
You can also establish which sales activity should be triggered when the contract expires. For example, this could involve creating a quotation or visiting the customer.
The cancellation data contains the cancellation procedure, in which the cancellation rules or conditions are defined. When the contract is cancelled, the cancellation data is entered (eason for cancellation, cancellation receipt date, requested date). The system checks whether the cancellation request date conforms to the rules defined.
SAP AG 2003
Contract Data in Sales Documents
Dismantling Date:
Order
Screen:
Contract Data
Contract Start: 07.01. Installation Date: Acceptance Date: Contract Conclusion: Contract End: 31.12. Requested Cancellation Date: Cancelling Party: Cancellation Received:
Sales Doc. Type:
RCContract Data Allowed: X
Sales Doc. Type:RC Rental Contract Customer: C1
Order
Header
Item 10 Item 20 IMGIn Customizing for sales document types, you can activate the contract data. Blank No contract data
X Contract data is permitted. Any changes to the contract header are not copied to the items. Y Contract data is permitted. Changes to the contract header are automatically copied to the
items if the header and item data were previously identical.
Changes are saved in a log. The log also notes any possible problems and inconsistencies. You can maintain contract data at both the header and the item level in the sales document. Contract data at header level is valid for all items as long as the data at item level is not different.
You can use the date determination rules so that the system automatically finds deadlines relevant to the contract.
SAP AG 1999
Cancellation procedure
Cancellation rule 1
Cancellation rule 2
Contract profile
• Contract start / end
• Validity period category
• Action with date
Sales
document type
Determination of Contract Data
A contract profile is assigned to the sales document type. The contract profile contains default values for the determination rules for contract start and end, assignment to a validity period category (for valuation purposes), and the follow-up action (including date determination rule).
A cancellation procedure is assigned to the contract profile.
A cancellation procedure includes one or more cancellation rules. These contain the conditions under which a contract may be cancelled by the customer.
SAP AG 2003
Determining Dates
Proposal
RC - Create Contract Contract Start: 08.07.2000 Contract End: 07.07.2001 Rule 05 Rule 08Manual
Entry
Installation Date: 08.07.2000 Contract Profile 0001Contract start rule: 05 Contract end rule: 08 Duration: 1 year Sales Doc. Type: RC Contract Profile: 0001
Date Determination Rules: 01 - Today's date
02 - Start of contract 05 - Installation date 08 - End of period
12 - Start of contract + 1 week . . .
Cancellation proc.: 0001 IMG
IMG
When you create a contract the system proposes, for example, the start and end dates of the contract. You define the date determination rules in Customizing. These rules start the document on one of the dates that you have set (for example, today's date or installation date). Any interval you specify can also be added to this date. You can also schedule the date for the beginning or end of the month that is determined in this manner.
If you specify a duration category, the system automatically generates the duration of the contract. This can be a component of the date rule, for example, for determining the end of the contract. If you assign a contract profile to the sales document type, the system automatically determines default values specific to the contract. These could be:
Rules for determining start and end of the contract Duration category
Subsequent activities Cancellation procedure
SAP AG 2001 Rule
Follow-up
action:
Follow-up
contract
Mail to person
responsible
Quotation
Contact
Contractstart according to Date
rule
Contract end
Time
Action at Contract End
An action intended to extend or renew a contract should be performed in time before the contract expires.
Possible follow-up actions include: Create follow-up contract Create quotation
Establish contact in sales support, such as a telephone call Send mail
If you specify a follow-up action in a contract, you must enter a date or a date rule in the Action date
field. If the system does not propose a date from the contract profile, you must update it manually. When follow-up actions are called up, all contracts, for which the follow-up actions are maintained,
are listed. The date of the action must lie within the time period specified for the selection. The list of contracts is sorted by date and follow-up action. You can execute the follow-up actions directly from the list. To reach the selection screen for the list of contracts, choose Contract > Subsequent
SAP AG 1999
Hotline - Service Contract: Topic Objectives
Create hotline contracts
Describe the effects of contracts on notification
processing
SAP AG 2001
Hotline - Service Contract
Technical objects
Service
notification
Technical reference object Item 10 Item 10 Hotline service Hotline service Automatic or manual contract assignmentYou can use the service notification type to set whether the contract is assigned automatically when the notification is entered, based on the technical object entered.
In the case of manual selection of a contract, you can call up a contract selection according to the reference object for the notification, or by customer (if no reference object has been entered). Alternatively, you can enter contract and item numbers directly in the notification.
Automatic contract assignment for a service notification takes place if:
the technical reference object entered in the service notification is identical to the technical object from contract item OR
the technical reference object entered in the service notification is subordinate to the object from the contract in the object structure OR