Allocating costs to service orders
Hi All,
I have a scenario I'm hoping one of you may be able to help me with.
Currently when an external service technician carries out work at a customers site the costs related to that work are booked to a single service order.
This work however may be completed on a number of different machines at the customers site, which results in a manual allocation each month crediting the main service order and debiting other service orders linked to each individual machine.
I have recently been told that the engineers are entering hours into the system to the individual service orders but the cost for these hours is not known until we recieve an invoice from the external service company.
My question is can you think of a better way to allocate the cost (invoice) to the correct servie order without a manual allocation. Settlement, assessment or distribution using the hours entered as a basis for calculation? If so whats the best way to set it up.
Cheers,
Paul
.
Similar Messages
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Recognising Revenues based on costs in Service Orders
We have configured SD Revenue Recognition function (ECC 5.0). We have warranty maintenance contracts running. On this basis we have the following scenario and issue.
The warranty maintenance contracts are created without a billing plan (Reqmt. type SE so that we can settle costs later). The value of which is transferred to Deferred Revenue Account and is recognised at the end of the contract period (As it bears the retention money with the customer). Until this step things are working fine. We use VF44 to recognise revenues.
However, there are costs incurred (both material & labour) in relation to such contracts. To track this, we create a Service Order s against the Service Contract for each month. Later on fulfillment, the orders are settled to the Service Contract. This is reflecting in the Service Order. But the finance team wants to recognise the revenues to the extent of costs incurred. I'm not sure how we can do this. The following is an example scenario.
Contract Value : $1000
Contract period : 1 yr (1.1.2010 to 31.12.2010)
Contract billed at the start of the year on 1.1.2010 so the amount is moved to Revenue Provision (Deferred Revenue)
At the end of the year $1000 lying in Deferred Revenue will be moved to Revenue Account through Revenue Recognition (VF44)
Now, costs incurred as follows which are booked in separate service orders against the contract and on completion, settled to the contract. There is no definite schedule for these costs.
Apr 2010 : $100
Jun 2010 : $200
Sep 2010 : $500
Now, the finance team wants to recognise revenue to this extent during the relevant periods. For eg.
Apr 2010 :
Deferred Revenue A/c $100
To Revenue A/c $100
Jun 2010 :
Deferred Revenue A/c $200
To Revenue A/c $200
Sep 2010 :
Deferred Revenue A/c $500
To Revenue A/c $500
And at the end of Dec 2010 :
Deferred Revenue A/c $200
To Revenue A/c $200
(for the remaining amount)
Can anyone guide me how this can be achieved?
Thanks in advance.
Ravi.Nobody have encountered this scenario?
If not with SD Revenue Recognition, can I handle this with CO Result Analysis?
Ravi.
Edited by: Ravichandran S Iyer on Jul 22, 2010 2:31 PM -
Planned cost in service order does not reflect PO price change
Dear experts:
I set up a service order for external processing using control key SM02. I enter the purchasing data e.g. price, vendor, info record. I determine costs and the system calculates the planned cost for purchasing correctly.
On saving the service order, a PR is automatically created. Then I raise a PO for the PR, and change the PO net price.
I now return to the service order and determine costs again. However, the system still calculate the planned cost based on the price in the external operation, not the changed PO net price. Only if I remove the price in the external operation and determine costs, will the system calculate the planned cost based on the PO net price.
I have played around with the Customzing setting for valuaiton variant (transaction OKP8). Changing the strategy sequence for External processing does not seem to make any difference.
Has anyone encountered this issue before?
Thank you.
With regards,
DanHi,
In standard functionality the System will calculate the Planned price from the filed where you maintain the price for that operation.
The Planned price is PR price only for any order.The PO price is actual price/Market price,Once the GR will be done then the PO price will get update in the Actual cost of the Service order.
This is standard Functionality,If you want to update the planned price with the PO price then try with User exit to update the price.The field is PKOSTEN for the planned price.
Regards,
Raj -
Sale order costing during service order integration
Hi,
When I am generating service order from sale order, and settling my service order back to the sale order item. Do I need to run DP90 to capture the service cost? If so please explain.
Regards,
N.Nagarajuyes, you would need to run DP90 to generate a billing document for the customer based on the service order / sales order. Have a look at [SAP Help|http://help.sap.com/erp2005_ehp_04/helpdata/en/4b/5cfc3743572b1ee10000009b38f8cf/frameset.htm] for detailed help.
The actual cost of service is collected on the service order and could be different from the cost billed to the customer through the billing document generated through DP90.
Regards
Narasimhan -
Hi all,
My client will be creating service orders to track some of their processes. I need to figure out how these costs will be tracked in CO and finally in FI.
Firstly, they are using CAT2 to post time into the service order. I can see the CO posting but i'm wondering when will this be posted into FI and what would the entry be?
Secondly, when will the labour and material cost get posted into WIP account and what would be the entry?
We haven't implemented COPA so will that be a problem?
ThanksHi Pradeep
Thanks for your response,
Labor times are posted against the order through CAT2 but i noticed it does not post
Dr Labor exp
Cr Paybles
any idea why? Is the labor exp tracked on month end WIP calucation or should it be posted seperatly to P&L when exp is incurred
thanks -
Reservations Allocated to a Service Order
I am in desperate need of help.
For our RMA's when the inbound receipt is done the Service Order (IW32) is being created automatically. When the tech works on the material and needs to issue stock to the material the reservation is created automatically. If I made a mistake on this and delete the line item, I can not reenter another line item. It reserves the qty but when I go to perform goods issue it tells me there are no selectable items. The service order is in released status and not TECO.
Another issue is that no matter how many time I delete the line item and try to renter, the reservation stays and I can not delete the reservation....should the reservation not go away once the line item was deleted? Never a 261 mvmt performed at all......so there is not a cancellation of the goods movement.....
Please helpI figured this out by changing the qty on the service order to zero then selecting the delvery complete in the general data tab for that line item...this removed it as a requirement on the reservation
-
Report for extracting the actual and planned cost from service orders
HI all
we are creating a report in BI for Module - Customer service . LIke , the report is all about how many complaints created in the system and how many completed technically and what is the cost involved for each complaint .
Like we want the comparision between the planned cost and the actual cost .
Now to give the logic to the BI Team for planned cost and actual cost , please suggest the flow of logic or table flow to arrive the planned and actual cost
thanks in advanceHi Marthand,
I am not sure which datasource your are using. In this case, you can use the 0VALUETYPE to differencitae between th eplan and actuals. Normally Plan which is budget will have value 050 and for actuals will have 010. For costs, you will have one key figure and at the reporting level, you will have the costs restricted by the value type for plan and actual to make comparisons.
Hope this helps.
Regards,
Srinivas -
Add estimated cost in PM Service order after release of order.
I have released the PM service order. Now I need to add the estimated cost in service order. . Please tell me a way to do so. I have only released the order and no other transaction has been done.
ANIMESH KUMAR,
AS standard you cannot change the estimated cost value after release (REL).
However, I have seen two work arounds:
- Copy the field onto the Enhancement tab via user-exit IWO10018
- A bespoke TCode/program to directly update the AUFK-USER4 field
PeteA -
Hi,
How can i get the planned cost in service order(Sm03) generated from repair request . presently i am getting the cost for the activity but the components cost assigned is not getting calculated . i have maintained the costing sheet for the same . for the same material its working fine in the sm02 order type.
Thanks in Advance
Regards
Aadithyan
Edited by: Aadithyan on Dec 21, 2011 1:12 PMHello Pete,
I believe all the setting is correct. See here i am facing Problem in repair order. As per standard scenario after the GR inspection lot created and user decision has to make for that it will be reflected in the repair order as a new line item for repair same time service order created . In my case even after the QM check in repair order bellow message is coming. then i have to do it manually . can u guide me to fix it.
Repair items could not be generated automatically for Repairs / Service and 35
Message no. V1879
Diagnosis
One of the following situations has occured in Repairs / Service 35:
1. There is more than one data basis for generating automatic repair items.
The system does not propose any data.
2. The open quantities are not covered by the available items.
Check the situation and, if necessary, change the data manually.
Its asking for the PR also all the time .
Edited by: Aadithyan on Dec 23, 2011 10:20 AM -
Settlement of costs only & not revenues on service order
Hi,
I have a revenue bearing service order.
The revenue that was posted through billing document was also posted to the cost center respobsible.
Now I want to settle only repair costs of service order to the cost center responsible.
But the system does not allow posting the items containing revenue on cost center.
How can I settle only costs to the cost center & not revenues.Hi,
Is there any setting by which we can select the line item costs & revenue during order settlement.
I am using KO88 for settlement but I cannot see any way out to do selective settlement there.
Pl guide.
Also as you have mentioned that in cost center master record, uncheck the actual revenue posting lock, so that I can post the revenues. But in my case it is already unchecked (unlocked for revenue posting), but still system does not allow to post any revenue to this cost center.
Am I making mistake somewhere?
If I get solution to above two queries, my problem will get resolved.
Thanks. -
Hello,
I am not able to obtain the costing in service order.
Can any one tell me what are the settings i have to perform for
the same.
Regards
RaviHi,
A service order is a short-term agreement between service provider and service recipient, in which one-time services are ordered by the service recipient and resource-related billing performed upon completion. Such an order could be, for example, to maintain or repair some equipment, making it necessary to send a technician along with spare parts. These services are usually billed.
In Costs for Intangible Goods and Services, general cost objects and internal orders with revenue can be used as cost objects. A large number of key figures are available in Costs for Intangible Goods and Services.
For the detailed information on the key figures in costs for the services, please refer the link below:
http://help.sap.com/erp2005_ehp_03/helpdata/EN/a6/b87538c9a8ee45e10000009b38f8cf/frameset.htm
I hope it will help.
If helpful, please assign points.
Regards,
Manju -
Service contract in service order
Hi,
I have create a service contract in VA41 (type : WV).
But when i create the service order, the service contract is not determined. This message appear :
No cost management is provided for sales document item
You have tried to assign a sales document item to the service order for
which no item costing management is provided.
Such items can not be entered for service orders.
What's missing ?
What i have to do to determinat the service contract in notification or service order CS.
Thanks for your reply.Hi,
When u create servcie order with service contract then the item from contract must be cost management.
reason is that u r performing services against that perticular service contract,
so when u settle service order by KO88, then cost from service order flows to service contract item (Contract item hold the cost)
Now after this U need to settle service contract by VA88, to flow cost in to COPA(Profitability analysis).
Assign account assignment category as "E" in requirement class,
Maintain settlement rule SDI for service order
Maintain sttlement rule PSG for service contract.
kapil -
Billing request for Service order
Hi,
Is it necessary to have a revenue in service order to create a billing request (DP90) ??
Or
Actual costs in service order is sufficient to create a billing request ??
ThanksResource Related billing means billing request will be created based on the cost incurred to do Service order. DP90 will bring the actual cost from service order.
Pricing procedure should be defined accordingly to bring actual cost.
http://wiki.sdn.sap.com/wiki/display/ERPLO/ResourcerelatedBilling
http://help.sap.com/saphelp_46c/helpdata/en/59/54fc37004d0a1ee10000009b38f8cf/content.htm -
Using Service Order Data for customer report (Not using CRM). I would like to enhance the extractor with VBELN and POSNR is this possible?
Thanks!
CarolineHi Thomas,
There is no standard delta capable DataSource to extract only actual costs of service orders.
The following are options for extracting service order costs;
1. Use the standard DataSource 0CO_OM_OPA_6. It should be able to extract actual costs of service orders. 0CO_OM_OPA_6 is not only for service orders, but also for other order types.
Or
2. The standard DataSource 0PM_OM_OPA_2 extracts only PM order actual costs.
You could modify the extractor (function module BWSM_PM_GET_ORDCST)
of 0PM_OM_OPA_2 to select service orders too.
Best Regards,
Vincent -
How to create a billing request for service order that has serv contract?
Dear Experts,
Can you please help me?
The scenario is, my client has service contracts with their customer but they want to charge customers not periorically but as and when they provide service (ad-hoc).
So how to bill the customer in this case?
In my testing if I have a service contract (order type = SC) then when I create service order, system automatically picks up standard order type SM01. (which is service order with contract.)
And when I perform time confirmation and material consumption (goods issue), actual costs gets booked to the service order. However, using the service order number as referece, if I try to create a billing request in DP90, system create a blank billing request with no line items.
So, could you please advice, how can I create a billing request for a service order, if I have a contract?
Appreciate your help.
Best regards,
Abdul RafeyHi Praveen,
Thank you very much for your reply. I appreciate your time and efforts.
Ok, these are the steps how I have executed the process.
- I have created a service contract for an equipment. In the service contract, I have maintained the service material in the line item, maintained price and assigned equipment in the technical objects.
- I created service notification, which automatically picked up contract.
- When I create service order, from notification screen, system automatically picked up correct order type SM01 (Service order with contract).
- Then I planned operations and spare parts in the service order.
- Checked settlement rule in the service order is SDI.
- released and saved service order.
- Using IW42, in SAP ECC6, you can perform both time confirmation and material consumption using the same screen and also TECO service order. System issues message to say, goods issue have been posted.
- when you check the document flow of service order, you can see operations posted, and also goods issue posted.
- check cost tab to see actual costs. (if I want to settle costs from service order to service contract, I can do so w/o a problem in KO88)
- Use DP90, enter service order number and create billing request. System takes to billing request screen but it is blank. No line items.
- So, since there is a contract, in this case, am I meant to be creating the billing request from Service contract? instead of from Service order?
I hope I have clarified myself better this time.
Best regards,
Abdul Rafey
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