Skip to main content

SAP S4 Sales /CS - Revenue and Non-Revenue Bearing Service Orders


In General, we deal with  Service Orders in Customer Service Module in Integration with SD for Returns and Repairs.

Frequently we will come across Revenue and Non -Revenue Bearing Service Orders. Most of us will have a doubt what is difference ?

In this Article, we will try to Focus from

1. Business Perspective and
2. Technical Perspective

First of all let us see how it is controlled in SAP and later we will focus on the Business terminology

In the Configuration of Order types OIOA

and through NAVIGATION>>>SAP--->PMCS--->MAINTENANCE AND SERVICE PROCESSING-->SERVICE ORDERS-->SERVICE ORDER TYPES


This Indicator  ❏ REVENUE POSTINGS will control whether Revenues can be posted to the service Order or not.

What does it mean? What happens if this indicator is set? and when do we set this indicator?

Normally, we set this indicator for Service Orders which are allowed to receive Revenues which means , technically Service Orders which are Created as STANDALONE without any SALES ORDER can be allowed to collect the cost and they are called as REVENUE BEARING service orders

Any service Order type which has Sales document assigned or linked, then they are termed as NON-REVENUE BEARING SERVICE ORDERS .

SO Lets take examples of both and see how they are different.

Revenue Bearing service Orders_:-  As the Name denotes, they can collect the revenue. How do you say any document has Revenue? If we refer that document and bill customer, the Revenue is posted to the document  and hence it is called a REVENUE BEARING SERVICE ORDER.

for example, take a FIELD SERVICE ORDER, where there is no sales order in this process and we will the customer directly using debit memo request which collects the revenue and post to the service Order.

Non-Revenue bearing Service Order:- These are special types of service Orders for which there would a corresponding sales order or Contract which are used to bill the customer

In case of Repair and Return, we use Repair order which is also a sales order and with reference to it we create a Service Order. In this process Service Order is used as COST COLLECTOR and when we want to bill the customer, a repair Order is used to bill which in this case is Revenue collector.

So Service Order is not revenue collector and hence it is Non-Revenue bearing service Order.

In a Nutshell, when

service Order used to bill customer Directly then it is called as REVENUE BEARING

Service Order is not used to bill customer, instead only to collect cost is called as NON-REVENUE BEARING

hope it is clear,

thank you
good Luck👍👍



Comments

Post a Comment

Popular posts from this blog

SAP PM/CS / EAM : Refurbishment Process

Refurbishment A refurbishment order is a standard Maintenance Order type. In customizing for order, we first create an order type ( such as PM04) In the configuration we have to create a new order type in OIOA and activate this for Refurbishment process. Process flow: Business process steps 1. Damaged equipment/ spares if can be repaired will be done by the PM order of type PM04 2. Equipment/Spares needs repairing should have the item code if it is serialized item then with the serial number. 3. Item should have the valuation type for repair category too. 4. Create PR through refurbishment order for repair of the item with split valuation type of repair. Proper G/L codes and order for the repair indent should be provided in the indent 5. After approval of the requisition, the requisition and item should be send to the stores/Purchase section for further actions. 6. Stock will get updated after MIGO of the item 7. The activity type cost

TO MAKE INACTIVE CONDITION ACTIVE IN SAP

This blogger contains details on how to set an INACTIVE CONDITION  to ACTIVE while processing Sales Order content: 1.  BUSINESS REQUIREMENT Due to some legal restrictions in Russia, Russia Local Plant cannot hold any stock for the material and hence it is non valuated which means the Standard Price is Zero ( 0 $ ) The stock will be replenished from another company code and we used our Standard Third Party process  in which PR is created which will be converted to PO and when we do GR, the Standard Price of that plant is calculated in the GR. The baseline pricing structure is mapped in such a way that VPRS is calculated from the Material master and on which 15% markup is added as base price. Since the Cost price in VPRS condition is Zero Markup calculated on VPRS will be obviously calculates to Zero and both conditions were set as INACTIVE as per the condition properties 2.  CREATE SALES ORDER we will create a sales order for a material, whose standard Price

S4HANA-Project Systems Operative Indicators in WBS- CJ20N

  Use and Purpose of Operative Indicators in WBS elements When a customer Requests for ATO or ETO process where we create a Project with Integration between SD and PS ( project systems) As a First step we create a Project in CJ20N and under the Project we will Create Multiple WBS elements which has to be set for Operative Indicators This article deals with Operative Indicators in WBS elements. WE Use Operative Indicators to define characteristics of WBS and to specify which tasks WBS can perform during Execution In General, we have three Operative Indicators such as 1. Planning Indicator 2. Account Assignment Indicator 3. Billing Indicator Planning Element: WBS Elements will be set for planning Element,if we we want a plan cost to be enabled For Example, While Creating a Project- Manufacturing an Equipment. We will Create different WBS elements for each Level such as Design, Procurement of components, Production, Assembly and Installation. During Each state some cost is incurred and we