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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👍👍



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