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 be added to the repaired material cost.

Pre-requisites

There are some prerequisites that needs to be done before creating refurbishment order

1. Split valuation should be active for material, for Most PM materials, valuation category is condition based in which different valuation types like OLD, REFURBISHED And NEW are used

2. Settlement profile for refurbishment order should have material as default object type as refurbishment order should always settle to material

1. DISPLAY MATERIAL MASTER

Call the transaction MM02 for the material in Plant 3000 and select Accounting View 1 to check the stock and material valuation for valuation types

For all the three valuation types like C1, C2, and C3

C1 is valuation type for New

C2 is valuation type for Repaired ( refurbished)

C3 is valuation type for Defective

2.  CREATE REFURBISHMENT ORDER

Call up the transaction code IW8W

With order type PM04

Planning Plant 1000

Material P-2001

Planner group

Main work center MECHANIK

The only difference of refurbishment order is , we have to enter some additional refurbishment-specific data for the material  such as

1. The quantity of parts to be refurbished with this material number

2. The actual condition of the material ( for example, C3 for defective parts)

3. Plant and storage location at which the material is stored in its actual condition

4. The target condition that should be achieved following refurbishment ( for example, C2 for refurbished parts)

5. Plant and storage location at which the material should eb stored in its target condition.

Maintain valuation type as C3 to C2 which means Defective to Refurbished

Add operations and components

The material to be provided is entered automatically as a ,material component in the COMPONENTS tab page. A material reservation is generated automatically for these materials.

The system has generated a material Reservation in Plant 1000 for the required quantity in Valuation type  C3 . The specified movement type is 261.

  

3. Setting an order to "In Process"

Call the transaction IW32 with the order #

As the PM technician, we first withdraw the reserved material from the warehouse. In the present example, the reserved material corresponds to five reserved Pumps with material number P-2001.

To carry out the material withdrawal with movement type 261 (goods issue for order), use MB1A. The goods issue applies to materials with valuation type C3

Before with Draw, make sure order should be put in process or Released status

After we have withdrawn the materials, carryout the refurbishment tasks. When we have done this, enter Time confirmation. In this example, we have not exceeded the scheduled working time for refurbishment.

Use IW41 transaction code to confirm the operation

HOW THE PM PLANNER TECHNICALLY COMPLETES ORDERS

After the PM technician has carried out final confirmations, we can check and  technically complete the refurbishment order.

Before TECO check whether the settlement rule as been assigned for the order.

By default the Settlement will happen to the Mater P-2001.

Settlement rule assigned to Order type in OIOA

And settlement Rule in OKOA

Check MMBE to compare the stock with all the three valuation types

POSTING GOODS RECEIPT FOR REFURBISHED ORDER TO WAREHOUSE

After the refurbished order is TECO, then we have to post the stock to the warehouse into the valuation type C2

Use transaction code IW8W

After the delivery, the order status changed to DEL

Once the Delivery is completed, the Order is debited with the Work hours and defective cost and credited with Refurbished cost

Price of Valuated stock at C2 is 1278.23 and for 5 quantities it is 6391.15. This cost is credited to the refurbished order.

After the Goods Issue, the quantity for C2 will be increased with 5

COST FLOW IN REFURBISHMENT ORDER

After Technical completion  has been carried out by the PM planner, the order is transferred to the controller for settlement. We carry out order settlement via Transaction KO88

Settlement showing the Sender and Receiver as below