Customer takes up an AMC contract with our client once their warranty period for the machine is over.

The AMC will be valid for services to be offered on the machine sold to the customer for 365 days from the date of
signing the contract.

Under this AMC the customer is entitled to avail only services and preventive maintenance check up services on the
machine as mentioned in the contract document, for upto 100 hours(service hours) or for maximum of 20 visits or up-to
365 days from the date of signing the contract document by the company and the customer whichever occurs earlier.

I have created a contract type ZWV for AMC contract sales doc type.
And a material as AMC
The charges for AMC for 1 years is Rs 25000

My issue is when i create a contract through VA41 and enter the sold to party/ contract start contract end date/
then i will be giving the material as AMC in the line item and i have to give a target quantity

here what should i give like 20 visits or quantity should be 1 i want to know how will we maintain the contract based
on the criteria 100 hours/ 20 visits or 365 days whichever is earlier.

because any one of which occurs earlier the contact ends there. so how do i track the 20 visits/100 hours n 365 days.

1.Create a Service material for AMC (Annual maintenance contract)

2. Create a Service contract (VA41) with the Service material (AMC) as a line item and enter the
Contract start and End dates
3. Attach the Customer equipment (Technical object) to the line item (Service material -AMC)
4. Maintaini condition records to the materials ( price 0 to the material at free of cost and agreed
price to other materials under contract)
-

Your contract is ready for the equipment

Whenever there is a Complaint / Service request from the customer for the equipment under AMC

1. Create a Notification and Service order (System will show you the contract Number for the
equipment in Object information window)
2. Plan the labor and materials in the service order and issue materials & Confirm Time
3. Do Debit memo request with reference to the Service order
---> System will fetch the prices from the condition record (Material @ free of cost and Material cost
under contract from the Condition record) based on the condition type
Note: Configure the DIP profile only for materials (Not for labor - if you provide labor at free of cost)
4. Finally settle the Service order and cost to the Contract

After creating invoice for the machine, my client is providing installation and training at free of cost as the
machine price includes all these costs. But he needs to capture the installation and training details of that
particular machine. He needs a installation report with all machine details like serial number, date of
installation, customer name etc
We have a Service contract to bill the customer monthly based on the usage of our Equipment. It has three
components.

1. Usage no. of units produced during the month of Billing @ Rs.100 / unit
2. Bonus amount on stoppage hours due to Customers (lack of input or power)@ Rs.300 / Hr
3. Penalty amount on stoppage due to Service provider (lack of spares or Service Engineers) @ Rs.200 / Hr

We created a Service contract with three Service materials (line items) with agreed rate as Condition value.

Daily we recording the reading above 3 parameters using Measuring point of the Equipment. We have a report to get
monthly total of Productivity, Stoppage due to Customer, Stoppage due to Supplier.

We are thinking to create a Sales order every month (will copy the rate from contract) and enter the readings
(manually) in the Quantity field.

If I enter the Condition value -200 for third parameter (Penalty), system accepts and reflected in Sales order too.

For our client we have two planning plants

3001 - Manufacturing plant - Which has the Excise registration
4001 - Trading & Service plant - which does not have Excise registration

I created 4001 as Maintenance plant attached to the planning plant 4001.This planning plant has Trading stores that
is responsible to issue the materials required for Service orders.

My client wants to issue some materials (Excisable) to the service orders directly from 3001 (excisable) plant and
some materials from 4001 plant (Trading).

We suggest that
1. They can transfer those materials from 3001 plant to 4001 and issue the same to the Service order.
or
2. They can issue the material to the customer through Sales order from 3001 plant.

But customer wants to use as follows Since our suggestion requires more transactions.
In Service order--> Component tab, they could plan the materials from 3001 plant (System allows) and also they
could issue the materials from 3001 plant storage locations to the Service order(MB11).

My client is Genset manufacturer and providing Service on Installation & AMC for gensets. Your answer does not say about
tracking based on unique engine serial and its warranty control(like claims with 24 months of genset billing or 2500 hrs of genset
running hours).Most of all the installation & Amc service is provided by a third party from various locations who raises bill on
my client and based on which client raises his bill on the customer (to whom the genset was sold).Hope u understand the business
requirement.

Your business is fully clear. You sell gensets and provide after sales service for them. Though you sell the
maintenance contracts the actual rendering of the service is done by a third party. They bill u and u bill
ur customer in turn. Your process has a perfect solution in SAP - Customer Service module.

Maintain material code for the gensets. Either by model or group or whatever. But be there when ur MM
consultant discusses what is being deemed as materials. Next, create equipments. Enter material code
and serial number in the equipment master. So equipment no = mat. code + ser. no.

Next, create master warranty (BGM1) and enter your required conditions with AND/OR combination. it
means warranty ends on 24 months or 2500 hrs of run time. Again, in the equipment maintain a counter
with the characteristic of run time. Then, create a task list with operation with control key PM03. Enter
related data such as vendor etc for that operation.

If you doing scheduled visits to check the equipment during the AMC then create a maintenance plan for
the equipment and include that task list. The other alternative is customer approaches for genset
failure. Then, create service order manually.

Equipment is billed and delivered to the Customer in a standard sales process ( . --> Sales order --> Delivery) and
installation / commissioning is done by Customer Service team. Equipment is having 1 year warranty and maintained
at free of cost.

Under / after warranty, There is a service contract called O & M (Operation & Maintenance Contract) to
operate and maintain the equipment by the service provider's personal. During the contract, initially we are not
charging the customer (only terms and conditions are defined) but monthly bill will be generated based on the
productivity irrespective of Labor and materials consumed.

Terms
i. Rs.7 / unit + Rs.1 / unit as bonus if the ouput Quantity is more than 2000
ii. Rs.7 / unit - Rs.1.50 / unit as penalty if the ouput Quantity is less than or equal to 2000
iii. No material or labour will be charged to the customer (but the labor and material cost to be settled to the contract)
iv. Down time due to Customer will be charged @ Rs.500 / hour
v. Down time due to Service provider (ourselves) will be penalized @ Rs.250 / hour

Eg1: BONUS case

For the month of January,
Total output produced = 2100 units.
Down time due to Customer = 30 hrs
Down time due to Service provider = 20 Hrs
Labor + Material cost for operation & maintenance = Rs.50000

Bill amount = 2100x7 + 2100x1 + 0 for material + 30 X 500 - 20 X 250 = Rs. 26800.00

For the month of February,

Total output produced = 1500 units.
Down time due to Customer = 40 hrs
Down time due to Service provider = 10 Hrs
Labor + Material cost for operation & maintenance = Rs.40000
Bill amount = 1500x7 - 1500x1.50 + 0 for material + 40 X 500 - 10 X 250 = Rs. 25750.00

I am capturing the output units and down times by using Measuring points / counter in Equipment.

Where do I capture the Terms and conditions in the Contract?

How do I link the reading from measurement document and the billing document?
How do I make monthly billing with reference to the Contract?
How do I settle the cost of Service orders (Service orders for maintaining the equipment)?

Billing plan Periodic

IMG SD Billing Billing Plan

a. Define Billing Plan types
Choose Periodic Billing Copy and create your periodic billing prefixed with >Z1 u2013Periodc
billing>
b. Define Date Descriptions
c. Define Date and Assign Categories
1. Maintain Date category for Billing Plan Type
Here you are assigning billing plan type to Date category, Click New Entries and enter new data.
2. Whatever assignment you carry out above will be reflected here.
d. Maintain Date Proposals for Billing Plan Types
e. Assign Billing plan Types to sales documents
f. Assign Billing plan types to Item categories
(Note: This execution goes along with Project System so consult your PS Consultant for
>maintaining Billing Plan Settings>)

Periodic Billing Configuration:

1. Create New Sales Order Type, say ZOR (Copy of OR) through T.Code: VOV8 Maintain Delivery
Type as LF & Billing Type As 'F1' - Order Related / 'F2' Delivery Related.

IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales
Documents Types

2. Assign New Sales Document Type to Sales Area, For Eg: 1000 (S.Org) / 10 (D. Channel) / 10
(Division) / ZOR (S.O Type)

IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Assign Sales
Area to Sales Document Type

3. Create New Item Category, say ZTAN - Copy of TAN (For delivery Related) / ZTAD - Copy of TAD
(For Order related) / ZTAS - copy of TAS (For Third Party) Maintain as under (others remaining
same) Billing Relevance: I Billing Plan Type: 02

IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item
Category

4. Assign Item Category, for ex (assuming Usage & higher level item category as blank): Sales
Document Type | Item Category Group | Default Item Category ZOR | NORM | ZTAN ZOR | DEIN |
ZTAD ZOR | BANS | ZTAS

IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Assign Item
Category

Note: In the above Billing Type '02' plays the main controller for periodic billing. In Sales order,
at item level, we require to maintain the billing plan. Follow the Sales cycle as normal sales cycle
for particular Scenarios
Check
http://help.sap.com/saphelp_46c/helpdata/en/dd/560fdd545a11d1a7020000e829fd11/content.ht
m

Resource related Billing

The PDF I have mentioned is good

SERVICE Notification and Order

Resource related billing is used if you consume any materials during maintenance which should
be accounted against a particular service order against a customer in the form of Debit memo
Request.

If the customer is in warranty then also you should show the material consumed and its
accounting details.
We also need COST & FI Consultant to work closely with you because cost element has to be
created and cost centers has to be assigned.

We will have to create settlement Profile for carrying forward the values against G/L account or
SDI or Cost center.

General Order Settlement:

IMG Plant Maintenance and customer service Maintenance and service processing Basic
settings General Order settlement
a. Maintain settlement profile - for CS customer service
b. Allocation Structures > Choose CS and double click :> Assignments > you will have to
assign Primary and secondary cost elements

Choose primary Element and Double click >Source> Enter Controlling area and give from
 and To cost element. Similarly follow for secondary element

No assessment cost elements filling

Choose primary cost of Element and double click >Settlement cost elements>
Receiver cat by cost element
CTR YES
G/L YES
SDI YES
Similarly follow it in secondary element

c. Maintain PA transfer structure

d. Maintain No ranges for settlement Documents

Service Notification

a. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service notifications Notification Creation Notification Types Define
notification types

Click > New Entries - for Problem notification/ Activity report / Service request

b. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service notifications Notification Creation Notification Types Define No.
Ranges

c. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service notifications Notification Creation Notification Types Assign
Notification types to Order Types

d. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service notifications Notification Creation Notification Types Partners

Partner determination
Define partners through partner determination procedure

Service Orders
 a. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders configure order types
b. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders No. ranges
c. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders Assign order types to maintenance plants
d. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders Settlement Rule: define Time and Creation of Distribution
Rule
e. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders Assign IM assignment key to Order types
f. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders Define default order types for Maintenance Items
g. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders Define Notification and Order Integration

h. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders Define Partners

i. IMG Plant Maintenance and customer service Maintenance and service processing
Maintenance and service orders Assign default values for settlement areas to order

FAQ: Resuorce Related Billing (DP90)

Posted by Pete Atkin in Enterprise Asset Management (SAP EAM) on Jul 26, 2013 11:52:33 AM
inShare

Documentation:
There is an excellent PDF document for RRB that you can download from SAPSERVE (see OSS Note 301117).

Tips & Tricks:

a. Check your DIP Profile consistency via TCode ODP2 or ODP2A (later versions only)
b. Try confirming one item at a time (ie labour, material or GR/GI)
c. Create a billing request (DMR) manually via TCode VA01 and add the material that should have been determined via DP90.
This will check that the sales order and material master data is correct.
d. You can simulate creating billing requests in DP90 via menu: Goto->Simulate sales....
e. Ensure that your blank-entry for material determination in the DIP profile is the last entry
f. Ensure you have planned/actual costs on the service order (Cost tab)
g. Ensure your SOURCES are correct in the DIP Profile
h. Put a break-point in function module AD15_DLIS_FOR_OBJECTS_READ to debug DP90 problems. Check LT_DLIA for the
number of summarisation lines to be created in DP90.
i. Put a break-point in function module AD15_MATERIAL_DETERMINATION to debug DP90 problems
j. Put a break-point in function module AD12_ATTR_COVP to debug DP90 problems
k. Check the material origin flag is set in the Costing 1 tab on the material
l. Dynamically determine DIP Profile: Use user-exit IWO10009 with field-symbols to import (SAPLCOI3)gt_pmsdo[], Then
 use function module PMSDO_SAVE_DB to save new value
m. Individual materials for the multiple confirmations with the same data: ensure the document number is flagged in the
characteristic view
n. See OSS Note 350320 to delete saved DIP data
o. External services and DP90 - see here
p. If you are using planned costs in RRB, then these costs are agregated into groups in tables COSS, COSP, etc. This means that, as
standard, you cannot use the summarising/individual functions of the DIP Processor. An example would be if you planned the
same material twice; this is stored in COSP as a single record with the combined price of both materials. The DIP processor reads
this data and does not "know" it is two separate materials. All is not lost, you can utilize the RRB user-exits to rectify the
problem.

Common Errors:
AD01-155: Error during material determination for sales document item. Material Origin field was not checked in the
Costing tab of the material master.

IX-057: No cost management is provided for sales document (contract) item. This is usually because there is no requirements
type assigned to the contract item (see procurement tab).

No material appears in DMR/CMR. In the material master costing view, set the "Material Origin" checkbox (see OSS note
174382)

No expenditure item found.

Go back to the service order and check there are actual costs
Check your DIP Profile; specifically the sources section to ensure you are not filtering out any dynamic items
Check the dates on the initial DP90 screen

No materials transferred from the order.

Check that your material master Material Origin is checked (Costing 1 tab)

CO Configuration:
1. KL03: Check activity type validity dates
2. KA03: Check cost element validity dates
3. KA03: For labour, check cost element category is 43
4. KA03: Check if Record qty flag is set on Indicators tab
5. KA03: Check cost element assigned to your controlling area
6. KP26: Check that activity type is linked to cost centre
7. KP26: Check that there is a rate for the activity type/cost centre
8. KP26: Check are you using the correct version

Useful OSS Notes:

544123 FAQ: AD01 176 / AD01 312 / Resource Rel.Bill./Quot./Res.Ana.
545095 FAQ: Billing/accrual/quot./results analysis
364425 New analysis and print program for DPP profile
371769 Reset PTBL status after DMR deletion

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