In this blog you will learn about the end-to-end service process from service quote to financial reporting for Service with Advanced Execution and Resource-related Billing. This service process flow is based on SAP S/4HANA Cloud Private Edition, release 2023.
For an introduction into Service with Advanced Execution, please check this blog: Introduction to Service with Advanced Execution
Step 1: Service Quote
Create a Service Quote and enter one or multiple Execution Order items. The Execution Order item is used in the Service with Advanced Execution process and contains all commercial data for the service, like billing relevance and service contract assignment.
For more information about Execution Order item, please check this blog: Execution Order item
Step 2: Send the Quote to Customer and Accept the quote
The quote can be sent for approval to the customer. The status of the quote and quote items changes to Released.
After customer feedback, the quote can be Accepted or Rejected. When the quote is accepted, the status will change to Completed and a follow-up service order will automatically be created. All accepted execution order items are copied into the service order.
The follow-up service order can be found in the Transaction History of the service quote.
Step 3: Review and Release Service Order
In the Service with Advanced Execution process, the service order is used to manage all commercial data. You can check the billing relevance and DIP profile in the details of the Execution Order item. This information is copied from quote into service order, and can still be adjusted in the service order. For Resource-related billing the billing relevance is "Itemized Billing" or "Summarized Billing", and a DIP profile is required.
More information about Billing Relevance can be found in this blog: Billing Relevance
DIP profiles can be managed using SAPGUI transaction ODP1.
Detailed planning and execution is done in a connected maintenance order. To start the scheduling and execution process, the service order needs to be released and a maintenance order will be created. Details of the Maintenance Order are visible in the Execution Order Item details page and in the Transaction History.
Step 4: Plan and Release Maintenance Order
The maintenance order that gets created is an extended version of the standard maintenance order. The so-called "billable maintenance order" shows commercial data (like customer and service product), and it supports advance shipment of spare parts and customer-owned parts in the component list.
A task list can be determined based on the service product or equipment. After planning, the maintenance order can be Released to start service execution.
Releasing the Maintenance Order updates the Execution Status in the Service Order to 'In Execution'.
Step 5: Create Maintenance Confirmation(s)
Using the Enter PM Order Confirmation (IW41) app, you can create confirmations for the planned operations and components.
Step 6: Finalize the work
To finalize the service work, you can set the maintenance order status to Technically Complete. This status change in the maintenance order will automatically set the connected service order item to Completed and the Execution Status to 'Execution Done'.
Step 7: Review cost postings
In the Display Line Items - Margin Analysis app, you can review the different cost postings. The costs have been booked on the maintenance order as Accounting Object and are attributed to the Service Order item. You also see that the cost postings have resulted in matching revenue recognition and WIP postings, depending on the revenue recognition method.
Step 8: Resource-related Billing
Using the Create Resource-Related Billing Request - Service Order app, you can now start the creation of a Debit Memo Request based on the cost postings. Resource-related billing uses a Dynamic Item Processor (DIP) profile that is entered in the service quote or service order. This DIP profile defines how the service costs (labor and parts) are converted into billable items in the customer invoice. Resource-related billing can be either itemized billing or summarized billing. This is defined by the billing relevance in the execution order item.
The result is a Debit Memo Request
Step 9: Create and post billing document
Using the Create Billing Documents app, the Debit Memo Request (DMR) can be turned into a Billing Document.
The Debit Memo Request and Billing Document are included in the Transaction History of the Service Order.
Step 10: Review revenue postings
In the Display Line Items - Margin Analysis app, you can review the resulting revenue postings. You see that the revenue postings have also resulted in matching revenue recognition and WIP postings.
This concludes this end-to-end service process
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