This blog is only relevant if the business function: FIELD_LOGISTICS_OP is active in your S4 Hana system.
Objective:
In this blog, I will be focusing on the external refurbishment process in an upstream O&G industry. It’s very common for upstream O&G companies to have much of the equipment go for repair after a specific period of usage at offshore installations.
Assumption:
I have considered a Split valuated and serialized material for this business scenario.
Split Valuation details:
C1 – Fit
C2- Refurbished
C3 - Damaged
High level Steps:
- Requesting a material at offshore location using a maintenance Order
- Installation of new or refurbished material at the offshore installation.
- After a period, Equipment is no longer fit and requires a refurbishment.
- Damaged equipment will be dismantled, and Logistics process kicks in to initiate a returns process from offshore location to Supply base.
- Once the item is received at the supply base. Inspection/evaluation will take place – to decide if item needs to be refurbished or not. If it is decided to opt for refurbishment process – then a refurbishment order will be created and subsequently, it will generate a subcontracting PR – which will be used as a reference to create a subcontracting Purchase Order to send a damaged material to supplier+ spare parts and receive a refurbished product.
Note:
1. I will be focusing more on a logistics process rather than the financial transaction in the overall refurbishment process.
2. Also, note that SAP Field Logistics doesn’t have native integration with IW31/32/33, ensure to use the Fiori transactions for creating/changing the maintenance Order.
S No | High Level Steps | Fiori Application | Detailed Steps |
1. | Requesting a material at offshore installation | Create/Change Maintenance Order | Demand can be generated from Maintenance Order and user can have a flexibility to specify the valuation type in the batch field of the material line item in the Component’s tab of the maintenance Order. |
2. | Installation of Equipment (Fit material) at offshore Location | Equipment Installation and Dismant | Using this app: It is possible to install an equipment at an offshore Location. System posts a 261-movement type (GI against MO). |
3. | Dismantle of Equipment (Damaged Material) at offshore Location | Equipment Installation and Dismant | Using this app: It is possible to dismantle an equipment at an offshore Location. System posts a reversal movement type 262(Reversal – GI against MO). Also, user need to manually select the valuation type(C3) of the damaged product. |
4. | Initiate returns process to transfer the material from offshore platform to base location | Initiate Returns with Maintenance Order | This is a Field Logistics specific App: Initiate return with Maintenance Order will generate a Stock Transport Order and Outbound to return the material from offshore to Base Location. This app gives a functionality to select a specific a Valuation Type, serial No and other necessary details such “creation of OBD automatically, etc. |
5. | Then pack the deliveries into a container and assign it to a voyage | Pack Container App Manage Container Master Data App Manage Field Logistics Voyage | All the 3 Apps are Field Logistics specific App. 1. Pack Container App will be used to pack the outbound delivery to a specific container and eventually container can be assigned to a voyage. 2. Manage container master data app and Manage field Logistics Voyage are used to create a Container and Voyage respectively – which can be used in Pack container app |
6. | Receive container at Supply Base | Process cross Plant receipt App | This is also a Field Logistics Specific App. This app can be used to receive the container at offshore or at supply case. |
7. | Create refurbishment Order | Create Refurbishment Order | Post evaluation, refurbishment order can be created using this App. User can have a flexibility to specific the issuing Valuation type and receiving Valuation Type. This app should also generate a subcontracting Purchase requisition, provided subcontracting indicator is marked. |
8. | Process Subcontracting Purchase requistion | Create Purchase Order | Buyer can convert a Subcontracting Purchase requisition to a Subcontracting Order |
9. | Issue goods to Subcontracting Vendor | Subcontracting Monitor or ADSUBCON T code | Using a ADSUBCON or via Subcontracting Monitor– user can issue a goods to a supplier. Material with Valuation type C3 will be issued to a supplier. |
10. | Receive goods back from the supplier | Post Goods Movement | Use this app to perform a goods receipt against a Subcontracting Purchase Order. You can note that system has already selected a valuation type C2. |
