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Product and Topic Expert
Product and Topic Expert
In this blog post, I will share highlights on Service in SAP S/4HANA 2021. We introduce the new enterprise organization model, enabling direct access to sales organization structure from S/4HANA Sales, easy use of enterprise service organizations and service teams. In addition, we enhanced the integration to SAP Field Service Management which enables the end-to-end process of field services and service order management. There are more to check out.

I have updates on the following areas.

  • Enterprise Organizational Model

  • Integration with SAP Field Service Management

  • In-House Repair

  • Service Order Management

  • Service Contract Management

Enterprise Organization Model

Introducing a new organization model in service transactions

Service in S/4HANA 2021 introduces the enterprise organization model for customers to have
a new option to manage enterprise organizations apart from the existing one and legacy organization model. The enterprise organization model enables direct access to sales organizational structures from S/4HANA Sales and easy use of enterprise service organizations and service teams.

The enterprise organizational model includes the followings:

  • Sales organizational structure from SAP S/4HANA Sales 

  • Enterprise service organization (optional)

  • Service team (optional)

The Enterprise Organization Model aims to provide a more convenient organization option
for green field customers, which

  • Eliminates double maintenance of sales organizational structures

  • Allows multiple assignment of sales offices between sales groups and sales areas.

  • Allows service organizations to be defined not as a form of master data but in customizing
    which is directly transported to the production system.

After adopting the enterprise organizational management, some organization related functions
are not available in the following functions, for example:

The legacy org. model of S/4HANA Service is mainly for live customers and it is master data based org. model.

Service Order Management, Service Contract Management, In-House Repair
support both options.

You can check related Information Enterprise Organizational Management in SAP Help Portal. 

Integration with SAP Field Service Management

Enabling end-to-end process with SAP Field Service Management

The enhanced integration of SAP S/4HANA and SAP Field Service Management (FSM) provides
the bi-directional replication, enabling end-to-end processes of field services. Apart from transferring service orders from S/4HANA, it is also enabled for service technicians to adapt ad-hoc requests
on site and adjust service orders.

Previously it was possible

  • Replicate service orders from SAP S/4HANA to SAP Field Service Management

    • Each service order is replicated to FSM as a service call, each service item
      is replicated to FSM as an activity under the corresponding service call

    • Service parts are replicated to FSM as reserved materials tied to the service call,
      which can be used later by a technician

    • Expense items are not replicated to FSM

  • Replicate technician assignment (update technician & planned start date/end)
    from SAP Field Service Management to SAP S/4HANA

Newly introduced in 2021

           From FSM to S/4HANA

  • Replication of newly created service calls from SAP Field Service Management (FSM)
    to SAP S/4HANA as service orders. In an emergency case the FSM dispatcher could create
    a new service call directly in the Field Service Management system.

  • Replication of newly created activities from SAP FSM to SAP S/4HANA as service order items

  • Replicate effort types of approved time effort from SAP Field Service Management to SAP S/4HANA as service types in service confirmation items.

Picture: Updating a newly created activity from SAP FSM to SAP S/4HANA as a service order item

          From S/4HANA to FSM

  • Replicating revoked release status update of Service Order to SAP Field Service Management Service Call. When the status of an already released S/4HANA Service Order
    is set back to 'In Process', the status of the corresponding FSM Service Call is updated from 'Ready to Plan' to 'New'.

Picture: When the status of a released service order is changed to 'In process', the status in
FSM service call is updated to 'New'.

In-House Repair

In-House Repair process was introduced in SAP S/4HANA 2020. In 2021, various new features
are delivered to bring operational excellence. A simple warranty check is enabled on Repair objects. The end dates of Customer warranty and Vendor warranty are displayed on Repair Objects upon equipment data. These warranty end dates are displayed and used as filter criteria in all repair object relevant apps.

Service Contract Determination

When adding a repair quotation item or a repair order item, it is enabled to assign the applicable contract item or choose an applicable contract when having multiple choices available. This contract item is:

  • Displayed under Item Details of the repair order or the repair quotation

  • Considered in pricing

  • Copied to the repair order or the repair confirmation which is created as a follow-up

Picture: Number of contract items that are related to this in-house repair is displayed
in the Manage In-House Repairs app, based on account and organizational data

Picture: If the sold-to-party has more than one contract item, a dialog is displayed,
and you can select the applicable one.

Warranty dates determination

The end dates of Customer warranty and Vendor warranty are displayed on Repair Objects upon equipment data. These warranty end dates are displayed and used as filter criteria in all repair object relevant apps. This can support service representative to decide on the next step to create a repair quotation or a repair order.

Picture: The end dates of the customer warranty and the vendor warranty are displayed, if available for the equipment.

Repair quotations with multiple repair objects

This feature allows Service representatives to offer a combined repair quotation for multiple repair objects. It is possible to provide a consolidated cost estimate with multiple items. When a customer sends two devices to repair at the same time, service reps can first create an In-House repair for these. And precheck is performed on each of them and created a repair quotation for the first object. For the second object, then there will be a new option to add it to the existing quotation apart from creating a new quotation.

Picture: You can add the repair object to a quotation in status New or Under Review that has already been created for a repair object of the same in-house

Add repair objects based on customer

The dialog to add repair objects in the Manage In-House Repairs app filters for the current customer that is assigned to the equipment. The filter is set with the sold-to party of the in-house repair. You can change this filter value.

Picture: The filter is set with the sold-to party of the in-house repair. You can change this filter value and/or refine your search by product, equipment, or serial number.

Service Order Management

Service Rendered Date on Service Confirmation

Service order introduces ‘Service Rendered Date’ which can be defined on service confirmations by using past dates than a system date. This is intended to support a business scenario when service confirmation is completed later than the actual service delivery date. This supports accurate tax calculation with the date of actual posting date in billing documents.

Picture: Example to show the result of using Service Rendered Date in Service Confirmation. The service is delivered on May 28, but the service confirmation is completed on June 3. In this case, you can use 'service rendered date' as of May 28, then material document and controlling document will have the posting date of May 28 instead of June 3. 

Service Contract Management

Header price agreement in Service Contracts

A new condition type DSC3 (discount for service contract) is enabled to define price agreements
at the header level of service contracts. It can be used to apply additional discounts to the service transaction items (such as service order items) when service contract items are assigned to service transaction items after service contract determination.

Picture: A new tab “Price Agreement” on the header section was introduced. Condition type DSC3 can be selected with given access sequence.

Picture: Follow up service orders with reference to this contract and
within the pricing condition validity period will now apply this discount on line item level.

 Ad-hoc Billing Plan in Service Contracts

Service contract management enables ad-hoc billing plan which provides complete flexibility
on when and how much you bill your customers. Enablement of ad hoc billing is a structured method of service contract billing that enables you to define billing values and billing dates manually.


  • Manual definition of billing plan items and billing dates during contract runtime

  • Definition of individual billing amounts for each individual billing period

  • Billing of Remaining Net Value: Easy 1-click action to automatically generate
    a billing request line with all the remaining net value of the service contract item

  • Billing Finalization: Ad-hoc billing allows a total billing value higher, lower, or equal
    to your item net value. The billing finalization indicator is used to let the system know
    that no more billing value is expected. Based on the indicator actions are triggered
    to complete the item

  • Item Fixed Price: Ad-hoc billing items can be set to a fixed price by using
    a price condition type of manual item amount (PMV1)

Picture: New features for ad-hoc billing are available

Screen shot: Ad-hoc billing items can be set to a fixed price by using a price condition type
of manual item amount (PMV1). By doing so, the net value of the ad-hoc billing item
is always fixed at the manual item amount that you specify, despite the change to its validity period.

Thanks for reading. For more new features, you can check What’s New - Service
in SAP Help Portal.

In case if you are interested, check out
Link Collection for SAP S/4HANA Cloud for Service

For more information on SAP S/4HANA, check out the following links: 

  • SAP S/4HANA PSCC Digital Enablement Wheel here

  • SAP S/4HANA Community here

  • Inside SAP S/4HANA Podcast here

  • Join the SAP S/4HANA Movement

  • Best practices for SAP S/4HANA here

  • Help Portal Product Page here

  • Feature Scope Description here

  • What’s New here

  • Link Collection for SAP S/4HANA 2021 here

  • Link Collection for SAP S/4HANA Cloud for Service here


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