Creating Service Orders

Service order management is an area in Service that provides a variety of functions that allow you to set up end-to-end service processes. It is integrated with solution order and service contract management as well as with procurement, inventory management, pricing, billing, and financials.

You can use Service Quotations to provide cost estimates to your customers for a requested service. Service quotations contain all the information required to plan and execute a service. In addition, you can monitor and process service quotations that have been synchronized from external systems.

Service quotations consist of a header and one or more items such as service products, service parts, and expenses. There are two types of service quotations: standard service quotations (SVQ1) and fixed price service quotations (SVQ2).

The following diagram shows the item categories that you can use for a standard service quotation (SVQ1) as well as the item categories of a follow-up service order (SVO1).

The following diagram shows the item categories that you can use for a fixed price service quotation (SVQ2) as well as the item categories of a follow-up service order (SVO2)

You can use service orders to specify the details of agreements between a service provider and a service recipient, in which the service recipient orders one-off services from the service provider. Service orders contain all information needed to plan, execute, and bill for a service. You can use the Manage Service Orders app to create, edit, and display service orders.

Service order management supports two types of service orders: service orders (SVO1) and fixed price service orders (SVO2).

• Service orders (SVO1): service orders that are billed based on the consumption of time and materials when the services have been completed.
• Fixed price service orders (SVO2): service orders for which a fixed price that covers all service costs has been agreed upon between the service provider and the customer before the execution of the service starts.

You can use service confirmations to report back actual service duration, materials used, and expenses incurred during service execution. These particulars are used as a basis for keeping track of working times, updating stock level for service parts, processing invoices, and carrying out cost accounting. You can create service confirmations for service orders that have the status Released and only for service order items that have the status Released. You can also cancel service confirmations, provided that they aren't released for billing yet.

Service order management supports the following types of service confirmations:

• Service confirmations based on service orders: These service confirmations are used for controlling and billing.
• Service confirmations based on fixed price service orders: These service confirmations aren’t used for billing. They’re used for controlling only (for capturing actual costs).

All service confirmations are used for posting costs. Depending on the billing relevance at the item level, either the service confirmation or the service order is used as the basis for billing.