Service Management in SAP S/4HANA Cloud - Service
You have already been introduced briefly to the scope items belonging to the line of business solution SAP S/4HANA Cloud - Service. These scope items aim to support a company's service management processes in the best way possible.
Here, you will now find some more information about the various scope items, before doing a deeper dive into what each scope item has to offer in the next units of this course.
As stated before, there are also several other scope items available that do not directly belong to the SAP S/4HANA - Service line of business (LoB), but that can still be used to enhance the provided functionality. These scope items will greatly enhance the coverage that the system provides, for functional requirements a customer might have. An example is scope item Warranty Claim Management - Supplier Recovery Processing (5HR).
As mentioned above, this scope item covers the process where a warranty claim can be created, that can then be forwarded to the respective supplier for a reimbursement. The scenario for the scope item covers the relevant steps starting with the creation of a claim (based on a performed repair), continuing with the validation for completeness, eligibility for reimbursement, and the application of the correct prices for material, labor activities, and so on.
Service Order Management and Monitoring (3D2)
The Service Order Management and Monitoring scope item is one of the core scope items of the SAP S/4HANA Cloud - Service solution. It encompasses for example the following elements:
Service Order Processing with SAP Field Service Management (49X)
This scope item describes end-to-end business scenarios in which SAP S/4HANA Cloud service order processing and SAP Field Service Management are combined. Once a service order is created and released in SAP S/4HANA Cloud, a service call and the corresponding activities are automatically created in SAP Field Service Management.
Service Quotation (4GA)
See the graphic below to learn more about scope item Service Quotation (4GA):
In-House Repair (3XK)
In-House Repair supports companies that offer a repair and maintenance service for products. This service is performed in-house at repair centers. The in-house repair process contains the core activities for prechecking, planning, repairing, and triggering billing for the repair objects.
With In-House Repair, you can use the following apps to manage the activities in the in-house repair process:
- Manage In-House Repairs: use this app to create and process in-house repairs and add repair objects to the in-house repairs.
- Perform Prechecks: use this app to decide whether each repair is marked for repair or sent back to the customer.
- Plan Repairs: use this app to schedule the object for repair. In the repair order, you define the service employee who is to perform the repair.
- Perform Repairs: use this app to perform the repair based on the repair order.
- Prepare for Billing: use this app to trigger the billing process for the repair object.
Service Contract Management (3MO)
Choose each option below to learn more about the functionality regarding service contracts in SAP S/4HANA Cloud:
Service Contract Management with Advanced Variant Configuration (6GU)
Scope item Service Contract Management with Advanced Variant Configuration (6GU) is similar to scope item Service Contract Management (3MO) in the sense that it supports the process of creating and using service contracts. What is specific about this scope item is that it supports the use of configurable products in a service contract.
Recurring Service (4X5)
The Recurring Service scope item (4X5) can be used to plan, schedule, and organize periodic services that occur repeatedly at certain intervals (like every three weeks).
An example would be regular, periodic maintenance like changing a filter in a technical object. The planned recurring service helps save costs resulting from unforeseen outages or breakdowns. Services are also planned in a better and more transparent way, and resources (like personnel or materials) are scheduled more efficiently.
A recurring service can be implemented using the maintenance plan functionality. Various types of plans are available in SAP S/4HANA Cloud - Service like time-based and performance-based single cycle plans. A multiple counter plan is also supported. Various counters are combined in such a plan (for example: the number of hours combined with kilometers driven).
Solution Order (4GT)
You can use the navigation buttons in the bottom right corner to see what more Marissa has to say about a solution order as supported by scope item Solution Order (4GT):
Subscription Management with Sales Billing (57Z)
SAP Subscription Management with Sales Billing provides a simplified, automated approach to manage and bill subscriptions. The scenario provided by this scope item unites the capabilities of both SAP S/4HANA Cloud – Finance and SAP S/4HANA Cloud – Sales to establish an integrated subscription management process.
Subscription Management with Convergent Invoicing (5IK)
SAP Subscription Billing provides a simplified, automated approach to manage and bill subscriptions. SAP S/4HANA Cloud provides functionality for financial processes of invoicing, accounting, and controlling. Scope item Subscription Management with Convergent Invoicing (5IK) unites the capabilities of both solutions to establish an integrated subscription management process.
Subscriptions are created using an API in SAP Subscription Billing. SAP Subscription Billing manages the subscription life-cycle, charges recurring rates, prices usage data, and prepares the billing data at the end of each billing cycle. The billing data is forwarded to SAP S/4HANA Cloud Convergent Invoicing where tax amounts are added and the invoice is created. The invoiced amounts are then available in receivables management, contract accounting, contract-based revenue recognition (CBRR), and controlling.
Procurement for Service Management (3NI)
Service management solutions like SAP S/4HANA Cloud - Service integrate with procurement. An example of this is the creation of purchase requisitions with reference to service order lines and the subsequent processes required, like creating a purchase order which is to be sent to a supplier and then posting the goods receipt later on.
Scope item Procurement for Service Management (3NI) covers this integration of a service management solution with procurement. More details can be found in a subsequent topic covering the Procurement for Service Management (3NI) scope item.
Intercompany Billing for Service Documents (53Y)
Choose each highlighted element to learn more about this element as used in an intercompany process involving a service:
Scope item Intercompany Billing for Service Documents (53Y) supports the process described above.
Credit Memo Processing for Service Management (4GG)
A credit memo request can be created with reference to an (original) invoice. Either within a service process in which service contracts are used, or within a service process where service orders are directly invoiced (based on a confirmation) to the customer.
The credit memo request can be set up so that approval is required. Following approval, a credit memo can then be created and sent to the customer.
Scope item Credit Memo Processing for Service Management (4GG) supports the above process.
Managing warranty claims
There are two scope items available in SAP S/4HANA Cloud to support warranty claim management.
Choose the highlighted elements to learn more:
Analytical capabilities: Service Monitoring and Analytics (43B)
Scope item Service Monitoring and Analytics (43B) was introduced to provide the users of the SAP S/4HANA Cloud - Service solution with more monitoring and analytical capabilities to keep informed about their Service Management processes.
Scope item Service Monitoring and Analytics (43B) helps the customer service manager to ensure on-time service delivery by monitoring the service orders for completeness and whether they are overdue or not.
More details can be found in an additional topic about this scope item.
Event-Based Revenue Recognition - Service Documents (3M3)
The Event-Based Revenue Recognition - Service Documents scope item (3M3) is an example of a scope item from another line of business from SAP S/4HANA Cloud (Finance in this case) that is used in SAP S/4HANA Cloud - Service. The same applies to scope items 3M4 (using the IFRS standards) and 3M5 (using the US GAAP standards).
Event-based revenue recognition allows you to manage your revenue recognition for your service contracts with customers if you want to distribute your service-related revenue evenly on a monthly basis. It does this according to the duration of a billing plan that you have set up in advance. In a later topic, we discuss all the key capabilities of this scope item for revenue recognition in more detail.
Since the 2108 release of the SAP S/4HANA Cloud system, a method for revenue recognition called Revenue Recognition Based on Service Confirmations is available. Using this method, after a period-end closing run, revenues are already recognized for service order items, even if no invoice has been created yet. Service products, expense items, pick-from-stock service part items, also as sub-items of a service bundle, are all supported with this method. It uses CCOCF (Service Confirmation-Based-Service Order) a the recognition key. See also the detailed content for the relevant scope items for revenue recognition.
Since the 2011 release of SAP S/4HANA Cloud - Service, revenue analysis is enabled for fixed price service orders (SVO2) using event-based revenue recognition.
Accounts Receivable (J59)
The Accounts Receivable scope item (J59) is also belonging to the Finance line of business. It is used in SAP S/4HANA Cloud - Service to manage open receivables that are the result of billing customers for services provided. It is used, for example, in combination with service contracts (see scope item Service Contract Management (3MO)).
See a later unit of this course and also the SAP S/4HANA Cloud - Finance line of business solution for more details.
Adapting the solution
SAP S/4HANA Cloud - Service contains preconfigured content: the scope items presented earlier. Some of these scope items allow or even require some limited configuration. One way of doing this is using the so-called Self-Service Configuration User Interfaces (SSCUIs).
The creation of service teams and some pricing-related configuration settings are some examples of what can be configured for the Service line of business in SAP S/4HANA Cloud.
Start the following demonstration to see where you can find the available configuration options for Service in SAP S/4HANA Cloud, public edition: