Refurbishment is carried out for materials. To do this, the stock of each material is split into three partial stocks which reflect the condition: new, refurbished, defective. Each partial stock receives a valuation price. Therefore, these materials have a condition-based, split valuation.
Condition-Based Material Valuation
The overall stock gets updated along with the partial stocks. The value of the overall stock is calculated from the sum of the stock values and the stock quantities of the individual partial stocks.
Refurbishment - Interal Process
The following steps are required for refurbishment through internal processing:
- Put the defective part on stock.
- Plan a refurbishment order specifying the defective part.
- Withdraw the defective part from stock.
- Perform refurbishment for the defective part.
- Return refurbished spare parts to the warehouse.
- Complete the refurbishment order.
Note
It is also possible to have parts refurbished externally by sending the defective part to your service provider.