Analyzing Sales-Order-Cycle for Services

This section demonstrates the service process flow. In this scenario:

• A customer orders maintenance service for their forklifts
• A customer order is created with reference to the customer order item
• A Work Breakdown Structure (WBS) is assigned to the customer order item, which serves as the account assignment for:
  • Actual costs
  • Actual revenues
• The WBS acts as the cost object
• For profitability accounting evaluation, the WBS is billed according to its stored billing rules

The figure below shows a newly created customer order with:

• Customer number: 1000000
• Product number: FLSERV01 (Forklift Service 01)
• Planned service duration: 10 hours

The item type TAD indicates this is a service item, requiring only invoice creation without delivery.

The sales order item requires assignment to a Work Breakdown Structure (WBS) as the cost object. Specifically:

• WBS number: FLSERCOLMB
• Requirement type: "E21" (assigned to ensure revenue allocation during WBS billing)

While this requirement type controls WBS result determination, it is configured to calculate without planned costs. The internal price is adopted from the product master record's planned service price in the conditions.

Financial Overview:

• Planned revenue: EUR 2,700
• Planned costs: EUR 2,000
• Planned contribution margin: EUR 700

The pricing is determined by:

• Sales price: maintained in the conditions
• Internal price: derived from the standard price
• Both prices are maintained in the product master record

Margin Analysis – Incoming Sales Orders

Incoming customer orders can be evaluated in Margin Analysis using an extension ledger. This evaluation requires:

• Use of a CDS-based report
• Standard report provided in SAP S/4HANA

The figure above displays incoming sales orders, including sales order number 21 used in this unit.

The report provides navigation capabilities to all corresponding data, including:

• Sales order details
• Product master record
• Customer master record

Employee service delivery is allocated directly from the service cost center to the Work Breakdown Structure (WBS). The actual costs are calculated by:

1
Actual Costs = Actual performance quantity × Planned hourly rate

Example Calculation:

• Hours worked: 10
• Hourly rate: EUR 200
• Total cost: EUR 2,000

In this SAP S/4HANA Public Cloud system, settlement occurs in two ledgers:

• Leading ledger "0L"
• Parallel ledger "2L"

The customer order is invoiced immediately with:

• Fixed price: 10 hours at EUR 270 per hour
• Total invoice amount: EUR 2,700

The process flow for sales order "110" displays the completed invoice and corresponding financial document.

Document Creation Requirements

Two key conditions must be met:

1. Document creation settings must be active
2. Correct billing type (F2) must be assigned

Note

When the "Automatically post billing documents" indicator is OFF, billing must be released in a separate step.

Process Flow Analysis

The sales order process flow provides:

• Access to all documents
• Overview of sales order cycle progress
• Ability to analyze billing-related accounting documents
• Verification of actual revenue assignment to WBS

The general journal entry confirms that actual revenues are posted to the WBS, enabling result evaluation based on:

• Actual costs
• Actual revenues

Adjusted Revenue Calculation:

• Currently calculated only upon invoice creation
• Visible in margin analysis report
• WBS has an assigned recognition key that calculates adjusted revenue based on percentage of completion (POC)
• POC formula: Actual costs ÷ Planned costs

Current Process Limitation:

• Customer order item uses requirement type E21 (Project Sales without Planning)
• This requirement type ignores planned values
• Adjusted revenue appears in reports only after invoice posting