Optimizing Common Service Processes with Templates, Service Bundles and Product Proposals

Objectives

After completing this lesson, you will be able to:

  • Use templates, service bundles and product proposals to standardize repetitive tasks

Service Order Templates

Introduction

Creating and using a service order template is also available in SAP S/4HANA Cloud Public Edition, service. When creating a service order, it is possible to use a template to copy a predefined set of service tasks into the new service order.

You use service order templates to standardize repeatable service tasks and to minimize the effort required for individual service transactions. You can also use a service order template to create a set of working instructions for a service technician.

The following are characteristics of a service order template:

  • It allows for the definition and storage of reusable service descriptions including services, expenses and materials.
  • It reduces the work involved when creating new service orders.
  • It helps with creating standard tasks for service processing.
  • It describes the scope of planned services and not the actual execution of these services.
  • It acts as a recurring set of service tasks for maintenance purposes that can be used in a maintenance plan (recurring service).

The Creation of a Service Order Template

The app called Manage Service Order Templates is the central app used for creating and editing service order templates. It is part of the set of apps a business user can access when they are assigned the Customer Service Manager (SAP_BR_CUSTOMER_SRVC_MGR) business role.

The app has a filter area where filter criteria can be entered, based on which a list of service order templates can be shown.

From within the Manage Service Order Templates app, you can navigate to the details of a specific service order template where various types of items can be added. The field Item Category is used to identify these various types of items. One example of this is a service item, which uses item category STP1 SrvItem (Tmplt). Another example is a fixed price service item, which uses item category STP2 SrvItem FPrc (Tmplt).

Using the Manage Service Order Templates app, it is possible to create new service order templates and later edited them. Attachments (such as PDF files) can be uploaded to a service order template. In the screen area called Notes, it is possible to add a set of working instructions to the template to be copied to a real service order later. Links can also be added to a service order template, if applicable.

When a service order template is created and edited, the template must be released before it can actually be used to create real service orders. The Create Service Order option is also available from within the template, so it is also possible to create real service orders from a service order template.

It is also possible to create a template for a fixed-price service order. This of course in addition to being able to create templates for Time and Material (T&M) service orders.

Once a fixed-price service order template is released, a fixed-price service order can be created based on this template. The service order type of this service order is picked automatically based on copy control customizing settings and the products are proposed based on the products maintained in the template.

Note

Service bundles can also be used in a fixed-price service order template. The integration with a maintenance plan for a service is supported in the same way as for a regular service order template (the T&M scenario).

Integration with Solution Process Recurring Services (4X5)

Service order templates are also used when working with scope item Recurring Services (4X5). They act as a list of tasks that will be copied into every service order generated out of a maintenance plan periodically.

Service Bundles

Introduction

In this topic, the specific characteristics and available types of service bundles (normal and fixed price) are discussed. It also covers how a service bundle can be integrated to the processes in Service Order Management.

A service bundle allows for the bundling of different products such as services, service parts, and expenses in one item in a service document. These different products are visible as service order items in a service document, such as a service order. Depending on the type of service bundle, only the product for the service bundle is billed (fixed price service bundle); the assigned products of the service bundle (visible as subitems in the document) are only used to execute the service and not billed (we use a fixed price service order as an example here). For normal service bundles (not fixed price) this works the other way around: the subitems are billed to the customer, not the main item.

The main purpose of a service bundle from a business perspective is to enable the analysis of the contribution margins of services rendered at the level of the main item.

A fixed price example: in SAP S/4HANA Cloud Public Edition, finance, the line item of the service bundle is visible as an account assignment object. The subitems are not visible as separate account assignment objects. They are linked to the account assignment object, which is the main item/service bundle item. All costs and revenues are posted to the single account assignment object of the main item. This also means that the contribution margin is calculated for the product of the main item/service bundle item. Therefore, you will see a margin for the complete service bundle in SAP S/4HANA Cloud Public Edition, finance.

When using a normal (not a fixed price) service bundle, each subitem will be visible as a separate account assignment object.

If you want to set up a (fixed price) service bundle, assign the general item category group Service Bundle (SVBL) to the service product material master in the General Information view.

Types of Service Bundles

As mentioned, different types of service bundles are available in SAP S/4HANA Cloud Public Edition, service. Which one to use depends on the business requirements. A normal service bundle would be a service bundle where the main item has item category SVB1 in the service order. Besides this type, there are also fixed price service bundles: the item category for the main item for a fixed price service bundle is either SVB4 or SVB6 in the service order.

When using an SVB1 service bundle, the customer is not invoiced the main item of the service bundle. Standard subitems can be used where the customer is billed for the actual consumption of labor and materials and fixed price subitems can also be used, where the customer is billed using previously agreed prices.

For an SVB1 service bundle, subitems can be assigned to service contracts. The main item cannot be assigned to a service contract.

The profit center is determined for the subitems of an SVB1 service bundle. The system does not determine a profit center for the main item. It is possible to manually change the profit centers assigned to the subitems.

For an SVB1 service bundle, the main item is priced at 0. The customer is only billed for services, service parts, and expenses defined in the subitems. Taxes are also calculated at subitem level.

For fixed price service bundles, things are a little different. A fixed price service bundle again consists of a main item and one or more subitems. In the case of a fixed price service bundle, the customer receives a billing document for the main item. Subitems are not invoiced separately.

The main item of a fixed price service bundle can be assigned to a service contract. It is not possible to assign subitems of a fixed price service bundle to service contracts.

The profit center of a fixed price service bundle is determined for the main item. The system does not determine a profit center for the subitems. It is possible to manually change the profit center of the main item.

The price of the main item of a fixed price service bundle is determined automatically if appropriate condition master data has been maintained (condition type PPR0). It is possible to apply manual and automatic surcharges and discounts. Condition type PMP0 can be used to manually change the price of the service bundle.

A fixed price service bundle is handled as one unit for taxation purposes. If a subitem must be taxed at a different rate, it must either be assigned to an additional service bundle or be added as a single item to a service order.

One of the differences between item category SVB6 and SVB4 (both for fixed price service bundles) is that SVB6 supports partial billing to the customer.

The following table summarizes the three types mentioned above:

Frequently Asked QuestionsService Order (SV01) With Service Bundle (SVB1)Service Order (SV01) With Fixed Price Service Bundle (SVB4) or (SVB6)Fixed Price Service Order (SV02) With Fixed Price Service Bundle (SVB4)
Which types of subitems can I use to create a service bundle?Standard subitems and fixed price subitemsFixed price subitemsFixed price subitems
Is service contract determination supported?Yes, for subitemsYes, for the main itemNo
Is profit center determination supported?Yes, for subitemsYes, for the main itemYes, for the main item
Where do I define the price of the service bundle?Each subitem has a priceIn the main itemIn the main item
Where is the price data obtained from?From condition master dataFrom condition master dataFrom condition master data
Can I also assign a price manually?Yes, to fixed price subitemsYes, to the main itemYes, to the service order header and the main item
Which items are used to calculate taxes?All subitemsThe main itemThe main item
Can I use partial billing?Yes, for standard subitemsYes, if you create a fixed price service bundle SVB6No
What is billed?The confirmed quantity of consumed labor and materials for standard subitems. The fixed price for fixed price subitems.The fixed price defined for the main itemThe fixed price defined for the header or the fixed price defined for the main item
How are the costs determined?Using the consumption reported with service confirmation items. For procured service parts and services, the price in the supplier invoice is used.Using the consumption reported with service confirmation items. For procured service parts and services, the price in the supplier invoice is used.Using the consumption reported with service confirmation items. For procured service parts and services, the price in the supplier invoice is used.
Which item is used to create the account assignment object?Each subitem has its own account assignment objectThe main itemThe main item
What is the profitability product?The service product assigned as the main itemThe service product assigned as the main itemThe service product assigned as the main item
Are subitems included when the contribution margin is determined?Yes, although each subitem has its own account assignment object, the service product assigned to the main item is used to aggregate costs and revenues across the entire service bundleYes, the account assignment object of the main item is used to aggregate costs and revenues across the entire service bundleYes, the account assignment object of the main item is used to aggregate costs and revenues across the entire service bundle

Process Steps for a Service Order with a Service Bundle (Fixed Price)

Step 1: To create a service order, choose Create Service Order followed by Quick Create in the Manage Service Orders SAP Fiori app.

Step 2: Choose service order type Fixed Price Order. Enter the mandatory data, and select the Service Bundle checkbox. You can now enter the bundle product and its item products. Choose Save and Edit.

Step 3: Check the hierarchy of the service bundle and its subitems. A subitem can be, for example, a service, an expense, or a service part. You cannot enter a product that represents a service bundle as a subitem. The corresponding item categories are determined automatically and you can check them here.

Note
Normal and fixed price service bundles use different item categories for the main item (SVB1 for a normal service bundle versus SVB4 and SVB6 for fixed price service bundles).

Step 4: The price of the main item of a service bundle is determined automatically if appropriate condition master data has been maintained (condition type PPR0). The prices of the subitems are ignored. Manual and automatic surcharges and discounts can be applied. You can manually change the price of the service bundle using condition type PMP0.

Step 5: The next step is the release of the service order. This is when the account assignment object related to the main item is created. This account assignment object is inherited in the subitems.

Note
For a time & material (not fixed price) service bundle, each subitem has its own account assignment object.

Step 6: If there is a (released) service part, that is part of the service bundle, then a purchase requisition is created automatically. The account assignment object for this purchase requisition is the account assignment object of the main item. This account assignment object is used in the complete procurement process. Purchase order, goods receipt, and supplier invoice all post their values to SAP S/4HANA Cloud Public Edition, finance with this account assignment object.

Step 7: For the service part, you can post a goods receipt after it has been ordered and sent to you by the supplier. For the other items in the service order, you create service confirmations once they have been executed/occured. When creating the service confirmation, you can select the relevant items that should be included. You can see the main item product ID also and with it, the description of the service bundle.

Step 8: The hierarchy of the service bundle items is copied into the service confirmation automatically. The item categories are also determined automatically. The main item is copied into the service confirmation to keep the complete hierarchy in the confirmation. Once the service is fulfilled, the service technician completes the service confirmation.

The working hours are now booked in an automatically created time sheet, using the account assignment object of the main item. The expenses are booked to the account assignment object of the main item. The procured service part and the product for the service bundle do not generate any postings.

Step 9: When the service order is completed, only the main item (representing the whole service bundle) is released for billing. After this, the billing document request (BDR) is listed in the billing due list.

Step 10: Create a billing document for the service order. You have to save the billing document and then post it to Financial Accounting in SAP S/4HANA Cloud Public Edition, finance.

All involved transactions and documents in this process post their values to the account assignment object of the service bundle main item. In the Service Actuals app, you can check all postings made so far. From here, you can also jump to for example the Display Line Item Entry option. You can then check the details of the postings made so far to the account assignment object of the service bundle main item.

Partial Billing for Time & Material Service Bundles

Release for billing can be done for a service confirmation, if:

Status Released for the service bundle main Item is enough to be able to do partial billing of the completed subitems, without having to create confirmations upfront for the other subitems.

Product Proposals

Using a Product Proposal During Service Order Creation

The following are the steps that are required to be able to use the product proposal functionality available in SAP S/4HANA Cloud Public Edition in a service order.

A bill of material is created for a product (TG20 in this example):

  • Service parts are usually maintained as components with item category Stock item (L).
  • Services are maintained as components with item category Non-stock item (N).
  • Expenses can also be maintained (not part of this example) as components with item category Non-stock item (N).

A technical object of the type Equipment is created. In the view Serial Number Data, the product for which the bill of material was maintained, is entered as a reference material.

A new service order is created with the equipment as a reference object. The assigned reference material (with the bill of material) is displayed in the service order as the Reference Product.

In the toolbar of the item list, the option Product Proposal is available.

A list of selectable products (based on the bill of material) is shown in a new pop-up screen. The first line shows the previously entered equipment. The reference product of the previously entered equipment is also shown.

All items from the bill of material are shown and can now be selected and copied into the service order.

All selected products are shown and the service order can be released.

Later on, the service order is also visible on the tab Service Orders of the entered equipment.

More Options

A new service order can also be created without entering the equipment number. The product with the bill of material can be entered directly in the service order as the reference object (field Product ID).

A material BOM can be used and be entered in the Construction Type field in the equipment. Besides this option, an equipment BOM can also be used (i.e. a BOM that is defined specifically for this one equipment). In this equipment BOM, a material that itself has a BOM can also be used.

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