PM Refurbishment Orders for Material Repairs Session 3606 Gail McKee Bayer Corporation

Bayer Bayer Chemicals Bayer CropScience Bayer HealthCare Bayer Polymers Bayer Corporation Business Services

PM Refurbishment Orders for Material Repairs Definition The Refurbishment Order is a special type of maintenance order that is used to refurbish (repair) repairable spares and for which an order type must be specially indicated.

PM Refurbishment Orders for Material Repairs Use Refurbishment orders are used to: plan & execute the actual repair of a material accumulate the repair costs (labor & material) Settlement of the order will transfer the costs of the order to the material.

PM Refurbishment Orders for Material Repairs Use of Split Valuation for Material Configured (for Bayer): Global Valuation Category: S - Condition Global Valuation Types: New, Repaired, Defective The Valuation Category S is activated for the plant(s) where the repairable materials are managed Valuation category S is assigned to a repairable material’s Accounting view (at plant level) Additional “Accounting views” are created for each Valuation Type for each repairable material

PM Refurbishment Orders for Material Repairs Configuration for Order Types Sample list: Allocation structure and Settlement profile Order type (flagged as Refurbishment) Number ranges for order types Assign order type to plants Assign maintenance activity type to order type Control parameters for completion confirmations Define checking controls (material availability) Define valuation of goods received

PM Refurbishment Orders for Material Repairs Process Flow for Refurbishment Orders

Refurbishment Order - Process Flow Inventory Display Material Master: Mov. avg. price is updated for “Repaired” PM Work Order to replace non-functioning spare in service 9. Order Settlement $$$ (to G/L acct) valuation type New SLoc CP01 8. Order Completion - TECO Goods Issue (reversal) for inventory receipt batch “Defective” Goods Issue for replacement spare - batch “New” OR “Repaired” 7. Goods Receipt for refurbished spare - batch “Repaired” (IW8W) Display Material Master: Qty is increased for “Repaired” valuation type Repaired SLoc CP01 6. Confirmation of man hours $$$ valuation type Defective SLoc CP07 5. Goods Issue from Inventory -“Defective” spare (and other required parts) $$$ 4. Change Order Add operations and components, put in process 1. MRP is run for Plant (SLoc 0002 excluded) 2. Evaluation of MRP List - Collective Display (Plant/MRP controller) 3. Create Refurbishment Order (IW81)

Material Requirements Planning (MRP) PM Refurbishment Orders for Material Repairs Material Requirements Planning (MRP) and Refurbishment Order in SAP R/3 4.6b

“New” & “Repaired” (functional) spares T-code MD07 Stock/Reqmnts Coll. Display (after MRP run) Highlight item & select button for details “New” & “Repaired” (functional) spares “Defective” spares

“New” & “Repaired” (functional) spares T-code MMBE Stock Overview “New” & “Repaired” (functional) spares “Defective” spares

T-code IW81 Create Refurbishment Order Special Order Type YFZ1 configured

T-code IW81 Create Refurbishment Order (Header data) Storeroom person... updates title and groups - Person responsible - Quantities - Refurbishment - Dates ...then saves the order Configured as “default” for order type YFZ1 “Val. type” only appears if material is set up with split-valuation

T-code IW32 Change Order (Operations) Selects “Put in Process”. This will print all selected shop papers (including the “pick list”) and save the order. Maintenance planner updates the Operations tab with an estimate for labor.

T-code IW32 Change Order (Operations) The defective material is automatically added to the Components tab.

T-code IW33 Display Order (Settlement rule) From configuration of the order type and the entry of the material number on the initial screen, the settlement rule is generated automatically.

Designated storage location for “Defective” spares Pick list printed in storeroom for defective spare Designated storage location for “Defective” spares

Note the batch “Defective” T-code MB1A Goods Issue (to Order) Note the batch “Defective”

T-code IW32 Change Order (add Components) After inspecting the defective pump, it is found that a mechanical seal and 2 bearings are required for the repair. The order is updated to add two materials and the pick list is printed for those 2 additional items.

Pick list printed in storeroom for required spare parts

T-code MB1A Goods Issue (to Order for spare parts)

T-code IW41 Individual Time Confirmation The actual time it took to repair the pump is entered for the order

T-code IW33 Display Order (Costs) Note: Total (actual) cost

T-code IW33 Display Order (Costs before GR) Balance = Actual total Act. qty = blank

MM03 Material’s total stock/price before GR & Settlement Note: Quantity is 1 Mov.avg.price is $258.63

T-code IW8W Refurbishment Goods Receipt Order number was entered on the Initial Screen. Field values are defaulted from that number.

MM03 Material’s total stock/price after GR & before Settlement Note: Quantity increased to 2 Mov.avg.price - unchanged

Select button (see next screen) Note new entry for Goods Receipt T-code IW33 Display Order (costs after GR - before Settlement) Select button (see next screen) Note new entry for Goods Receipt

“Act. Qty” now displays 1 PCE T-code IW33 Display Order (costs after GR - before Settlement) Balance of Actual cost is reduced by the material’s current moving average price from the GR. “Act. Qty” now displays 1 PCE

T-code KO88 Order Settlement NOTE: should be performed soon after the Goods Receipt is done

T-code KO88 Order Settlement (continued) Message pop-up SHOULD appear with green status lights...

Select icon to see details of the settlement T-code KO88 Order Settlement (continued) Select icon to see details of the settlement

T-code KO88 Order Settlement (compared to Order costs) Note: Settlement amount = Balance of order

T-code IW33 Display Order (Costs after settlement) Note: Balance is now -0- (blank); Order is then closed

MM03 Material’s total stock/price after GR & Settlement New Mov. avg. price = $399.32 1 @ 258.63 (old) 1 @ 540.01 (new) 2 @ 798.64 / 2

Displaying actual costs for the order From Settlement From GR for Order

Displaying Accounting Documents From GR for Order From Settlement

Configuration done for Refurbishment Order (for Bayer)

Configuration (continued)

Configuration (continued)

Configuration example for Allocation Structure The allocation structure created and then assigned to the Settlement profile.

Configuration example for Settlement Profile The settlement profile is created and then assigned to the order type for refurb orders. From previous config example. Note additional settings to have order settle to a material

Configuration example for Order Types From previous config example.

Configuration example for Split Valuation (for material) Created Valuation Types Defective, New and Repaired

Configuration example for Split Valuation Created Valuation Category S “Condition” and assigned Valuation Types New and Repaired

Configuration example for Split Valuation The valuation types Defective, New and Repaired are activated for valuation category S

Configuration example for Split Valuation The valuation category S is activated for the plants where the repairable material is managed.

PM Refurbishment Orders for Material Repairs Questions...

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