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

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

3. 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.

4. 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.

5. 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

6. 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

7. PM Refurbishment Orders for Material Repairs
Process Flow
for
Refurbishment Orders

8. 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)

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

10. “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

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

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

13. 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

14. 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.

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

16. 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.

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

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

19. 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.

20. Pick list printed in storeroom for required spare parts

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

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

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

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

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

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

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

28. 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

29. “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

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

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

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

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

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

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

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

37. Displaying Accounting Documents
From GR for Order
From Settlement

38. Configuration done for Refurbishment Order (for Bayer)

39. Configuration (continued)

40. Configuration (continued)

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

42. 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

43. Configuration example for Order Types
From previous config example.

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

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

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

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

48. PM Refurbishment Orders for Material Repairs
Questions...

49. Thank you for attending!
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Session Code: 3606