Consulting

Transforming

Enterprises

Project Name

JK Cement

Title

Maintenance Services procurement

Version

1.0s

Document ID

JK_BBP_PM_BP_0400_V1.0

Author

Akhilesh Kumar Singh

Reviewed By

XXXXXXX XXXXX

Date

01.11.2012

Business Blue Print- Business Process- Plant

Maintenance
File Name:
Responsibility:

PM

Release:

ECC 6.0

Status:

Closed

IMPLEMENTATION_BLUE PRINT
Business Process Details
Module
Process
Sub Process /
No
Description

Sr No
1.1
1.2

Plant Maintenance
Maintenance Services procurement
Maintenance Services procurement

JK_BBP_PM_BP_040
0

Maintenance Services procurement processing

Business Process Explanation

As Is Process General Explanation
Explanation of Proposed Process
Purchase requisition (PR):
It is a SAP document which is created for request or instruction to Purchasing
department to procure a quantity of a material or service so that it is available at a
certain point in time.
Purchase requisitions are also created automatically by order proposals e.g. a
service planning in maintenance order.
Purchase order (PO):
It is a SAP document for a request or instruction from a purchasing organization to
a vendor (external supplier) to deliver a quantity of material or to perform services
at a certain point in time.
PO is created directly or with reference to a PR.
Service Entry sheet:
After the services have been performed by a vendor (subcontractor) against a
purchase order, they are entered by means of service entry sheets showing the
exact quantities and values.
The service entry sheet can be processed further in Invoice Verification after
acceptance. Accepted entry sheets constitute the basis for the invoice verification
process with respect to externally performed services.
Operation control key:

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Business Blue Print- Business Process- Plant

Maintenance
File Name:
Responsibility:

PM

Release:

ECC 6.0

Status:

Closed

Control keys are assigned to each operation of a task list or maintenance order.
Control key determines that an operation will be executed in which way and what
functions would be allowed. It determines that whether an operation:
o
o
o
o
o
o

will be processed internally or externally

Capacity requirements will be determined for
will be scheduled according to the capacity availability
confirmation is required/possible/not possible
will be costed
pertains to service or in other words, services will be planned for it

Maintenance related external services from vendor can be purchased in two

ways in SAP:
1. External Services procurement from Maintenance order:
In this method a maintenance order is created for the technical object
(Functional location or Equipment) requiring external service, in the same way
like a normal order. The external service required will be mapped as order
operation with some extra purchase related parameters and Purchase
requisition for external service is triggered automatically from order at the time
of order saving or release based on the system configuration.
A PO will be raised to vendor against that PR from order. After performing the
services by vendor, service entry sheet will be filled up and accepted. Based
on the service entry sheet, payment will be done to the vendor by accounts
department in FI module.
The cost of external service is debited to order since account assignment of
the PR and PO will be the order.
So in this method equipment and maintenance order wise maintenance cost
can be tracked for the external services.

2. Direct purchasing of external services:

In this method, the PR from concerned department is raised for external
services. With reference to that PR, PO for external services is created directly
in MM module with reference to cost center (in case of maintenance services)
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Business Blue Print- Business Process- Plant

Maintenance
File Name:
Responsibility:

PM

Release:

ECC 6.0

Status:

Closed

or Asset (in case of asset erection or modification services).

After performing the services by vendor, service entry sheet will be filled up
and services will be accepted by the department which received the services.
Based on the service entry sheet, payment will be done to the vendor by
accounts department in FI module.
So in this method maintenance cost for the external services can be tracked
by cost center or Asset wise and not the equipment or maintenance order
wise.

Purchase related settings for Maintenance department in JK CEMENT DIVISION:

Following settings will be done in MM module for the maintenance department
Purchase organization:
Purchasing groups:
PR document types : PM (automatic PR from maintenance orders)
PR (manual PR )
PO document types for services : WO (work order)
GS (general services)
External Services procurement from Maintenance order:
External services will be required for all types of maintenance jobs whether
regular, breakdown, preventive, shutdown, spare equipment maintenance or
calibration inspection. So external services can be planned in all the order types
defined in JK CEMENT DIVISION
This method of External Services procurement from Maintenance order, will
involve following steps:1. A maintenance order will be created for a technical object requiring external
service in the same way as any normal order with internal operations. All the
maintenance operations and materials will be planned in the order as usual.
The external service required, will also be mapped as operation(s).
Usually all the order operations are assigned to a control key PM01 for
internal operations as default by the system. But here the control key of
operation(s) requiring external service will be changed to the control key PM03
for external services from the default PM01 in the order. This will trigger
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Business Blue Print- Business Process- Plant

Maintenance
File Name:
Responsibility:

PM

Release:

ECC 6.0

Status:

Closed

automatic Purchase requisition for external service from order and w.r.t. the
order at the time of order release.
Following purchase related additional field will have to be entered in the
services view of all the external operations with control key PM03 :
Service master number or Service text (in absence of service master
records)
Service quantity and unit
Gross price (negotiated or expected) with currency
Material group (defined for services in the system for JK CEMENT
DIVISION)
Cost element (for external services, is entered automatically from
customization settings or can be entered manually)
Purchase group & purchase organization (are entered automatically from
customization settings)
Planned delivery time (in days)
Vendor (optional)
Requisitioner
An order can have both internally processed operations as well as externally
processed operations and also materials to be issued, planned in it.
On the other hand it can have only externally processed operations with or
without internal materials, planned in it.
3. The order is released and purchase requisition for the services entered
through external operation will be created in the system automatically.
The account assignment in PR will be the maintenance order and the GL
account mentioned in the order.
PR will be released by appropriate authority in JK CEMENT DIVISION if
required so by the conditions in the PR.
4. Request for quotation will be initiated if required.
5. PO for services to the desired vendor will be created by authorized person with
respect to the PR. The service details and account assignment are copied
from the PR to PO.
6. PO will be released by appropriate authority in JK CEMENT DIVISION if
required so by the conditions in the PO.
7. Only in case material has to be sent out to vendor premises ,Post transferposting document with movement type 541 to transfer the material from stock
to Vendors premises. For In-setu repair this step is not required.
8. Services will be performed by the vendor.
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Business Blue Print- Business Process- Plant

Maintenance
File Name:
Responsibility:

PM

Release:

ECC 6.0

Status:

Closed

9. Receive the material inside plant.

10. Service entry sheet will be entered with correct amount of services performed
by the vendor. Service entry sheet will be accepted by an authorized person
from maintenance department.
The actual cost of external services will be updated in the maintenance order
by the accepted quantity of service.
11. Payment to the vendor will be done by accounts department in FI module
based on the accepted quantity of services in the service entry sheet.
12. Other internal operations in the order, if mentioned, will be performed as usual.
Material assigned to these operations will be issued from store and the
operations will be confirmed after completion of job.
13. Order will be technically completed.
14. Order will be settled and business closed on a monthly basis.

Please note that business closing of order should not be performed if payment
of external services is still pending. System will also give warning in that case.
If an order is closed without payment to the vendor then the system will not
allow the payment later. The business completion of the order will have to be
reversed first and then only system will allow vendor payment for services.
Direct purchasing of external services:
This method of External Services procurement will involve following steps:1.

PR from the concerned department will be raised for external services with
proper service descriptions, quantity and account assignment.
Following parameters will be used in PR:
o PR type: PR
o Item category: D (service)
o Account assignment category : K (for cost center), or A (Asset)
o Purchase group
o Cost center
o GL account for external services
PR will be released by appropriate authority in JK CEMENT DIVISION, if
required so by the conditions in the PR.

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Business Blue Print- Business Process- Plant

Maintenance
File Name:
Responsibility:

PM

Release:

ECC 6.0

Status:

Closed

2. Request for quotation will be initiated if required.

3. PO for services to the desired vendor will be created by authorized person with
respect to the PR. The service details and account assignment are copied
from the PR to PO.
4. PO will be released by appropriate authority in JK CEMENT DIVISION, if
required so by the conditions in the PO.
5. Services will be performed by the vendor.
6. Service entry sheet will be entered with correct amount of services performed
by the vendor. Service entry sheet will be accepted by an authorized person
from maintenance department.
7. Payment to the vendor will be done by accounts department in FI module
based on the accepted service sheet.
Service Condition is defined for each service in which Pricing condition for
each service is defined on basis of unit of measure for a defined valid period.
For Annual Maintenance Contract we can define a service or Contract (MM
module) for which rate condition will be defined on basis of activity or no of
visit of the vendor. For every service provided by the vendor against the PO
Service Entry sheet will be created to enter amount of service provided
against which payment can be done at the end of year or partly also.
Also for Manpower / Labor supply service has to be defined & service
condition on basis of Labor hour/job has to be defined.
Validity period for the service can also be defined in Service Master.
Sr.
No.
01

Activity

Description

T Code

Creation of Service
Master

AC03

02

Creation of
Maintenance
Order
Creating Purchase
Requisition
Creating Purchase
Order
Job execution

Service Master Data is created for all the

services that are required from outside
agency.
Maintenance order is created having
control key PM03. Services are selected
which are required to complete the job.
Based on the services required a
purchase requisition is raised.
Purchase order is created based on the
purchase requisition
Based on the purchase order the job is
executed by the maintenance
department.
Create Service Entry Sheet against the
PO & accept the services

03
04
05

06

Service
Acceptance

Copyright 2011 JKT

IW31

ME51N
ME21N

Ml81n

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Maintenance
File Name:
Responsibility:

06

07

1.3

Sr No
2.1
2.2
2.3
Sr No
3.1
3.2

PM

Technical
Completion of
Maintenance
Order
Order completion

Release:

ECC 6.0

Status:

Closed

After the verification of jobs done by the

party maintenance order is technically
completed.

IW32

After the bill is paid to the party,

maintenance order is completed in all
respects

IW32

Special Organizational Considerations

None

Gap Analysis
Gap Identified in proposed solution against Requirements & Expectations
Not applicable
Impact of Requirement
Not applicable
Solution Proposed
Not applicable
Topics
Changes Management Issues
Service Master to be maintained
Description of Improvements
Transparent process of procurement as everybody will be able to see the
status of any purchase requisition in the system that whether PO is raised
against the PR or not, PO is awarded to which vendor and at what price and so
on.
The PR will be created in the system directly hence no wastage of time in
forwarding it as in the manual system.
Similarly PR and PO will be released in the system on-line so no wastage of
time in forwarding and follow-up with the releasing authority.
This will lead to speedy purchase process and timely receipt of services or
materials to the requesting party.
Before payment to the vendor for his services by the accounts person, the job
done can be verified in the system by the accepted service quantity in service
entry sheet by the service requesting person/ department.
PR can be listed easily by following search criterion in the system:

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Business Blue Print- Business Process- Plant

Maintenance
File Name:
Responsibility:

PM

Release:

ECC 6.0

Status:

Closed

Document type (PM: automatic PR from maint. or PR: manual)

Purchasing group
Item category (D: service)
Account assignment category (F: order, K: cost center, A: asset)
Delivery date
Requisitioner
Similarly PO can be listed easily by following search criterion in the system:
Document type (WO: work order or GS: general service)
Purchasing group
Item category (D: service)
Account assignment category (F: order, K: cost center, A: asset)
Vendor
Delivery date
Document date
Requisitioner
Services related expenses can be tracked by standard reports.
Sr No
4.1
4.2

Topics
Interface / Enhancements considerations
Not Applicable
Reporting considerations
S
No
1
2
1
2
3

4.3

Reports

T Code

Reporting on Services
Planned / Actual Services comparison.
Order operations report

MSRV6
ME2S
IW49

Maintenance cost report

Maintenance report logbook

MCI8
IW67

Authorization considerations
As per organizational needs, not finalized yet. Authorization matrix is being prepared
separately.

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Business Blue Print- Business Process- Plant

Maintenance
File Name:
Responsibility:

PM

Release:

ECC 6.0

Status:

Closed

Business Process Signoff

Module
Plant Maintenance
Process
Maintenance Services procurement
Sub Process /
Maintenance Services procurement
No
Description

JK_BBP_PM_BP_040
0

Maintenance Services procurement processing

Copyright 2011 JKT

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