Contents

Abstract ......................................................................................................................................................... 2
Purpose ................................................................................................................................................. 2
Overview of refurbishment process ............................................................................................................. 2
Repairable spares .......................................................................................................................................... 3
Split valuation ............................................................................................................................................... 3
Prerequisites: Configuration for refurbishment order type ......................................................................... 4
CONFIGURE REFURBISHMENT ORDER TYPE: ................................................................................................ 4
INDICATE ORDER TYPE FOR REFURBISHMENT PROCESSING: ....................................................................... 6
Maintaining the number range ..................................................................................................................... 6
Assign order types to maintenance plants ................................................................................................... 6
Assign costing parameters to order .............................................................................................................. 7
Goods movement for orders ........................................................................................................................ 7
The process of Refurbishment order ............................................................................................................ 8
Define split valuation type ........................................................................................................................ 8
Return defective spare parts to warehouse ............................................................................................. 8
Create refurbishment order...................................................................................................................... 8
Release and execute order ....................................................................................................................... 8
Withdrawal of repairable spares to be refurbished from the warehouse ............................................... 8
Return of refurbished repairable spares to the warehouse ..................................................................... 8
Order technical completion ...................................................................................................................... 8
Order settlement ...................................................................................................................................... 8
Order business completion ....................................................................................................................... 8
References .................................................................................................................................................... 8
Abstract
Purpose
This document describes how the refurbishment process for repairable spares configured in
Plant maintenance

The refurbishment of repairable spares is important for companies, for which system availability is a
critical factor (for example, the process industry, oil producing and processing, steel processing) and for
which repairable spares guarantee a high level of system availability. The refurbishment of - usually high
value - faulty repairable spares is of considerable economic importance for these companies and is often
a core process in Plant Maintenance. It is often much more cost-effective than a brand new purchase.

Setting of refurbishment process related functions

The key process of refurbishment process

The effect of refurbishment process in R/3

Visio- process flow

Overview of refurbishment process

High value components are often used at production plants or other technical objects (for example,
pumps, motors) and are replaced by a repairable spare in the event of a malfunction and then refurbished
using a separate order.

This scenario is of particular interest to companies for which system availability plays a crucial role (for
example, process industry, oil extraction and processing, steel manufacturing and so on), and who keep
repairable spares in stock to ensure a high system availability. The refurbishment of these defective
spares, which are generally of high value, is of great economic importance for these companies and is
often a core process within their maintenance department.

The refurbishment of repairable spares is important for companies, for which

system availability is a critical factor (for example, the process industry, oil
producing and processing, steel processing) and for which repairable spares
guarantee a high level of system availability.The refurbishment of - usually high
value - faulty repairable spares is of considerable economic importance and is
often a core process in Plant Maintenance. It is often much more cost-effective than
a brand new purchase. In production plants or other technical objects, high value
components are often used (pumps, motors and so on) which are replaced in case
of damage by a functional repairable spare and then refurbished using a separate
order.
Repairable spares
An inventory-managed single unit of material which can be uniquely identified
by a combination of material and serial numbers, with an additional equipment
master record if necessary.

Repairable spares can be refurbished many times for defects or wear, and then
made available again as spare parts. Repairable spares are reserves in the
warehouse for certain critical and high-value components, so that these parts
can be replaced immediately in the case of a breakdown. These are managed in
the form of material master record.

Split valuation
Split valuation enables you to valuate substocks of a material in different ways
(for example, according to external procurement or in-house production or by
batches). Repairable materials are valuated based on their status.

Example:

The material XYZ has following valuation types.

New(C1)

Defective(C2)

Refurbished(C3)

b) CONFIGURE SPLIT VALUATION:

Menu path:

SPRO>Material management>Valuation & Account assignment>Split

valuation>Configure split valuation.

In this step, you configure whether split valuation is allowed at your company.

If you generally allow split valuation, this does not mean that you must valuate
each material on this basis. You decide whether to do so or not for a particular
 material when creating the material master record. In the standard SAP R/3
System, split valuation is set so that it is active.

Click the Configure split valuation

In split valuation, you can distinguish between partial stocks of a material

according to certain criteria and valuate them separately.

The material stock is divided according to valuation category and valuation

type:

o The valuation category determines how the partial stocks are divided, that
is, according to which criteria.

o The valuation type describes the characteristics of the individual stocks

Prerequisites: Configuration for refurbishment order type

CONFIGURE REFURBISHMENT ORDER TYPE:

Menu path:

SPRO>Plant maintenance>Maintenance processing>Maintenance orders>Functions

& settings for order types>Configure order type.

Transaction code: OIOA

In this step, you set up your order types for Plant Maintenance and Customer
Service.In addition to the business reasons for configuring several order
types,there are also technical controls which depend on the order type and may
require the creation of different order types.
Selelect the order type PM04

The following technical controls depend on the order type:

o Number ranges

o Settlement proposal or account assignment rule

o Default values for controlkey

o Permitted maintenanceactivity types and default values

o Permitted order types for each maintenance planning plant

o Increment when assigning the operation numbers

o Costing parameters

o Residence period of the order after completion (residence time)

o Default values for the confirmation process

o Presetting for the referenceobject screen

We have to maintain settlement profile for materials.

INDICATE ORDER TYPE FOR REFURBISHMENT PROCESSING:
Menu path:

SPRO>Plant maintenance>Maintenance processing>Maintenance orders>Functions

& settings for order types>Indicate order type for refurbishment processing.

Transaction code: SPRO

In this Customizing activity, you can allow the individual order types refurbishment
processing.

This business process usually involves a special form of Plant Maintenance which is
treated differently from maintenance, repair and inspection orders in terms of
planning, time and costs. In order to maintain refurbishment order tick the check
box in the following screen shot.

Maintaining the number range

Menu path:

SPRO>Plant maintenance>Maintenance processing>Maintenance orders>Functions

& settings for order types>Maintain number range

Transaction code: OION

In this step, you define the number ranges for the individual order types.

From the point of view of program control and selections, it is not necessary to
define different number ranges for the individual order types. If your company does
not need to define several number ranges, you can work with one number range for
the maintenance or service orders.

Assign order types to maintenance plants

Menu path:
SPRO>Plant maintenance>Maintenance processing>Maintenance orders>Functions & settings for order
types>Assign order types to maint.plants

Transaction code: OIOD

In this Customizing activity, you determine the order types allowed for the individual planning plants. If
you want to allow all order types for all planning plants, you must enter all the order types for each
plant.

Assign costing parameters to order

Menu path:

SPRO>Plant maintenance>Maintenance processing>Maintenance orders>Functions

& settings for order types>Costing data>Assign costing data parameters

Transaction code: OIOF

In this step, you can set the costing parameters for maintenance and service
orders. You can also assign a resultsanalysis key to each order type. Before you set
the costing variants for orders, you must create the costing variants.

resultsanalysis key defines the valuation of the order during period-end closing.

Goods movement for orders

Menu path:

SPRO>Plant maintenance>Maintenance processing>Maintenance orders>Functions & settings for order

types>Goods movements>Define documentation.

Transaction code: SPRO

In this Customizing activity you can define which types of goods movement are documented for each
individual PM order. This function can be called from order processing in list form.You can determine
whether the list contains.

1.Goods receipts in respect of purchase orders for the order

A goods receipt for the purchase order is documented for both evaluated and non-evaluated
goods receipts.

2.Planned goods issues for the order(Reservation).

3.Unplanned goods issues for the order.

4.Goods receipts for the refurbishment order in the case of a refurbishment order.

The process of Refurbishment order

Define split valuation type
Return defective spare parts to warehouse
Create refurbishment order
Release and execute order
Withdrawal of repairable spares to be refurbished from the warehouse
Return of refurbished repairable spares to the warehouse
Order technical completion
Order settlement
Order business completion

References
http://help.sap.com