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Refurbishment of Repairable Spares:

Integration between SAP-PM and SAP-


MM
12 Li kes 9,609 Vi ews 8 C omments

1. Refurbishment Process

Process is servicing of defective spares to bring it to a Workable condition.


Refurbished spare parts are parts that can be repaired either internally or sent out to
be repaired by an external vendor. The parts are then placed back into inventory for
future use. This process is necessary for parts that are no longer commercially
available and for parts that can be overhauled and re-used at a fraction of the price
of a new item.

2. Business Scenario

This Scenario is applicable for an Industry wherein manufacturing facility do exist like
Automotive, Consumer product etc. Maintenance of facilities and equipment in good
working condition is essential to achieve specified level of quality and reliability and
efficient working.

Plant Maintenance is an important service function of an efficient Production system


and for doing so, spares should be available for breakdown or Corrective or
preventive Maintenance. Every time, it is not possible to purchase costly spare and
especially if it can be refurbished. And important reason for doing with refurbishment
option is cost because Refurbishment cost is very low as compared to purchase
cost.

3. SAP Perspective: Major Prerequisite

SAP is a suite of integrated modules that holds all we know about our
business in one place
By using the Plant Maintenance module the business can improve
maintenance program and make more informed decisions about maintenance
routines

From SAP front, mapping of above business process needs close integration
between Material Management (MM) and Plant Maintenance (PM) modules. Needed
major pre-requisites are as follows:

3.1 Split Valuation functionality needs to be configured well and should have three
valuation types

 New
 Refurb
 Defective
3.2 Serialization profile needs to be configured
3.3 Material Provision Indicators for Rework ‘s’ needs to be configured
for Subcontracting Process under External Refurbishment

4. Detailed Process: Refurbishment


4.1 Internal Refurbishment: Major Steps
 This Process starts with to bring the Defective Material to stock –
Maintenance order created with quantity -1(or Movement type 262) and Good
Issue against reservation/Order.
 Defective Material will be issued against Reservation
 Maintenance team will complete the work – They will do Time confirmation
and issue the needed material to complete the refurbishment
 Good receipt will done for Refurbished material, so material will be available
in stock for issue
 Last step will be TECO, Settlement and Close of said Refurbishment order

4.2 External Refurbishment: Major Steps

 This Process starts with to bring the Defective Material to stock –


Maintenance order created with quantity -1(or Movement type 262) and Good
Issue against reservation/Order.
 Manual Subcontracting Purchase requisition needs to be created with
Valuation type Refurb

Or
This Purchase requisition can be created automatically through Refurbishment Order
however one BADI(BADI_DIAD_GOODMVT_1) needs to implement for said
functionality.

 Create Subcontracting Purchase Order from Purchase Requisition


 Defective Material will be issued to vendor as Material Provided to vendor as
Movement type 541
 Good Receipt will be done for Refurbished material, so stock will be
generated for issue
 And if Purchase requisition is created through Refurbishment Order, then
Order needs to be TECO, settled and Closed
5. SAP Screen Shots: Flow

5.1Screen flow: Material Master Creation

Material needs to be created with three Valuation Types:

New:

Refurb:
Defective:
5.2 Screen Flow – Internal Refurbishment:

5.2.1 Bring Defective Material to stock

 PM Order Creation (Tcode – IW31) : Order has created reservation for


Defective material movement type 262

Good Issue(Tcode MIGO): With this transaction, movment type 262 done for
Defective material and stock has been created

Stock status after Movement 262(tcode MMBE): Stock status


5.2.2 Creation of Refurbishment order(tcode IW81): Created reservation for
Defective material(Movement type 261)
Stock status after Order creation(Tcode : MMBE) : Defective Material is reserved

5.2.3 Defective Material issue (tcode MIGO) thru Reservation/Order:This will


Issue Defective material(Movement type 261)
Stock After Issue(Tcode MMBE) : Stock Status

5.2.4 Good receipt for Refurbished Material (tcode IW8W) thru Order: This will
do Good receipt(Movement type 101)
Stock after Good Receipt(tcode MMBE) : Stock Status

5.2.5 Technical Completion, Settlement & Closure


Document Flow (IW33) : Status flow

5.3 Screen Flow – External Refurbishment:

5.3.1 Bring Defective Material to stock

 PM Order Creation (Tcode – IW31) : Order has created reservation for


Defective material movement type 262
Stock status after Movement 262(tcode MMBE): Stock status

5.3.2 Creation of Purchase Requisition(tcode: ME51N): Purchase requisition with


Valuation Type ‘REFURB’
Having Subcontracting Component as ‘Defective’

5.3.3 Creation of Purchase Order(tcode: ME21N): Subcontract Purchase Order


with Valuation Type ‘REFURB’
5.3.4 Goods Issue to Vendor(Tcode MB1B) : Material Provided to
Vendor(Movement 541)

Stock status after Movement 541( tcode MMBE) : Stock status


5.3.5 Good receipt(Tcode MIGO) for Refurbished Material : Stock updated for
Refurbished Material (movement type 101) & Movement type 543 for Defective
material
Stock status after Movement 101( tcode MMBE) : Stock status

Accounting entries(including Refurbished price and Defective Material prices)

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