I am writing this blogpost to explain the process of Third-Party Field Service & Repair using Existing Purchase Order in SAP Business ByDesign system.
I have explained the detailed process as well as various notes based on errors and exceptions that we can get in system while trying this process in the system.
With third-party field service and repair, your company can provide repair or services for your customer that are fulfilled by a third-party supplier.
For example, your company may not have the capacity to carry out the repair or services for the product you sold to your customer. If so, you need a third-party supplier to help you repair or service the products at their side.
Why do you need a third-party field service & repair?
- The need for competitive field service has become important because of high customer expectations and complex equipment.
- We can manage demand fluctuations without impacting customer service agreement.
- It can be used for cases which have remote geographical coverage, warranty work or special skills.
- We can continuously monitor and reduce cost of service and improve margins.
Business Configuration> Implementation Projects> Edit Project Scope> Scoping> Enable Service & Repair under the Service
Business Configuration> Implementation Projects> Edit Project Scope> Questions> Enable the question ‘Do you want to integrate with purchasing processes for externally fulfilled service and expense items in service orders?’> Finish
The service desk agent links a service order item to an existing purchase order item which should be fulfilled externally. The service order items can be linked to different purchase order items
Create a purchase order by adding all the mandatory details> Add the required service by creating it twice in two line items, one as ‘Service’ and another as ‘Limit’> Give the Account Assignment as ‘Cost Center’ and mention your cost center for both the line items> Check> Order
Note: While creating service order in the next step we can add this PO only if we have created that service under the item type ‘Limit’.
Create service order with reference to existing purchase order items.
Service Orders> New service orders> Fill all the mandatory fields in General Tab> Give External Employee in Service Performer Field> Go to Services and Spare parts tab> Start Personalisation Mode> In items list enable the Purchase Order Item> Save the changes> Stop the Personalisation Mode
Note: As there is no direct option of linking purchase order with the service order so you must enable the Purchase Order Item through the Personalisation Mode
Add the previously created purchase order and fill in the required details> Save> Submit Release Order
Service Orders> Service order processing> Search for the created service order> Submit> Release to service execution
Note: Before Releasing the service order to execution, the document status will be In preparation and after Releasing the document status will change to In Process.
Once the service performer has finished the service or repair, he creates and releases a service confirmation for the service order items.
Again, you need to open the Service Order Document> Submit> Confirm Service Execution
New screen will pop up for confirming the service execution.
Confirm the Quantity> Save> Release
When the service confirmation is released, the system generates goods and services receipt for the service order items against the referenced purchase orders.
Goods and Services Receipts> Purchase orders to be delivered> Show by documents> Select your purchase order item> New goods and services receipt> Check> Save> Post
Note: The item with the service only will get posted and for the limit it will remain in unposted status and will show an error. Ignore the error and you can proceed for the invoicing process.
Create Supplier Invoice after the release of Goods and Services Receipt
Supplier Invoicing> Invoice Entry> In items tab you will get an error
Note: You will get this error as you had added a line item of ‘Limit’ while creating purchase order. So, you need to remove that line item that contains the limit as your purpose of adding the limit is completed.
Select the ‘Limit’ line item> Remove> Check> Save> Post
Similarly, you need to post the Customer Invoice for the service provided to the customer
Customer Invoicing> Invoice Requests> Select the line item> Invoice> Save> Release
I have tried to explain the topic Third Party Field Service & Repair using Existing Purchase Orders in simple terms and processes alongwith some notes that you can refer to avoid errors in the system.
I hope this blogpost would be helpful for you while trying it in the ByDesign system.
I would be happy to read some feedback and comments from your side on this blogpost in the comment section. Follow me as I will be posting few more blogs on topics related to SAP Business ByDesign.
You can refer to related document from Help Library. Link given below:
Kindly have a look at another blogpost that I had written on ‘Rebate Management’ topic. Link given below:
You can also find similar blogposts on different topics on SAP Business ByDesign in SAP Community. Link mentioned below: