Refurbishment of Repairable Spares: Integration between SAP-PM and SAP-MM
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)
Very useful subject and very good documentation. Such document on Refurbishment process has been a need here since long.
Thanks for the useful document.
What do you think is the best way to let the maintenance technician know that this material is repairable and needs to be delivered to the warehouse.
This document starts after knowing that a material is to be repaired. So I'm afraid your query does not fit here. Better create a new discussion for your query which is likely to run long.
Regards
KJogeswaraRao
Thanks, I will definitely start a new discussion.
Can we make it possible refurbishment process with Service order(not of RF01 type).
Very useful document... thanks for posting
Hey Naveen,
Thanks for your blog...!!! For external refurbishment process....I see there is a difference in Valuation Types.Having Subcontracting Component as ‘Defective’ and while creating a PO you were maintaining it as Refurbished state..
I tested the same and later on realized while doing the GR you cannot change the valuation type since its being grayed out. So, is that the reason you were maintaining two different valuation types or something need to be rectified with the process?
thanks
Hello Experts,
I want to create refurbishment for multiple spare parts through subcontractor , is it possible in one order ? please suggest if any detail doc. available....
Thanks
Gaurav
Well eleborated !!!
Dear Gaurav,
Refurbishment process will allow one repairable spare part (split valuated ) more than qty - 1, but not many repairable spare part in a single order.
Regards.
In the refurbishment order with external provdier, i do no see the connection with the refurbish order. Shouldn't be there a connection of the process to a refurbishment order?
As it is depicted the process is pure MM, is this correct?
BR
Excellent document! But, and case of serial number? how it work? because I received the error message 'Batch for serial number &1 (&2) differs from document batch &3' during the GR. Thanks!
HI all, I know it is an older chat, but still actual : My challenge, is it possible to show the overview in transcation MD04 in a way that it shows the stock amount for new separately from refurbished ?
In MD04 collective Access tab, you could use the MRP controller to show this if you maintain MRP types for MRO and Refurbishment and have your material master's MRP controller set correctly.
I noticed you're recommending creating a new Order to do the MIGO 262. If you have split valuations setup correctly, couldn't you just use the original order that you issued the "NEW" part to and reverse that MIGO out as 262 "BAD" valuation to get your bad part into inventory?