Innovation in Control on Margin Deviations for Services
SAP CS flows are missing a direct relation with the quotation data. This information is fundamental to provide clear visibility of Estimate and Actual Costs to know areas of improvement, for an Effective budgeting and Forecasting and to guide the Business decisions about investments and real profitability.
“Where did my gross margin go? With a complete gross margin analysis, you not only know your house is on fire, you know which floor is burning.” (PwC)
Estimated Costs can be entered in the Service Order Cost labels, but this solution is not good because:
- Authorization issue: Order entry team need to have access to IW32.
- Risk: Update the Estimated costs in the service order also is a risk, because while the user is updating the values the service order get blocked for any update.
- Restrictions: Is not possible to update the Estimated in SAP after REL
- Missing Report view: no option to run a report to analyse margin by dimensions like Service Product, Sales teams, profit centers, etc
- No quantities: there is no place to enter quantity in the standard estimate cost tab of the service order
Planned Costs is also not a good solution because the use of this cost is to “plan” the execution while the estimated costs are a frozen version calculated during the quotation process and that can’t be modified after the Order Entry
1 – New transaction to enter the Estimated Costs from for the quotation team (easy to be fulfilled from any external quotation tool or mobility like fiori)
2 – Single Call from the Service Order or the mobility tool to see in SAP the “cost” situation of the order
3 – Collective report to analyze the “single report” showed before in mass, with the option to select the Total Margin by Customer, work Center, employee, etc.
Please find attached the Innovation Pitch Deck in the link below:
This solution can be applicable to any standard SAP.
In Schneider-Electric the solution code will run in 12 different SAPs from a Global SAP Federation that covers all the world.
Other SAP innovations:
- Automatization of SAP Subcontracting flows from Production Operations to Co-Manufacturers
- Integration solution from Customer web configurator to SAP Material Variant Configuration on Production
- MTO – MTS fusion in one switch.
- One Shot Availability Day Algorithm covering all the production process.
- Cross Business Unit Process for intercompany group invoicing.
- Automatization from PS to CS (create service orders from PS activity).