Intelligent ERP Update: Service in SAP S/4HANA Cloud 1908 release
“You’ll never have a product or price advantage again. They can be easily duplicated but a strong customer service culture can’t be copied” – Jerry Fritz, Director of Management Institute.
In 1905 release, we introduced the standalone capabilities to run end to end service management backoffice processes in SAP S/4HANA Cloud for United States, Germany, United Kingdom and Australia.
With 1908, we continue to bring you even more capabilities for service management and increase the coverage to France, Switzerland and Netherlands.
In 1908, we bring you more efficient processes with better control on service contract management as well as in service order management. Additionally, we bring the ability to get higher transparency into the issues across the processes to take immediate action for better service.
Service Contract Management – Price Adaptation Fast Entry
In 1905 we introduced the possibility to have price adaptation.With this, we brought the possibility to have flexibility in pricing through setting a pricing date rule within a billing request line or through the ability to maintain prices of service contract manually at the billing request line level.
With 1908, you can now maintain prices on service contract billing plans with the new fast entry screen for price adaptation. With this, you can quickly make manual changes to basic prices across the settlement periods before the billing document is generated. You can select one or multiple settlement periods and maintain the relevant prices. the maintained prices are then applied in the billing request lines of the billing plan.
Service Contract Management change processes – Service Contract Renewal
In 1905, we introduced the ability to automatically renew the service contract.
With 1908, you can now make changes to existing service contracts. The change process has different effects on follow on processing in contract management and accounting. For service contract items for which auto renewal is not enabled and released, it is now possible to renew the service contracts items manually through the change process. Users can release the new items that have been created in status open for the renewal period.
Service Order Management – Service Bundle
You can now drive profit margin for composite service or service bundle for Fixed Price Service Orders with ability to offer customers service products, service parts, and expense items as a composite service. Your customer will only be provided billing document to customer for the service bundle while you can analyze profit margins at the level of the main item by bundling costs and revenues for overall service order profitability.
The impact can also be seen in the financials where the service bundle will be reflected as an account assignment object whereas the subitems are not shown as separate account assignment objects but are linked to the service bundle. Costs and revenues are posted to the single account assignment of the bundle enabling you to get contribution margin at service bundle level.
The following enables you to run the process:
- Quick create for fixed price orders
- price of main item is determined automatically depending on if condition master data is maintained. Manual and automatic surcharges can be applied.
- Confirmation items are copied automatically
- Purchasing of spare parts, billing and financial documents refer to the main item of the service bundle.
Integration with SAP Field Service Management and Service in SAP S/4HANA Cloud
With 1908, we enable you to set up the integration yourself using Cloud Platform integration between SAP Field Service Management and Service in SAP S/4HANA Cloud. Once the integration is set up, you can:
- Trigger service calls in SAP Field Service management on release on service order
- Update of assigned technician in corresponding service product item of service order
- Additional activities duplicated automatically in corresponding service orders as sub-items
- Create and complete service confirmation automatically on approval of effort/ expense/ material journal (procurement process for service parts must be completed in SAP S/4HANA Cloud) related to an activity
- Trigger technical completion of service call when service order is set to complete
Service Management Analytics
Two new best practice processes have been introduced as part of the 1908 release – one for Service Delivery Issue Analysis and another for Service Management Overview.
With service delivery issue analysis, you can now analyze service order or contract issues with Graphical overview or mini charts, by country and region, service transactions, sales organization. With the service management overview, you can review service contracts for expiry/renewal or by contract value/profit margin, incomplete/overdue service orders, service confirmations or monitor average repair time by product or release status of billing.
Additionally, with the new extensibility, you can add custom fields to the Service Management Overview, Service Contracts Analysis, and Service Order Analysis apps using the Custom Fields and Logic app.
With all this new functionality, I hope you enjoy the new functionalities of service management. With 1911, we will come to you with even more additional functionalities. I look forward to your feedback and questions.
Do you want to learn more about SAP S/4HANA Cloud 1908? Stay tuned for the updates that my colleagues will be providing within the next couple of days.
For more information on SAP S/4HANA Cloud, check out the following links:
- SAP S/4HANA Cloud release info: http://www.sap.com/s4-cloudrelease
- Best practices for SAP S/4HANA Cloud here
- SAP S/4HANA Cloud User Community: register here
- Feature Scope Description here
- What’s New here
- Help Portal Product Page here
- Implementation Portal here
- Follow us via @SAP and #S4HANA, or me via @SankarParu
Great information, especially the service bundles. Thanks Parvathy!
Excellent information Pavarthy, Customer´s are very interesting to know about the old revenue recognition on contracts, and new facilities in Build a correct Billing plan. Especially, in countries with a large number of government Contracts, with real difficulties to handle flexibility in fix the dates in the billing plan.
What are the boundaries of the Cloud in this area?