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Service in SAP S/4HANA Cloud 2102

With the 2102 release, Service in SAP S/4HANA Cloud includes a collection of new innovations to boost flexibility and efficiency for service providers – whether generating business, fulfilling service agreements or gaining insights into service delivery. In this blog, I will highlight the top features of Service in SAP S/4HANA Cloud 2102.

You can find updates on the following areas.

  1. Solution Order Management
  2. Service Contract Management
  3. In-House Repair
  4. Service Quotation/Order
  5. Recurring Service
  6. Analytics

Watch this 5min video to get a quick overview on the highlights.

 

1. Solution Order Management

Inclusion of Subscriptions in Solution Orders for consumption-based Business

We introduced Solution Order Management for the first time in 2008, supporting the business transformation from selling products to providing higher-margin solutions. In 2102, we are expanding its business scope further to include consumption-based business by integrating SAP Subscription Billing. Solution orders are now enabled to offer subscription services as well as sales and service products in a single order.

The seamless integration supports creating subscriptions through Solution orders and processing billing with a single invoice together with sales and service products. Solution orders can display the rate elements with price value and subscription parameters from subscription billing and allow you to change and update those parameters. Not only do you have the reference linked, but you can also navigate back to the subscription billing system for more details.

Capabilities

  • Enable a new item type to offer subscription services
  • Display and edit rate plan information for a subscription service in solution orders
  • Create subscriptions in SAP Subscription Billing through solution order orchestration
  • Visualization of the created subscriptions in Solution Order Progress app
  • Enable solution order API with the capability to create and edit subscription items

 

Demo: Subscriptions in Solution Orders


2. Service Contract Management

 Configurable Products in Service Contracts

We are enabling configurable products in Service contracts in 2102. It is now possible to configure a service contract item with advanced variant configuration. This capability increases flexibility in service contract product offerings alongside supporting business scenarios with more complex service contract products which can lead to increased service revenue.

Capabilities

  • Configure a service contract item with advanced variant configuration (AVC)
  • Add and configure a configurable product as a service contract item
  • Select the characteristics and characteristic values that are defined in the product master data
  • See the price impact of selected characteristics and characteristic values based on the defined variant conditions in the price details

Demo: Configure a service contract item with advanced variant configuration

 

3. In-House Repair

 In-House Repair enables Warranty check & Service Contract determination

In 2102, we introduce several features to bring operational excellence. A simple warranty check is enabled on Repair objects. The end dates of Customer warranty and Vendor warranty are displayed on Repair Objects upon equipment data. These warranty end dates are displayed and used as filter criteria in all repair object relevant apps.

It is also possible to assign applicable Service Contracts to In-house repair objects. This enables incorporation of the customer specific conditions per the Service Contract

Moreover, you can record ‘Customer instructions’ as a note and ‘Examination results’ after performing a pre-check in Manage In-House Repairs app. This information coming from new features will support Service representatives better to determine the next step, whether it’s to create a repair quotation for a cost estimate or go to a repair order straight away to perform the repair process.

Capabilities

  • Display customer warranty and vendor warranty end date from equipment for repair objects
  • Display and determine applicable service contracts
  • Record notes for Customer Instructions and Examination Results

Demo: A warranty check, Service contract determination on In-House Repair


4. Recurring Service

Improved usability on Recurring Service

This solution capability was introduced in the previous quarter to plan services for periodic maintenance as well as to generate service orders in a mass scheduling job. We are bringing more usability enhancements in this release. For both Service planners and Service Managers, it becomes easier to search those generated service orders with reference to Maintenance plan with the app Manage Service Orders. On top of this, the situation handling feature helps Service Planner to monitor the mass scheduling jobs more easily. It is no longer necessary for service planners to monitor the job logs manually as they will automatically receive notifications for any situation which requires their attention.

Capabilities

  • Enable search of service orders with reference to Maintenance plan in the app ‘Manage Service Orders’
  • Automatic notifications can be sent out to Service Planners when any situation from mass job scheduling under Recurring Service
  • New situation template: SRVC_MPLAN_MASS_SCHEDULING_ISSUE

Demo: Search of service orders with reference to maintenance plan

5. Service Order/ Quotation management

Capture of Reasons for Rejecting of Service offerings

Service Quotation and Service Orders extend the functional scope by adding ‘Reason for Rejection’. This data will provide more insights into the background why service offerings are not accepted and can be used for further analytical purpose.

  • Enable to add the reason of rejection on service orders and service quotations with a field “Rejection Reason” on header
  • Define categories of rejection reasons for reporting and analytical purpose
  • Use ROLE: BPC_EXPERT, Manage Your Solutions – Configure Your Solution – Settings for Rejection Reasons

Demo: Capture of a rejecting reason of Service quotation

Revenue recognition with Service Orders

In this release, it is possible to perform revenue analysis with standard T&M Service Orders (transaction type SVO1) by using Event-Based Revenue Recognition. The revenue recognition method Completed Contract is supported, meaning that all revenues and costs are deferred until the service order is invoiced in full.

For more information, check out
Service Order Integration with Event-Based Revenue Recognition – SAP Help Portal

6. Analytics

Flexible analysis for Service Contract/ Service Order management

Flexible Analysis for Service contracts and service orders can provide deeper insight into your Service business from various perspectives by means of flexible combination of dimensions. This capability can support to improve the service process by identifying the trend and challenges.

Capabilities

    • Use Service Orders Flexible Analysis and Service Contracts Flexible Analysis reports to analyze service orders and service contracts with a flexible combination of dimensions.
    • Optimize the service process by analyzing service orders and identifying service execution trends
    • Identify challenges in billing of service contracts

Demo: Flexible analysis of service contracts

Demo: Flexible analysis of service orders


Hope you enjoy reading this blog. I will get back to you with interesting features again in the next release. Stay tuned and stay healthy.

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Young Hwae Koo | SAP People

 

 

 

 

 

 

 

 

 

 

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7 Comments
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  • Hi Young Hwae Koo | SAP People ,

    thank you for sharing good update.

     

    May i request you to kindly clarify the below and queries are around Solution Order for BRIM -

    • Can we achieve the same functionality in S/4 Hana 2020 BRIM ? we need to use recurring subscription products in the Subscription Order ( in other words Solution Order ) and accordingly Contracts and CI.
    • Can we use API_BUS_SOLUTION_ORDER_SRV to create Subscription products here to leverage BRIM functionality in 2020 S/4 BRIM ?

     

    thanks

    Santhosh

    • Dear Santhosh,

      Please see the answers from product management team below. Best, Young

      • Can we achieve the same functionality in S/4HANA 2020 BRIM ? we need to use recurring subscription products in the Subscription Order ( in other words Solution Order ) and accordingly Contracts and CI.
        • Answer: No, we plan to enable the features and functions of the Solution Order Cloud Edition in S/4HANA on-premise earliest with release 2022.
          The Subscription Order can handle BRIM Subscription Contract and Sales Orders but no Service transactions.
          An alternative in S/4HANA would be using Solution Quotation that supports in addition to Subscription Contracts and Sales Orders also Service Orders and Service Contracts as follow-up transactions.
      • Can we use API_BUS_SOLUTION_ORDER_SRV to create Subscription products here to leverage BRIM functionality in 2020 S/4 BRIM ?
        • The API_BUS_SOLUTION_ORDER_SRV Is designed to create Solution Orders with an integration to subscriptions from SAP Subscription Billing. There is no integration into classical on-premise BRIM at the moment.
      • Thank You Young Hwae Koo | SAP People

         

        could you please help me address the below additional queries as well -

         

        1. Can you suggest a better approach to create Huge line item order per say 20k line item order ? currently its taking 45mins for 10k line item order using Standard Sales order API.
        2. In case of huge order, can we do a partial submit so as to eliminate the dump for huge order ? i mean per say for a 20k line order order, can i create split the order and create 5k line item order first and then do a subsequent create 5k, 5k and 5k items in separate calls to make sure a single order with 20k line item is created towards the end ?

        thank You

        Santhosh

  • Thanks for sharing this update on S/4 Service.

    Coming from traditional CS module, I am eager to explore the functionality the new process in S/4 has to offer. We started an implementation project of In-House Repair and so far I haven't found any information on how to handle the logistic part. Like creating a return merchandise authorization (RMA), receiving the unit into repair stock and sending the repaired unit back to the customer together with a delivery documents or scrapping the unit in case needed. Apart from manual MIGO bookings, is there anything foreseen? Or would you recommend to use the SD order type "RA - repair order" which could cover these needs?

    Any hint on this would be appreciated.

    • Hi Martin,

      ARM (Advanced Return Management) is on the roadmap to integrate In-house repair and provide the inbound and outbound logistics functionalities. It will be available both in Cloud and on-prem. This will bring an option to scrap, yet more integrated option will be added later. We can not provide you the exact timeline at this point. As the “new” In-house repair in SAP S/4HANA is completely different from the IHR handled in ERP CS, it is generally not recommended to use the SD “repair order”. This is not used in our new in-house repair.

      Best,
      Young