Business steps & capabilities of Solution Order Ma...

Mrinal_SAPLABS1 · ‎02-23-2023

***********Updated as per 2308 release ******************

SAP S/4HANA Cloud Solution Order Management (SOM) is an area that enables businesses to manage their orders and the associated tasks and resources required to complete them. It provides a comprehensive solution to manage and track service orders, from creation to invoicing and reporting.

Here’s a comprehensive overview of SAP S/4HANA Cloud Solution Order Management:

Let’s illustrate some generic steps to build / process SOM

Sales & Service Order Creation: In the SAP S/4HANA cloud, businesses can create sales/ service orders based on customer requests or internal requirements. Service orders can be created manually or generated automatically based on customer inquiries, sales quotations, service requests,, or phone or online.

Figure 1: Solution Order Creation

Task Management: Once the service order is created, businesses can manage the associated tasks required to complete the service. The service order includes information about the customer, the requested service, and the expected service delivery date.

Figure 2: Service Order Confirmation

The task management functionality enables businesses to assign tasks to specific resources and track the progress of each task in real-time. With FSM integration, the planner can assign the service order to the appropriate technician based on the skills and availability of the technician. The planner also schedules the service order and determines the necessary resources and materials to complete the service. For sales order items, the business will move to the next step to create delivery and process it.

Figure 3: Release of service order via Manage Service Order app

Resource Management: Integration with Field Service Management (FSM) & SAP S/4HANA cloud enables businesses to manage their resources as per business needs.

Figure 4: FSM Resource availability – finding the best match technician

This has also smoothened the journey of managing equipment, materials, and personnel, required to complete the service order.

Figure 5: Inclusion of equipment in Service Order

During the service execution, the technician can record the activities and material used on the service order. The system provides real-time visibility into the availability of resources and enables businesses to schedule resources based on their availability and skills.

Time and Expense Management: Efficient system integration with FSM & SAP S/4HANA cloud enables businesses to track the time and expenses associated with each service order. The integrated system provides a comprehensive solution for time and expense management, including time entry, expense entry, approval workflows, and reporting.

Figure 6: FSM – Time and Material Journal

In addition to managing service orders, the service order management system also includes service contract management functionality. Businesses can use the service contract management functionality to create and manage service contracts for their customers. The service contract management functionality includes features such as contract creation, contract renewal, and contract billing.

Invoicing: Once the service order is completed, businesses can create a single invoice based on the time and expenses associated with the service order, material sold via sales order, and external billing document request (BDR) if any. The system enables businesses to create and send invoices automatically based on predefined billing rules and schedules.

Figure 7: Entire e2e document flow of solution order

Analytics and Reporting: SAP S/4HANA cloud provides businesses with real-time analytics and reporting capabilities. The system provides a comprehensive view of solution order performance, including key performance indicators such as service order completion rates, time and expense utilization, and resource utilization, and entire document flow.

Figure 8: Solution Order Overview

Figure 9: Solution Order Margin

Figure 10: Solution Order Profitability

Figure 11: Solution Order Flexible Analysis

Current capabilities of solution order management as per S/4HANA 2302 release:

As per SAP S/4HANA 2302 release, the Solution Order Management capability offers

Offer complex solutions of physical goods, services, subscriptions, and projects in one integrated process. This enables businesses to efficiently manage all details.

With proper integration with FSM, the solution provides real-time visibility into resource availability and enables businesses to schedule service orders efficiently.

The solution offers robust service level agreement (SLA) / contract management capabilities, allowing businesses to manage and monitor SLA compliance or contract management.

The solution offers comprehensive tracking and monitoring capabilities, allowing businesses to keep track of all statuses and ensure timely delivery.

SAP S/4HANA Solution Order Management offers robust pricing and billing management capabilities, enabling businesses to create and manage complex pricing structures and efficiently process billing and capture all details in a single invoice.

The solution integrates seamlessly with other SAP modules, such as finance and logistics, enabling businesses to streamline their end-to-end solution order management process.

The system is capable enough / upgraded to handle complex advanced variant configurations in the entire process itself.

Process Flow Diagram:

Figure 12: Solution Order Management Process flow diagram

SAP S/4HANA cloud Solution Order Management is a comprehensive solution for managing service orders, sales items, subscriptions, and service contracts. With an integrated FSM system, the solution provides businesses with the tools they need to manage the entire Solution order lifecycle, from creating solution orders to completing each part of them and invoicing customers in a single bill. With its real-time analytics, capability to adopt advanced variant configuration, service contract management functionality, and mobile capabilities, the SAP S/4HANA cloud Solution Order Management is a valuable tool for businesses looking to improve their end to end journey.

For more information on SAP S/4HANA Cloud, check out the following links: