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Refurbishmentof
RepairableSpares:
IntegrationbetweenSAP
PMandSAPMM
July13,2016

| 135Views |
NAVEENSharma
morebythisauthor

PLMEnterpriseAssetManagement(EAM)/PlantMaintenance(PM)
Solution | eam

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1.RefurbishmentProcess
Process is servicing of defective spares to bring it to a
Workablecondition.Refurbishedsparepartsarepartsthat
canberepairedeitherinternallyorsentouttoberepaired

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byanexternalvendor.Thepartsarethenplacedbackinto
inventoryforfutureuse.Thisprocessisnecessaryforparts
thatarenolongercommerciallyavailableandforpartsthat
canbeoverhauledandreusedatafractionofthepriceof
anewitem.

2.BusinessScenario
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
levelofqualityandreliabilityandefficientworking.
Plant Maintenance is an important service function of an
efficientProductionsystemandfordoingso,sparesshould
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
importantreasonfordoingwithrefurbishmentoptioniscost
because Refurbishment cost is very low as compared to
purchasecost.

3.SAPPerspective:MajorPrerequisite
SAPisasuiteofintegratedmodulesthatholdsallwe

knowaboutourbusinessinoneplace

ByusingthePlantMaintenancemodulethebusiness
canimprovemaintenanceprogramandmakemore
informeddecisionsaboutmaintenanceroutines
From SAP front, mapping of above business process
needs close integration between Material Management
(MM)andPlantMaintenance(PM)modules.Neededmajor
prerequisitesareasfollows:

3.1SplitValuationfunctionalityneedstobeconfiguredwell
andshouldhavethreevaluationtypes
New
Refurb
Defective

3.2Serializationprofileneedstobeconfigured

3.3MaterialProvisionIndicatorsforReworks
needstobeconfiguredforSubcontractingProcess
underExternalRefurbishment

4.DetailedProcess:Refurbishment

4.1InternalRefurbishment:MajorSteps
ThisProcessstartswithtobringtheDefectiveMaterial
tostockMaintenanceordercreatedwithquantity1(or
Movementtype262)andGoodIssueagainst
reservation/Order.

DefectiveMaterialwillbeissuedagainstReservation
MaintenanceteamwillcompletetheworkTheywilldo
Timeconfirmationandissuetheneededmaterialto
completetherefurbishment
GoodreceiptwilldoneforRefurbishedmaterial,so
materialwillbeavailableinstockforissue
LaststepwillbeTECO,SettlementandCloseofsaid
Refurbishmentorder
4.2ExternalRefurbishment:MajorSteps
ThisProcessstartswithtobringtheDefectiveMaterial
tostockMaintenanceordercreatedwithquantity1(or
Movementtype262)andGoodIssueagainst
reservation/Order.
ManualSubcontractingPurchaserequisitionneedstobe
createdwithValuationtypeRefurb
Or
ThisPurchaserequisitioncanbecreatedautomatically
throughRefurbishmentOrderhoweverone
BADI(BADI_DIAD_GOODMVT_1)needstoimplementfor
saidfunctionality.
CreateSubcontractingPurchaseOrderfromPurchase
Requisition
DefectiveMaterialwillbeissuedtovendorasMaterial
ProvidedtovendorasMovementtype541
GoodReceiptwillbedoneforRefurbishedmaterial,so
stockwillbegeneratedforissue
AndifPurchaserequisitioniscreatedthrough
RefurbishmentOrder,thenOrderneedstobeTECO,
settledandClosed

5.SAPScreenShots:Flow

5.1Screenflow:MaterialMasterCreation

MaterialneedstobecreatedwiththreeValuationTypes:
New:

Refurb:

Defective:

5.2ScreenFlowInternalRefurbishment:
5.2.1BringDefectiveMaterialtostock

PMOrderCreation(TcodeIW31):Orderhascreated
reservationforDefectivematerialmovementtype262

GoodIssue(TcodeMIGO):Withthistransaction,movment
type262doneforDefectivematerialandstockhasbeen
created

StockstatusafterMovement262(tcodeMMBE):Stock
status

5.2.2CreationofRefurbishmentorder(tcodeIW81):
CreatedreservationforDefectivematerial(Movementtype
261)

StockstatusafterOrdercreation(Tcode:MMBE):
DefectiveMaterialisreserved

5.2.3DefectiveMaterialissue(tcodeMIGO)thru
Reservation/Order:ThiswillIssueDefective
material(Movementtype261)

StockAfterIssue(TcodeMMBE):StockStatus

5.2.4GoodreceiptforRefurbishedMaterial(tcodeIW8W)
thruOrder:ThiswilldoGoodreceipt(Movementtype101)

StockafterGoodReceipt(tcodeMMBE):StockStatus

5.2.5TechnicalCompletion,Settlement&Closure

DocumentFlow(IW33):Statusflow

5.3ScreenFlowExternalRefurbishment:

5.3.1BringDefectiveMaterialtostock
PMOrderCreation(TcodeIW31):Orderhascreated
reservationforDefectivematerialmovementtype262

StockstatusafterMovement262(tcodeMMBE):Stock
status

5.3.2CreationofPurchaseRequisition(tcode:ME51N):
PurchaserequisitionwithValuationTypeREFURB

HavingSubcontractingComponentasDefective

5.3.3CreationofPurchaseOrder(tcode:ME21N):
SubcontractPurchaseOrderwithValuationTypeREFURB

5.3.4GoodsIssuetoVendor(TcodeMB1B):Material
ProvidedtoVendor(Movement541)

StockstatusafterMovement541(tcodeMMBE):Stock
status

5.3.5Goodreceipt(TcodeMIGO)forRefurbishedMaterial:
StockupdatedforRefurbishedMaterial(movementtype101)
&Movementtype543forDefectivematerial

StockstatusafterMovement101(tcodeMMBE):Stock
status

Accountingentries(includingRefurbishedpriceand
DefectiveMaterialprices)

AlertModerator

5Comments

JogeswaraRaoK
August24,2016at5:29am

Veryusefulsubjectandverygooddocumentation.Suchdocumenton
Refurbishmentprocesshasbeenaneedheresincelong.

MiaMsh
September1,2016at2:28am

Thanksfortheusefuldocument.
Whatdoyouthinkisthebestwaytoletthemaintenancetechnicianknow
thatthismaterialisrepairableandneedstobedeliveredtothewarehouse.

JogeswaraRaoK
September1,2016at2:43am

Thisdocumentstartsafterknowingthatamaterialistobe
repaired.SoImafraidyourquerydoesnotfithere.Better
createanewdiscussionforyourquerywhichislikelytorun
long.
Regards

KJogeswaraRao

MiaMsh
September1,2016at3:12am

Thanks,Iwilldefinitelystartanewdiscussion.

Ajaykumarbendi
September1,2016at4:17am

CanwemakeitpossiblerefurbishmentprocesswithServiceorder(notof
RF01type).

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