mySAP E&C Equipment and Tools

Management

- Overview -

Industry Unit E&C

SAP AG
 mySAP E&C Equipment Management

Equipment Management is the mySAP solution for

planning, administration and settlement of
Equipment and Material.

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 2

mySAP E&C Contractors Solution Map 2001

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 3

 Supported Business Processes by ETM

1 Renting pieces of equipment

 Internal
 External (Joint Venture)

2 Selling and buying of non consumption material

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 4

 Terminology

Time Based Equipment

Example • Billing according to usage on site

- Cranes • Individual Stock

Performance Based
Equipment

Example Billing according to counter readings

- Excarvators • Individual Stock

Multi-Part Equipment
• Billing or Sale and buy back
Example • No Individual Stock
- Formwork
- Scaffolding

Material (consumable and non-

consumable materials)

Example • Sale and buy back

- Nails, Bolts • No Individual Stock
- Drilling Maschines
- Screwdrivers

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 5

ETM - Roles and Responsibilities
Equipment Lifecycle Management
Requirements Equipment Rental Deployment Settlement and
Determination Planning Agreements Management Billing

Equipment Owner Equipment

Equipment belongs
Owner
to the owner.

Administrator
Administrator is
Equipment
Administrator responsible for the
planning and usage of
equipment

Construction Site
Orders equipment. Uses
equipment in case of
Site Manager internal rental

Customer Client of the company

Customer that runs the construction
site. Uses equipment in
case of external rental

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 6

 ETM – Roles and Process Flow

Parties involved
Recepient
• Reports requirements
• Pays rental fee
• Buys and sells back tools and materials

Equipment Manager
• Leases Equipment from owner
• Maintains the Equipment
• Plans requirements, manages stocks
• Rents equipment and charges recepient

Owner
• Purchasing and Insurance
• Equipment as Asset
• Depreciation posting

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 7

Equipment Rental: Process Flow

Create’s Requisition note (optional)

Equipment
Recipient
Construction site

Confirmation of requirement (optional)

Administrator Shipping- / PBE document

Handling of equipment and material

Periodical settlement

Periodical billing

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 8

 ETM – Logistical Process

Business Process – Logistical Part

 Requisition Note – specifies the required equipment
 Hitlist of possible equipments based on requisition note
 Availability of equipment? – Confirmation or Rejection
 Shiping Document

Shipping
document
1. 2. 3.
Requisition note Availability?
Recipient, e.g.
Requirement from Equipment
Construction site
Site Manager Manager

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 9

 Requisition Note

Specifies type of the required equipment

Requisition Period

Site Manager
creates Requistion note

Requisition Note 18
Recipient: Construction Site X
Requisition Period: 08/08/2001 - 12/10/2001

Notes: Please deliver in time!

Pos. Class/Equipment Values Quantity

10 Excarvator p>150 kW 2 pc
20 Crane h> 40 m 1 pc
30 Scaffolding 300 m²
Equipment Manager

Equipment planning
Assigns equipment to requirement

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 10

Shipping document

Shipping Document Features

 Transfer requisition note into Shipping document
 „Parking“ of Shipping document for later processing

Equipment Manager Recipient (Site Manager)

Shipping document

Equipment Shipping Documents

 One Shipping document for pieces of equipment and material
 Equipments-In-Stock overview

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 ETM – Requirements Usage

Based on Shipping Operator´s Reports

Document
Shipping
Document Operator´s
Report
. . . Versus . . .

Shipping Document Performance Based Equipment

Shipping of Equipment and Billing based on
Material  Counter Readings
Billing based on Time and type of  Operation Time
use on site

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ETM – Value Flow

Business Process – Settlement (Example: Work Corporation)

 Equipment Manager leases equipment from owner
 Equipment Manager rents equipment to site manager
 Equipment Manager sents invoice on behalf of the site manager to
debtor
 Debtor pays invoice to the site manager

Owner Equipment Site Manager Debtor

Manager

Lease 700,- Rent 2.000,- Rent ext. 3000,- Invoice 3000,-

Deprec. -300,- Lease -700,- Rent intern -2000,-

Profit 400,- Profit 1.300,- Profit 1000,-

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 mySAP E&C Equipment Management

Scenarios

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(I) External Rental

Parties involved

Administrator
Handling of equipment and material

Recipient
Construction site A

Debtor
External Customer of Recipient

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(I) External Rental: Value Flow

Deprecation cost
Maintenance cost
Asset Revenue rental

Owner / Administrator
Equipment

Internal Billing External Billing

Cost rental Revenue rental
Cost loading Revenue loading Cost rental
Cost provision fee Revenue provision fee Cost loading 15
Cost provision fee

Recipient Debtor

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(I) External Rental: Complete Process

Process flow

Warehouse Recipient Debtor

Equipment
Administrator Site location of Recipient
Shipping document and/or PBE document

Periodical settlement with cost allocation

Sender Asset Recipient

Periodically deprecation 80

Cost center PM Order WBS Element Debtor

Cost deprecation 80
Revenue rental 100 Cost rental 100
Cost rental 120
Revenue rental 120
Revenue loading 10 Cost loading 10
Cost loading 15
Revenue loading 15
Revenue provision fee 20 Cost provision fee 20
Revenue provision fee 25 Cost provision fee 25

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(II) Internal Rental

Parties involved

Administrator
Handling of equipment and material

Recipient
Construction site A

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(II) Internal Rental: Value Flow

Deprecation cost
Maintenance cost
Asset Revenue rental

Owner / Administrator
Equipment

Internal Billing
Cost rental Revenue rental
Cost loading Revenue loading
Cost provision fee Revenue provision fee

Recipient

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 19

Internal Rental: Complete Process

Process flow

Warehouse Recipient
Equipment
Administrator Site location
Shipping document and/or PBE document

Periodical settlement with cost allocation

Sender Asset Recipient

Periodically deprecation 80

Cost center PM Order WBS Element

Cost deprecation 80
Revenue rental 100 Cost rental 100
Revenue rental 120
Revenue loading 10 Cost loading 10
Revenue loading 15
Revenue provision fee 20 Cost provision fee 20
Revenue provision fee 25

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 20

(III) Sales and repurchase of non consumable material

Shipment of material

Material Material

Warehouse Recipient A Recipient B

Shipping document Shipping document Site location
Site location

Periodical settlement with cost allocation

Cost center WBS element WBS element
Material sales
Revenue 100
Cost 100

Material repurchase

Cost 80 Revenue 80

Material sales

Revenue 100 Cost 100

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(IV) Consumable material

Shipment of material

Warehouse Recipient A
Shipping document
Site location

Cost allocation (automatical goods movement with shipping)

Warehouse inventory WBS element

Cost

 SAP AG 2001, mySAP E&C Equipment Management, Carsten Dietze 22

Summary

mySAP E&C provides a solution for

equipment management, covering
 Internal Rental

 Joint Ventures

 Materials and Tools

Major Benefits
 Providing detailed information to your
equipment

 Visibility of costs, revenues, down times,...

 Better availability, improved utilization and

reduced maintainance cost

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