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SAP Refurbishment Order

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By Varun Maheshwari July 14, 2017

Welcome to our SAP Refurbishment Order tutorial as part of our SAP PM


course. This tutorial will walk you through the lifecycle of a refurbishment
order. You will learn how to create, withdraw from, confirm costs, receive and
settle a refurbishment order.

An SAP refurbishment order is a special order, used for the refurbishment of


repairable spares. The refurbishment process is important for companies
where system availability is a critical factor. In many cases, it is cost-effective
to refurbish an expensive, damaged part rather than purchase a new one.

In practice, the production facility usually replaces the faulty part with a
functional spare while the damaged part is sent for repair. When a
refurbishment order is created, the respective maintenance work center is responsible for replacing the
damaged part.

The refurbishment order is similar to the maintenance order. However, the refurbishment order provides:

Ability to identify repairable spares which should be refurbished


Refurbishment from plant to plant, storage location and valuation type
Status of refurbishment and refurbished delivery quantity
Refurbishment date

To create a refurbishment order, a separate order type must be created In customizing.

For SAP’s official documentation and process flow on refurbishment of repairable spares, click here.

Create an SAP Refurbishment Order


In this step, the maintenance planner creates a refurbishment order. Next, the required operation and material
component for repair are planned and the timeline is defined. Then the refurbishment order is released.

Menu path Logistics > Plant Maintenance > Maintenance Processing > Order > Create (Special) > Refurbishment
Order

Transaction IW81 – Refurbishment Order


code

On the initial screen of transaction code IW81, enter the following:

1. Order type: PM04 – Refurbishment Order


2. Material number of the faulty part
3. Plant of the faulty part
4. Business area of the faulty part
Press Enter.

Create SAP Refurbishment Order – Initial Screen

The create refurbishment order screen is similar to the normal maintenance order screen. Enter the following
details:

1. Enter a short description of the problem


2. Maintenance work center defaulted from the equipment
3. Enter the refurbishment plant
4. Enter the quantity as the total number of repairable spares which should be refurbished for this order
5. The plant and storage location from which you want to withdraw the repairable spares to be refurbished
6. The plant and storage location to which you will return the repairable spares to be refurbished
7. Basic finish date is the deadline for the product repair
Create SAP Refurbishment Order – Header Screen

Create Refurbishment Order – Operations

Click on the Operations tab. This tab contains details related to operations which will be performed during
maintenance processing. You should enter planned required work hours and duration for the repair: Create
Refurbishment Order – Operations

Click on the Components tab. Specify additional components and quantities required to repair faulty
repairable spare. Item 0000 will be the item that you entered at the header level. Add additional items using the
following data for each component:
1. Component is the material number
2. The requirement quantity of the components needing repair
3. Enter the refurbishment plant

Create Refurbishment Order – Components

Now release your order by clicking on release flag icon and click Save to post the order .

Withdraw from an SAP Refurbishment Order


Next, as the faulty repairable spare is sent away for refurbishment, the employee responsible withdraws the
material components from the warehouse. A goods movement is entered to complete the withdrawal.

Menu path Logistics > Plant Maintenance > Maintenance Processing > Completion confirmation > Goods Movement >
Goods Movement

Transaction MB11 – Goods Movement


code

On the initial screen of transaction code MB11, enter the following:

1. Order type: 261 – Goods issue for an order


2. Plant of the faulty part
3. Storage Location of the faulty part

Press Enter.
Enter Goods Movement – Initial Screen

Press the To Order button and the following screen will appear:

Enter Goods Movement – Reference Order Screen

Enter the order number you created in the previous section and execute. The components and quantities you
entered on the refurbishment order will appear for selection:
Enter Goods Movement – Selection Screen

Click on the save icon to withdraw the material.

Confirm Completion of SAP Refurbishment Order


Now, the actual time to repair the faulty repairable spare has to be captured in system. This can be done
through confirmation of completion of the order. You can enter partial of final confirmations as work is
performed and eventually completed.

Menu path Logistics > Plant Maintenance > Maintenance Processing > Completion confirmation > Entry > Overall
Completion Confirmation

Transaction IW42 – Overall Completion Confirmation


code

On the confirmation screen of transaction code IW42, enter the following:

1. Refurbishment order number


2. Actual work performed in hours
3. Tick the final confirmation tickbox if the work is completed

Save to post the confirmation .


Completion Confirmation

The status of the refurbishment order now shows CNF (confirmed):

View Refurbishment Order Status – Confirmed

Receive the Returned SAP Refurbishment Order


Now, you must post the return of the refurbished spare item to the storage location/warehouse where it is
received. In this step, a refurbishment goods receipt is posted for the refurbished item.
Menu path Logistics > Plant Maintenance > Maintenance Processing > Completion Confirmation > Goods Movement >
Refurbishment Goods Receipt

Transaction IW8W – Refurbishment goods receipt


code

On the initial screen of transaction code IW8W, enter the following:

1. Refurbishment order number

Press Enter.

Goods Receipt for Refurbishment Order – Initial Screen

Information is proposed from the refurbishment order:


Goods Receipt for Refurbishment Order – Main Screen

Click on the save icon to perform the goods receipt. Document is posted in the system:

Receipt of the Refurbishment Order Posted

The repairable spares are now in full working order again, relevant for materials planning, and can be used.

Display Costs of the SAP Refurbishment Order


Actual cost incurred to complete the refurbishment process can be viewed from the Costs tab in the change or
display order transaction codes (IW32 or IW33):

Display Refurbishment Order Costs

Click the Rep. Plan/Act. button to view the comparison report of planned costs entered on the refurbishment
order vs. actual costs entered on the completion confirmation:

Plan/Actual Comparison Cost Report


Completion of SAP Refurbishment Order
As the process is completed, the order needs to be marked as completed. To do so, enter the order in change
mode and set the status of the order to “TECO” technically completed.

Menu path Logistics > Plant Maintenance > Maintenance processing > Order > Change

Transaction code IW32 – Change Order

On the initial screen of transaction code IW32, enter the following:

1. Refurbishment order number

Press Enter.

Change Refurbishment Order – Initial Screen

Click on Complete (technically) flag:


Change Refurbishment Order – Header Screen

The status of the refurbishment order now shows TECO (technically completed):

View Refurbishment Order Status – Technically Completed

Settlement of SAP Refurbishment Order


Finally, complete the refurbishment process by settling incurred costs to the material. First, we will check the
settlement rule created for the order.
Within the change order transaction, select Go to > Settlement rule from the toolbar:

Change Refurbishment Order – Check Settlement Rule

The settlement rule created for the refurbishment order is displayed. The settlement receiver is the material for
the faulty repairable spare item:

Maintain Refurbishment Order Settlement Rule


Next, perform the actual settlement.

Menu path Logistics > Plant Maintenance > Maintenance Processing > Completion > Individual Processing > Actual
Settlement: Order

Transaction KO88 – Actual Settlement: Order


code

On the initial screen of transaction code KO88, enter the following:

1. Refurbishment order number


2. Open period as settlement period and posting period
3. Open fiscal year
4. Select processing type Automatic
5. Select Test Run tickbox

Click Execute to run in test mode and check your entries.

Refurbishment Order Settlement – Initial Screen

Check the settlement for errors. If everything is correct, go back and remove the Test Run tickbox and re-
execute:
Refurbishment Order Settlement – Settlement Report

Click on detailed list icon to get settlement details with cost sender, cost receiver and cost value:

Refurbishment Order Settlement Details

Settled cost can also be viewed from cost reports:


Plan/Actual Comparison Report

Did you like this tutorial? Have any questions or comments? We would love to hear your feedback in the
comments section below. It’d be a big help for us, and hopefully it’s something we can address for you in
improvement of our free SAP PM tutorials.

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