When it comes to correctly charging replacement parts to a work order for rebuilds, there seems to be some confusion on which transactions to use. Take for example a scenario where a $10,000 pump is signed out of MRO stock (SAP-MM) for a work order (SAP-PM). The challenge lies in automatically charging the work order for the replacement cost of the pump, while also accounting for the $2,500 repair cost when the pump is sent out to a vendor. In order to maintain accurate budgets for a specific manufacturing area, it is crucial to credit the original work order with the $10,000 and only charge $2,500 for the rebuild. Are there specific MM transactions that can help achieve this task effectively? Any advice on the best approach to handle this situation would be greatly appreciated. Thank you.
Are you utilizing a refurbishment order for the replacement process? This is typically the standard procedure for such repairs. The first step involves creating a work order to dismantle the faulty part and install the new one, then placing the dismantled part in the repair stock. The second step entails repairing the faulty part using a refurbishment order, which requires split valuation. Make sure to have the refurbishment order completed properly. Thank you.
Hello, We utilize either a PM01 or a PM02 work order when replacing a faulty part with a new or rebuilt one from our inventory. Our SAP-MM system automatically invoices the work order for the price of the new unit when the part is taken out of stock. We are working on crediting the work order for the full purchase price of the item, so that the work order reflects the lower cost of a vendor rebuild. We are comfortable handling in-house rebuilds completed by our maintenance staff. The challenge arises when we receive the item back from the vendor repair - how can we accurately charge the work order for the repair cost instead of the new purchase price? Any guidance on how to handle this situation with refurbishment work orders would be greatly appreciated. Thank you.
To streamline the process, you can easily return the item needing repair to the store for further handling. It is recommended to designate a specific storage location for items awaiting repair, facilitating the crediting of the work order with the cost of the new unit. Subsequently, any purchase orders generated for repairing the unit will be associated with an account assignment to allocate costs to the work order. Once the item is repaired and returned, it is transferred to a different storage location signifying its availability for use. Upon receipt of the item, the cost of the repair will be recorded in the work order. Alternatively, you may consider implementing the SAP Refurbishment process, which involves charging the work order with the value of the item taken from the store and initiating a separate Refurbishment order for the repair of the returned part. Material valuations will be subdivided to indicate whether stored parts are valued at the new price, cost of repair, or a designated value for items awaiting repairs.
Upon receiving the repaired item, we need guidance on allocating the repair cost to the correct work order or cost center. Any assistance on this matter would be greatly appreciated. Thank you, W.W.
It seems that opting for the PM04 refurbishment order may be the best choice for us. Upon closer examination, we have found that this method includes the essential features we require. A big thank you to everyone for their assistance and support.
Absolutely, your issue can be resolved efficiently using the SAP software itself. Specifically, you can use transaction code MIGO (Goods Movement) to issue the replacement pump to the work order. As for the repair cost, you can take advantage of the Service Entry Sheet associated with external services management (transaction ML81N) which is linked to Plant Maintenance orders (PM-WOC). This allows you to only charge the specific $2,500 repair cost to the work order. Remember, the key is to separate the pump's total cost from its repair cost in your financial accounting. This approach will help maintain an accurate budget for each manufacturing area, tracking both the resource usage and repair expenses.
Absolutely, I understand the complexity of correctly allocating costs in these scenarios. There are indeed specific MM transactions you can utilize to manage this. For the part being removed from stock, you should use a MB1A 261 movement type to issue the pump to the PM order. This credits the MRO stock and debits the PM order. Then, when you receive the rebuilt pump, use a MB1A 262 movement. This debits MRO and credits the PM order for the original $10,000. Now the question remaining is, how to account for the $2,500 repair cost? This can be done by processing an external service entry sheet via ML81N. When it comes to rebuilding costs, use transaction code ML81N with the service entry sheet, relating it back to the original PM order. In this way, the PM order remains credited with the $10,000 and the $2,500 rebuild cost is also charged to the work order. This ensures your budgeting stays accurate. Hope this approach helps!
It seems like this issue is mainly about getting these transactions accurately reflected in your system. Specifically, you'll want to make sure that your credit for the original work order ($10,000) and the charge for repair ($2,500) are both accounted for. I am by no means an SAP expert, but it might be helpful if you considered using movement type 261 for the assignment of the pump to the work order, which should automatically debit the work order with the cost of the pump. Once the pump is repaired and comes back, you can use movement type 262 to return it back to inventory, which will credit the work order by the price of the repair. This should ensure that only the cost of the rebuild is charged to your manufacturing area budget. However, I suggest you consult with a SAP MM specialist or your ERP System Administrator for more professional and accurate solutions.
In such scenarios, it's beneficial to credibly track both the initial cost of the pump and the refurbishment cost. From my experience, you could use the SAP Material Ledger (ML) to effectively keep tabs on these costs. It caters for two cost areas - the initial cost and incurred expenses like your repair cost. Once the pump is refurbished, the original cost can then be credited back to the work order. Also, consider investigating the MB1A or MIGO transactions if ML isn't your preference. Additionally, revising the procedure for signing out and in stock for repairs might be worth considering, as robust planning can avoid such confusion.
It sounds like you’re navigating a complex situation with your workflow! One approach that could help streamline the process is to use the movement type 201 for the initial transfer of the pump from the MRO stock to the work order, ensuring it’s recorded as a cost on the work order. For the rebuild charges, when you send the pump for repairs, you can create a service entry sheet (using transaction ML81N) where you document the $2,500 cost, which will effectively allow you to charge just the repair cost back to the work order. This way, the original value of the pump remains intact in your inventory records, and you maintain clear visibility on costs associated with repairs. It might also be worth consulting your SAP MM and PM teams to establish a standardized process across all work orders to prevent future confusion.
It sounds like you’re facing a classic challenge in cost allocation! To accurately handle this in SAP, you might consider using two separate movements: first, issue the pump to the work order with a movement type that charges the $10,000 against it, and then when the pump goes out for repair, create a subsequent line item or a new internal order for the $2,500 repair cost. This way, you maintain a clear separation between the asset cost and the repair expense, keeping budgets aligned and traceable. Additionally, leveraging the internal activity allocation functionality could help seamlessly manage these costs without complicating the transactions further. It’s all about making those distinctions clear in the system!
It sounds like you're navigating a tricky situation with the financial tracking of parts and repairs. One approach could be to use the movement type 261 for the initial withdrawal of the $10,000 pump from MRO stock, which keeps that cost tied to the work order. Then, when you process the pump for repair, you can use a combination of movement types and cost tracking in SAP to ensure that only the $2,500 repair cost goes against the work order. Make sure to leverage internal orders for tracking costs further, which might help segregate the original cost from the repair. Keeping everything linked in the system is key, and a structured process can help maintain the integrity of your budgets!
It sounds like you’re facing a common challenge with integrating MRO parts into your work order processes. One approach that might help is using transaction codes like MB1A to post the goods issue for the pump to the work order while simultaneously leveraging a separate transaction, such as MIGO or MB1B, to handle the return of any unused parts and the repair costs. You could also look into configuring your accounting settings to allow for different cost centers, which would let you allocate the repair costs separately without affecting your initial work order's budget. It might be a bit of a setup, but ensuring that the costs flow correctly can really help in maintaining accurate financial visibility.
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Answer: 1. How can replacement parts be correctly charged to a work order for rebuilds? - To correctly charge replacement parts to a work order for rebuilds, it is important to credit the original work order with the replacement cost of the part and only charge the actual repair cost. This can help maintain accurate budgets for specific manufacturing areas.
Answer: - The challenge in scenarios like the one mentioned is ensuring that the work order is charged accurately for the replacement cost of the part, while also accounting for any repair costs incurred when the part is sent out to a vendor.
Answer: - Utilizing SAP-MM transactions can aid in effectively charging work orders for rebuilt parts. These transactions can help credit the original work order with the replacement cost of the part and only charge for the actual repair cost, thereby ensuring accurate budget management.
Answer: - The best approach to handle such situations is to carefully credit the original work order with the replacement cost of the part and charge only the repair cost. This approach helps in maintaining accurate budgets for specific manufacturing areas.
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