Unit of Measure in Service Orders.

[amrafey]

Dear Experts,

I have a question on defining correct unit of measure for service operations and activity types.

Business provides services and charges their customer fix price per job.

For example, calibration service takes 16 hours. So they charge a fix price of $3000 per calibration service on an equipment. If calibration takes anything more than 16 hours, then business charges the customer still for 16 hours. If it takes less than 16 hours still they charge the same fixed price. So they have different jobs for different equipments but charge to the customer is raised on a per job basis and not based on how much time spent on a job.

So how should I go about defining the unit of measure for activity types and operations? If i define HOUR or DAY as unit of measure for activity types... then business will have to define the cost price on an hourly basis or per day basis. However, as they don't charge customer for service provided per day or per hour but fix price per job... then what should be the Unit of Measure for activity types and the UOM for the operations entered in service order?

I was thinking to use AU (Activity Unit) as Unit of measure for activity types. However, even if I define AU as Unit of Measure for Activity type, I still cannot use the activity type in the operations of service order... because service order operations do not have AU as Unit of measure. The Unit of measure for operations is based on time, meaning only time-based unit of measures (such as MIN, HR, DAY, Days, Year etc) are listed in the list of operational unit of measures. The Unit of Measure AU (Activity Unit) is defined under the group "NO Dimension" (this is standard settings), so I am unable to use AU as a U.O.M for operations.

So how do I reconcile the usage of correct Unit of Measure for Activity types and operations in service order and service material?

Please advice...

Best regards,
Abdul Rafey

[psquare]

Hi,

The standard scenario within SAP is using service products in the service order and fill in the billing form 01 (fixed rate) in the service order.

The DP90 will do the rest, if customized well.

Also search for this scenario in the SAP Help.
http://help.sap.com/saphelp_erp60_sp/he ... ameset.htm

Regards,

Psquare

[amrafey]

Hi Psquare,

Thank you for your quick reply....

So, you mean it doesn't matter if we keep the operation unit on a per DAY or per HOUR as long as we have if we maintain the service product in the service order and set the fixed price option.

In standard, system is picking up billing form "02" which is cost. How do I make '01' - fixed price as default for billing?

If I maintain service product in my service order, then do I still have to have the service product in my DIP profile for it to be picked up in DP90?

Also, if billing is fixed but if we define cost on daily/hourly basis... then would the financial figures... costs, revenues and P&L figures reflect correctly?

Appreciate your help.

Best regards,
Abdul Rafey

[psquare]

Hello,

Due to this scenario, all the costs and revues are reflecting the correct postings.

To give you an answer on your question, I advise you to look into the introduction to DIP-profile document which is stated in OSS.
I believe it is also stated where to find it in the FAQ section of this forum.

Everything is explained in that document.

Regards,

Psquare