Refurbishment of Repairable Spares - Integration Between SAP-PM and SAP-MM PDF

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Former Member
July 13, 2016 5 minute read
Refurbishment of Repairable Spares: Integration between SAP-

PM and SAP-MM
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12 Likes 8,810 Views 8 Comments
1. Refurbishment Process
Process is servicing of defective spares to bring it to a Workable condition. Refurbished spare

parts are parts that can be repaired either internally or sent out to be repaired by an external
vendor. The parts are then placed back into inventory for future use. This process is necessary for
parts that are no longer commercially available and for parts that can be overhauled and re-used
at a fraction of the price of a new item.
https://blogs.sap.com/2016/07/13/refurbishment-of-repairable-spares-integration-between-sap-pm-and-sap-mm/ 1/22
2. Business Scenario
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 level of quality and reliability and efficient working.
Plant Maintenance is an important service function of an efficient Production system and for doing
so, spares should 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
important reason for doing with refurbishment option is cost because Refurbishment cost is very
low as compared to purchase cost.
3. SAP Perspective: Major Prerequisite
SAP is a suite of integrated modules that holds all we know about our business in one place
By using the Plant Maintenance module the business can improve maintenance program and
make more informed decisions about maintenance routines
From SAP front, mapping of above business process needs close integration between Material
Management (MM) and Plant Maintenance (PM) modules. Needed major pre-requisites are as
follows:
3.1 Split Valuation functionality needs to be configured well and should have three valuation types
New
Refurb
Defective
3.2 Serialization pro le needs to be configured
3.3 Material Provision Indicators for Rework ‘s’ needs to be configured for
Subcontracting Process under External Refurbishment
4. Detailed Process: Refurbishment
4.1 Internal Refurbishment: Major Steps
This Process starts with to bring the Defective Material to stock – Maintenance order created with
quantity -1(or Movement type 262) and Good Issue against reservation/Order.
Defective Material will be issued against Reservation
Maintenance team will complete the work – They will do Time confirmation and issue the needed
material to complete the refurbishment
Good receipt will done for Refurbished material, so material will be available in stock for issue
Last step will be TECO, Settlement and Close of said Refurbishment order
4.2 External Refurbishment: Major Steps
This Process starts with to bring the Defective Material to stock – Maintenance order created with
quantity -1(or Movement type 262) and Good Issue against reservation/Order.
Manual Subcontracting Purchase requisition needs to be created with Valuation type Refurb
Or
This Purchase requisition can be created automatically through Refurbishment Order however
one BADI(BADI_DIAD_GOODMVT_1) needs to implement for said functionality.
Create Subcontracting Purchase Order from Purchase Requisition

Defective Material will be issued to vendor as Material Provided to vendor as Movement type 541
Good Receipt will be done for Refurbished material, so stock will be generated for issue
And if Purchase requisition is created through Refurbishment Order, then Order needs to be
TECO, settled and Closed
5. SAP Screen Shots: Flow
5.1Screen flow: Material Master Creation
Material needs to be created with three Valuation Types:
New:
Refurb:
Defective:
5.2 Screen Flow – Internal Refurbishment:
5.2.1 Bring Defective Material to stock
PM Order Creation (Tcode – IW31) : Order has created reservation for Defective material
movement type 262
Good Issue(Tcode MIGO): With this transaction, movment type 262 done for Defective material and
stock has been created
Stock status after Movement 262(tcode MMBE): Stock status

5.2.2 Creation of Refurbishment order(tcode IW81): Created reservation for Defective

material(Movement type 261)
Stock status after Order creation(Tcode : MMBE) : Defective Material is reserved
5.2.3 Defective Material issue (tcode MIGO) thru Reservation/Order: This will Issue
Defective material(Movement type 261)
Stock After Issue(Tcode MMBE) : Stock Status
5.2.4 Good receipt for Refurbished Material (tcode IW8W) thru Order: This will do Good
receipt(Movement type 101)
Stock after Good Receipt(tcode MMBE) : Stock Status
5.2.5 Technical Completion, Settlement & Closure
Document Flow (IW33) : Status flow
5.3 Screen Flow – External Refurbishment:
5.3.1 Bring Defective Material to stock
PM Order Creation (Tcode – IW31) : Order has created reservation for Defective material
movement type 262
Stock status after Movement 262(tcode MMBE): Stock status
5.3.2 Creation of Purchase Requisition(tcode: ME51N): Purchase requisition with Valuation Type
‘REFURB’
Having Subcontracting Component as ‘Defective’
5.3.3 Creation of Purchase Order(tcode: ME21N): Subcontract Purchase Order with Valuation
Type ‘REFURB’
5.3.4 Goods Issue to Vendor(Tcode MB1B) : Material Provided to Vendor(Movement 541)
Stock status after Movement 541( tcode MMBE) : Stock status
5.3.5 Good receipt(Tcode MIGO) for Refurbished Material : Stock updated for Refurbished
Material (movement type 101) & Movement type 543 for Defective material
Stock status after Movement 101( tcode MMBE) : Stock status

Accounting entries(including Refurbished price and Defective Material prices)
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Assigned tags
PLM Enterprise Asset Management (EAM)/Plant Maintenance (PM) | eam |
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8 Comments
You must be Logged on to comment or reply to a post.
Jogeswara Rao K
August 24, 2016 at 5:29 am

Very useful subject and very good documentation. Such document on Refurbishment process has been a need
here since long.
Like (0)
Former Member
September 1, 2016 at 2:28 am

Thanks for the useful document.
What do you think is the best way to let the maintenance technician know that this material is repairable and
needs to be delivered to the warehouse.
Like (0)
Jogeswara Rao K

This document starts after knowing that a material is to be repaired. So I’m afraid your query does not t here.
Better create a new discussion for your query which is likely to run long.
Regards
KJogeswaraRao
Like (0)
Former Member

Thanks, I will de nitely start a new discussion.
Like (0)
Former Member

Can we make it possible refurbishment process with Service order(not of RF01 type).
Like (0)
Former Member
August 31, 2017 at 6:53 am

Very useful document… thanks for posting
Like (0)
Harikrishna Anumandla
October 19, 2017 at 1:42 pm

Hey Naveen,
Thanks for your blog…!!! For external refurbishment process….I see there is a di erence in Valuation
Types.Having Subcontracting Component as ‘Defective’ and while creating a PO you were maintaining it as
Refurbished state..
I tested the same and later on realized while doing the GR you cannot change the valuation type since its being
grayed out. So, is that the reason you were maintaining two di erent valuation types or something need to be
recti ed with the process?
Like (0)
Omar Saad

thanks
Like (0)
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4/9/2019 Refurbishment of Repairable Spares: Integration between SAP-PM and SAP-MM | SAP Blogs

Refurbishment of Repairable Spares: Integration between SAP-

12 Likes 8,810 Views 8 Comments

Process is servicing of defective spares to bring it to a Workable condition. Refurbished spare

3. SAP Perspective: Major Prerequisite

3.2 Serialization pro le needs to be configured

4. Detailed Process: Refurbishment

4.1 Internal Refurbishment: Major Steps

4.2 External Refurbishment: Major Steps

Create Subcontracting Purchase Order from Purchase Requisition

5. SAP Screen Shots: Flow

5.1Screen flow: Material Master Creation

Material needs to be created with three Valuation Types:

5.2 Screen Flow – Internal Refurbishment:

5.2.1 Bring Defective Material to stock

Stock status after Movement 262(tcode MMBE): Stock status

5.2.2 Creation of Refurbishment order(tcode IW81): Created reservation for Defective

Stock status after Order creation(Tcode : MMBE) : Defective Material is reserved

Stock After Issue(Tcode MMBE) : Stock Status

Stock after Good Receipt(tcode MMBE) : Stock Status

5.2.5 Technical Completion, Settlement & Closure

Document Flow (IW33) : Status flow

5.3 Screen Flow – External Refurbishment:

5.3.1 Bring Defective Material to stock

Stock status after Movement 262(tcode MMBE): Stock status

Having Subcontracting Component as ‘Defective’

5.3.4 Goods Issue to Vendor(Tcode MB1B) : Material Provided to Vendor(Movement 541)

Stock status after Movement 541( tcode MMBE) : Stock status

Stock status after Movement 101( tcode MMBE) : Stock status

Accounting entries(including Refurbished price and Defective Material prices)

PLM Enterprise Asset Management (EAM)/Plant Maintenance (PM) | eam |

Related Blog Posts

Open Catalog Interface in PM orders

SPRO setting for SAP PM integration with MM

You must be Logged on to comment or reply to a post.

August 24, 2016 at 5:29 am

September 1, 2016 at 2:28 am

September 1, 2016 at 2:43 am

September 1, 2016 at 3:12 am

September 1, 2016 at 4:17 am

August 31, 2017 at 6:53 am

October 19, 2017 at 1:42 pm

September 4, 2018 at 11:57 am

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