Equipment and Tools Management

for Construction
SAP Best Practices for Engineering,
Construction, and Operations
(India)

SAP Best Practices

Scenario Overview
Purpose and Benefits:
Purpose

Addresses the unique requirements of self performing construction companies,

building contractors and equipment distributors by handling the industry-specific
business processes such as equipment planning, -processing, -settlement and
evaluation of resources (equipment and materials) including performance
measurement.

Benefits

SAP 2010 / Page 2

Improve the availability and tracking of equipment

Manage the increasing administrative workload

Reduce handling and administration cost

Introduce most flexible prices and account determination

Optimize equipment utilization

Improve the visibility of profitability, TCO and return on asset and equipment

Scenario Overview
SAP Applications Required:

Enhancement Package 4 for SAP ERP 6.0

DIMP-Extension (Switch Framework)

Company Roles Involved in Process Flows:

Equipment Administrator
Project Manager
Warehouse Clerk

Key Process Flows Covered:

SAP 2010 / Page 3

Time-based Equipment Process

Time-based Equipment Process including 3rd Party Rental Equipment
Performance Based Equipment Process
Non-Consumable Material Process
Consumable Material Process

Scenario Overview
Detailed Process Description:
Time-based Equipment Process
This business process describes the planning, dispatching and settlement of time based
equipment. Time based equipment can be single- or multipart equipment, which are shipped
via an ETM shipping document and are settled due to time/days they have been on a
recipient/location and its quantity. The shipping document allows the tracking of each
equipment (single- and multipart). A time based equipment is settled periodically with a fixed
price, whereas it is not relevant, how often an equipment has been used (in operation). A
typical time based equipment is a crane.
The time based equipment process starts with an equipment request of a project manager or
foreman. He needs a crane with a certain specification (e.g. Hook high max. 20 mtr.) for a
certain period. The project manager or foreman can either enter an ETM requisition note
directly by himself or he calls the equipment manager/administrator (responsible for all
equipment) and he than will enter the requirement in the system. After the equipment
manager has assigned the request to an equipment, it will be send out to the project.
Typically month end the settlement and billing run takes place.

SAP 2010 / Page 4

Scenario Overview
Detailed Process Description:
Performance Based Equipment Process
This business process is used to record performed equipment hours, used amount of fuel and oil
(e.g. liter), amount of kilometers etc. for a project and to settle performance based equipment
(PBE). PBEs are settled due to its performed hours respectively its quantity. Performance
based equipment - mostly very expensive single equipment are send out to a construction
side via a shipping document (for tracking), but parallel to this a performance based
equipment document (PBE document) is entered to control the usage of single equipment. A
typical performance based equipment is an excavator.
The performance based equipment process starts analogue to the time based equipment process
with an equipment request of a project manager or foreman. He needs an excavator with a
certain specification (e.g. Power 50 kW) for a certain period. The project manager can either
enter an ETM requisition note directly by himself or he calls the equipment
manager/administrator (responsible for all equipment) and he than will enter the requirement
in the system. After the equipment manager has assigned the request to an equipment, it will
be send to the project.
Daily or weekly depending on organization rules - the performed equipment hours are entered
via a PBE document to the project/recipient. After all PBE documents for the period have
been entered, the settlement can run, which will recognize, that beside the shipping
document for the same time a PBE document exists and would treat it dependent.
After the settlement list has been created and checked for its correctness through the project
manager or foreman the billing run takes place.

SAP 2010 / Page 5

Scenario Overview
Detailed Process Description:
Non-Consumable Material Process
This business process is used if standard material, called non-consumable material e.g. site
facilities, ladders etc. has to be shipped from a warehouse to a recipient (debtor master with
enhanced ETM view) together with equipment in one ETM shipping document or has to be
taken out of a magazine
In both ways, non-consumable material is given back to the magazine or the warehouse via ETM
shipping document after it has been used. This saves time and costs for transports and
administrative effort. Magazines are a kind of little project warehouses on big construction
sites/projects.
The process in ETM is called sales and repurchase of non consumable material to and from a
recipient/project - to and from a warehouse. This means, construction sites buy non
consumable material for a fixed price and after the non consumable material is given back to
either the magazine or the warehouse a reduced value will be credited to the project
(automated repurchase process).
When the periodically settlement takes place, projects get debited for the received material and
credited for the returned material. So the project pays a kind of provision fee for the usage of
the material.
Generally the settlement of non consumable material is based on quantity and not on the time
period like time based equipment!
The cost charging and automated repurchase of non-consumable material is fully automated
handled via ETM!

SAP 2010 / Page 6

Scenario Overview
Detailed Process Description:
Consumable Material Process
This business process is used for shipping standard material, called consumable material (e.g.
concrete or nails) together with equipment in one ETM shipping document to reduce
transport- and handling costs for projects in construction industry.
The cost charging is done by SAP standard Sales and Distribution (SD) and Material
Management (MM). ETM only overtakes - logistically seen - the delivery of consumable
material.
No settlement takes place in ETM for consumable materials!

SAP 2010 / Page 7

Process Flow Diagram

ECO Equipment Administrator (DIMP)

Project Manager ECO Event

(DIMP)

Time-based Equipment Process

End
Process

Equipment
Request

Create
Requisition
Note

Create
Acquisition
Shipping
Document

Assign
Equipment
and Create
Shipping
Document

Return
Equipment to
Construction
Yard/Warehouse

Display
Billing
Document

Create
Billing
Document

Display
Sales
Order

Internal Settlement

CEM Sales
Order
Settlement

Cost
Allocate

Check Log
for CEM
SD
Settlement

Display
Sales
Order

External Settlement

Create
Billing
Document

Display
Billing
Document

Process Flow Diagram

ECO Equipment Administrator (DIMP)

Project Manager ECO Event

(DIMP)

Time-based Equipment with Third-Party Equipment Rental Process

Equipment
Request

Run Time-Based
Equipment Process
(in this scenario)

End
Process

Yes

Create
Requisition
Note

Equipment
Available?

No

Create Purchasing
Requisition for
Rental Equipment

Convert Purchase
Requisition to
Purchase Order

Invoice
Verification

Create
Equipment

Create
Equipment
BOM

Process Flow Diagram

ECO Equipment Administrator (DIMP)

Project Manager ECO Event

(DIMP)

Performance based Equipment Process

End
Process

Equipment
Request

Create ETM
Requisition
Note

Assign
Requisition
Note to
Equipment

Create
PBE
Document

Check
Document List
for PBE

Display
Billing
Document

Create
Billing
Document

Display
Sales
Order

Internal Cost Allocation

Create
Sales
Order

Internal
or
External
Cost
Allocate?

Check Log
for CEM
SD
Settlement

Display
Sales
Order

External Invoice

Create
Billing
Document

Display
Billing
Document

Process Flow Diagram

Project
Manager
ECO

Warehous
Event
e Clerk

Non-consumable Material Process (internal)

Material
Request

Initial Stock
Posting for
NonConsumable
Material

Stock
Overview in
MM

ECO Equipment Administrator

Current
Stock for
Material In
ETM

SAP 2009 / Page 11

Internal

Stock
Overview in
MM

Create First
ETM Shipping
Document for
Acquisition

Internal
or
External
Sales?

Display
Shipping
Document

Sales
or
Repurc
hasing?

Stock
Overview in
MM

Current
Stock for
Material In
ETM

Create Second ETM

Shipping
Document for
Acquisition

Check Log
for CEM SD
Settlement

Create
Sales Order

Display
Shipping
Document

Current
Stock for
Material In
ETM

External
Display
Sales
Order

Display
Sales
Order

Create
Billing
Document

Create
Billing
Document

Display
Billing
Document

Display
Billing
Document

Internal or
External
Repurchase
?

Internal

Display
Sales
Order

Create
Billing
Document

Display
Billing
Document

Display
Sales
Order

Create
Billing
Document

Display
Billing
Document

External

Process Flow Diagram

ECO Equipment Administrator

Project Manager ECO

Warehouse Clerk Event

Consumable Material Process (internal)

Material
Request

Initial Stock
Posting for
Consumable
Material

Stock Overview
in MM

Current Stock
for Material In
ETM

Stock Overview
in MM

Create ETM
Shipping
Document for
Acquisition

Display
Shipping
Document

Current Stock
for Material In
ETM

Legend

<Function>

Symbol

Description

Usage
Comments

Band: Identifies a user role, such as Accounts

Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.

Role band
contains tasks
common to that
role.

Symbol

Diagram
Connection

Description

Usage Comments

To next / From last Diagram: Leads

to the next / previous page of the
Diagram

Flow chart continues on the next /

previous page

Hardcopy / Document: Identifies a

printed document, report, or form

Does not correspond to a task

step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines

Financial Actuals: Indicates a

financial posting document

Does not correspond to a task

step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines

Budget Planning: Indicates a

budget planning document

Does not correspond to a task

step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any
outgoing flow lines

Manual Process: Covers a task

that is manually done

Does not generally correspond to

a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.

Existing Version / Data: This block

covers data that feeds in from an
external process

Does not generally correspond to

a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines

System Pass / Fail Decision: This

block covers an automatic
decision made by the software

Does not generally correspond to

a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.

The other process flow symbols in this table go into

these rows. You have as many rows as required to
cover all of the roles in the scenario.

External
to SAP

External Events: Contains events that start or end the

scenario, or influence the course of events in the
scenario.

Business
Activity /
Event

Flow line (solid): Line indicates the normal sequence

of steps and direction of flow in the scenario.
Flow line (dashed): Line indicates flow to
infrequently-used or conditional tasks in a scenario.
Line can also lead to documents involved in the
process flow.

Connects two
tasks in a
scenario
process or a
non-step event

Business Activity / Event: Identifies an action that

either leads into or out of the scenario, or an outside
Process that happens during the scenario

Does not
correspond to a
task step in the
document

Unit Process: Identifies a task that is covered in a

step-by-step manner in the scenario

SubProcess
Reference

Proces
s
Decisio
n

SAP 2010 / Page 13

Financial
Actuals

Budget
Planning

Unit Process

Process
Reference

Hardcopy /
Document

Corresponds to
a task step in
the document

Process Reference: If the scenario references another

scenario in total, put the scenario number and name
here.

Corresponds to
a task step in
the document

Sub-Process Reference: If the scenario references

another scenario in part, put the scenario number,
name, and the step numbers from that scenario here

Corresponds to
a task step in
the document

Process Decision: Identifies a decision / branching

point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.

Does not
usually
correspond to a
task step in the
document;
Reflects a
choice to be
made after step
execution

Manual
Proces
s

Existing
Version /
Data

System
Pass/F
ail
Decisio
n