AMC/ ARC in plant maintenance

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shashi .
Dec 30, 2011 7:00 AM
Hi
My requirement is
1. AMC (Anual maint contarct) Service contract is made for fixed value for year & customer is going
to provide standard services against it. (Three preventive maintenance + 1 Emergancy service call in
case of breakdown). During this contract total amount of service contract is paid to service provider &
as he provides the service it is settled against paid amount.
2. Second scenario ARC (anual rate contract) : Rate contract is prepared for year for particular service
for particular Eqpt. which is user as & when required for conducting visit of service provider &
billing to service provider is according to service contract is made.
3 Somtime there is comprehensive AMC (with spares)
How to handle these scenarios
Regards,
Shashikant

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Re: AMC/ ARC in plant maintenance

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yawar khan Dec 30, 2011 7:13 AM (in response to shashi .)

Hi Shashi,
As far as the 2 Contract, Service and Rate contract are concerned you can directly map in
the system using the T-Code ME31k
MK Quantity Contract &
WK Value Contract.
You can take a help from the MM consultant,
and whwen ever you are refering the Maintenance Order, External Services, you can use the contracts.
but when it is the Mixture of service and Spares, there isnt any thing standard in SAP, doe the same.
can you please describe your Process.

Hope the above information Helps you.

Regards,
Yawar Khan
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Re: AMC/ ARC in plant maintenance

Tehsin Ullah Khan Dec 30, 2011 7:26 AM (in response to shashi .)
It might be helpful
Outline agreement Cost on multiple work order
Regards,
Tehsin
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

utline agreement Cost on multiple work order

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Tehsin Ullah Khan

Dec 27, 2011 8:55 AM

Normally annual maintenance contracts are created at the start of year but the maintenance work orders are created as they
are required.We need to reflect the cost of single annual maintenance contract on multiple maintenance work orders for
proper documentation of equipment life cycle costing. How it can be achieved in SAP PM ?
Regards,
Tehsin
Helpful Answers by yawar khan, shakti Prasad behera, yawar khan, shakti Prasad behera, yawar khan

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Re: Outline agreement Cost on multiple work order

Maheswaran KD Dec 27, 2011 9:35 AM (in response to Tehsin Ullah Khan)
Outline agreement will be created for one year or some duration.
In IP50, you can create maintenance plan with reference to outline agreement. Prior to that, maintain maintenance plan
category with outline agreement in IMG.
Maintain the settlement receiver as outline agreement, so that work order cost will be settled to outline agreement. Based on
terms & conditions in outline agreement, bill the customer for the fixed amount or incurred cost.

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Re: Outline agreement Cost on multiple work order

Tehsin Ullah Khan Dec 27, 2011 9:52 AM (in response to Maheswaran KD)
what will be the scenario for the corrective work orders? moreover,we make payment to the vendor after service entry
sheet.what will be the payment procedure after implementing the outline agreement using IP50? Do we still need service
entry sheet?
Currently released POs are created against the outline agreement and then end user accept service entry sheet.

Regards,
Tehsin

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Re: Outline agreement Cost on multiple work order

shakti Prasad behera Dec 27, 2011 9:46 AM (in response to Tehsin Ullah Khan)
Hi Tehsil
We have mapped a scenario as per your reqirement as follows1. Create Rate contract in the year begining- with reference to it create PR then PO with account assignment category F
OR
2. Create PR then PO in the year begining with account assignment category F
3. when you create maintenance order assign the service items of a particular PO to one operation with control key PM03.
However change the settings for creation of reservation/purchase requisition to never so that PR do not get triggered.
Then select the operation click on external to assign services from the PO you have already made. In this way you will get
the plan cost of the external services.
4. Then go for service entry - ML81N - create service entry sheet with respect to the maintenance order. After service entry
you will find the actual cost is debited to the order. In this way you can flow cot to your order & technical objects.
I think this will fulfill your reqirement
Regards
Shakti

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Re: Outline agreement Cost on multiple work order

Tehsin Ullah Khan Dec 27, 2011 10:06 AM (in response to shakti Prasad behera)
how you manage planned cost if the single service line item has the maintenance cost for different equipments e.g 400 USD
Maintenance cost for 04 engines? total 400 USD will be reflected on every work order as planned cost if we include service
line item that is carrying total maintenance cost.
Regards,
Tehsin

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Helpful AnswerRe: Outline agreement Cost on multiple work order

yawar khan Dec 27, 2011 10:20 AM (in response to Tehsin Ullah Khan)
Hi Tehsin,
As far as the Service Line Item is concerned, why dont you make the services for different Equipment(If the
Equipments are Limited).
Else you can go for the a single Service line Item in the Contract with considerably higher no of Quantity.
then you can refer this Contract multiple no of time in the maintenance orders(Having different Equipment), and then go
ahead with PR-PO-SES process.

Hope It helps you.

Regards,
Yawar Khan

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Re: Outline agreement Cost on multiple work order

Tehsin Ullah Khan Dec 27, 2011 10:41 AM (in response to yawar khan)
Thanks yawar.. we will create multiple service line items but what would be the case for contracts of non stock materials?
how the cost of non stock procured through contracts will reflect on work order?
Regards,
Tehsin

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Helpful AnswerRe: Outline agreement Cost on multiple work order

yawar khan Dec 27, 2011 10:51 AM (in response to Tehsin Ullah Khan)
Hi Tehsin,
can you give the Example of the Non-Stock Item that you procure via Maintenance order and using the Contracts.

But in this case also you need to have a Idea about the Quantity of the material that needs to be procured for which you can
create the Contract.
can you explain your Scenario with an Example.
Waiting.
Regards,
Yawar Khan

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Re: Outline agreement Cost on multiple work order

Tehsin Ullah Khan Dec 27, 2011 11:57 AM (in response to yawar khan)
Consumables items like cotton are procured through contracts and then maintenance plants request for bunch of cotton by
purchase requisition directly in MM.cost of these consumables are not reflected on work orders due to direct settlement to
cost centers.
Regards,
Tehsin

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Helpful AnswerRe: Outline agreement Cost on multiple work order

yawar khan Dec 27, 2011 12:17 PM (in response to Tehsin Ullah Khan)
Hi Tehsin,
Actually we use to have a similar scenario at out place when I used to work in the Maintenance, wher with the man
power, we use to have the AMC for the Consumables with the contractor Technicians, in that we include. all the Cotton
Waste, Marking Cloth, Tools and tackel, normal Nut-Bolts and a lot many things, Every thing was just covered in the

Maintenance contract for the Technicians and we dont put in any orders, and at the same point of time you can not ask them
to bring in the Cotton Waste or nut bolt on the Order to order basis, they bring in the material and keep in the stock.
I am not very much sure of you AMC contract if they are covered in the same fashion, but you cant measure all these trivial
material on order to order basis.

Hope it helps you.

Regards,
Yawar Khan

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Helpful AnswerRe: Outline agreement Cost on multiple work order

shakti Prasad behera Dec 27, 2011 11:02 AM (in response to Tehsin Ullah Khan)
Tehsin
We have created service codes which includes services with material - like cable laying per meter is one service code which
includes supplying of cable also. However in this method we are not getting cost of external material separately.we get cost
of external services which includes material cost. For getting the cost of external material separately you have to trigger
another separate PO for it from maint order.
Shakti

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Helpful AnswerRe: Outline agreement Cost on multiple work order

shakti Prasad behera Dec 27, 2011 10:48 AM (in response to Tehsin Ullah Khan)
Hi tehsin
For a single service line item in PO you can have multiple services (service codes) assigned with some quantity in item
details. Later you can select this services, quantity & assign it to maint. order as per requirement for different eqipments. So
you get planned cost in maintenance order as per reqirement.
Shakti

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Re: Outline agreement Cost on multiple work order

Tehsin Ullah Khan Dec 28, 2011 5:02 AM (in response to Tehsin Ullah Khan)
Thanks for useful comments
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

AMC for Equipments....

This question is Not Answered.

MohanaKrishna D G

Aug 21, 2013 12:51 PM

Dear Friends,
How to do Annual Maintenance Contract for Equipments??

Regards
Mohan

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Re: AMC for Equipments....

RAKESH MANE Aug 22, 2013 8:31 AM (in response to MohanaKrishna D G)

Hello
Please refer the thread http://scn.sap.com/message/7299206.
Also please search EAM Forum there are lot oif Threads on Annual Maintenance Contract for Equipments.
BR
Rakesh

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Re: AMC for Equipments....

vemuri santosh kumar Aug 22, 2013 8:28 AM (in response to MohanaKrishna D G)
Hi,
1. Create Maintenance Contract in VA41
2. Enter Material Number with quantity ( this material is service material)
3. in Extras-->technical objects maintain all the equipments/Serial numbers for which you need AMC
4. Use transaction code IP50 to create Maintenance Plan for contract order
5. Schedule Maintenance Plan using IP10
6. IP19 will give list of Service orders created based on the Schedule date
After that you have to follow normal Service process of adding Operations, components, cost confirmation, TECO and
settlement
regards,
santosh

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Re: AMC for Equipments....

Pete Atkin Aug 22, 2013 8:48 AM (in response to MohanaKrishna D G)

Mohan,
Do you mean from a vendor, or to a customer?
PeteA

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Re: AMC for Equipments....

MohanaKrishna D G Aug 23, 2013 1:28 PM (in response to Pete Atkin)

Hi Pete,
Its from Vendor

Regards
Mohan

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Re: AMC for Equipments....

Akhilesh Singh Aug 22, 2013 8:51 AM (in response to MohanaKrishna D G)

Hi,
As AMC Process can map through timebased Maintenance Process.
Pls follow below points:
1- Create Service Master(AC01)
2-Create Contract(ME31K)
3-Create Maintenance Strategy(IP11) as AMC time frequency
4- Create Equipment/General Tasklist(IA01/IA05) with Control Key(PM03) Vendor and Pur. Group details etc.
5- Create Maintenance Plan(IP42)
6- Schedule Maintenance Plan(IP10/IP30)
7- System will Release MO and Service PR
8- Create Purchase Order(ME21N)
9- Create Service Entry Sheet(ML81N)
10-Techo MO(IW32)

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Re: AMC for Equipments....

MohanaKrishna D G Aug 23, 2013 1:28 PM (in response to Akhilesh Singh)

Hi Akhilesh,
My requirement is:
1. PO will be created for 50,000 rupees for 1 year contract.
2. Vendor will give 4 services in that year.
3. If any breakdown other than this 4 services, vendor will do without any extra money.(That means : If we
pay the full amount, for that full year they will take care of our equipment)
Note:
In this all services, all material will be given by the us(our Company)
So how to address this requirement???

Regards
Mohan

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Re: AMC for Equipments....

Akhilesh Singh Aug 23, 2013 4:00 PM (in response to MohanaKrishna D G)

Hi,
Firstly create contract(ME31K) with vendor, Material and all details.

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Re: AMC for Equipments....

MohanaKrishna D G Aug 24, 2013 8:32 PM (in response to Akhilesh Singh)

Hi Akhilesh,
My requirement is:
All the services will be done by them, but all the materials while servicing will be given by the us(our
Company)
How we can map this????

Regards
Mohan

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Re: AMC for Equipments....

Maheswaran KD Aug 25, 2013 8:31 AM (in response to MohanaKrishna D G)

2.
3.
4.
5.
6.
7.
8.

1.
Create Contract only for Services
Based on the agreement, create order manually or automatically based on some interval
For operations either with PM02 or PM03, make that PR as Never. So that, PR will not be created from Maintenance Order.
Keep components in Maintenance Order with L Item category.
Do the goods issue from stock
Convert Contract into PO with Account Assignment category as F & assign the created Order
Book the Service Received against that order
Then follow the normal process of doing TECO, settlement & Business completion.
https://scn.sap.com/message/11146372
http://scn.sap.com/thread/1793643
http://scn.sap.com/thread/1343864
https://scn.sap.com/message/6104232
http://scn.sap.com/message/7299206

One sec search gives me these links. You could have searched all the links. What you found different in your scenario other
than the details discussed here which made you to open new thread??

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Re: AMC for Equipments....

MohanaKrishna D G Aug 26, 2013 12:03 PM (in response to Maheswaran KD)

Hi Maheswaran,
Thank you for your response.
U said to create contract first then PO for that contract and maintenance order.
So, in 1 yr nearly 10 PO's will be created.
My requirement is:
1. PO will be created for 50,000 rupees for 1 year contract in the beginning of the year itself.
2. Vendor will give 4 services in that year.
3. If any breakdown other than this 4 services, vendor will do without any extra money.(That means : If we
pay the full amount, for that full year they will take care of our equipment)
Note:
All the services will be done by them, but all the materials while servicing will be given by the us(our
Company)
So in service entry how we will enter the price for each service in that year?? It may go more or less to
the PO price. i.e: Rs.50,000/-. But i wont pay more or less than Rs. 50,000/I have searched all those threads before you mentioning. But i have not got solution for my requirement.
That i created new thread...

Regards
Mohan

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Re: AMC for Equipments....

Maheswaran KD Aug 26, 2013 12:25 PM (in response to MohanaKrishna D G)

You can't get the solution directly for your issue from other threads. You can have some basic understanding how AMC can
be mapped for this process.
You can have one PO (Contract) & one Maintenance Order for that. Whenever you receive service, you can make service
entry sheet against that.
Based on the components issue from your side, you can amend the Maintenance order by adding components or quantity.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Hello patil,
AMC is an Annual maintaince contract. AMC's can be procured in SAP like i mentioned below: (in two ways)
Giving you the complete process with t.codes:
1.With Material master (MM01) using material type: DIEN
Or without material master using only the Text for Service (in Material description in PO line item)
Create PO (ME21N) using Service item categorey : D
Create Service Entry Sheet (ML81N), maintain the S.Er.sheet and Accept it.

Note: Service entry sheet is equivalent to GR.

then do Service IR through MIRO.
Payment to the vendor (by FI A/P user)
(i.e., to Service vendor)
Or,
you can do in other way (which is thru ESM)
Configuring the relevent settings for External service management
the process steps as follows:
Create Service Master: AC03
Create Std.Service Catalog: ML01
then create Service entry sheet: ML81N ( maintain and Accept the Service)
then Service IR: MIRO
then FI A/P user will do the payment process
practise the steps as i mentioned above and you will get it,
reward, if it solves,
Regards,
Srinu.K
=============================================================================================

You can serach for AMC where you can find relavent threads.
For AMC you can create task list with external services and create the maintenance plan as per the freqencey of
visit , based on confirmation you can do the service entry sheet and cofirm the servies , FI will process the
payment
Other way is create framework work create the service procurment maintenane plan while will create service
entery sheet , and FI will proceed the payment
kindly check with the client how exactly do they want the AMC in SAP
Regards
Thyagarajan