OVERVIEW

OF
CUSTOMER SERVICE
Course Objectives
On conclusion of this course, you should be
able to:

Visualize the CS functionalities

Understand Masters – CS related
Conversant with various Service
Cycles
Integration with other modules
Probable Service Scenarios

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Target Group
 Customer Service Consultants
 PM & SD Consultants

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 CONTENTS

 CS - Overview

 CS - Terminologies

 CS – Technical Objects

 CS – Notifications & Service processing

 CS – Service planning

 CS – Information System

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CS - Overview
Major components of CS- Module

 Technical Objects – Equipment, Functional

Locations, Serialized Items & Fleet Objects
 Service Notifications and Service Order Processing
 Billing the Customer thru’ Sales cycle
 Warranty, Installed Base & Service Planning (Task
Lists , Maint.Items and Plans), Measurement Points
and Measurement Documents

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 PM/CS Organization structure
Company Code
XXXX

Plant Plant Plant

1000 - ABC 1001 - BCD 1002 - CDE

Plant Plant
1003 - DEF 1004 - EFG

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 SD Organization structure
Company Code
XXXX

Sales Org. Sales Org.

(EUROPE) (ASIA)

Distribution channel
Distribution channel
Sales (Export)
(Retail)
Area
Division Division

(Paints) (Chemicals)

SO1 SO2 SO3 SO4 SO5

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 PM/CS Enterprise structure
Maintenance Plant Planning Plant
1000- ABC 1000- ABC

Plant Section
101
Planner Group
Functional Loc. ABCPLN1
XXXX-1000-101-PC

Equipment Execute Services on Tech. Objects

Work Centers
PC7560 ABCPLNPC
Task Lists
Sub Equip
CPU

SubAssly.
Monitor
Spares
Slide CRT,
: ICs, MB 8
Integration with other Modules

Materials Sales

CUSTOMER SERVICE

Project
Finance / Controlling Systems

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Plant Maintenance Flow
Logging of a need for Maintenance of a
M/C through Maint. Notification

Maintenance Order Creation

Maint. Order Planning (Men, Material &

Ext. Services)

Maintenance Order Execution

Maintenance Order Confirmation

(Resources Consumed)

Maint. Order & Notification Completion

Maint. Order Settlement (FI/CO

Postings)
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 Sales Flow

Logging of Customer Requirement

through Inquiry

Quotation

Sales Order

Delivery (Picking, Packing, Goods

Issue) for Material Sale

Billing the Customer

Revenue Recognition (FI/CO Postings)

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Customer Service Flow

Logging of the Customer Complaint

through Service Notification

Service Order Creation/Planning

Service Order Execution

Service Order Confirmation

Service Order & Notification Completion

Billing the Customer

Revenue Recognition (FI/CO Postings)

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CS Terminologies
 Maintenance Plants - Plant, in which the technical objects of a
company are installed and where the actual maintenance is
performed.

 Planning Plants - The planning plant is a plant where you define

maintenance task lists, carry out materials planning on the basis of the
BOMs in task lists and perform maintenance orders, manage and
schedule maintenance plans, enter maintenance notifications and
process maintenance orders for the associated maintenance plants.

 Functional Location - Organizational unit within a Maintenance plant

where the technical objects of a company according to functional,
process-oriented or spatial criteria are installed. A functional location
represents the place at which a maintenance task is to be performed.

 Equipment –Individual, physical object that is to be maintained as an

autonomous unit.

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CS Terminologies
 Maintenance Planner Grp. - A maintenance planning group
(under a planning plant) may be an individual department (for
central work preparation), a group of skilled craftsmen or a
workshop.

 Serial Numbers – When we need to transact (sell) the same

type of Equipment, we use serialization technique. We create serial
numbers for the material code associated with the equipment. It is
basically an identification code for similar kind of Equipment.

 Work Centers - An organizational unit that defines where and when

an operation should be carried out.

 Task Lists – A set of operations (for a specific application) that

have material components attached & work centers / control keys/
man-hours required etc. defined.

 Partner Functions - Partners (business partners) are internal and/or

external organizational units. For Eg. internal partners can be logistics
and sales departments that perform services whereas external
partners can be customers as service recipients and vendors as
supporting service providers. A partner can be a natural or a legal entity
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 CS – Masters Required
 Functional Location Master – Master record of the customer functional
locations under a maintenance plant, where the customer Equipment
are installed

 Equipment Master – Master record of all the Equipment sold to various

customers

 Material Master – Master record of all the material components used in

customer Equipment sold to various customers

 Service Master – Service in SAP is defined as a material that can be sold or

purchased. The standard material type for service is DIEN. Service
product is a service material with a task list (list of service operations)

 Customer Master – Master record of all the Customers with all the
relevant data

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CS – Notifications & Service processing

Service notification describes a problem condition of a technical object at the

customer site

Process

1. Enter service notifications

2. Recognize the condition of the service object
3. Request the necessary service tasks and thereby plan further
service processing
4. Track the progress of the tasks to be performed
5. Close the Notification with relevant data updated

Different types of standard Notifications available in the system are

S1 - Problem Notification
S2 - Activity report
S3 - Service request

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CS – Notifications & Service processing

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CS – Notifications & Service processing

Major steps Involved in Notification Creation

1. Create Notification (Type & Description)
2. TAB : Reference object (Equipment /Functional Location) Gets captured
from the Equipment Master / FL Master
Ship to Party / Customer’s Address: Gets captured from the Customer
Master records
3. TAB : Items (Item code, Item Damage code, Item Cause Code)
4. TAB : Tasks (General Task Code)
5. TAB : Activities (General Activity Code)
6. TAB : Warranty (It shows the details of the Customer Warranty (copied from the
Equipment Master Record)
TAB : Malfunction Details (Malfunction start Date/Time)
8. Breakdown hours: Calculated by the system if the breakdown indicator is
on. It is the total breakdown hours calculated between malfunction start
and End date / time

Release the Notification (Notification put in Process) after all entries are
made. Notification is closed after the tasks are completed.

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CS – Service Order processing
Service orders form an important part of the detailed planning of tasks and their
accompanying documentation in Customer Service.
A service order is raised(may be from the Notification itself)
when there are costs involved by way of requirement of Spares or Manpower

Order Type

The order type is a classification characteristic for orders. It consists of control

information that is important for managing orders.

For example, the following order types are available in the standard system:

SM01 for Service orders ( with revenues )

SM02 for Service orders ( Without revenues )
SM03 for Repair orders

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a) CS – Service Order processing
Steps Involved

1. Order Creation
a. Checking of availability of material and production resources/tools
b. Release for implementation
c. Printing of shop papers
d. Collecting material components

2. Execution
a. Repair of the Equipment at customer site

3. Post processing
a. Confirmation
b. Technical completion
c. Settlement of costs
d. Business completion

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CS – Service Order processing

A service order comprises the following groups of data:

1. Header data
2. Location and account assignment data
3. Object data
4. Settlement data
5. Operation data
6. Component data
Steps Involved
Planning with reference to:
1. The operation
2. Work centers and the number of persons involved
3. Material, Dates and execution times
4. Task lists
5. Costs and settlement (settlement rule)
6. Permits
7. External assignments

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Slide : 23
• CS – Service Order processing
Major steps Involved in Order Creation

1. Create a Service Order  General (Order type, Priority, Equipment No,

Planning Plant, Business Area
2. TAB : Header data (Description, PM Activity , Ship to party….)
3. TAB : Operation (Operations,Sub operations, Control Keys….)
4. TAB : Additional data (WBS Element in case project exists)
5. Release the service order

Settlement rule for Service Orders: Settlement rule defines the receiver object
where the costs incurred by the sender (the service order) are to be credited

* If the Service is Sales Document driven, enter the Sales Doc. No. and item in
the tab strip “Header data” where the Service Order needs to be settled.

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CS – Service Order processing

Major steps Involved in Order processing

Service Order confirmation Process : Steps Involved

1. Enter the Service Order No., Choose the Operation., Enter the Actual
Hours, Tick the final confirmation & clear open reservation check boxes.
2. Repeat the same for all the Operations in the Order

Service Order Completion Process

Settle the order to the receiver and then complete the order with a
reference date and time.

(The system asks for Completion of the associated Notification also, if u want to close
the Notification then tick the check box “complete Notification” else remove the tick
from the check box)

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CS – Service Order processing

External Service cycle through Service Orders (Sub Contracting Service

Cycle)

1. TAB : Operations, Choose the Operation, Enter the Operation Text.

Change the Control key to “SM03” (External Services).
2. Enter Material Group,Purchasing Organization,Purchasing Group
3. Choose the Services required from “Model Service Spec”.
Enter the Model Service Spec no”
4. Check the Service Purchase Requisition no. generated

Further Processing of Service PR

Quotation from PR Price/Vendor ComparisonPO creationService Entry

SheetOrder completion

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CS – Service Billing

The following are the types of billing possible

1. A Sales Order can be generated directly from the service Notification and the
customer can be billed. (generally Parts Sale identified as separate Revenue)

2. For ad-hoc calls, a sales order along with the Service order may be simultaneously
created in the system through which a billing document is generated and the
customer is billed. The service order is later settled against the Sales Document, if
required.

3. For Warranty Sales, the Warranty service costs on the service order may be settled
to the open Sales Order.

4. For service contracts like AMCs too, Sales Contract -> Periodic Billing process is
followed. The Service Order costs may be settled against the Contract.

5. For Billing the Customer based on the Service Order Costs (Resources used),
Resource Related Billing (RRB) is used.

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 Notifications in E&C Processing

Create Service Order

From Notification
Create Notification Using Service Product Release the
(S1/S2/S3) Or Service Order
With Internal Operations

Capturing the History, Technical Completion

Confirm the Service Creation of Sale
Completion of Notif. Of
Operations Order from Notification
Tasks and Activities Service Order

Completion of
Notification & Order

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 Service Management within Warranty

Customer Complaints Raise Notifications Create Service Order

•Telephone S1 – Problem Notif. From Notification
•Fax S2 – Service Request Using Service Product
•E-mail S3 – Activity Report Or
With Internal Operations

Confirmation of Creation of Sale Release Service

Order Operations Order from Notif. Order

Capturing the
Completion of History, Completion Completion of
Service Order Of Noti. Tasks and Notification
Activities

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 Service Management for Overhauling

Creation of Inquiry Creation of Sale

Create Quotation Service Order
For the Service Item Order with
With reference is created
(Eg : Overhauling) Reference to
To Inquiry
Required Quotation

Creation of Sale Link the

Technical Confirmation of Order from Notif. Service Order
Completion of Service Order To a
Service Order Operations For delivery of any Notification
Spares Required

Capturing the
Equipment Completion of
History in the Notification
Notification

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 Service Management - Troubleshooting

In case of any Spares

Creation of Service Required, Create
Creation of Release the
Order from
Notification Service Order Enquiry, Quotation,
Notification
Sale Order cycle

Technical
Confirmation of
Completion of Capturing the
Completion of Service Order
Notification Equipment History
Operations
Service Order

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CS – Warranty Process

Commitment of the manufacturer, vendor, or retailer to guarantee services to

a customer either free-of-charge or only charged in part, over a certain
period of time
The warranty check can be performed automatically by the system when
processing customer notifications and billing requests
The Customer Service component provides the following types of warranty:
 Time-bound warranties
 Counter-dependent warranties
 Warranties that are valid for periods of time and counter intervals

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CS – Service planning

Planned maintenance is used to avoid system breakdowns or the breakdown of

other objects, which - in addition to the repair costs - often result in much higher costs
subsequently owing to production breakdown.
Maintenance Planning consists of
Maintenance item - A maintenance item describes which preventive maintenance tasks
should take place regularly on a technical object or a group of technical objects.
Maintenance Plan - The maintenance plan contains scheduling information from the
following sources
Maintenance Strategy - A maintenance strategy defines the rules for the sequence of
planned maintenance work
Maintenance cycle - The maintenance cycles and packages contain the time or
performance condition when maintenance must be performed
Scheduling parameters - use the scheduling parameters to adapt the scheduling
process to meet your individual requirements.
Maintenance Task list - Maintenance task lists describe a sequence of individual
maintenance activities which must be performed repeatedly within a company
Maintenance Objects - A list of objects which are assigned to a particular maintenance
item.

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CS – Service planning

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CS – Service planning

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CS – Measuring point

Measuring points in the R/3 System describe the physical and/or

logical locations at which a condition is described, (for example, the
coolant temperature in a nuclear power station after the coolant has
left the pressure vessel, or the number of revolutions at a rotor shaft
of a wind-driven power plant).
Counter is a type of measuring point where the measurement readings
are cumulated or totalized
Measurement readings describe a condition at a measuring point at a
particular point in time, and represent the transaction data for
measuring points in the R/3 System. They are documented in the form
of measurement documents .
Measurement documents are the documents that are created after
the data is transferred to the R/3 system after a measurement has
been taken at a measuring point or a counter.

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CS – Standard reports

Equipment Breakdown Analysis

Equipment Damage Analysis
Service Cost Analysis
Customer Notification Analysis
MTTR / MTBF reports

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Probable Contract Scenarios
AMCs: Annual Maintenance Contract once the
warranty gets over – Comprehensive
Non – Comprehensive AMC : Only certain parts are
covered under the contract
Only Parts Covered
Only Labor Covered
A fixed # of free PM Services

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Thank
You

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