Noboru Ota
Introducing SAP S/4HANA® Service
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The Author of this E-Bite
Noboru Ota is chief expert in SAP S/4HANA solution management,
based out of the Walldorf office. He has been working with SAP
since 2002, when he joined its Tokyo office in Japan as an SAP
consultant. In 2006, he moved to the Melbourne office in Australia
and dedicated more than a decade as a frontline implementation
consultant and team lead. He engaged in various multi-year SAP
implementation projects, designing business processes, configuring
and coding features and functions, supporting go-live through the
night, and producing a ton of documents. He relocated a second
time across ocean and land to Germany in 2017, where he currently
focuses on communicating different aspects of SAP S/4HANA to a
wide range of audiences.
What You’ll Learn
In 2018, SAP introduced a new service management component as
part of SAP S/4HANA, its flagship enterprise resource planning
(ERP) solution. Called SAP S/4HANA Service, it is planned to be the
future nucleus of service management applications offered by SAP,
harmonizing the classic Customer Service module in SAP ERP and
the service capabilities of SAP Customer Relationship Management
(SAP CRM).
This E‐Bite will introduce you to SAP S/4HANA Service and the new
service management capabilities within SAP S/4HANA. The E‐Bite is
written with nonexperts in mind, but a basic familiarity with SAP
solutions is preferred, given the historical depth of the topic and SAP
solutions. Both classic service management solutions (Customer
Service module and SAP CRM) have been used by thousands of
organizations globally in a wide variety of industries and purposes,
ranging from industry assets such as power plants to consumer
goods such as luxury accessories. Therefore, we don’t assume the
audience to be in any specific industry.
1 Service Basics
1.1 Service Management Business
1.2 Service Management Solutions from SAP
1.3 Setting Up Your Own SAP S/4HANA Demo System Quickly
and Cheaply
2 Master Data in SAP S/4HANA Service
2.1 Customer Master Data (Business Partner)
2.2 Material, Serial Number, and Asset
2.3 Maintenance Plan, Task List, and Service Order Template
2.4 Pricing
3 Service Order Management
3.1 Service Order
3.2 Service Confirmation
3.3 Billing
3.4 Internal Order
3.5 Reservation and Purchase Requisition
3.6 Sales Order
3.7 In-House Repair (Depot Repair)
3.8 Field Service Management (On-Site Maintenance Service)
3.9 Other Related Features (Service Order Templates and Bills
of Materials)
4 Service Maintenance Plan and Service Contract Management
4.1 Service Contract
4.2 Recurring Service: Maintenance Plan and Scheduling
5 Service Request Management, Service Quotations, and
Packaged Service Offerings
5.1 Service Request
5.2 Service Order Quotation/Solution Quotation and Product
Bundle
5.3 Interaction Center in SAP S/4HANA
6 Service Monitoring and Analytics
6.1 Embedded Analytics
6.2 SAP Analytics Cloud
7 Future Innovations
8 What’s Next?
1
Service Basics
The new service management capabilities are available with all
deployment modes of SAP S/4HANA and SAP S/4HANA Cloud,
including SAP S/4HANA, private cloud edition (as a RISE with SAP
offering). This E‐Bite primarily focuses on the on-premise SAP
S/4HANA and SAP S/4HANA, private cloud edition, attempting to be
a bridge for SAP practitioners with a background in SAP ERP or
SAP CRM; nevertheless, it’s also hoped to be useful for anyone, with
no prior SAP background, who is interested in learning the new
service management capabilities.
This E‐Bite is structured in the following way. This section serves as
context for the rest of the E‐Bite. It first runs you through typical
service management processes, at a high level, for organizations—
business or public sector—that SAP S/4HANA Service is design to
support. It then provides short summaries of the classic solutions
SAP has historically offered for service management—the Customer
Service module of SAP ERP and the service capabilities of SAP
CRM—followed by a summary of the new SAP S/4HANA Service.
The first section ends with introducing the SAP S/4HANA trial, which
lets you try out a preconfigured SAP S/4HANA system, including the
service capabilities we will go through in this E‐Bite, on a cloud
infrastructure of your choice.
The second section dives right into the main master data objects of
SAP S/4HANA Service and clarifies how SAP S/4HANA harmonizes
the two classic solutions SAP released previously from a perspective
of data objects. The master data objects we will discuss are the
customer (business partner); material, serial number, and asset
(technical object); maintenance plan, task list, and service template;
and pricing.
Section 3 and Section 6 build on the description of the data objects
and walk you through the processes that SAP S/4HANA supports.
These processes are modeled as a sequence of transactional data
underpinned by common master data. We’ll look at service order
management (Section 3), recurring services with service contracts
and maintenance plan (Section 4), service requests and solution
quotations together with product bundles (Section 5), and monitoring
and analytics for service management (Section 6).
In the final section, we’ll look out into SAP’s future roadmap, and
briefly cover one of the main roadmap items: maintenance-centric
service. It’s designed to greatly ease the transition to SAP S/4HANA
for existing SAP ERP customers who use the Customer Service
module today.
1.1
Service Management Business
Let’s look at three typical business processes as models. At the
onset, note that, first, the business scenarios presented here are
deliberately simplified and abstract, disregarding intricate details of
industries and organizations, especially in the eyes of veteran
practitioners in these domains. Second, these processes aren’t
mutually exclusive. Some organizations have all the processes as
part of their core service management processes, and others have
their own combination of them.
Nevertheless, the simplified models presented here will highlight
some key commonalities and differences in business processes,
which we hope to connect with capabilities provided by SAP
S/4HANA Service in later sections.
Providing Maintenance Service for Installed Equipment
One distinct characteristic of this type of maintenance service is that
you need to send technicians for the job to the location of the
installed equipment. This means that the service provider typically
has a group of field service technicians and a team to manage their
schedules, considering the field crew’s capacities and servicing
demands.
Installed equipment can refer to physical industrial equipment such
as wind turbines used for wind power generation, CT scanners
installed at a hospital, and even a consumer white goods item (e.g.,
dishwasher and washing machine) at home. The actual logistical
tasks, supply chains, and networks of stakeholders involved in
providing maintenance services for an offshore wind farm are very
different from those for dishwashers at home, of course. For a wind
farm, different service providers, in addition to the original equipment
manufacturer (OEM), might be involved for different components that
constitute a wind turbine. Maintaining a series of dishwashers and
other related home appliances could be done by a single service
provider, who might be skilled (and perhaps certified) to service a
range of equipment.
In this instance, you represent a system of equipment and parts
installed as a hierarchy of equipment master records. The service
history and other equipment-specific operational data, such as oil
gauge reading, might also be recorded periodically against the
equipment master records.
You’ll usually have a long-term service contract to conduct regular
maintenance services for given systems of installed equipment at the
customer site. The service contract also typically includes provisions
for some ad hoc (reactive/break-fix) services and consumable parts.
Servicing In-House, or Depot Repair
For this type of maintenance service, the physical equipment or
device in question comes to you. It can be a small consumer goods
item, such as a mobile phone, wristwatch, or pearl necklace, or it can
be a large piece of equipment, such as a jet engine or a construction
automobile returned to a repair facility.
Again, the complexity involved in the actual repair or maintenance
job varies significantly among different physical goods and
equipment in question—the nature of work is so different that it’s not
worth comparing. The process typically involves inspection of the
returned asset to decide on a follow-up course of action. For a
consumer device, for example, a follow-up action typically includes
making a judgement about whether it can be repaired, performing
the actual repair, and returning the repaired device or a substitute
device. In addition to technical repair activities, the business process
typically involves commercial matters that influence their fees, such
as quoting the repair and spare parts, including judgement for the
warranty situations for the quoted items.
For more complex assets, you might also need to record a
replaceable serialized component part removed and added, keep
track of component inventory, service parts consumed, and labor
hours, as well as other sundry costs for different work done to the
overall service work.
Customer-Facing Services
The last example may be familiar to a layperson as a consumer. This
type of service is typically thought of as a call center operation. For
example, you may have a mobile phone and internet connection
provided by a telecom company and call its customer center to
inquire about the bill you’ve just received. In another case, your
mobile phone may have some technical issue, and you might like to
visit the shop down the street to get it looked at. Your first point of
contact as a consumer may also be a web chat in the customer
service website or a social network service such as Twitter or
Facebook.
Behind the scenes in the call center, the service agent must identify
who the caller is with the customer ID, some form of product ID, or
serial number. Service agents then log the interaction with you. The
call can be an inquiry about the bill as mentioned, a complaint about
a product, or a request for repair services. An inquiry may be
resolved within a single call, or a request for repair might need a
follow-up action on your part as a customer (e.g., to return the device
by mail or directly visit a shop), followed by a chain of actions by a
service center.
1.2
Service Management Solutions from SAP
Following are the on-premise solutions offered from SAP for service
management.
SAP ERP
SAP ERP offers robust service management capabilities through its
Customer Service module. It leverages enterprise asset
management capabilities within SAP ERP, known as the Plant
Maintenance module. Plant Maintenance is widely used globally by
many organizations to manage a variety of physical assets. Typical
usage includes management of industrial physical assets such as
power plants, mining facilities and equipment, airplanes,
manufacturing, material handling equipment, and many others. In
addition, many public sector organizations, such as city councils, use
the Plant Maintenance module to manage buildings, parks, trees,
and other public assets.
While Plant Maintenance is meant for managing the assets that you
own, which typically appear in your balance sheet as assets,
Customer Service adds the “customer aspects” to Plant
Maintenance, connecting it with the sales capabilities from the Sales
and Distribution module. Customer Service, thus, offers such
fundamental processes as billing for maintenance services. It’s so
well integrated with Plant Maintenance that it’s often abbreviated as
PM/CS.
SAP Customer Relationship Management
SAP CRM is a comprehensive on-premise solution focused on
customer relationship management (CRM). Its capabilities include
marketing, sales, service, and interaction center. It can be used as a
standalone CRM solution. Alternatively, it can be used as an
extension to SAP ERP by combining the processes and data through
a native data integration between the two.
SAP CRM has a set of capabilities dedicated to service
management. With its strong call center support with Interaction
Center, you can establish an end-to-end service business process
that starts from a call center agent handing over a follow-on repair
service order in the repair depot and continues with tracking and
managing the status of calls all the way from the point of contact to
the resolution of issues for customers.
SAP S/4HANA
SAP S/4HANA combines the good parts of service capabilities from
its predecessors, both SAP ERP and SAP CRM. This is in line with
the simplification principle of SAP S/4HANA. This can lead to a
reduced total cost of ownership as you could choose to use just SAP
S/4HANA for service management, eliminating the need for servers
and other computing resources to host two different applications,
and for replication of data between SAP ERP and SAP CRM.
The Service component was initially added as a technical add-on
component called Customer Management in early 2018, as part of
feature pack stack 1 (FPS01) for the SAP S/4HANA 1709 release.
As an add-on component, it required an additional installation
process on top of the SAP S/4HANA instance to enable its service
capabilities. As of the 1909 release (released in September 2019),
the Service component is delivered as part of the SAP S/4HANA
instance and, thus, is no longer an add-on component. You’ll have all
the features and functions of the Service component after you’ve
installed SAP S/4HANA. Figure 1.1 illustrates the brief history of
SAP S/4HANA Service.
Figure 1.1
Brief History of SAP S/4HANA Service
Figure 1.2 illustrates the current end-to-end vision of SAP in the
domain of service management at the time of this writing in the
beginning of 2021. You could consider this service management
view as a subset of SAP’s overall vision of the intelligent enterprise.
Technical capabilities underpinning the intelligent enterprise are
composed of various applications deployed on a single platform,
allowing frontline and back-office employees and management to
leverage such advanced technologies as machine learning, robotic
process automation, and analytics, while fusing them with their dayto-day operations and decision-making at all levels of the
organization.
Figure 1.2
SAP’s End-to-End Vision of Service Management as of 2021
In this diagram, you see SAP S/4HANA in the middle to manage
your service operations in the back office, serving as the core of the
end-to-end service management. The back-office capabilities include
not only the service order quotations, service orders, and repair
orders, but also logistics, such as activities for service and spare
parts in the warehouse, service contract management, and financial
and commercial aspects (e.g., controlling and billing).
On the left side of service operations, you see customer service, and
on the right side, field service. This can be viewed as a value chain
starting from the left and flowing to the right. On the left, there are a
variety of channels and points of contact for customers, going
through the back-office operation in the middle, and then execution
of services in the field by scheduling and dispatching service
technicians on the right. Depending on your service management
processes, some elements will be optional; for example, some
service organizations may not need a field service operation
because their repair service occurs in-house by bringing in the piece
of equipment in question.
At the bottom of the illustration, two related sets of capabilities are
shown: asset management and analytics. SAP S/4HANA includes
robust capabilities for asset management widely used for assets that
require a stringent maintenance regime (e.g., power plants) and
serialized and repairable luxury goods (e.g., jewelries and
accessories). SAP S/4HANA also has real-time reporting and
analytics capabilities with user-friendly visualization for all levels of
the organization. Nevertheless, these two additional layers of
applications further extend these capabilities or can be used as
standalone applications in the environment where SAP S/4HANA
may not be the main system of record.
So far, we’ve provided a whirlwind overview of SAP’s service
management solutions. We’ve introduced SAP S/4HANA Service in
the context of SAP’s overall vision of the intelligent enterprise,
embedding SAP S/4HANA Service as the core of the end-to-end
service management processes. From the next section onward, we’ll
zoom in on different aspects of SAP S/4HANA Service.
1.3 Setting Up Your Own SAP S/4HANA Demo
System Quickly and Cheaply
Before starting this journey, let’s take a quick detour for those who
want to see an actual SAP S/4HANA system in action to completion.
If you’re not interested in an actual system demo right now, you can
skip this section.
SAP offers inexpensive ways to try out SAP S/4HANA. One such
way is to use SAP Cloud Appliance Library, which provides a
preconfigured SAP S/4HANA instance, called SAP S/4HANA FullyActivated Appliance. You can read more in a community blog post at
http://s-prs.co/533200. By using an appliance, you can quickly
deploy an SAP S/4HANA instance onto a cloud infrastructure of your
choice, such as Google Cloud Platform (GCP). Detailed demo
guides are available (search for “demo guides” in the community
blog), including on the capabilities of SAP S/4HANA Service. SAP
S/4HANA Fully-Activated Appliance provides a fully configured
system, set of users with administrator authorization (SAP_ALL), and
operating system–level access via remote desktop access. You can
start using the service management capabilities as soon as you’ve
deployed an instance; typically, it takes one to two hours of work to
launch the SAP Fiori launchpad. You can also do this from a home
PC with a hobbyist budget (e.g., without requiring your organization’s
budget approval). Go to http://s‐prs.co/533201 for a step-by-step
guide that takes you through the process from signing up for GCP
with a credit card payment, all the way to launching SAP S/4HANA.
Although it was written for the 1709 and 1809 releases, the
procedure should be applicable for later releases.
Note
Most of the screenshots of the system in this E‐Bite are taken from
a 2020 release instance of SAP S/4HANA Fully-Activated
Appliance, which is also available to you as a reader (we’ve made
slight adjustments to the master data to show different examples,
but the configuration is mostly unchanged).
2
Master Data in SAP S/4HANA Service
At the end of the previous section, we saw SAP’s holistic approach
for service management with its intelligent enterprise strategy. An
intelligent enterprise lets organizations run business processes in
which the capabilities underpinning such processes are composed of
various applications deployed on a single platform. SAP S/4HANA is
the core component of the intelligent enterprise. SAP S/4HANA
Service is the kernel of SAP service management solutions. In this
context, you briefly saw that SAP S/4HANA Service combines the
“good parts” of the Customer Service component of SAP ERP and
SAP CRM. In this section, you’ll see how this occurs from a technical
perspective. We’ll zoom in on the different data objects that are
related to service processes in SAP S/4HANA and see how it brings
them together in a single solution.
SAP S/4HANA Service carries over master data objects related to
service management from the classic SAP ERP and has adapted the
processes and transactional data objects from the service
capabilities of SAP CRM (e.g., refer to SAP Note 2962632 S4TWL Customer Service). Figure 2.1 illustrates the shift.
On the left are the main master data objects relevant for service
management; on the right, the transactional data objects are listed.
This is a crude generalization; for example, you could dispute the
fact that service contract as an object is categorized under
transactional data. Despite these reservations, it’s still useful as
generalized guidance to let you quickly grasp the shift that has taken
place in SAP S/4HANA Service from the classic solutions.
We’ll zoom in on each object in a minute, but let’s run through a
high-level overview first. For master data, they are carried over from
SAP ERP mostly as is, except for business partners. The business
partner here refers to the customer master, which has been unified
with the vendor (supplier) master under the business partner. This
unification isn’t service specific; it’s part of the overall simplification
and data harmonization efforts of SAP S/4HANA in general.
Figure 2.1
SAP S/4HANA Service’s Simplified Data Model
The transactional data objects are new for SAP S/4HANA, coming
from the SAP CRM heritage. They are based on the SAP CRM data
model, different from those in SAP ERP. These data objects have
been adjusted to natively work within SAP S/4HANA, which is based
on the SAP HANA database. As you can expect from a wellintegrated ERP solution, the applications that deal with the
transactional data leverage the capabilities of other LOBs such as
inventory management, purchasing, sales, and financials. This
creates a cohesive whole, providing a rich set of capabilities
supporting various service management business processes, which
is more than a sum of its individual parts can provide. We’ll look at
transactional data and business processes in later sections. Let’s
focus on the data objects first.
2.1
Customer Master Data (Business Partner)
As part of general simplification efforts, SAPS/4HANA has
harmonized the data model of customer and vendor (supplier)
master data with the unified business partner master data. You now
can represent a legal entity (or an individual person) with a single
master data record. This wasn’t possible with the customer and
supplier master data in SAP ERP; when you dealt with the same
legal entity as a customer and a supplier, you had to create separate
master data record for the customer and the supplier, and then map
them.
SAP S/4HANA Service takes advantage of this unification; it uses
the standard business partners of the customer role. As it’s a
constituent part of SAP S/4HANA, the business partner master data
is shared across other LOB capabilities (e.g., sales and financials)
within the same system. Unlike SAP CRM, which is a separate
system, business partners need not be replicated between systems.
As you’ll see in later sections, having unified semantics is useful
when you can have real-time analytics within the same system.
Transactional business objects such as service orders, sales orders,
and financial accounting documents share the semantics, eliminating
the need for data mapping among different LOBs.
2.2
Material, Serial Number, and Asset
SAP S/4HANA manages materials (products) as material master
data records in the same way that classic SAP ERP does. There are
SAP Fiori apps that help end users more easily manage product
master data records. Figure 2.2 shows a screen image of a SAP
Fiori app for product master data, Manage Product Master Data.
Figure 2.2
Manage Product Master Data App
Serial number records for materials work in the same way as in
classic SAP ERP, as do technical objects (equipment and functional
location master records—Figure 2.3). This means that you can apply
your familiar knowledge from the Plant Maintenance module when it
comes to maintaining assets. For example, you can record serial
numbers for individual pieces of equipment in the same way in SAP
ERP or have a master warranty assigned to them to keep records of
warranty information. You can have a hierarchical representation of a
piece of equipment with multiple components. You can also use the
bill of materials (BOM) master data record to represent a service
BOM for sets of equipment. When it comes to data for materials and
assets, there is a smooth continuation from the classic world into the
new SAP S/4HANA world.
Figure 2.3
List of Technical Objects App
One notable exception to these inherited master data objects is the
bundle product. A bundle product lets you group multiple products
into a single bundle product and offer it as a single product in a
“solution” quotation. The products included in a bundle can be
physical products, intangible services, and service contract items
that will lead to a long-term service contract. If you have SAP Billing
and Revenue Innovation Management (SAP BRIM) license, you can
also include a subscription order in a bundle offer. This way, you can
package up existing products and services into a solution offer. For
example, for a consumer, this might be an internet bundle service
from an internet provider, where you can get an internet connection
(long-term service contract), mobile phone usage (usage-based
subscription), mobile phone (physical product), internet Wi-Fi router
(physical product), and a one-off setup service (service).
Technically, bundle products are material master records, with a
specific material type (the default is BUND—bundle—but you can
configure this with parameter changes). This is a feature inherited
from SAP CRM. Figure 2.4 shows Product Bundles app where you
see the definition of a printer bundle is displayed; it should look
familiar to those who have a background in SAP CRM. We’ll look at
bundles in action in a separate section later.
Figure 2.4
Example: Bundle Product in SAP S/4HANA Service
SAP Customer Relationship Management Middleware No
Longer Required
If you come from an SAP CRM background, you’ll notice that this is
a significantly streamlined setup. Transactional data such as solution
quotations and service orders directly work with the underlying
master data in SAP S/4HANA such as materials and equipment. You
no longer need to replicate material master data and equipment
through SAP CRM middleware for the initial setup, nor do you need
to manage the ongoing delta data synchronization afterwards.
2.3 Maintenance Plan, Task List, and Service
Order Template
Maintenance plans and tasks are two different master data objects,
but they are often discussed in the same context of service
management. At the time this writing in early 2021, SAP is in the
process of enabling these master data for the business processes
supported by SAP S/4HANA Service. The task list isn’t yet
supported; instead, the service order template is used to model a set
of standard tasks. We’ll look at these master data objects in turn.
Maintenance Plan
Maintenance plans are master data that define maintenance
schedules to automate the generation of service orders. They are
typically used in the context of preventive maintenance.
SAP S/4HANA carried them over from SAP ERP, where they are
commonly used in the Plant Maintenance and Customer Service
modules. With the 2020 release, the maintenance plan object has
been extended so that you can use it in the service management
process in SAP S/4HANA Service. SAP Fiori apps are available to
show a list of maintenance plans (Figure 2.5), consistent with the
way other applications work. For example, As an end user, you can
use the Find Maintenance Items app (Figure 2.6) to see a list of
maintenance plans and then narrow them down to find the one
you’re looking for using search, sort, and filter. You can save your
own variants, so you can easily go back to your frequently used list.
Figure 2.5
SAP Fiori Apps for Maintenance Plans
Figure 2.6
Find Maintenance Items App
A maintenance plan automates recurring regular maintenance
services. A plan can be based on a time interval, on a certain
performance, or on a counter. For example, you can have a regular
monthly or semiannual maintenance plan (time interval). A
maintenance plan based on vehicle mileage or hours of operation
are examples of performance-based plans. In the latter case, the
counter is represented by measurement documents at a measuring
point associated with a piece of equipment. These are standard
objects shared with the Plant Maintenance module, so we won’t
delve into them in this E‐Bite.
Task List and Service Template
A task list defines a set of tasks to be carried out by maintenance
technicians. This can be a generic list to group together related tasks
so that you can easily reuse the group for different maintenance
jobs. Task lists can be also used to represent a standard “work
package” for certain class of assets. Task lists are commonly used in
conjunction with maintenance plans. They help generate service
orders with tasks relevant for the service job at hand. You can have
a variety of such work packages so that you can represent different
sets of work procedures; for example, a set of tasks for bimonthly
inspections would have different tasks than that for a major overhaul
job conducted annually.
One thing to note is that as of the 2020 release, SAP S/4HANA
Service doesn’t use the maintenance task list. Instead, it uses the
service order template to define the standardized list of services.
Service templates look almost identical to service orders (as in
Figure 2.7). In fact, you can create a service order from within a
service template as a follow-on document if that procedure is
relevant for your business process.
Figure 2.7
Example: Service Template
By combining a maintenance plan and a task list, you can get the
system to automatically generate recurring service orders based on
a predefined schedule.
You’ll see more about how the different types of master data are
used for recurring services in a later section of this E‐Bite.
2.4
Pricing
As with the customer master data (business partner), pricing
capabilities in service transactions also have been harmonized. SAP
S/4HANA uses the standard condition technique and condition
records. SAP Internet Pricing Configurator is no longer used for the
purpose of pricing within SAP S/4HANA Service. This means that
the service and sales capabilities share the same pricing data. You
can use the same set of SAP Fiori apps and transactions to maintain
pricing-related master data. There are some pricing conditions and
parameters specific to services. For example, service contracts have
specific conditions to define pricing with discounts for billing
customers. You can benefit from the unified data model and
approaches to setting up pricing, while you can still fine-tune your
price conditions for business domains (whether service or sales). If
your business organizes sales and service together as one unit (e.g.,
controlled under one overarching profit center), then you can take
advantage of the unified pricing data model as well.
So far, we’ve seen an overview of different master data used by SAP
S/4HANA Service. An underlining theme is simplification by
harmonizing different master data within a single integrated solution.
Customers (business partners) are shared across sales, service, and
financials among other LOBs. Materials and technical objects
(equipment and functional locations) are the main master data items
for asset management, as are maintenance plans, task lists, and
service templates. As you can see, some overlapping master data
items have been consolidated between SAP ERP and SAP CRM.
They are shared across different LOB capabilities within SAP
S/4HANA.
In the following sections, we’ll look at transactional data in more
depth. You’ll also see how these types of master data are used in the
context of business processes represented by sequences of
transactional data.
3
Service Order Management
In this section, we’ll introduce service order management in SAP
S/4HANA Service, which encompasses the main business
processes of service management. The process requires a service
order that contains all the required information for the service
technician to carry out the work. Execution of the service process
starts with a service order. The service management process is
typically cross-functional, spanning multiple business units to fulfill
the service requirements. The process is modeled as a combination
of multiple documents triggered in sequence and in parallel with the
service order as the centerpiece. More concretely, the following
documents can be created as follow-on activities (we’ve discussed
the first two already):
Service confirmation
Billing request and customer invoice
Internal order
Reservation for materials
Purchase requisition
Sales order
These are the main documents, which can be achieved via
parameter settings and delivered as the standard set of configuration
options. With a very flexible Customizing framework with custom
actions, you could implement different follow-on activities specific to
your organizations.
We’ll also discuss two main variations of service order management
processes:
In-house repair
Field service management
This section ends with a quick review of a couple additional features
that are relevant for service order management:
Service templates
BOMs
3.1
Service Order
Let’s begin with an example. A service order in SAP S/4HANA looks
like the Figure 3.1. At the top of the screen, you see the service
order number, description, and a series of buttons to take generic
actions with the opened service order or to create a new one. The
tabs across the screen enable you to quickly navigate to different
sections in the currently open service order.
In this example screen, you’re presented with the Service Order
Details section, also known as the header information, and the
Items section. From the header information, you can see the
customer and contact person, the equipment ID of the printer
installed, the service contract number and warranty ID, the list of
service tasks to be carried out and materials needed, and the
relevant dates (e.g., when the service is requested to being and
end).
If you look at the bottom of the screen for the items of the service
order, you see there are two items. Item 10 is listed as a
Maintenance service product with the Quantity in hours, which
means the service is to be carried out by a technician for the printer
installation at the customer site. Item 20 represents a service part
with the Quantity in the number of pieces planned to be used for the
maintenance service. Notice that there is price information on each
item, and at the top of the header information, you see the total value
combining the two items (Net Value and Gross Value).
Figure 3.1 Example Service Order: Header and Items (Maintenance Service and
Service Part)
If your background is the Customer Service module of SAP ERP, it
might come as a surprise that the service order contains the price
information; it’s not the costs of the service, but the price to be billed
to the customer. The pricing uses the standard condition records and
condition technique used in the sales capabilities within SAP
S/4HANA.
A service order is the main transactional object for service
management that holds the key information required for technicians
and represents a plan for a service job. In its simplest, the service
execution process follows these steps:
1. Create and release the service order.
2. Carry out the services.
3. Create and complete the service confirmation.
4. Bill the customer.
Let’s review this basic business process first, and then we’ll look at
other key follow-up activities that can be linked to model more
complex scenarios.
3.2
Service Confirmation
After the service technicians have finished doing the services, they
confirm the time and materials consumed by the service order by
creating a service confirmation as a follow-on document from the
service order.
When you create a service confirmation, you can carry over the
items from the service order. While the service order represents the
plan for the service, the actual labor time duration and the quantity of
the material consumed can be different from the plan. Additional
services or materials could also be required for the job. These can
be recorded in the service confirmation as costs for the service
rendered to the customer. You inspect the detail of the costs
recorded by looking at the transaction history of a service
confirmation (see Figure 3.2). You can see that the service
confirmation is related to a service order named Maintenance
Service, followed by an internal order that collects the costs incurred
for the service confirmation. The time sheet represents the labor
costs for the maintenance work, and the goods movement links to a
material document that records the goods issue for the service part
consumed for the maintenance work.
The service job in the service order can take a long time to complete.
You can create multiple service confirmations, perhaps done by
different technicians for different service items. You can control the
status of service confirmations, and, after all the confirmations are
completed, you can start the billing process.
In this description of a basic process, we assume that the bill is
based on the actual resources (labor and material) consumed. The
system also can be configured to support fixed price services, where
you bill the customer for an agreed amount for a service regardless
of the resources required to conduct it.
Figure 3.2
Transaction History of a Service Confirmation
3.3
Billing
After the service order and confirmation are complete, you can
release the items for billing. Billing is done with the standard billing
capabilities within SAP S/4HANA, common across service and sales
processes. A billing creates a financial posting (e.g., revenue and
accounts receivable) and a customer invoice.
The fact that a customer invoice has been created can also be seen
from the Transaction History section of the service confirmation. By
looking at the Transaction History, you can keep track of the
execution status of the service job.
So far, you’ve seen a basic business process of service execution. It
starts with a service order, which represents a plan, and is followed
by service confirmation and billing.
3.4
Internal Order
The capability to account for costs of any activities as they occur is
integral to an ERP solution in general. SAP S/4HANA Service also
does this. Unlike the work order and classic service order within SAP
ERP, the new service order within SAP S/4HANA Service doesn’t
collect costs incurred for the services carried out—for example, labor
hours of the service technicians and the materials used and
consumed for the work. Instead, an internal order is automatically
generated after a service order is released. The costs for the service
order are posted against its corresponding internal order. If any of
the items in a service order have an associated service contract,
then the internal order associated with the service contract is used
as the cost collecting object for the item. The internal order
associated with a service can be seen in the Transaction History
section of a service order (as in Figure 3.3).
Figure 3.3
Internal Order Generated for a Service Order
Note
There is a technical detail to be noted in the context of the cost
controlling mechanism for service management. The service
capability of SAP S/4HANA Cloud simplifies this cost collection
mechanism and breaks away from the use of the internal order. It
uses the service order itself as a cost collector. As of the 2020
release, this simplification is yet to be implemented in SAP
S/4HANA, and the internal order remains in use.
The time confirmed for service items that represent labor time of
service technicians generates a time recording entry in SAP CrossApplication Time Sheet for the employee. Costs for the materials
consumed are also recorded. You can see these as related
documents in the Transaction History section of the service
confirmation and service order (see Figure 3.4).
Figure 3.4
Service Confirmation with Transaction History
3.5
Reservation and Purchase Requisition
A service order can have items for service or spare parts for the job
to be done. These are the materials that service technicians will
consume to conduct the required services. They can be retrieved
from warehouse inventory or can be directly purchased for a service
order.
You can add a line item for a consumable material and specify the
follow-on process. Technically speaking, this is achieved via the Item
Category parameter, which is common to SAP S/4HANA, SAP ERP,
and SAP CRM, and thus should be familiar to those who have
experience in these SAP solutions. Based on the Item Category, the
system generates an appropriate follow-on document, a reservation
or purchase requisition, when you release the service order.
Note
Optionally, you can set up the system to generate a purchase
order. As the process is almost identical to the one with a
purchase requisition in the context of this discussion, we’ll treat
both scenarios in the same way.
After the service on the service order is carried out, and materials
are consumed, you create a service confirmation that includes the
items for the consumed materials.
3.6
Sales Order
A sales order can be a follow-on document from a service order with
SAP S/4HANA. One of the ways to use this feature might be to
represent an upsell transaction. Alternatively, you could use it to
send a product in advance to the customer site for the technician to
use later. This is similar to the Advanced Shipment function in the
Customer Service module of SAP ERP.
As the resultant sales order is a normal sales order, you can use the
standard delivery process with the outbound delivery and shipping
capabilities of SAP S/4HANA. You can choose to bill these sales
orders together with the services or to bill them separately, as your
business process requires.
3.7
In-House Repair (Depot Repair)
In-house repair is a process where you receive devices or a set of
equipment back from customers and then carry out services on
them. As the name suggests, it’s mainly assumed to be some kind of
repair work for the items returned due to malfunction, for example.
SAP S/4HANA has added a new set of SAP Fiori apps to manage inhouse repair processes.
The app is designed to show the overall process and status of each
of the items in the in-house repair process (Figure 3.5). The process
starts with creating an in-house repair object, which is a new object
to group multiple repair (service) orders and track their status as a
group and also individually for a customer. When you create a new
in-house repair object, you can add one or multiple products by
using the equipment ID or serial number. If you decide to go ahead
with the repair process for these products, the system will generate a
repair order for each product. The repair object graphically shows
you the status of where each item is in the repair process.
The decision to go ahead with repair or not can be made and
recorded for each product. To do so, the first step in the in-house
repair process is the precheck. During precheck, you inspect the
returned item and decide whether or not it’s feasible to repair it. If it’s
deemed infeasible, the item is returned to the customer.
Figure 3.5
In-House Repair (as of SAP S/4HANA 2020 FPS01)
The next step is to create a service order for repair (repair order) and
carry out the actual repair work. The repair order goes through the
same process as with normal service order management with the
confirmation and billing of repair work. The in-house repair object
can work as a tool to guide you through the process and monitor the
status for the group of products in the repair process.
You can also create a repair service quotation to ask the customer
whether or not to proceed with the repair for the fee quoted. At the
time of writing in February 2021, this feature is available with SAP
S/4HANA Cloud and SAP S/4HANA 2020 FPS01.
3.8 Field Service Management (On-Site
Maintenance Service)
Another variation of the normal service order process is field service
management. Unlike in-house repair, in this process, you send your
service technicians to the customer site to carry out the work. For
this process, SAP S/4HANA Service is natively integrated with SAP
Field Service Management. Following are its main capabilities
relevant to the context of the current discussion:
Scheduling of field service technicians with a graphical schedule
dashboard (Figure 3.6)
Smartphone apps to connect field service technicians with the
various elements of SAP S/4HANA
Figure 3.6
Field Service Management: Planning and Dispatching
With the mobile capabilities, you can get the details of service jobs
and record time, materials, and expenses for each job. These details
get synchronized with SAP S/4HANA Service, enabling you to
connect the field and back office seamlessly. With the mobile
capability, you can present a service report to your customer and
obtain their approval on the mobile device, for example, helping you
move to the billing phase of the process in a timely manner.
3.9 Other Related Features (Service Order
Templates and Bills of Materials)
In this section, we’ll touch on two features relevant for service order
management: service order templates and bills of materials (BoMs).
Service Order Templates
A service order can be created in different ways. Service order
templates are available to help you create many service orders of a
similar setup. As the name suggests, you can create predefined
templates that have the same structure as a service order with a
single header and multiple items. You can create a variety of
templates for different purposes and then use a built-in search app to
easily find the one you need for a given occasion. A new service
order can be created by copying the template of your choice. You
can then adjust the service order if necessary.
Alternatively, if you’re already creating a service order, you can look
for a template from within the Items section of the service order.
After you’ve found an appropriate service template, you can
selectively bring items into the service order you’re creating.
As you’ll see in a later section, service order templates are also used
in automatic generation of service orders from a maintenance plan—
we call this scenario recurring services.
If you’re versed in the Customer Service module of SAP ERP, you
might think that service templates are similar to task lists. As an
analogy, this is true—both serve a largely overlapping purpose:
standardize the creation of service orders across the organization
and make it easy or automatic to minimize human errors. Task lists
aren’t available in SAP S/4HANA Service, although there is a new
capability—maintenance-centric service—planned in the roadmap
that will use the classic task list master data (discussed in Section 6).
Bills of Materials
In some industries and organizations, you may maintain service
BOMs for specific materials or serialized units of equipment. You can
use them to define standard sets of services applicable to those
materials and equipment. When you specify a material or equipment
in the header of the service order, you can open a popup window
where you can navigate the hierarchical structure of a BOM and
copy items into the service order you’re in.
So far, we’ve discussed the main capabilities of service order
management along with the business process starting from creating
a service order to service confirmation and billing, as well as a
variety of follow-on processes for different scenarios according to
your business needs. We’ve also briefly touched on service order
templates and BOMs that are meant to help standardize the
definition of service orders across the organization.
4 Service Maintenance Plan and Service Contract
Management
In this section, we’ll introduce service contract management along
with recurring services and highlight their key features. Recurring
services use maintenance plans to automate service order
generation. Service contracts and recurring services can work
together to automate typical preventive maintenance processes in
service management. We’ll begin with the service contract and then
turn to recurring services.
4.1
Service Contract
A service contract is a long-term agreement with a customer
concerning provision of services. It can be generic or specific to a set
of devices or equipment. For example, a manufacturer of medical
diagnostics equipment might have a contract with hospitals for units
of magnetic resonance imaging (MRI) equipment, their installation
service, and regular maintenance services for the next 5 years (60
months). The screen in Figure 4.1 shows an example service
contract created in an actual SAP S/4HANA system to illustrate this
example of MRI units. The manufacturer might bill the customer for
the units at a certain price and then agree to have a recurring
payment for the maintenance at 20% of the total sale price per year
for the next 5 years, billed monthly (60 months). For the
maintenance services, regular inspection services and standard
parts replacement might be covered under the warranty and incur no
additional costs to the customer. For other and special parts
replacement, you might have a pricing agreement with some
discount for the relevant parts. You might also have a clause in the
service contract on terms of renewal after the initial 5 years.
For another example, the scenario can be consumer oriented: an
internet provider might simply have a regular payment agreement
with an individual customer for the use of the internet, such as
monthly payments for the next 24 months. This could be also
represented with a service contract with a simple recurring billing
plan.
Figure 4.1
Service Contract in SAP S/4HANA Service
These are just contrived fictional examples that may or may not
correspond to the real detail of the industries they refer to;
nevertheless, they should conceptually highlight some key elements
of the features that support business processes centered around
service contracts. Let’s look at them one by one.
Specify a Product and Equipment
Referring to the MRI equipment example in the previous subsection,
a service contract with the hospital will need to be specific to the
installed MRI units. You could create equipment master records with
serial numbers to represent the MRI units and then reference them
in a service contract as illustrated in Figure 4.2. As you can see, the
Object List section lists two equipment IDs; each one refers to a
serialized MRI unit. They are both the same model, represented by a
material number (not visible in the screenshot).
Figure 4.2 List of Equipment, and List of Service and Service Parts under
Service Contract
The Product List area contains the service and service parts
covered by this service contract. This example includes a standard
inspection service and two sets of service parts.
As you can see, these two lists within a service contract provide a
wide range of possibilities for representing actual service contracts.
In addition, if you have service BoMs for the reference material or
equipment, you can leverage them when you maintain the product
list.
Service contracts with object and product lists can be used when
you’re creating service orders. There are different ways to configure
the system behavior in relation to service orders and service
contracts, so this is just an example of how you might use the
feature. For example, you can get the system to automatically
propose a service contract relevant to the equipment when you’re
creating a service order for it. If you accept the proposal and link the
service order with the service contract, then you can selectively copy
the products from the product list of the service contract. This way,
the system can help the end user create a service order that is
consistent with the service agreement with the customer.
Price Agreements
Continuing with the MRI example, we can assume that the standard
inspection service and regular service parts are free of charge—
covered by the regular payment based on the service contract. We
can also assume that the special service part is provided with a
discounted rate. This kind of price agreement can be represented in
the system through the use of condition records. This a standard
feature of SAP S/4HANA, shared across the sales, service, and
other sale-related capabilities.
Figure 4.3 shows price agreements with the hospital under the
service contract. The standard inspection service and assortment of
standard service parts will receive a 100% discount, representing the
warranty coverage for the duration of the service contract. The
special part is offered at a 15% discounted rate.
Figure 4.3
Price Conditions for a Service Contract
These pricing agreements can be automatically applied when you
create a service order with reference to the service contract if you
include relevant products (materials) in the service order. Of course,
the service order can contain other products. The products that
aren’t under the service contract won’t be influenced by the
discounts defined in the price agreement.
Recurring Billing
The hospital is billed monthly for the 20% of the sale price of the MRI
units. This is a regular, recurring payment that can be automated
through the billing plan of the service contract (Figure 4.4).
Figure 4.4
Billing Plan in the Service Contract
The plan generates a billing request that is common to the sales
capabilities within SAP S/4HANA, so the billing teams are already
familiar with this.
The top part of the figure shows different attributes that define the
plan; for example, it’s settled monthly, and the billing date is the first
of the month. Different attributes can be selected according to the
need of your organization, for instance, semiannual settlement
instead of monthly.
Renewal, Changes, Completion, and Cancellation
Service contracts are long-term agreements with a customer, and
thus changes are to be expected. Standard features are available to
help with those changes.
You can manually renew an existing service contract or set a service
contract to let the renewal process automatically represent such a
contract clause, for example. For automatic renewal, you can further
specify when such an extension kicks in and the duration of the
extension.
In addition to renewal, SAP S/4HANA has a feature specific to
changes to the customer (sold-to party, to be more precise). The
name of the customer might change, for example, due to acquisition
or divestment on the customer side.
For some industries and businesses, service contracts may define a
target quantity or target value; when a target quantity or value has
been consumed under the service contract, it’s considered
completed. The status of the service contract can be automatically
set accordingly, which helps end users comply with the agreement
and proceed to the next action, such as trigger a renewal process.
You can also fine-tune what exactly should happen when such a
target is being crossed via completion rules. For example, you can
specify whether an end user will see an error message so that you
can’t go beyond the target, or see only a warning message instead.
For midterm cancellation, you can define some additional information
to be entered into service contracts, for example, cancellation party
(who triggered the cancellation) and reason for cancellation.
Revenue Recognition
Business organizations globally follow certain financial reporting
standards (e.g., International Reporting Standards [IFRS]) to
operate, and thus they are required to comply with a certain revenue
recognition process to account for revenues from service contracts.
One of the greatest strengths of SAP S/4HANA, being a unified ERP
software application, is its tight integration between business
operations such as service management and financial management.
It has a built-in capability for revenue recognition and works with the
service contract process of SAP S/4HANA Service (refer to the
online documentation available at https://help.sap.com/s4hana).
Details of the revenue recognition capabilities are beyond the scope
of this E‐Bite, but consider reviewing the following as a starting point:
SAP Note 2582784 - Revenue Accounting and Reporting with SAP
RAR 1.3 and SAP S/4HANA 1809 & 1909 OP - FAQs and Guidance.
Obviously, it’s not the only relevant note, and please refer to other
information sources to do your own research on revenue
recognitions within SAP S/4HANA.
4.2 Recurring Service: Maintenance Plan and
Scheduling
Continuing with the MRI example introduced in the previous section,
the hospital has a five-year service maintenance contract with a
provision of regular inspection service. As noted earlier, the
inspection service and the assortment of regular service parts are
covered by the service contract and thus is free of charge (included
with the regular payment). These commercial aspects are contained
in the service contract. Recurring service with a maintenance plan
deals with execution aspects by automatically creating service
orders according to the predefined plan.
Recurring service is a new feature introduced with the 2020 release
of SAP S/4HANA. The maintenance plan master data object that you
might be familiar with in the Plant Maintenance module is extended
to work with the service order object (Figure 4.5).
Note
Maintenance plan type Strategy isn’t supported as of the SAP
S/4HANA 2020 release.
Figure 4.5 shows a time-based maintenance plan.
As you can see, there is one maintenance plan item associated with
an equipment ID. It’s linked to a service contract item, thus
representing the relationship between the maintenance plan and
service contract. When service orders are generated for the plan,
commercial terms in the service contract can be automatically
applied.
Service order items will be based on the service order template
specified in the maintenance plan item. If you’re familiar with the
Plant Maintenance or Customer Service modules, this is a major
difference. As of the 2020 release, SAP S/4HANA Service uses
service order templates instead of the task list master data.
Figure 4.5
Creating a Maintenance Plan for a Piece of Equipment
After you set up a maintenance plan for a set of equipment based on
a service contract and service order template, you can schedule the
plan to automatically generate service orders. Many parameters are
available that you can use to fine-tune this process. These are useful
to accommodate the messy reality of execution—some service
orders may not be completed in time for the next cycle, or estimated
counter usage may not be accurate and need adjustment to reflect
the actual counter reading, for example. We won’t delve deeper into
these details in this E‐Bite. Refer to the relevant section of online
documentation; there is a good amount of detail described in
“Scheduling Parameters” section available at http://s-prs.co/533202
(the online documentation is release and FPS dependent, so refer to
the one relevant for you).
5 Service Request Management, Service
Quotations, and Packaged Service Offerings
In the previous two sections, we’ve discussed service management
processes with a focus on maintenance service operations. The
service order is the core transactional data object that defines a
service job by maintaining information about the relevant customer,
assets, services and parts, and cost objects that collect costs for
controlling purposes, among others. We’ve also covered the service
contract and maintenance plan that are often used together for
preventive maintenance services to automate generation of service
orders.
In this section, we’ll turn our focus to customer interaction and
commercial aspects of SAP S/4HANA Service. It should be noted
that “customers” here can be internal customers in the context of a
shared service origination.
First, we’ll look at service requests as an entry point for recording a
customer request and other interactions with customers. Second,
we’ll discuss service and solution quotations as a means to provide a
quotation for a service or combination of physical and service
products. We’ll revisit the product bundle master data mentioned
earlier and discuss it in the context of business and processes. You
can use bundle products as master data to group goods and
services together and offer them as a bundle deal. You can
dynamically define your bundles based on date intervals and
business rules (e.g., for a holiday seasonal campaign). Third, we’ll
briefly discuss Interaction Center.
5.1
Service Request
Service requests are business objects that can be used to record
interactions with a customer: your end customer outside your
organization or an internal one in the context of shared services. The
interactions can be customer calls, problems, complaints, requests,
and so on. Depending on the industry and the nature of the
business, you may call them tickets or incidents. Service requests
are equivalent to service notifications in the Customer Service
module of SAP ERP. You typically initiate the service process by
recording customer requests in a service request. You then judge the
situation, determine an appropriate course of action, and assign
appropriate parties to follow up the request. You can branch out into
a variety of different processes by creating follow-on documents.
Service requests offer flexible customizing options. You can
automate the generation of follow-on documents and define some as
manual creation to model a process step where deliberate
judgement is required. You can also flexibly customize what
elements of service requests are to be copied over to the follow-on
documents; for instance, you might like to pass on internal notes
from a service request to a follow-on service order to relay what has
been discussed with the customer. This way, it’s possible to model a
diverse range of service management business processes specific to
your organization.
Let’s discuss some key features more concretely. A service request
shows the generic Details information of a service request (see
Figure 5.1). You may notice that the basic structure of the data
object visible in the system is similar to that of a service order you
saw in a previous section. The service request number and
description appear at the top of the screen, followed by a series of
buttons for generic actions. You can click on the available tabs to
navigate to different sections. The Details tab shows the header
information of the service request.
Figure 5.1
Example Service Request
Note
As of this writing in December 2020, the service request isn’t
available in SAP S/4HANA Cloud. SAP offers the SAP Service
Cloud solution (www.sap.com/products/service-cloud.html).
Many of the elements are common between service orders and
service requests, such as customer information, and the product,
equipment, and serial number the request or order is about. Among
the different elements, we’ll discuss the following, which are more
basic, more frequently used for service requests, and are relevant for
service management processes in general:
Category: Subject and reason
Checklist
Service level agreement
Category
Sorting a multitude of service requests into the appropriate
categories is an important part of service request management. Use
of the categorizing feature is optional, so it’s possible to achieve from
a very simple mechanism (no categorization) to a highly complex
one, and every different degree of complexity in between.
Nevertheless, setting one up opens up different possibilities. For
example, you can automatically derive a predefined checklist that is
appropriate for the type of service request or service item to offer
(and potentially pass on to a follow-on service order). Categorization
can also be used for statistical purposes. You can retrospectively
analyze the aggregate data to discern patterns in service requests,
for example, trends in customer complaints and reasons.
SAP S/4HANA Service uses a combination of the two categorizing
schemes to sort service requests in a structured manner: subject
(what it’s about) and reason (why the customer is contacting the
company). The preceding example is categorized into a request
regarding an online shop by using the subject scheme, and the
reason scheme isn’t used.
Categories 1–4 in Figure 5.1, shown previously, represent a
hierarchy of categories. In this example, Request is chosen in the
Category 1 field. This then narrows down the options available in
Category 2, in which Online Shop has been chosen). Thus, it’s
clear that the subject of this service request is a request for an online
shop.
Checklist
A checklist can serve as a predefined procedure, a chain of tasks,
and a decision tree relevant for a given service request.
The example in Figure 5.2 shows a set of questions that a support
technician should ask the customer when he receives a technical
ticket about a computer. Checklists can be derived from the category
assigned to a service request.
Figure 5.2
Checklist in a Service Request
Service Level Agreement
A service level agreement (SLA) with SAP S/4HANA Service is
represented by a combination of a service profile and a response
profile (Figure 5.3). If relevant and set up properly for the system, the
warranty ID can also be displayed to let you visually confirm what the
SLA and warranty situations are for the product and customer.
Use of service requests is optional, but it offers features that can
help an organization sort, organize, and act on customer requests—
external or internal—with a structure. You could additionally consider
using a machine learning tool to help categorize service requests in
an effort to boost the productivity of service teams.
Note
For use of machine learning technologies to help automatically
categorize service requests, an additional product is required
called SAP Service Ticket Intelligence (requires an additional
license). Refer to SAP Notes 2506240, 2673363, and 2646975 for
more technical detail to enable it for SAP S/4HANA.
Figure 5.3
Time Recording and Service Level Agreement
5.2 Service Order Quotation/Solution Quotation
and Product Bundle
One of the major differences between Customer Service in SAP
ERP and SAP S/4HANA Service is the way commercial aspects of
service processes are handled.
You can create a service order quote directly or as a follow-on
document from a service request. You can design different
sequences of steps according to your business processes. One thing
distinct for SAP S/4HANA is the solution quotation object, which has
its origin in SAP CRM. It’s specifically designed to combine physical
goods or assets and intangible services together in a single solution
quotation. It can also have an item that represents a long-term
service contract. This means that the solution quotation can flexibly
model a business process where, as an example, you offer a
physical product together with a one-off installation service and a
long-term service maintenance contract for a customer. As you’ve
seen in a previous section, you can automate regular billing based
on the intervals you define—monthly, quarterly, annually, and so on.
The example in Figure 5.4 shows a solution quotation being created.
A bundle product (discussed in Section 1 on master data object) is
used in the bundle solution that groups together a printer (physical
product), installation service, and a long-term maintenance contract
as a single product. In this particular example, there are two types of
printer to choose from. As you can see in Figure 5.5, you can set a
special price for a bundle component—in this case, the normal price
is $600, and the bundle price is $500. The latter is used to calculate
the bundle product as a whole.
Figure 5.4
Selecting an Option Product in a Bundle for a Solution Quotation
Figure 5.5
Special Bundle Price for a Component in a Bundle
After a solution quotation is released as an offer to the customer,
then the customer can decide whether to accept it or not. After the
solution quotation is accepted, the system automatically generates
appropriate follow-on documents for each item. In this example of a
printer bundle solution (Figure 5.6), the item for the printer generates
a sales order. You can follow the normal sales process for shipping
and billing. The one-off installation service item generates a service
order. The last item for the long-term contract generates a service
contract with which you can set the regular billing process in
accordance with the service agreement.
Figure 5.6
History
Solution Quotation Showing Follow-On Documents in Transaction
In addition to these follow-on transactions, you can also consider
creating a subscription order. Unlike the periodic regular billing
capability of service contracts, subscriptions can be used to model
usage-based billing. A mobile phone is a typical example of such
usage-based billing. Your mobile phone provider logs the duration of
the outgoing phone calls made from the mobile phone. Based on the
actual usage (e.g. duration of talks and data usage) and other price
factors (e.g., national or international calls may have different rates),
the provider bill you. A similar usage-based billing can be
incorporated into a solution quotation as a separate line item
together with the other types of items discussed previously: physical
goods, one-off service, and service contract. For a subscription,
you’ll need an additional product, SAP BRIM, which requires an
additional license.
Finally, regarding solution quotations, SAP sees the convergence of
sales and services in many industries. In some industries such as
information and telecommunication technologies, this has been the
norm for a long time; for others, this may be only visible on the
horizon. Traditionally, many business organizations, especially
manufacturers, have tended to treat sales and service distinctly—
different profit centers, different business units, different key
performance indicators (KPIs), and so on. As sales and services
increasingly converge, there is greater need for visibility into both
combined. The solution quotation capability can be essential in this
sales-service convergence. In this context, SAP S/4HANA Service
has added a small and yet potentially powerful visibility tool called
business solution portfolios that lets you view sales- and servicerelated data per customer, thus creating a portfolio-style view of the
business relationships you have with certain customers (Figure 5.7).
Figure 5.7
SAP Fiori App: Manage Business Solution Portfolios
5.3
Interaction Center in SAP S/4HANA
As service requests can be used as interaction logs and tickets, they
are often used for call center operations together with Interaction
Center. Interaction Center is, essentially, a set of tools and
capabilities for call center operations. It has its own user interface
(UI), called agent desktop, specialized for use by service agents who
need to deal with a set of specific requirements in the call center
context, such as managing parallel customer calls. Interaction
Center also has an interface to work with additional communication
management software with telephony and other multichannel
capabilities (e.g., web chat).
Interaction Center in SAP CRM has been widely adopted many SAP
customers globally. Interaction Center in SAP S/4HANA has adopted
most of features from its SAP CRM equivalent and optimized them
for the new data model and applications beyond Interaction Center.
Interaction Center is optional when you use service requests and
SAP S/4HANA Service in general.
Note
Most of the Customer Service module of SAP ERP is in the
compatibility scope, which means you can use most of the
Customer Service capabilities when you move to SAP S/4HANA
for a limited time.
As of March 9, 2021, the duration of the combability scope for
Customer Service, along with two other components, has been
extended through to 2030. This extension is an exception and
doesn’t apply to most other components. Please refer to the latest
version of SAP Note 2269324, rather than relying solely on the
information provided in this E‐Bite.
6
Service Monitoring and Analytics
So far in this E‐Bite, you’ve seen business processes for service
management. We’ve looked at service order management, recurring
services with using service contracts for preventive maintenance
services, service request management, and solution quotations with
product bundles. As you can see, thanks to the SAP Fiori design,
end users have consistent interactions with applications—in general,
they can start an app with a search to display a list of documents,
and can narrow the search with filters and sort to get to the
document they want to work on. In this section, we’ll turn to tools for
monitoring these day-to-day operations, as well as working with
management reporting and analytics.
First, we’ll discuss embedded analytics, introduced with SAP
S/4HANA, that is a general reporting facility which looks at reports
related to service management. Second, we’ll provide a brief
overview of SAP Analytics Cloud, a strategic visualization and
analytics tool in the cloud designed to extend embedded analytics.
We’ll conclude this section with an example visualization for sales
and service combined that SAP Analytics Cloud makes available.
Note
SAP Fiori “is the design language that brings great user
experiences to enterprise applications”
(https://experience.sap.com/fiori/). In many cases, SAP Fiori is
also used to refer to the actual technical implementation of the
design language, based on the JavaScript libraries to construct
UIs to be displayed in web browsers. Many web UIs used by SAP
S/4HANA Service are in fact based on SAP WebClient UI, which
has a longer history than the standard SAP Fiori apps written with
SAPUI5 (SAP UI for HTML5), which is a collection of libraries
mainly written in JavaScript
(https://developers.sap.com/topics/ui5.html).
6.1
Embedded Analytics
Embedded analytics takes advantages of the SAP HANA database
and brings operational reports, analytics, and visualization close to
end users for their day-to-day work within SAP Fiori launchpad—the
user menu (as in Figure 6.1).
You can have analytics capabilities for the data available within SAP
S/4HANA when calling an analytics app, thus providing users with
your real-time insights.
As of the 2020 release, the scope of SAP S/4HANA Service includes
the following analytics apps:
Service Management Overview
Expiring Service Contracts Analysis
Overdue Service Orders Analysis
Service Contracts Analysis
Service Orders Analysis
Figure 6.1
Example Analytics for Sales
Figure 6.2 shows the Service Management Overview app. In the
same way as other overview analytics apps, it provides visualization
of a collection of other analytics apps in a dashboard format. Roles
and authorizations influence the data and tiles that users can see,
and overview apps can be dashboards that are relevant for individual
users for their roles.
The top part of the app is a global filter; when you set a filter to see
only a specific customer or product, for example, all the
visualizations will be filtered by the customer or the product. In
addition, each tile is also an app its own right, and you can navigate
into each one to open the underlying analytics app. Thus the
overview app can double as an index page for different reports.
Figure 6.2
Service Management Overview
These apps listed previously in this subsection are only a fraction of
the embedded analytics apps available out of the box in SAP
S/4HANA. They are designed to make it easy to work with data for
service capabilities; however, in reality, the work of service
management practitioners is rarely confined within the definition of
the services that these features and functions necessarily impose. If
you deal with customer-facing service business processes with
shared service center or call center operations, the KPIs you need
will be very different from those for managing maintenance services
in more industrial situations, such as offshore wind farms,
components for factory automation systems, and so on. As SAP
S/4HANA is used globally by organizations of different sizes in a
variety of industries, users can take advantage of embedded
analytics apps across different LOBs—for example, sales and
enterprise asset management.
Embedded analytics are also extensible. The fact that there are outof-the-box apps means that SAP has created the foundational
services in the form of database views and other technical objects.
You can reuse them, if necessary, by reassembling different objects
to create your own custom analytics apps. Entire sets of SAP Fiori
apps and programing tools are available for extending the standard
out-of-the-box analytics in SAP S/4HANA.
6.2
SAP Analytics Cloud
The topic of analytics, in general and specific to service
management, goes beyond SAP S/4HANA and the embedded
analytics within it. Before concluding this section, let’s take a brief
look at SAP Analytics Cloud.
SAP Analytics Cloud is SAP’s strategic business intelligence
solution. As a standalone cloud solution, it’s designed to work
seamlessly with SAP S/4HANA. It goes well beyond the scope of this
E‐Bite to describe all it offers. In the context of SAP S/4HANA
Service, SAP Analytics Cloud is a powerful tool to extend interactive
dashboard capabilities that embedded analytics within SAP
S/4HANA alone can provide.
SAP delivers a number of dashboards and reports that you can
deploy and start using right out of the box. The UI is well integrated
in the SAP Fiori launchpad, so, for end users, it feels like it’s just a
part of SAP S/4HANA.
For example, SAP has delivered an order-to-cash dashboard, which
offers a number of interactive visualizations for sales and service
KPIs combined to offer a comprehensive overview for managers
responsible for revenues and profitability in sales and services. The
Order to Cash Dashboard screen is shown in Figure 6.3.
Figure 6.3
Order to Cash Dashboard Screen
In this section, you’ve seen an overview of embedded analytics in
general, as well as apps specific to SAP S/4HANA Service. We also
discussed SAP Analytics Cloud, which can be used as a powerful
tool to extend interactive dashboards. Finally, you saw an example
dashboard for sales and service combined.
7
Future Innovations
So far, we’ve focused on what is currently available as of the 2020
release of SAP S/4HANA. We’ve discussed master data and the
different standard processes available out of the box. The preceding
section introduced you to embedded analytics within SAP S/4HANA,
as well as SAP Analytics Cloud as an extension to them, for service
management.
In this final section, we’ll look into the future and discuss one of the
key planned innovations called maintenance-centric service. In a
nutshell, it combines the capabilities of SAP S/4HANA asset
management (formerly, the Plant Maintenance module of SAP ERP)
with the service capabilities of SAP S/4HANA. Figure 7.1 illustrates
this concept. You can think of it as further harmonization of disparate
capabilities offered by various SAP solutions—just like SAP
S/4HANA Service itself harmonized the Customer Service module of
SAP ERP and the service capabilities of SAP CRM, maintenancecentric service will combine another set of adjacent capabilities with
SAP S/4HANA Service. It is an enhancement that leverages the
existing capabilities available in SAP S/4HANA, but it’s not a
replacement nor does it impact the capabilities of the asset
management line of business (LoB) within SAP S/4HANA.
Figure 7.1
High-Level Concept of Maintenance-Centric Service
At the time of this writing, there are two roadmap items pertaining to
maintenance-centric service visible in the SAP’ Road Map Explorer
tool for SAP S/4HANA. If you haven’t done so, you can register to
view the roadmap items. You can search for “maintenance-centric
service”, or you can apply filters; Service Order Management and
SAP S/4HANA should display the entries related to maintenancecentric service.
Because it’s a future roadmap item, SAP may change its name,
release timing, and capabilities currently described in SAP Road
Map Explorer (as in Figure 7.2). Nevertheless, this item is important,
especially for those who are familiar with the Customer Service
module of SAP ERP.
Figure 7.2
SAP Road Map Explorer
Remember that the Customer Service module in SAP S/4HANA is
still available as part of the compatibility scope. We won’t delve into
the detail of exactly what it is, but the use rights of Customer Service
in SAP S/4HANA, along with other features and functions
categorized in the compatibility scope, are time-limited.
Note
Detail of the compatibility scope is described in the SAP Note
2269324 – Compatibility Scope Matrix for SAP S/4HANA OnPremise (Version 62 from 08.10.2020 in English). At the time of
this writing, installed base management is listed in the matrix
attached to this note (file name: S4HANACompatibilityScopeMatrix-DETAILS.pdf).
As of March 9, 2021, the duration of the combability scope for
Customer Service, along with two other components, has been
extended through 2030. This extension is an exception and
doesn’t apply to most other components. Refer to the latest
version of the note, rather than relying solely on the information
provided in this E‐Bite.
The shift from Customer Service to the new service capabilities has
been public since the early days of SAP S/4HANA. The compatibility
packages in general (including items in the Customer Service
module) are intended to ease the transformation from SAP ERP to
SAP S/4HANA by extending the time for use rights of Customer
Service capabilities, and thus enabling stepwise system conversion.
One of the main reasons SAP was prompted to conceive of
maintenance-centric service is the feedback from customers who
use the Plant Maintenance and Customer Service modules of SAP
ERP. These customers face a particular challenge in their
transformation efforts from SAP ERP to SAP S/4HANA. Many of
these customers currently deploy Plant Maintenance and Customer
Service to be used by overlapping groups of users, for example,
maintenance engineering teams tasked to maintain equipment and
assets. These teams provide maintenance services for the
equipment owned by their own companies, as well as by their
customer or partner companies. In many cases, there is no
difference in the types of equipment, and thus for the purposes of
maintenance, these assets are treated interchangeably. A major
difference is that the work done for their own equipment is
considered internal costs (a primary domain of Plant Maintenance),
whereas the work done for equipment owned by customer or partner
organizations must be billed to the respective organizations (a
primary domain of Customer Service), so that they can bill these
external parties. In some industries and regions, these business
processes are referred to as billable maintenance. Because Plant
Maintenance and Customer Service share much of the master data
and transactional data, these modules provide a unified user
experience for the maintenance engineering teams. In its current
form, SAP S/4HANA Service entails a break away from this Plant
Maintenance/Customer Service paradigm, presenting challenges in
transformational efforts. By combining the capabilities from Plant
Maintenance modules into SAP S/4HANA Service, maintenancecentric service is intended to mitigate these challenges.
According to SAP Roadmap Explorer, maintenance-centric service is
intended for SAP ERP customers who use Customer Service and
Plant Maintenance “almost interchangeably today”. As you can see
in Figure 7.1, shown earlier, the Asset View on the right is labeled
Plant Maintenance. The idea is that engineer and technician users
of Plant Maintenance/Customer Service today will continue to be
able to use the familiar Plant Maintenance object, while the work
order in the maintenance-centric service is set up to deal with the
technical operational aspects, such as equipment and operations,
leveraging the task list master data. The commercial aspects, such
as service agreements and billing, are managed through the
capabilities provided in the new SAP S/4HANA Service, as you’ve
seen. In other words, there will be a maintenance-centric service
order shadowing and linked to a work order. Technicians look at the
work order and create confirmations and so forth in (mostly) the
same way as today. For the billing process, it’s also planned that the
classic resource-related billing will work with maintenance-centric
service.
8
What’s Next?
You’ve seen what SAP S/4HANA Service is all about, whether it’s
service master data, service order management, service
maintenance plans, service contract management, request
management, quotations, and packaged service offerings. What’s
next in your SAP S/4HANA journey?
Recommendation from Our Editors
Check out Configuring Sales in SAP S/4HANA,
by Christian van Helfteren. Set up your sales
processes: sales order management, shipping
and delivery, billing and invoicing, and more!
Visit www.sap-press.com/4907 and find
Configuring Sales in SAP S/4HANA!
In addition to this book, our editors picked a few other SAP PRESS
publications that you might also be interested in. Check out the next
page to learn more!
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The Document Archive
The Document Archive contains all figures, tables, and footnotes, if
any, for your convenience.
Figure 1.1
Brief History of SAP S/4HANA Service
Figure 1.2 SAP’s End-to-End Vision of Service
Management as of 2021
Figure 2.1
Model
SAP S/4HANA Service’s Simplified Data
Figure 2.2
Manage Product Master Data App
Figure 2.3
List of Technical Objects App
Figure 2.4 Example: Bundle Product in SAP
S/4HANA Service
Figure 2.5
SAP Fiori Apps for Maintenance Plans
Figure 2.6
Find Maintenance Items App
Figure 2.7
Example: Service Template
Figure 3.1 Example Service Order: Header and
Items (Maintenance Service and Service Part)
Figure 3.2 Transaction History of a Service
Confirmation
Figure 3.3
Order
Internal Order Generated for a Service
Figure 3.4
History
Service Confirmation with Transaction
Figure 3.5 In-House Repair (as of SAP S/4HANA
2020 FPS01)
Figure 3.6 Field Service Management: Planning
and Dispatching
Figure 4.1
Service
Service Contract in SAP S/4HANA
Figure 4.2 List of Equipment, and List of Service
and Service Parts under Service Contract
Figure 4.3
Price Conditions for a Service Contract
Figure 4.4
Billing Plan in the Service Contract
Figure 4.5 Creating a Maintenance Plan for a Piece
of Equipment
Figure 5.1
Example Service Request
Figure 5.2
Checklist in a Service Request
Figure 5.3 Time Recording and Service Level
Agreement
Figure 5.4 Selecting an Option Product in a Bundle
for a Solution Quotation
Figure 5.5
a Bundle
Special Bundle Price for a Component in
Figure 5.6 Solution Quotation Showing Follow-On
Documents in Transaction History
Figure 5.7 SAP Fiori App: Manage Business
Solution Portfolios
Figure 6.1
Example Analytics for Sales
Figure 6.2
Service Management Overview
Figure 6.3
Order to Cash Dashboard Screen
Figure 7.1 High-Level Concept of MaintenanceCentric Service
Figure 7.2
SAP Road Map Explorer