Creating Cost and Sales Lines--Exercises

Basic Data Setup

Inventory Part

Purpose: The purpose of this exercise is to create the part to be repaired.

Windows:
Inventory Part

Note: If you have not yet already done so, create the following:

• Create a manufactured inventory part. Replace XX with your initials.
• Make sure that you create this on your own site.

General exercise for Manufactured Inventory Part

Customer

Purpose: The purpose of this exercise is to set up the customer data for the customer to be used in main exercises below. The repair part is owned by this customer.

Windows:
Customer

Note: If you have not yet already done so, create the following:

1. Create a customer with the information given below, where XX is your initials.
2. Specify a delivery address in the Address/General Address Info sub tab.
3. Specify order specific information, such as customer statistical group and currency, in the Order/General sub tab.

General exercise for Customer

Coordinator

Purpose: The purpose of this exercise is to enter a coordinator responsible for the coordination of the dispatching customer order for the return of the repair part to the customer.

Windows:
Coordinators

Note: If you have not yet already done so, create the following:

• Enter a coordinator with the information given below.

General exercise for Entering Coordinator

Service Type

Purpose: A service type is a way of grouping actions possible to perform for a part in order to bring it back to its original fit and/or function for different kinds of faults.

Windows:
Component Repair Order Basic Data/Service Type

Note: If you have not yet already done so, create the following:

• Create three new service types with the information given below. Replace XX with your initials.

General exercise for Service Type

Non-Inventory Sales Part (Service Part)

Purpose: The purpose of this exercise is to set up a non-inventory sales part. This part is needed since it will act as the invoicing object for the service types.

Windows:
Non-Inventory Sales Part

• Create a non-inventory sales part with the information given below. Replace XX with your initials.

General exercise for Non-Inventory Sales Part

Repair Code

Purpose: Repair codes are a way of grouping standard jobs for the work order and material and/or operations for repair shop order. The purpose of this exercise is to define the repair codes which will be connected to the part to be repaired, as well as to the service types connected to that part.

Windows:
Repair Setup Basic Data/Repair Code

Note: If you have not yet already done so, create the following:

• Create repair codes with the information given below. Replace XX with your initials.

General exercise for Repair Code

Services and Pricing

Purpose: The purpose of this lesson is to prepare the inventory part for being processed on a component repair order in Component MRO. Start with connecting service types for the repair part and update the service price.. A service type has two purposes, to define a work scope and to act as price label for the work performed.

Continue with connecting repair codes to service types and to repair part. Repair codes are a way of grouping standard jobs for the work order and material and/or operations for repair shop order. By connecting repair codes to service types you can create a predefined work scope when repair shop order or work order is selected as supply for the component repair order line.

Windows:
Part Service Definition and Pricing
Part Service Definition and Pricing/Service Types
Repair Setup Basic Data/Repair Code Part

1. Associate service types and service part to repair part. Specify a service price per repair part and service type.

2. Associate repair codes to repair part.

3. Associate repair Codes to service type

General exercise for Defining Services and Pricing

Part Service Contract

Purpose: The purpose of this exercise is to establish a service contract with your customer. The service contract offers a possibility to differentiate how to invoice the customer for service types connected to the part.

Windows:
Service Contract

Note: If you have not yet already done so, create the following:

• Define a part service contract for your customer XX-CMRO, your part XX-187-CS and your service types XX-ST01, XX-ST02 and XX-ST03.

Important: It is not possible to do the Define Component Repair Order Work Scope, No Existing Service Contract exercise when the part service contract is active.

General exercise for Part Service Contract

Required Data

Creating Component Repair Order

Purpose: The purpose of this exercise is to create and process two component repair orders containing a component repair order line each. The first component repair order is not related to any service contract while the second one is related to a service contract.

Windows:
Component Repair Order

Note: If you have not yet already done so, create the following:

Component repair order 1, without service contract

1. Create a component repair order for customer XX-CMRO.
2. Add a component repair order line for XX-187-CS with a quantity of 5 parts.
3. Define service type XX-ST01 and XX-ST02 as the work scope in the Service Type tab.
4. Reserve or receive the quantity defined on the component repair order line.
5. Select repair order type.
6. Release to repair.

Component repair order 2, with service contract

1. Create a component repair order for Customer XX-CMRO.
2. Add a component repair order line for XX-187-CS with a quantity of 5 parts.
3. Define service type XX-ST01, XX-ST02 and XX-ST03 as the work scope in the Service Type tab.
4. Reserve or receive the quantity defined on the component repair order line.
5. Select repair order type.
6. Release to repair.

General exercise for Entering Component Repair Order

Main Exercise

Purpose: The purpose of this lesson is to calculate the accumulated transaction costs for each service type, which constitute the work scope for a component repair order line. Furthermore, you will learn how to create sales lines for the performed service types and transfer them to a customer order for processing and invoicing.

Windows:
Component Repair Order
Create Pick List for Customer
Print Pick List for Customer Orders
Report Picking of Customer Orders
Create Customer Invoice
Customer Invoice

Calculating Cost Lines

1. Open the Component Repair Order window and query for your first component repair order.
2. Click the CRO Lines tab and select the component repair order line which has service type XX-ST01 and XX-ST02 defined as the work scope.
3. Right-click and then click Calculate Cost Lines.

Note: In order to get an overview of the costs, as well as monitor how much they have grown compared to the price defined in the Service Price field, you can calculate cost lines at any time during the processing of component repair order lines.

4. Click the Cost Lines tab to study the accumulated transactions costs for each service type and cost category, which constitutes the work scope for a component repair order line.

Note: On the Service Type tab, the < Resources Used column, the total cost for performed services can be viewed as soon as you have calculated the cost lines.

Creating Sales Lines, without Service Contract

No service contract should be established with customer XX-CMRO and the component repair order line should preferably be in Completed or Signed Off status.

1. Open the Component Repair Order window and query for your first order.
2. Click the CRO Lines tab and select the line which has service type XX-ST01 and XX-ST02 defined as the work scope.
3. Verify that the component repair order line is in Completed or Signed Off status.
4. Right-click and then click Create Sales Lines. Sales lines are created for all service types defined in the Service Type tab.
5. Click the Sales Lines tab to study the price for each service type. When no service contract exists, the price from the base service price defined for the service type in the Part Service Definition and Pricing window is used as a fixed price for the service type. Two sales lines appear, one for XX-OH01 with the price 500 and one for XX-OH02 with the price 1200.

Note: A recommendation is to create sales lines when the component repair order line is in Completed or Signed Off status.

Note: If repair shop order or disposition shop order is selected as repair order type for a component repair order line, then no consideration is taken to scraped part when calculating the cost. This means that, when using Resources Used as invoice type for a service type, the transactions for replacement part are included in the cost on which the sales price for the service type is based.

Creating Sales Lines, with Service Contract

A service contract must be established for Customer XX-CMRO and the component repair order line should preferable be in in Completed or Signed Off status.

1. Open the Component Repair Order window and query for your second order.
2. Click the CRO Lines tab and select the line which has service type XX-ST01, XX-ST02 and XX-ST03 defined as the work scope.
3. Verify that a service contract with the customer exists, and that it is in Active status.
4. Verify that the component repair order line is in Completed or Signed Off status.
5. Right-click and then click Create Sales Lines. Sales lines are created for all service types defined in the Service Type tab.
6. Click the Sales Lines tab and study the price for each service type.
   1. Service type XX-ST01 should have one sales line in Invoiceable status and the price should be 350 since the invoice type is fixed price.
   2. Service type XX-ST02 with the invoice type Resources Used should have sales lines for all combinations of cost category and service type. The prices of the sales lines are based on the cost transactions generated when executing the service type. All sales lines should all be in Invoiceable status.
   3. Service type XX-ST03 should also have one sales line in Not Invoiceable status and the price zero since the invoice type is Invoice Plan. The customer is not forced to pay for this service line, but will be invoiced in a separate process according to the invoice plan in the service contract.

Note: The total price for a service type with invoice type Resources Used is displayed in the Resource Based Service Price column on the Service Type tab as soon as the sales lines are calculated.

Transferring Sales Lines to a Customer Order

The customer XX-CMRO is requesting a component repair. A component repair order must exist, with a component repair order line preferably in Completed or Signed Off status. A customer order must also be pegged to the component repair order line.

1. Open the Component Repair Order window and query for your second order.
2. Click the Sales Lines tab to study the price for each service type. All sales lines should be in Invoiceable status with exception of the sales line generated for service type XX-ST03, it is in status Not Invoiceable. Select this sales line, right-click and then click Make Invoiceable.
3. Right click in the component repair order header and then click Transfer to CO for Invoicing.
4. Verify that the status changes from Invoiceable to Transferred for all the lines in the sales lines table.
5. If a service contract is applied for the component repair order line and the executed service type uses Resources Used as invoice type, then the non-inventory sales parts are connected to the cost categories in the CRO Cost Category tab in the Service Contract. There they are used as invoicing object for the cost categories.

Note: The supply code for the transferred sales lines is Service Order and all functionality related to this supply code is applied.

8. Release the customer order.

Note: The non-inventory sales part connected to the service type in the Part Service Definition and Pricing window is used as invoicing object for the service type. If a service contract is applied for the component repair order line and the executed service type uses Resources Used as invoice type, then the non-inventory sales parts are connected to the cost categories in the CRO Cost Category tab in the Service Contract. There they are used as invoicing object for the cost categories.