How to Add a Maintenance Strategy







Maintenance Order Settlement & PM Accounting Entries




  • The resources used in carrying out maintenance work are debited to the maintenance order as material costs, labor hours, external services etc.
  •  These costs are temporarily collected in the maintenance order and then transferred to the receiver specified in the settlement rule of the maintenance order.  This process is called settlement.
  •  The receiver of these costs is an Accounting object, for example the cost center of the functional location, the asset to which the equipment belongs or the order combining several maintenance orders together.
  •  The following requirements must be met for the settlement of a maintenance order:

a.  The maintenance order must have been released.

b.  The maintenance order must have been given the status “settlement rule created”.

c.  The maintenance order should have accumulated costs that have not yet been settled.


For other accounting entries, for stock items done through reservation, Goods Issue, this will be debited through GL account or Work Order & credit to M&S or RMS ( repairs and maintenance ) depending on what kind of activity it is.

For Services and purchase on Non-Stock Items, done upon Goods Receipt and debited through GL account or Work Order and credited through Vendor Acoount.

Come Settlement time, all the activities  will be debited through the Work Order and Credited through the Cost Center.


Maintenance Notification Structure



Every maintenance notification includes HEADER data, i.e., information needed for the identification and management of the maintenance notification.  This data is valid for the complete maintenance notification.

  • In a Notification item, you can enter and maintain data in order to determine, in more detail, a problem or the damage that has occurred.  A notification can have several items.


  • Activities document the tasks performed for a notification. They are particularly important in inspections, as they prove that certain tasks have been performed.


  • Task data describe maintenance work which needs to be executed.  The emphasis is on planning and organizing the work.  With tasks you can plan the work across different people, and monitor the execution of activity over time.

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Time Confirmation:SAP-PM Standard Functionality


pm confirm

The standard confirmation functionality in SAP Plant Maintenance offers the following forms of entry:

  • Single entry  per maintenance order and operation (You call up an overview of all operations and sub-operations for a specific maintenance order and enter confirmation data for the required order operation).
  • In many cases the data to be entered as operation confirmations will be entered on a paper form by the technician carrying out the work.  This data will then be entered into the system later on by a typist.  Entering the data is made easier by Multiple Confirmation.
  • Whenever confirmations for operations/sub-operations of a maintenance order have been entered, the operations/sub-operations will automatically be assigned the status Partially Confirmed  by the system.
  • As soon as all operations/sub-operations of a maintenance order have been completely confirmed, the maintenance order itself will be assigned the status Completely Confirmed.
  • Occasionally, confirmations may have been assigned to the wrong operation/sub-operation or have been entered with incorrect data.  For this reason the system provides the possibility to Cancel the confirmation.

PM Reports: Standard Analysis options


Standard Analysis Options:

Standard Analyses offer many functions which enable you to target specific data for detailed analyses.

The information structures provide the data basis for the standard analyses:

=> You can specify the range of the data to be analyzed.

=> You can define the key figures or choose them interactively during the analysis itself.

Drill-down allows you to vary the detail of information.

=> You can specify the sequence in which the levels of information are displayed or you can follow the standard drill-down sequence.

=> At each level, you can carry out additional functions, including cummulative frequency curves, ABC analysis, correlation, classification, dual classification, and ranking lists.

=>All results can be displayed graphically.

The data selected for a standard analysis can be saved as a selection version.

=> Selection versions also enable you to pre define the way in which you view the data.

=>You can select data in the background any time.

You can access summary information in the information structure and branch into the display of master data and transaction data.


Refurbishment Scenario



Many companies manage objects which, whilst being technically the same, may have different condition statuses (for example new, used, defective). The technical objects need to be refurbished, which means that, as a result of maintenance work, one or more technical objects are to be transformed from one status (for example, j3=defective) to another (for example j2=refurbished). The items that need to be refurbished (defective parts)are withdrawn from the j3 batch of the material stock. The refurbished parts are returned to the j2 batch of the material stock.

Where: j2 & j3 are pieces of equipment –Just in case =)

The items that need to be refurbished (defective parts)are withdrawn from the C3 batch of the material stock. The refurbished parts are returned to the C2 batch of the material stock.

The value of the material is changed by this refurbishment process.


In SAP-Plant Maintenance,  we can use or implement it as such, depending on the business requirement.

For instance,you commission a work center to repair a certain number of defective/worn repairable spares by a specific date.

■ The refurbishment order is suitable for non-customer-specific stock-based refurbishment.

■ The refurbishment order is a specific type of maintenance order which is used for the refurbishment of repairable spares and for which a special order type must be identified.

■ The order can relate to the following types of repairable spares:

  • one or more individual repairable spares (combination of material and serial number, for which an equipment master record may have been created)
  • one or more non-individual repairable spares (material)

■ The repairable spares planned in the order are transferred from a common starting status to a common final status.  These statuses are distinguishable via batches or various valuation types.  A from-status and to-status are specified in the order:  The from-status (for example j3=defective part) and the to-status (for example j2=refurbished part) describe the refurbishment process.



Maintenance Plan: Scheduling Functions



Start is the normal function to start a maintenance plan for a technical object that has just been brought into service for which inspection activities need to begin.

Scheduling is the function that calls up the next maintenance order after the previous one has been completed.  It is not normally performed manually but triggered by the technical completion of the order and the deadline-monitoring program.

Start in the current cycle: You can start scheduling your maintenance order in the current cycle.  This function is useful if, previously, you have been using a different system to SAP for your maintenance.

If, for example, the maintenance strategy you have assigned to your maintenance plan has three packages-monthly, every 4 months, and every 6 months, then instead of starting scheduling with the package ‘monthly’ you can decide to start with the 6-monthly package and give the date that the last preventive maintenance work was carried out.

Manual call: In addition, you can schedule a maintenance plan call for a specific date manually.  With a manual call you can enter further dates I between without affecting the normal schedule.  To do so, enter the following data:

Call date and due maintenance packages.


What are Notificatons?


In SAP-Plant Maintenance, Notifications are the means you use in the event of malfunctions or exceptional operational situations to describe, to request a Required task in the maintenance department.

Here are examples of Notifications:

Job Request

A maintenance request is a targeted instruction to the maintenance department to perform an activity in the manner described. The decisive factor in this case is that there is no malfunction.

Malfunction Report

A malfunction report describes a malfunction at an object that affects its performance in some respect.

Depending on the need or requirement of your business, you can configure more notifications . For example, Inspection Activity , Service Entry , Emergency Notification etc.




Rental Equipment via SAP Plant Maintenance with Service Notification




You are a Manufacturing company and you have Plant Maintenance equipment(s) like Freezers, and other types Refrigeration units that are assigned or rented by Mini-Marts, Malls, and the like to store all the goods that you produced as part of your service to your customers.

You want to monitor all the activities,services,parts incurred by your equipment and of course, to where it is assigned.

This can be done through SAP Plant Maintenance. Of course, we will not use the Maintenance Orders in Plant Maintenance but another part of SAP Plant Maintenance which is Customer Service. Here, we can avail of the Service Notifications , and Service Orders that can be integrated using the core modules of SAP, like Sales & Distribution ( SD ).

In order to do so, aside from doing the standard configuration in SAP, we must also build the Plant Maintenance Master Data. Like Functional Locations, aside from making the Functional Locations for your Plant, you will also need to design a Functional Location for your Customers ( i.e. FLOC for Maint Plant 1110 and the sub levels are customers ), Work Centers , Task Lists , etc.

The Plant Maintenance Process is the same but with a slight tweak, we will create a Sales Order first before creating  a Service Notification and the Settlement should be to the Sales order unlike in Maintenance Orders, they are settled directly to Cost Center:


 Below is a sample of a Service Notification:



Here, we can assign the Sales order, Equipment ( which automatically gets the Functional Location, Customer, the items used and tasks prior to the conversion to Service Order.






PM Asset Acquisition for Constructed Assets


Assets under construction (AUC) are a special form of tangible assets. They are usually displayed as a separate balance sheet item and therefore require a separate account determination and their own asset classes. During the construction phase of an asset, all actual postings are assigned to the AUC. Once the asset is completed, a transfer is made to the final fixed asset.

In SAP Plant Maintenance, we can create a project order or investment order to capture the costs of the asset under construction. During the period and month-end processing will settle the costs from the project order/investment order to the asset under construction. This is done so that budget information can be entered for the AUC and tracking of the actual-to-budget can be performed. Once the project is completed, the final asset is created in the appropriate asset class, and the project order is set to technical completion(TECO) so that the next settlement will transfer the AUC asset value to the completed asset.

So, with the work order cycle in Plant Maintenance in mind, we can define a process wherein we can create a project order with asset under construction, then we can create a budget for the new asset; release the project order;post the invoice(s) and materials to project order;monitor project order execution;If the Project is already done, we technically complete the project order;come month end, we will settle all charges to the asset and then we can close the project order.