SAP Tips and Tricks: Manage Assets with Refurbishment Order

By Kristina Gordon, DuPont

When assets need to be refurbished or fabricated, SAP offers an order type called a Refurbishment Order. The purpose of this order is to assist sending the item to a repair shop, either on or off site; having that asset repaired or fabricated; and then receiving it back into inventory at a different valuation or cost. The new store-room inventory value will be based on the cost charged to the refurbishment work order.

Name a work order type by whatever nomenclature your company uses. In this example, we will call the refurbishment work order type WO10. When creating and executing a refurbishment work order, follow these steps from creation to closure. Note that some of the transaction codes used here are finance- and costing-based. Such steps may be designated only by your finance department.

1. Set up transaction IW81 (standard SAP transaction code for refurbishment):

2. Fill in the needed information (note that the screen layout looks very different from a work order created in IW31):

3. Create the operation steps for internal labor and a line with your PO information for outside services:

4. Add the asset/material to the work-order components, then release and save the order:

5. Once work is completed and the asset/material is ready to be returned into inventory, confirm the internal labor hours to the work order that was added in step 3, using transaction IW41.

6. Add actual overhead to the work order using transaction KG12:

7. After time confirmations are completed and material movements have been made, TECO the work order.

8. Using Transaction IW8W, return the material back to inventory.

9. It is now time to financially settle the work order. This will also change the value of the material in inventory (Note that this screen looks very similar to the overhead calculation screen in KG12):

Creating and executing a refurbishment order is more labor-intensive than normal work-order types. However, refurbishment orders will keep your inventory value correct and maintain complete tracking and history of the work performed on the asset. MT

Kristina Gordon is SAP PM Leader, DuPont Protective Solutions Business, and SAP WMP Champion, Spruance Site, Richmond, VA. If you have SAP questions, send them to editors@maintenancetechnology.com and we’ll forward them to Kristina.