2612 developing a_work_order_financial_approval

Developing a Work Order

Financial Approval Process

Tony Buffington, Sr. Consultant, Vesta Partners, LLC

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Real Experience. Real Advantage.

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Learning Points

The business need for developing this solution in SAP

Configuration and Master Data components necessary for

developing the Approval process

Reporting required to support the internal controls and

enforce the business process


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Business Requirements

If people knew what a maintenance activity cost, would they

think twice about making the request?

If management were involved in reviewing and approving

certain requests, would the priorities change?

Requirement:

Formalize authorization for maintenance work

Build cost awareness


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Work Processes

Where does this fit in the Maintenance Work Processes?

Should there be a notification approval to cull out certain requests???

1) Planned Costs

2) Permits

Why?


[ Work Order Approval Process s


[ Master Data related setup

Characteristics

PM_MAINT_PLANT

PM_PLAN_COST

PM_ORDER_TYPE*

Classification

PM_PERMIT

Class type 049

Permits

Creation of permits for approval

Assignment of values to characteristics

*Note: If not all order types are subject to

the approval process, this characteristic will

need to be added.


[ Configuration related setup

Define Permit Categories

Define Permit Groups


[ Four steps prior to Permit Master Record setup


[ Create Permit Characteristics

PM_MAINT_PLANT



PM_PLAN_COST



PM_ORDER_TYPE


[ Create a Permit Class


[ Assign Permit Characteristics to Permit Class


[ Configure the Permit Group


[ Define the Permits used for Approval


[ Define the Permits

Approval Levels

Level 1 – greater than $10,000 but less than $25,000

Level 2 – greater than / equal to $25,000 but less than $75,000

Level 3 – greater than / equal to $75,000

Single Permit Approval required (no overlapping approvals

necessary)

Multiple Plants can be assigned

Multiple Orders Types can be included

Note: Permits can be created that are specific to maintenance

plant and to work order type utilizing these characteristics.



Level 1 Permit Approval required:


[ Plan the Work Order


[ Work Order Planning - Labor

Labor is planned on the Operation tab:


[ Work Order Planning - Materials

Spare part is added on the Component tab:


[ Work Order Planning – Determine Costs

Planned Costs are calculated once the Determine Cost button

is selected:


[ Work Order Planning - Permit Assigned

Once costs are determined the permit is automatically assigned

to the order:


[ Work Order Planning - Permit Assigned


[ Issuing the Work Order Approval Permit


[ Permit Issue – Individual Work Order

Select Permit Issue button:


[ Permit Issue – Individual Work Order (continued)

Select (highlight) Permit to Issue and click on the

Permit Issue button:

User ID of the

approver appears to

confirm permit issued:


[ Permit Issue – List Edit – Selection Criteria

List Edit Selection criteria – emphasis on highlighted fields:


[ Permit Issue – List Edit

Resulting List of Orders needing Permits Issued:

Review Order detail by highlighting line item and selecting the

Display Order button:



Issue Permit – by selecting the line item and clicking the Permit

Issue button:

The “Approved by” field has been populated by the approver:



Reset Approval – by selecting the line item and clicking the

Reset Approval button:

Message about the permit being reset:



List edit report may still show the approvers name in

the list, but the traffic light shows that the permit

has been reset:

And the work order detail shows where the permit

needs approval once again:


[ Enforcing Approval Process

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[ Security Authorization Object

I_SOGEN

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[ Restricting access

Adding the Maintenance Plant and Permit Key restrictions to a

users role provide a way to enforce the approval process so

that only the authorized approvers can move the maintenance

activity forward:

List plants and permits individually or have a naming

convention for the permit key which allows the use of the

wildcard (*) – i.e. APV* as opposed to APV1, APV2, APV3.

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Key Learnings

Established that Work Orders have to be planned for costs to

be available.

Set up automated permit assignments using classification and

characteristics.

There can be many variations of permits to be used for

approvals (i.e. maintenance plant, planned costs, and work

order types).

Security Access can play a major role in enforcing the Work

Order Approval Process

Need to make sure the Business Processes are in place to

support an approval process.


[ Questions?


[ References

Vesta White Paper, SAP Permit Functionality, Using Standard

Permit Functionality in SAP Plant Maintenance, version 1.0,

December 31, 2008, prepared by Phil Vallie. Contact

[email protected] for more information.

mailto:[email protected]


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2612 developing a_work_order_financial_approval

Technology