2612 developing a_work_order_financial_approval

Developing aWork Order
Financial Approval Process
Tony Buffington, Sr. Consultant, Vesta Partners, LLC
[

Real Experience. Real Advantage.
[
2
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

[
3
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

[
4
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
37

[ Security Authorization Object
 I_SOGEN
38

[ 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.
39

[
40
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
info@vestapartners.com for more information.

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43
[
] Thank you for participating.
SESSION CODE:
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Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the
Year-Round Community page at www.asug.com/yrc
Presenter Contact Info: tbuffington@vestapartners.com

2612 developing a_work_order_financial_approval

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