SAP Customer Relationship Management (CRM) Service functionality supports entire cycle of a customer service organization from service contracts to processing service orders, complaints, returns and booking resources consumed in the service process. In this entire customer service cycle, the integration of CRM Service functionality with ECC Controlling offers Controllers to regularly monitor the effectiveness of service functions from cost and revenue perspective.

Controlling integration settings for CRM Service

Controlling Type

• The option of “single object controlling” enables to tracks costs and revenues to separate cost object. With this option, the costs and revenues will be tracked into the Controlling internal order object. The tracking costs and revenues at the internal order
  level in Controlling will allow applying revenue recognition rules using the Results analysis functionality.

• The option of “mass object controlling” posts all costs and revenues directly to Controlling Profitability Segment (CO-PA). However, this option will not allow executing revenue recognition using Results Analysis functionality.

Figure 1: Controlling Integration for CRM Service

The next aspect in integration settings is the Controlling level that determines whether the costs and revenues are to be tracked at CRM service document level or to be tracked at more detailed level at each line item of the CRM service document. The item level controlling will create internal order for every line item of the CRM Service document while transaction level controlling will create internal order per CRM Service document.

• The costing variant is assigned for the internal orders to determine the planned costs in unit cost estimate. The costing variant will determine which price is used for valuation of material and for service hours booked against the service order. The standard SAP system offers default costing variant PC02 with predefined valuation variant.  You can directly use this standard variant or alternatively copy and customize the variant to meet your requirements.
• The Results analysis key will drive the calculation of capitalized costs and recognition of revenues for the CRM service processes. The results analysis will calculate the work in process where costs incurred on the CRM service process are to be capitalized. It will also enable to apply different methods of revenue recognition. The results analysis configuration is done as part of CO module configuration at the IMG node of Controlling > Product Cost Controlling > Cost Object Controlling > Product Cost by Sales order > Period end Closing >  Results analysis.
• The settlement profile will determine the target cost object to which the costs and revenues to be settled from the internal order. The settlement profile is defined in the CO module at IMG menu path of Internal orders > Actual postings > Settlement > Maintain Settlement
  profiles. The appropriate receivers will be defined as part of the settlement profile configuration.

Internal Order type

With CRM Service integration set up of single object controlling, all the internal orders are created with default order type ‘SAPS’. To use different order types based on CRM Service transaction, you can implement controlling parameters BADI (definition - "iaom_business_scenar”). Within this BADI, use method “change_order_type” to derive order type based on the CRM transaction type.

Figure 3: BADI definition for changing CRM internal order type

Products
in CRM Service Transactions and Integration with Controlling

In CRM Service, the service order processing is
based on the products used in the service order. CRM Service offers pre-defined
products that can be used in service processing. Each of these products integrates
in unique way with Controlling.

Service
Product

In CRM Service, Service product is used to plan for
labor hours spent in service process. The labor hours are booked through CRM Confirmations
that creates time sheet entry in ECC. The costs of labor hours are booked on
transfer of time sheet data to Controlling. The actual costs are based on the
activity rates maintained for combination of activity type and cost center of
the service employee making the confirmation.

Here, the derivation of activity type is based
on the CRM item category.  The item category
signifies different types of service to enable mapping by activity types. The
configuration for linking the CRM item category and activity type is to be done
in IMG node of Integration with  Other
mySAP.com Components > Customer Relationship Management > Settings for
Service Processing >Time
Sheet Integration> Define
Derivation of Attendance Type, Activity Type and Cost Element.

Figure 4: Set up for service hours to derive activity type

Tools
Product

Tools product are the materials that are
repetitively used in performing the service job. The usage of tools item in the
CRM Service process are booked through CRM confirmations and the costs are
directly posted in Controlling as Internal activity allocations.  The actual cost of tools is recovered from
cost center assigned to the tool item. The costs booked are based on the cost
center and activity type combination maintained for the tool material in the
following configuration node of Integration with Other mySAP.com Components
> Customer Relationship Management > Settings for Service Processing >
Controlling integration > Determine Cost Center and Activity Type for Tool.

Figure 5: Set up for tools to derive cost center and activity type

Expense
Product

The expense item in the CRM Service process is used
to account for additional expenses of the service order. The expense item costs
are booked through CRM confirmations and directly create Controlling posting as
reposting of costs on primary cost elements. The costs are recovered from the
cost center of the service employee making the confirmations. The activity type
and reposting primary cost element is based the configuration made in Integration
with Other mySAP.com Components > Customer Relationship Management >
Settings for Service Processing > Time Sheet Integration >Define
Derivation of Attendance Type, Activity Type and Cost Element.

Service
parts

The consumption of Service parts in the CRM Service
process is posted through confirmations and these directly create material
withdrawal posting in Materials Management. The cost of the service parts is
based on the price maintained in the ECC material master. The actual costs of
service parts are posted through goods issue on the internal order or to the
account assignment object assigned during confirmations.

Sales
Product

Sales products in CRM Service signify the materials
sold along with the service. The Sales items in CRM Service Order are not
confirmed but directly create a sales order in Sales & Distribution (SD) in
ECC. The cost of sales product is posted to the internal order on goods issue for
delivery in Materials Management (MM).

The following table gives snapshot of how each
CRM service product integrates from costs and revenue perspective with
Controlling and type of Controlling transaction posted in ECC.