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Customer service has become an important part in customer engagement and service managers want real time insights on their profitability of such engagements. This document will show how service profitability can be determined in SAP CRM with integration to Controlling.

Any service provided to customer will have some cost associated to it. The document will explain how the cost is captured (in a cost object). This cost along with revenue (from billing) in the cost object will form the basis of the profitability analysis in management accounting

SAP provides majorly 2 types of controlling scenario (type).

Single object controlling: It enables tracking of costs and revenues through a cost object which is the internal order. For CRM integration, SAP provides the internal order type SAPS. However this can be changed via Badi "IAOM_BUSINESS_SCENAR" . All costs and revenues are posted to internal order . The internal order is later settled to a profitability segment. This controlling scenario is the recommended approach in case of revenues recognition is to happen during the posting period (deferred or advance revenue recognition) rather than during the billing document creation (standard revenue recognition)  as it allows calculation of work in progress using result analysis and capitalize the revenue accordingly

Mass object controlling: In this scenario, all costs and revenues are posted directly to the profitability segment (CO-PA) without having any intermediate cost object. This option does not give executing revenue recognition using result analysis (adjustment posting as part of period end closing).

Follow the following navigation path: Customer Relationship Management-> Settings for Service Processing->Controlling Integration-> Establish Controlling Type, Controlling Level, and Controlling Scenarios


When the controlling level is set for a transaction, the revenues and cost can be tracked for each transaction. If the cost and revenues are to be tracked for each item of the service order, then the controlling level can be set at item. In this case, system create an internal order for each service order item.

The following table explain how different types of CRM service products are integrated to Controlling

CRM productCost determinationRevenue determinationCO interface

Service (product of type service)

Activity rates (maintained in ECC) for activity type/cost center

Pricing conditions from CRM service order/ contract

CATS document

Sales  (product of type material)

Standard cost maintained in ECC material master

Pricing conditions from CRM service order/ contract

post goods issue (PGI) in ECC

Service part (product of type material)

Standard cost maintained in ECC material master

Pricing conditions from CRM service order/ contract

post goods issue (PGI) in ECC

Expense (product of type material)

Pricing conditions from CRM service order/ contract

Pricing conditions from CRM service order/ contract

CO reposting

 Service Product: It is used to capture the labor activity that is planned in the service. Based on the combination item category, service and valuation type, an activity type is determined. The cost of each activity type is defined in ECC (transaction KP26). The planned quantity taken from product master, system updates the planned cost in the internal order. 

Service parts: Any spares consumed during service confirmation will create material withdrawal in inventory management. The planned cost of this product will be derived from the price maintained in the material master at service order level. During confirmation and subsequent goods issue, the actual cost is posted to the internal order

Sales product: Sales products are sold many a times along with service. These sales items in CRM service order are not confirmed during service confirmation but directly creates a sales order in ECC system which is subsequently posted out of inventory with post goods issue. The cost of these sales products are posted to internal order. However SAP provides an option if the cost is to be taken to a separate account with the following settings in item category

Expense product: It is used to account for other expenses incurred by service technician and want to account during confirmation (for ex, travel, stay etc). The cost are booked in CRM confirmation. These expenses are automatically posted in ECC as transfers. The cost center from the employee master data is credited and an automatic reposting of cost from CO to cost object takes place

Tools: these are materials that are used as a part of service job and are posted as internal activity allocations. 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 Components > Customer Relationship Management > Settings for Service Processing > Controlling integration > Determine Cost Center and Activity Type for Tool.

The actual labor hours are booked by service technician during service confirmation which creates a timesheet entry in ECC. This cost of labor hours are booked on transfer of time sheet to CO and thus updating the actual cost in the cost object (internal order). The configuration related to CAT are to be maintained in ECC from CRM

Time sheet integration: In this activity, you state the data entry profile which should be used for the transfer of confirmation items from SAP CRM to the cross-application time sheet (CATS) in SAP ERP.  Follow the following navigation path: Customer Relationship Management->Settings for Service Processing-> Time Sheet Integration->Assign Data Entry Profile

When service technician confirms the actual working time, entries are created in CATS database. When recording confirmation in CATS, system uses the attendance type, absent type from the data entry profile along with activity type. The cost is transferred to CO through report CAT7

Replicate service characteristics to controlling

The characteristic (like transaction type, item category, org units, service type, valuation type) of service processes (like service order, confirmation, contracts) needs to be replicated in CO

Let us consider commonly used business scenarios where

  1. Customer is not having AMC (service order scenario)
  2. Customer having AMC (service contract scenario)

Service Order scenario: In this scenario, a cost object (internal order) is created for each service order. The internal order captures all costs and revenues. The service order has the planned cost and planned revenues. During confirmation, a CATS document is created in ECC which books the actual cost to the internal order. During billing, the actual revenues are updated.  After this, the internal order will have the complete view of revenues and costs (planned & actuals). The internal order can be settled to the profitability segment & all cost and revenues becomes available for further analysis on various dimensions of CO-PA. For ex, profitability can be analyzed in CO-PA for CRM attributes like Business Transaction, Service Org, Product category, Customer hierarchy etc

 Service Contract Scenario: In this process, the customer is having an AMC (contract) with customer. As the controlling level is set at a transaction level, the internal order is created for the contract and not for the service order. Service orders can be created with reference to service template at a defined interval of service plan attached to the contract. Thus all costs (material + Labor) incurred with respect to service order and booked on internal order (in relation to Service contract) which enables to analyze the profitability of CRM Service contract



  In both of the scenarios, SAP CRM offers an integrated solution to track the efficiency of service transaction (using ECC) and analyze the profitability comprehensively in CO-PA



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