A8) Production, Completion and Inventory / Billing Outcome

The purpose of this section is to create and process the production order from the final construction order, explain results in inventory, and describe next steps for billing and invoicing.

Execution (Production Phase)

Proceed as in general execution:

  1. Create the Production Order from the final Construction Order.
  2. Post material and time (only approved repair scope lines were transferred).
  3. Finish the Production Order (output = Repair Item with suffix, e.g., X-1000-REP).
  4. (Optional, timing-dependent) Run Adjust Cost - Item Entries to roll up actual production variances before or after shipment.
  5. Post Service Shipment for the Repair Output Service Line (Spare Part Action (DM) = Production Order) – this:
    • Updates the Service BOM (replace / install / repair logic based on Spare Part Action (DM)).
    • Creates Service Ledger Entries for the shipped repair.

Inventory Result (-REP Item)

  • When the Production Order is finished, the system creates (or increases) inventory for the repair output item (*-REP) with a provisional cost (expected / rolled-up at finish).
  • If you immediately ship the repair (typical 1:1 case), the item is issued out again during Service Shipment; no lasting on-hand remains.
  • If shipment is deferred, a positive on-hand quantity for *-REP exists until the Service Shipment is posted.
  • Final cost of the *-REP item (and thus of the shipped repair) is aligned after running Adjust Cost - Item Entries; this may revalue both:
    • Item Ledger Entries (production output and consumption)
    • Linked Service Ledger Entry (via cost adjustment flow)

Cost flow summary:

  • Production postings accumulate on the *-REP item.
  • Service Shipment initially uses Direct Unit Cost (may still be provisional).
  • Adjust Cost finalizes (optional but recommended for financial accuracy).

Billing / Invoicing

After (or together with) Service Shipment you can invoice the collected scope:

  • All Service Lines (analysis, replaced/installed components, labor/resources, surcharge / G/L lines) not yet invoiced become part of the Service Invoice.
  • If the (repair) quotation was already invoiced earlier (e.g., advance or fixed quotation billing), only delta lines (additions / overruns) remain.
  • Additional incidental costs (freight, handling, disposal) can still be added as Service Lines prior to shipment / invoicing—standard Service process rules apply.
  • Analysis-only scenario: if no repair was performed, the analysis line (Spare Part Action (DM) = Analysis Production Order) can be shipped/invoiced alone; no *-REP stock is created.
  • Partial billing is supported (e.g., invoice analysis first, repair later) as long as approval / internal policy allows.

Inclusion / Exclusion Recap for Final Construction Order

Included (transferred to Construction → Production):

  • Item and Resource lines with Spare Part Action (DM) = Component Replaced / Component Installed / Component Repaired
    Excluded:
  • Analysis / Analysis Production Order lines (cost collector only)
  • Pure Service / Cost / G/L lines (remain strictly in Service for billing)

Resulting new Service Line:

  • Repair Output (*-REP) with Spare Part Action (DM) = Production Order (basis for shipment and BOM update)
Note

If the final Construction Order was created too early, prefer incremental additions (adjust Service Lines and create supplemental Construction adjustments if supported) rather than deletion. Delete/recreate only as last resort to preserve traceability, BOM integrity, and accumulated cost links.

Previous / Next Step

A7) Final Construction Order / Service Order (Execution Repair)
A9) Service BOM Update on Service Shipment


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