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SAP Fleet Management S/4HANA full configuration step by step guide with master data

SAP Fleet Management step by step configuration SAP S/4HANA

In this article, we will talk about Fleet Management, and how SAP supports this business area. Together, we will have a look at standard SAP solution and assess, whether it is good enough. If you are more a technical guy than functional – no worries, I will also cover configuration steps of SAP Fleet Management, in SAP S/4HANA 2021.

What is meant by Fleet Management?

Fleet Management is a list of processes and practices, which are used to manage and optimize operations of a fleet of vehicles of an organization. The goal is, to improve efficiency, reduce costs, ensure compliance with regulations and enhance the overall performance and safety of the fleet.

There are many components involved, which form Fleet Management mission and goals. I have depicted the main ones on the above graphic. Let’s grab a few and discuss them in more detail.

Vehicles acquisition and disposal: This involves selecting, purchasing, leasing, or renting vehicles for the fleet, and later disposing of them through sale or scrapping when they reach the end of their useful life. The goal is to ensure cost-effectiveness and optimize the fleet’s operational capacity.

Maintenance and Repairs: This covers regular servicing, inspections, and necessary repairs to keep vehicles in optimal working condition, reduce downtime, and extend vehicle lifespan. It includes preventive maintenance schedules and addressing breakdowns or wear and tear.

Fuel Management: This focuses on monitoring and optimizing fuel consumption, managing fuel costs, and improving fuel efficiency. It involves tracking fuel usage, using fuel cards, and employing strategies to reduce fuel wastage, like route planning and driver training.

How IT systems could support this area?

IT system can have enormous impact on Fleet Management. If they are implemented and maintained properly, they lead to longer lifespan of vehicles and other assets, they enable real control over costs and ensure the best decisions are taken by Managers and Directors. On the other hand, low-quality IT projects can only decrease control and generate frustration and confusion. Have a look at few areas, how IT system support Fleet Management areas:

  • Fleet Tracking and Telematics: GPS-based tracking systems allow real-time monitoring of vehicle locations, speeds, and routes. This enables better route planning, reduces idle time, and improves driver performance.
  • Maintenance Management: IT systems can automate maintenance schedules and send alerts for routine servicing or repairs. This reduces the likelihood of unexpected breakdowns and ensures the fleet is maintained cost-effectively.
  • Fuel Management Systems: These systems track fuel usage, detect irregularities (like fuel theft), and provide reports on fuel consumption patterns. Integration with telematics can optimize routes to save fuel and improve efficiency.
  • Driver Management and Performance Monitoring: IT platforms can track driver behavior (e.g., speeding, harsh braking), manage hours of service (HOS) compliance, and provide insights to improve safety and reduce operational risks.

By integrating IT systems, companies can automate processes, improve decision-making, and optimize overall fleet performance.It’s really promising ‘on the paper’. The question is – Does SAP (and how) support Fleet Management? And is it good enough?

How standard SAP supports Fleet Management?

What we have to know first is, which SAP module includes Fleet Management. As you may suspect, it is Plant Maintenance, also called Asset Management or Enterprise Asset Management these days (SAP PM/EAM). This module aims to increase equipment/asset uptime. The goal is to avoid unplanned downtime and ensures production stays on schedule. It’s also vital, to create a productive working environment, which is safe for workers. If this area of SAP is totally new for you, or you want to know what’s new there starting from SAP S/4HANA 2021+ – check out my ultimate course, which covers it all.

SAP S/4HANA Fleet Management partially meets the current requirements, with a strong focus on Maintenance Management and Fuel Management. However, without strong integration with other SAP/nonSAP solutions, sensors etc. this is more manual and not efficient work, which may not suffice. This is something we are going to check right now. Let’s go.

SAP Fleet Management – Business Processes explained

If you know me from my Youtube channel or you already read some previous articles – we know how I work and present the knowledge. Only via solid, real business cases, with simple but proper explanation, no matter if u r an SAP consultant or a business person. That’s why, for the sake of this blog post, we take the following GMC Ventura van from one of my youtube videos as an example.

Just have a look at the above graphic. We see all the essential information about one of the vehicles, which form the Fleet in our company. In this case in Texas Workshop. Engine type, capacity, type of vehicle – we want to keep this things also in our SAP system. In the next minute, you will find out why.

Reflecting the vehicle in SAP system

As you may already suspect, since we are in SAP Plant Maintenance area – vehicle will be reflected in SAP system as an Equipment. This is one of the technical objects used in SAP PM/EAM. Equipment basically represents a movable object, which is relevant for maintenance, which can be also installed/de-installed from one place to another. These are the biggest differences between Equipment and another object called Functional location. We create the GMC Ventura vehicle via transaction IE01 or Fiori App Create Technical Object with all the information from the previous graphic.

Important thing here:
All these steps which we are doing here, they require proper configuration, which has to be performed beforehand. These steps are described below, in the second part of this post.Have a look at the above example from IE01 transaction – Equipment category, object type and the 2 additional types with fuel type etc. – these will be visible in your system only if u properly configure Fleet Management in SAP. By standard, these things are not available in the system.

Defining maintenance strategies / repairs / preventive work for our Fleet

The GMC Van and its master data are now ‘live’ in SAP. Texas workshop received clear guidelines from the company who sold them this vehicle what to do, to make the vehicle up and running. Of course, we cannot avoid unexpected situations like flat tyre, broken lights and stuff. However, to keep the van in proper condition – implementation of preventive activities is highly recommended. For this van we have the following two:

  • Change the oil every 1 month
  • Inspect the brakes every 3 months

These activities are reflected in SAP Plant Maintenance as Tasks/Operations which are an input for so called Maintenance Plan. In simple words we create a Preventive Plan (SAP Maintenance Plan), we define WHAT has to be done (Tasks/Operations) for WHICH Asset (Equipment). In this case we create it for the vehicle, GMC Van.

The next step is to of course define the WHEN. When the maintenance should start on the first and future dates. This is so called scheduling. By the way – if you want to know more, how scheduling parameters work, how to set them up – check out one of my Youtube videos. After this, scheduling can be done automatically, via background program, which can run for instance every morning at 6 am. This process works 100% in the same way like for other assets, equipment, functional location etc. It’s not only for fleet.

Fuel Management with SAP (transaction IFCU, Fiori Apps)

And now it’s finally time for something specific only to Fleet – Fuel Management. This business need is covered by standard SAP PM/EAM module – it applies to SAP ECC and of course S/4HANA. Okay, but what do we actually mean by Fuel Management with SAP? Here is the list of possibilities:

  • we can book fuel consumption for a specific vehicle (movement type 261)
  • we can track fuel consumption and it’s cost throughout the months etc.
  • we can use standard reports for fuel management analysis

What you see above is the standard SAP GUI transaction IFCU – where you can register fuel consumption for a specific vehicle and date. Of course, this kind of activity requires again – proper configuration and master data preparation. We will talk about it somewhere below. Right now, what you can also notice is the below section, where users can also enter the current mileage of the selected vehicle. This way, in one screen and one go users can book fuel consumption and a measuring reading. The first activity is a pure thing from SAP Materials Management, fuel is considered as a material.

The second one is typical for Plant Maintenance, where we use so-called measuring point to book the readings. Unfortunately, SAP does not support Fuel Management with any Fiori applications. And actually, this applies to the whole Fleet Management. There is no single Fiori app here. It’s like SAP developed something some time ago and left it as it is, without any changes. This way we finished the first section. Now I will show you what to do, to implement SAP Fleet Management in your S/4HANA system. I will show you the configuration steps and master data, which has to be prepared. Let’s do it.

End to end configuration of Fleet Management in SAP S/4HANA

Proper setup of Fleet Management in SAP is a mix of SPRO configuration, PM/EAM and MM master data. Down below I listed down all the configuration steps and master data activities with detailed explanation.

1. Defining View profile for Fleet

What you see below, is the future, which we will achieve together. It’s a screenshot from Equipment Master Data, where you see the many tabs, also these relevant for fleet. To make them available this way, we have to configure so called view profile, and assign these 2 tabs there. As a reference, we use the previous profile, which is used for other assets and then we add the view layouts 130 – Vehicle ID/Measurements and 140 – Vehicle technology. Follow the below graphic to make it done.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > General Data > Set View Profiles for Technical Objects

2. Defining Equipment Category V for Fleet

Hint:
This step is not obligatory. You can use the standard category type M.
However, it’s a proven Best Practice, to distinguish vehicles from other assets this way. Have it in mind.

Equipment category is an obligatory configuration step in SAP Plant Maintenance, which holds many settings behind it. Default SAP instance provides us with pre-defined/standard categories like for example M-machines. And this one is used in most of the cases. However, to have a clear distinction between vehicles and other assets, we create a new category V for Fleet. We activate the checkboxes, for instance we want to have change documents for this object, object info PM and important thing here – view profile. Here we assign the profile from the previous step.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Equipment > Equipment categories > Maintain Equipment category

3. Assigning number range to the the V – Equipment category

I believe, this step is self explanatory. Equipment once created, gets automatically some unique number. This thing is configured in this step and it works the same way like for Order types and other things, not only in Plant Maintenance.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Equipment > Equipment categories > Define number ranges for Equipment categories

4. Assign Partner determination procedure to the Equipment category V

Hint:
This step is optional. If you don’t use partner function, you can skip this step.
However, it makes sense to be proactive and assign it anyway. It won’t hurt the system, can only help in the future.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Equipment > Equipment categories > Equipment usage period > Assign partner determination procedure to equipment category

5. Fleet Object types definition

Equipment in SAP Plant Maintenance can be distinguished at least on two levels. The first, the highest one is of course equipment category. The next one is so called object type. It is a standard field in Equipment Master Data. To properly configure Fleet Management, we have to define relevant Object types. In Texas Workshop they have Vans, Tow Trucks and typical cars. Therefore, we define 3 object types. I also keep some PM related nomenclature as you see below.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Assign view profile and equipment categories to fleet object types

6. Define consumable types

In this step we configure/define consumable types – in other words, fluid types. So here we define diesel, petrol, but not only. If you got for instance Teslas in your fleet – you will also define here something like ‘electricity’. Moreover, if in vehicle master data you want to also keep information about oil type – the oil has to be defined here as well.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Define consumable types

7. Engine type definition

Fluid and fuel types are one thing. Now it’s time to define engine types of the fleet. Diesel, petrol, LPG, hybrid, electric. Something else? Engine type is part of vehicle master data.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Define engine types for fleet objects

8. Measuring units definition (Fuel & Mileage management)

Hint:
This step is not obligatory, if you don’t plan to implement Fuel management component.
Otherwise, just follow the steps and configuration, which I present.
Most probably, these values are already maintained in your SAP system by default.

In this step we define units, which will be used in various calculations related to fuel & mileage. Depending on fuel/mass type, various SI units are applied. This step is a prerequisite for another configuration step, which you will see below.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Make settings for units of measurement for monitoring of consumption

9. Fuel and mileage measuring point definition (position) (Fuel & Mileage Management)

Hint:
This step is not obligatory, if you don’t plan to implement Fuel management component.

This step is super crucial, when you want to book fuel consumption and mileage registration of your vehicles in SAP system. The measuring point position is a standard field in each measuring point. What’s even more interesting – it is a free text field, it can be anything you enter there. The intention is to give a hint to the user, from which location/position of the selected asset, the readings should be taken. For example: Oil temperature, position: main screen of the machine. But this is not the case for Fuel Management and Mileage. Here we configure 2 positions: FUEL and DISTANCE. And then, during creation of measuring points for our vehicle, we have to mention it in our measuring point master data. If we do even a small typo like FEUL and so on – the whole logic, configuration won’t work. So have it in mind

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Define special measurement positions for fleet objects

10. Define calculation method for Fleet Consumption values (Fuel Management)

Hint:
These configuration entries are by default maintained in every SAP system.

In this step calculation methods for Fleet Consumption are maintained. Once this is done, in equipment master data (transaction IE03) you can perform fuel consumption simulation/calculation for selected vehicle. Moreover, there are reports, specific for Fleet Management, which also leverage this calculation.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Define calculation method for fleet consumption values

11. Storage Location definition (for ‘Gas Station’) (Fuel Management)

Hint:
This is a pure integration point with Materials Management area.
Reach out to your colleagues, use the below information, to perform smooth, collaborative work.
This step is obligatory only, if you want to implement Fuel Management.

In the near future, users of your company will be able to post fuel consumption straight in SAP system. This consumption is not any different, than consumption of spare parts for example. It means, there is a specific movement type (261) behind it, there are material documents generated and stock reduction. For this purpose, we need a Storage location, created/assigned to our Plant. Moreover, this storage location should be only for Fuel Management. In the next step we will configure a ‘Gas Station’, from which the fuel will be taken.

Transaction: SPRO

Enterprise Structure > Definition > Materials Management > Maintain Storage Location

12. Define the Gas Station (Fuel Management)

Once we have a separate Storage location for Fuel Management defined – it’s time to create so-called Gas Station. Of course it won’t reflect fully the reality. You may refill your vehicles from different places, so it’s up to you, whether for each of them you define a separate ‘Gas Station’, or you just use the one, generic. Like I did in this case. This step is obligatory, as during the Fuel Consumption procedure (transaction IFCU) you must select a Gas Station (which holds the storage location behind, and that’s the thing there).

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Consumption-relevant counter reading update > Create gas station

13. Master data: Create Material number for each fuel type + pricing (Fuel Management)

This is not a configuration step. It’s a pure master data activity. However, it’s mandatory, to perform the configuration step, which comes after it. This is another touchpoint with SAP MM and also FI/CO.

We have a storage location, where our fuel will be stored. But hold a sec – to make it happen, we also need the materials itself. That’s why for each fuel type (petrol, diesel etc.) we have to create a separate material number. It’s up to you which material type you choose. What’s important – it has to be stock managed, quantity based, and you should reach out FI/CO team to valuate it (set the price).

14. Link fuel type with material number (Fuel Management)

Thanks to the previous master data step, we can now jump back to SPRO and assign the material numbers for fuel to specific fluid/fuel type.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Consumption-relevant counter reading update > Assign Auxiliary materials and consumables

15. Define cost object for updating material documents (Fuel Management)

We are almost at the end of the necessary configuration. If you checked my SAP EAM ultimate course, you are highly aware of the fact, costing in maintenance is pretty crucial. And this configuration point is purely about it. Your users will book fuel consumption. And in this step you have two define how the cost of fuel/other fluid will be charged. Basically on which plant maintenance object will it land. In most of the cases, the following 2 default keys are enough. You will book it against cost center maintained for the particular vehicle, or you can have a standing order, assigned in master data of the vehicle. There are also other options like for instance WBS element.

Transaction: SPRO

Plant Maintenance and Customer Service > Master Data in Plant Maintenance and Customer Service > Technical Objects > Settings for Fleet Management >  Consumption-relevant counter reading update > Define key and cost object for updating material documents

16. Master Data: Build initial stock of Fuel for the Gas Station (Fuel Management)

This is not a configuration step. It’s a pure master data activity.

The configuration steps are done. It’s time to do some transactional work. We are almost ready to consume the fuel in our SAP system. We have the storage location, assigned to gas station, we got material number for the fuel. Now it’s time to build a stock. Of course, it won’t reflect the reality. For instance you can book 1 billion liters of petrol. It’s just about having the fuel stock, so we can post consumption in the future. That’s why again – it’s important to align with FI/CO on the price. Cuz if you maintain for instance the real one, you gonna have a really expensive stock in your system. And some people may not like it.

Transaction: MIGO
Posting type: Goods Receipt (561 or other aligned with your MM Team)

17. Master Data: Create vehicle in SAP (Equipment)

Finally we can create our vehicle in the system. In my case – GMC Van. We run transaction IE01 select the equipment category V and maintain master data. Object type, engine type, fuel type and other data. Vital here is also to maintain the indicator/key for fluid/fuel consumption. In my case I will book the consumption against cost center of the vehicle. So I selected the ‘J’.

Transaction: IE01
Equipment category: V

18. Master Data: Create fuel measuring point for Equipment (Fuel Management)

This is almost the end. It’s time to create a measuring point for Fuel. Remember to enter the position ‘FUEL’, of course you have to select a characteristic and other stuff. Just have a look at the screenshot.

Transaction: IK01
Measuring position: FUEL

19. Master Data: Create mileage counter (measuring point) for Equipment

The second measuring point is for mileage. This one will be a counter, for mileage. If you maintain also an estimation of yearly mileage, you can leverage this information for performance-based maintenance (preventive maintenance).

Transaction: IK01
Measuring position: DISTANCE

READY to see it in action?

I have recorded the below video, where you can see Fleet Management in SAP in action. I’ve used there the configuration and master data, which we defined in this article.

If you want to deep dive into SAP S/4HANA PM/EAM world – you can have a look at my online, self-paced course, which can help you out.

Cheers,
Dan