Which settings must be customized to set up Inspection Checklist processing?

To set up Inspection Checklist processing, you need to customize the following settings:

Maintain settings at plant level for usage decisions. This is required to define the default values for the usage decision codes and the follow-up actions for the inspection lots. You can do this by using the customizing activity ‘Default Setting at Plant Level’ under 'Quality Management→Quality Inspection→Inspection Lot Completion→Maintain Default Values for Usage Decisions’1.

Assign an Inspection Type to a Maintenance Order Type and a Planning Plant. This is required to enable the creation of inspection lots for the maintenance orders. You can do this by using the customizing activity ‘Assign Inspection Type to Maintenance Order Type’ under 'Plant Maintenance and Customer Service→Maintenance and Service Processing→Maintenance and Service Orders→Functions and Settings for Order Types→Assign Inspection Type to Maintenance Order Type’2.

You do not need to create a control key which expects inspection characteristic assignments or assign an Inspection Type to a Maintenance Order Type only. These are not relevant settings for the Inspection Checklist processing. References:

Set up your SAP S/4HANA system for EAM Inspection Checklists

Explaining Inspection Checklists - SAP Learning