T&M Onsite / Offshore billing

[Former Member]

Dear All

The requirement is for IT Scenario (Service) T&M (Time & Material) consulting to be mapped in SAP

For a single sales order, consultants are working in Onsite / Offshore. Both have diffrent billing rates (Onsite Rate- 1000, Offshore Rate- 500)

Need to incorporate offshore & onsite rates seperately in single sales Order. Both offshore & onsite have two diffrent invoices from a single SO. Each rate is applicable for service tax also.

I believe that for the above to be mapped two diffrent pricing conditions will be there at item level. From item invoice has to be splitted.

Does DIP supports this scenario?

Please advise me how to map the scenario

Regards

Deepu Pillai

[Former Member · Accepted solution]

Dear Deepu,

To achieve the same in to a single Sales Order, follwoing are the settings:

1. Create two different materials, in T. Code: MM01

1a. Consultant-Onsite

1b. Consultant-Offshore

Once created, key-in both the Materials as seperate "Items" in Sales order.

2. In V/06, for Condition Type: PR00; maintain Field entry for Field: Manual Entry as "C - Manual entry has priority"

3. If you wish to fecth the price from Condition record (i.e. VK11 --> PR00), maintain the same for your combination: Customer/ Material with Release Status. Here, Maintain your Price for:

Sales Org, Dist Channel, Customer & Material

for both the Materials, created in MM01. So, when you create Sales Order for above combination, System will automatically pick the price for both the materials. However, as in V/06, you have "Manual Entry as Priority"; you may change the same directly in to Sales Order (if you don't wish, make entry as "B" for PR00).

4. Now, you may deliver both the items in to Single Delivery-Document (but, Invoice could be generated Seperately or Single Invoice also), Or,

You may also create seperate Delivery for each item and Invoice seperately (based upon Delivery Docs No.) or for seperate deliveries, you may create single Invoice (merge both Del. Docs. in VF01).

Hope, this will satisfies your requirement.

Best Regards,

Amit.

[Former Member · Accepted solution]

Dear Amit

Thank you.

The material is a service material & is not relevant for delivery

How can i split the billing in each line item level from SO.

Each line item have different pricing & service tax also the part. So two pricing conditions PR00 & PR01 will be maintained in the same SO at line item level & further the desired line flows into billing

I need to know whether this can be possible or not.

Please advise

Deepu

[Former Member]

Yes DIP supports your scenario.

Are you using a sale order or contract?

We have mapped the same scenario with contract and resource related billing.

We create a contract for each project (created as WBS element). Since the same individual has two different pricing (for off shore and onsite), two different DIP profiles were created and are assigned against the respective item in the contract.

The choice of the DIP profile will control whether or not the contract item is split into multiple item in the billing request based on the name of the resources(for ex TL-ONSITE and TL-OFFSHORE)

Pricing

For all T & M contracts, the complete agreed rate (man month, hourly, daily etc.) and the billable percentage of the item can be either manually entered or automated in the contract.

Billing according per time sheet (SAP time sheet)

The timesheets booked by the individuals assigned to the project will be the source of billing in these projects. For the time to be available for billing the time sheets have to be

1. booked

2. approved

3. transferred

To facilitate resource related billing, a transaction will be carried out (DP91), which links the time sheet data with the sales contract item through the WBS element. The system will provide a screen with the actual, incremental time booking data of individuals associated with that DIP profile (attached to the contract item) with names and sales pricing (man-month, hourly, daily rate etc.) for the time booked. The following functionalities will be available for each resource:

1. Bill the entire time (default)

2. Postpone all or part of the time

3. Reject all or part of the time

Upon saving, based on the final time selected for each resource, a billing request (sales order) will be generated automatically. Depending on the choice of the DIP Profile, either each resource will be represented as a separate line item (against a single item in the sales contract) or all resources will be shown in a summarized format as a single line item. In case of individual resources being shown as separate line items, their names will appear in the material description column (TL-OFFSHORE and TL-ONSITE. The billing rate will be copied from the sales contract

Billing

The billing request will be processed into an invoice finally

It's a long and involved process. Hope this information is of some use to you.

Regards

Karthik

[Former Member]

Dear Karthik

Thank you for your time and the detailed reply.

In DP91 when enter sales document number & item, the error message showing 'No expenditure items found'.

When i analyse the pricing procedure only planned costs (EK02) condition type took values from Project planned costs to Sales Order. But after confirming activity the actual cost not flowing into sales order (EK01) condition type. I think this is the reason why DP91 throwing the error?

Please advise

Regards

Deepu Pillai

[Former Member]

Dear Deepu,

has the activity cost has to be transferred to CO?

try the following scenario.

let's assume there is a T&M project to which employees are charging T&M to a WBS. Material charges range from say 20000-299999(cost element) and time charges range frm 30000-399999(cost element)

let;s assume for simplicity there are only 2 level of resources say Team lead(TL) and Developer(DV) working in a project. It;s a combination of onsite and off shore model with 2 different rates each.

create a contract for the project. assing the WBS element(say WBS001) at item level in the contract. create 4 service material codes (say TL-OFFSHORE, TL-ONSITE, DV-OFFSHORE, DV-ONSITE). create 4 DIP profiles each and assign aganist the respective item in the contract.

after booking the time sheet, transfer this cost to controlling.

when you run DP91(for a item no), system checks whether there is any charge for WBS001 for that DIP profile in that item no. It read the cost involved in that WBS001 and summarises them by charecteristics (which you will find in DIP profile config). these charges will be created as a billing request(sales order). this can be seen in the expenditure view.

based on the pricing for each level of resources in the contract, system will also picks up the price at the billing request level. this billing request (sales order) is processed into billing thru VF01.

You can take the help of CO, HR and PS consultants for configuring the entire scenario properly.

Regards

Karthik

[Former Member]

Dear Experts

Please share your views. I need to know whether two line items have diffrent pricing & the two line item generate two seperate invoice in billing

Regards

Deepu Pillai