Mile stone Billing

[Former Member]

Dear Gurus,

What is mile stone billing? explain me in detailly, with example if possible

Regards

kalpana

[Former Member · Accepted solution]

Hi,

Menu path:

IMG->sales &distr->Billing->billing plans->define billing plan types.

You set the start date and end dates if applicable to the type of billing you are using. What time to be billed (end of month, start of month etc..)

Milestone is a billing plan type where a customer is billed for the amount distributed between the dates until total value is reached eg: if the total billing amountis 1000 USD for a year. You will bill the customer in different amounts say 200, 500, 300 at different intervals as per customer agreement.

On the other hand Periodic billling is billing the customer for the total amount(here 1000 USD) at regular intervals peridically until the customer agreement is reached. eg: 1000/12 for a 1 year agreement and say billed at the 1st day of every month.

With Brief :

Milestone billing means distributing the total amount to be billed over multiple billing

dates in the billing plan.

As each milestone is successfully reached, the customer is billed either a percentage of

the entire project cost or simply a pre-defined amount.

During sales order processing, the system determines from the item category whether a

billing plan is required and, if so, which type of plan

The type of billing plan that is determined at this point is set up in Customizing and

cannot be changed in the sales document.

Billing plans for periodic billing and milestone billing plans for project-related milestone

billing have different overview screens so that you can enter data relevant to your

processing.

For example, for milestone billing, you must be able to enter data to identify the

individual milestones.

IMG configuration requires :-

1. Maintain billing plan types for milestone billing in OVBO.

2. Define date description in SM30 - V_TVTB.

3. Maintain Date Category for Billing Plan Type IN OVBJ.

4. Allocate date category in SM30 - V_TFPLA_TY.

5. Maintain date proposal for Billing Plan Type in OVBM.

6. Assign Billing Plan Type to Sales Documents Type in OVBP.

7. Assign Billing Plan Type to Item Categories in OVBR.

8. Define rules for determining the date in OVBS.

Milestone billing is typically used for billing projects, such as plant engineering and

construction projects. Such projects often include a series of milestones that mark the

completion of different stages of the work. In the SAP R/3 System, milestones are defined

in a network along with planned and actual dates for the completion of work. The milestones

are also assigned to the billing dates in the billing plan.

Each milestone-related billing date is blocked for processing until the Project System

confirms that the milestone is completed.

Delivery-relevant order items for which a milestone billing plan applies are billed on the

basis of the requested delivery quantity and not on the total of the confirmed quantities.

The connection between the project and the sales document item is made in the individual

schedule lines of the item. Each schedule item can be assigned to a network in a project.

To display the project-related data for a schedule line, proceed as follows:

In one of the overview screens of the sales document, select

1. Item -> Schedule lines.

2. Mark the schedule line and select Procurement details.

The following figure shows an example of milestone billing where only the Contract have

been billed :

Order Item Turbine 100,000

Billing Plan

Billing date Description % Value Billing Block Milestone Billing Status

01-10-94 Contract 10 10,000 - x x

01-03-95 Assembly 30 30,000 x x

01-04-95 Maintenance 30 30,000 x x

01-05-95 Acceptance 30 30,000 x x

01-06-95 Final invoice .. .. x

Network/Activities

Milestone Estimate Actual

Assembly 01-03-95 01-03-95

Maintenance 01-04-95

Acceptance 01-05-95

For each billing date in a milestone billing plan, you can specify whether the billing

date is:

1. fixed

2. always updated with the actual date of the milestone

3. updated with the actual date of the milestone, if the date is earlier than the

planned billing date for the date

Also goto this link which will be usefull one.

http://help.sap.com/printdocu/core/print46c/en/data/pdf/SDBIL/SDBIL2.pdf

[sarthak_mohantysd]

Hello kalpana,

Please refer the link -

and let me know if you still have doubts on mile-stone billing.

Regards,

SARTHAK

[Former Member]

Hi kalpana,

Milestone billing billing means the billing will be done as and when a milestone is achieved. For example you are working in a scenario where the PS says that the milestone is achieved and youbill the customer for that amount. In this case, you wud normailly assign a wbs element in your sales order, which would determines the milestone and they will have a block by default which will be removed only when the PS confirms that milestone.

Please refer to the following links.

http://www.sap-img.com/sd006.htm

help.sap.com/printdocu/core/print46c/en/data/pdf/SDBIL/SDBIL2.pdf

Hope it helps.

-- Shivaji