How to handle retrospective price and rate changes?

[Former Member]

We have a requirement here where the price changes and rate changes happen retrospectively. For e.g. if periodic billing of one month has been done till June 2009; there could be a price change which can happen from march 2009. In this case, a debit or credit has to be passed to the customer for the differential charges. Here we are using back billing to take care of this requirement. But the problem is with MRU, Portion and Rate category change. SAP doesnt allow you to change an MRU, portion or Rate category without doing a final billing. Is back billing being used for the right purpose here? Or should we look at other alternatives like adjustment reversal ( We understand that this will create a huge number of reversal documents in the system).

Thanks and Regards.

[Former Member]

In your case the backbilling is not useful because backbilling is done for a fixed period (2 months to maximum 12 months) whether your scenarion can happen anytime. BTW what is driving your price change?

What I would do?

1. Store the consumption for each month in an installation fact

2. Store the price for each mont in an installation fact.

3. Create a separate rate, lets name it ZRETRO

4. Create a new variant program tha will have an as input operand an user define operand. This operand will pass the date until when the variant program will go in the past. Another input operand will hold the new price key (the price that is used to calculate the amount difference)

This operand will do the following:

will read consumption values from installation fact

will read the old price values from installaiton fact

will read theh new price values from price history (EPRICEH)

the for each month will do the following calculation:

difference amount = (consuption * new price) - ( consumption * old price)

then will write a line in the billing document.

I would activate this rate only for the month when I want to calculate the difference.

Hope it helps,

Daniel Toba

[www.sap-isu.net|www.sap-isu.net]

sap isu community

[Former Member]

Thanks a lot