Cancellation of Milestone Billing Plan Service Contract

[Former Member]

Dear all,

Platform: SAP R/3 4.0B

I've configured a service contract with WV, item category WVN, item category group LEIS with milestone billing plan. The cancellation rules/cancellation procedures are per-SAP standards.

I've this one scenario: The service contract is for 2 years with start and end date specified in VA41. So, the milestone billing plan is set in VA41, i.e. month 1 - $2,000, month 2 - $4,000 and so forth until the maximum amount spreaded towards the 2-year contract. Assuming after 6 months, the customer wants to terminate the contract.

My question: What is the proper SAP user process to end the contract and stop the milestone billing plan?

Thanks.

Steven

[Anjhi · Accepted solution]

Dear Steven,

If you want to stop the milestone billing, you need to change the Contract end date. It will not generate any further billing. If you want to adjust the billing you can check in the Billing plan and make appropriate changes.

Regards,

AK

[Former Member · Accepted solution]

At the start of the contract on 10 Nov 2009, my billing milestone plan:

10 Nov 2009 - $100 - Milestone 1

12 Nov 2009 - $300 - Milestone 2

13 Nov 2009 - $250 - Milestone 3

Ok, in VA42, I've set the contract end date at 12 Nov 2009 and also with proper cancellation procedure/rule and save contract. Here's what I noticed:

1. Go to VA43 -> Document Flow -> Contract #xxxx being process (I expect it to be completed instead).

2. In VF04, my date selection -> 12 Nov till 13 Nov 2009, I get the billing due list of Milestone 2 and Milestone 3 (I expect ZERO record to be listed instead).

Any explanation? Thanks.

[Anjhi · Accepted solution]

Dear Steve,

You have to redetermine the Billing Plan. Then new milestone billing plan will be updated and it removes all billing plan after the Contract end date.

Hope this works.

Regards,

AK

[Former Member · Accepted solution]

Hi AK,

After reading your instruction, how do I go about redetermining the billing plan? I can find any function within the VA42. Thanks again.

[Anjhi · Accepted solution]

Hi,

Go to VA42 -> Item Level Billing plan

Change the Billing Plan (End date) to new date. Right side to date column, you will find another two character field. Make it empty.

After pressing Enter button the dates should be redetermined.

If not Click on "Create Dates" button in the bottom.

Hope this is clear.

Regards,

AK

[Former Member · Accepted solution]

Hi AK,

I followed your instructions - VA42 and entered the service contract #. However, the billing end date field is grayed out for each billing milestone. So, I tried your second suggestion by clicking on the "Create Date" button but nothing happens.

So, what I did was to go back to document overview | reason for rejection and enter a reason "RJ" field for that line item | save. The result was all my milestone billing plans were deactivated as required. When I go to VF04, the billing due list now shows zero record for this contract #. Hence, is this method acceptable or correct for cancellation the contract billing plan?

Thanks

Steven

Edited by: Steven Khoo on Dec 2, 2009 6:00 AM

[Former Member · Accepted solution]

Problem solved.

[Former Member · Accepted solution]

Hi Steven,

It would be great if you could share how you solved the issue? I am trying to cancel contracts with billing plan.

Thanks

[Former Member]

hi..

the system terminates the contract automatically when the total quantity is referenced or the contract end date is reached,, but in this case you need to change the validity period.. i,e, the end date should be changed manually,, for example today's date if the contract needs to be terminated today.

regards