Milestone Billing and delivery from project

[Former Member]

Hello friends,

I have below given couple of doubts and new scenarios

1 I have an scenario in my current project where i have to do milestone billing for various activity and all the activities will be finished at one date under one particular WBS element and for this we need one single milestone consisting of cost of all activities on percentage of completion.

2 If i have maintained the Billing plan in WBS element with respective of milestone which is on percentage basis, at the time of confirming can i give the actual percentage of that activity and where to enter the same. Whether the billing will be carried out on basis of actual percentage calculation of the target cost.

3 For these kind of projects how to carry out the delivery from projects, do we have to assign the Sales order also to WBS element or we can only assign the billing plan of WBS to sales order.

Kindly do the needful.

Regards

Praveen B M

[Former Member]

Hi Praveen,

Please find the answer for your queries as below:

1 I have an scenario in my current project where i have to do milestone billing for various activity and all the activities will be finished at one date under one particular WBS element and for this we need one single milestone consisting of cost of all activities on percentage of completion.

Answer: We cannot achieve the above scenario with standard SAP settings. However, it is possible by developments.

2 If i have maintained the Billing plan in WBS element with respective of milestone which is on percentage basis, at the time of confirming can i give the actual percentage of that activity and where to enter the same. Whether the billing will be carried out on basis of actual percentage calculation of the target cost.

Answer: Actual percentage completion of activity can be done during confirmation at the field u201CProcessing %u201D. If you have created the milestone for billing based on the percentage of completion, system will trigger accorindgly the billing at WBS based on the actual percentage calculation of the target cost as per billing plan.

3 For these kind of projects how to carry out the delivery from projects, do we have to assign the Sales order also to WBS element or we can only assign the billing plan of WBS to sales order.

Answer: You can very well assign billing plan of WBS to sales order and if you want sales order as a reference in your WBSu2026that is also possible by entering it in userfield.

Hope you find this help to you.

Thanks and Regards

Vetrivelan

[Former Member]

Hello Vetrivelant

Thanks for your valuable inputs and i would like to know what kind of development can we go ahead with this type of scenario. The problem is our client are not in a position to give us the cost for each activity which is been carried out. if so they gives the cost where can we accommodate all the activity cost in my structure and how can i relate the same to sales order for billing.

The actual issue is

Now the issue is the overall Project cost is based on the total area taken into consideration(Square meters).

Case 1. Our client supplied 50 windows to Project Site and out of that 40 Window frames have been erected or fixed. And out of 40 window frames, 20 have completed with Glass work. How to map this scenario in SAP. What will be the role of SD Consultant and the role of PS Consultant. (The Window if we take as a Finished Material code- the over all cost of the project will be multiplied by number of windows to be fixed. Each window cost includes the Cost of Aluminium used, labour and machinery cost in fabrication of window, hardware used to prepare andfix the window in project site,cost of glass and other expenditure). What will be the milestones? Do milestone billing helps?

In your case maintain Four Milestones in your Project and copy them to the Billing plan of the sales order. Mainataining the billing plan is fine. As I have explained you, the billing has to happen in the pro rata basis of the acitivities perfomed.

How to take the activities into Sales order, as the Finished Material code ex: Window1 (Sales price includes all the Aluminium cost, Assembly cost, hardware, glass cost, fixing labor cost etc).

We have created Sales Contract for 100 Windows for the entire project. Then Sales order for 50 Windows and Delivered 40 Windows to Project Site. So we can bill for 40 Windows (as per the first mile stone-). Now how to bill the activities performed for milestone 2, and so on. How to track them in Sales order.