Edit Billing Value for Sales Contracts with Billing Plan

[Former Member]

Hi Gurus,

I would like to seek your advice regarding the Billing Value in Sales Contracts with Billing Plan (Periodic). My client requires that in a 1-year contract, 15% of the sales of one of their subsidiaries (concessionaires) will be remitted to the mother company. The resulting amount from the 15% remitance will be the revenue of the mother company (subsidiary is sold-to party). Given the fact that the subsidiary's sales is not always constant, the actual sales amount of the subsidiary varies every month.

Now my question is, is there a way in SAP system that would allow me to manually input the Billing Value for each Billing Plan dates? Currently the SAP Pricing Procedure works for every item level, not per Billing Plan dates..

Any feedback or advice is highly appreciated..

Thanks in advance,

Gino

Edited by: Gino Porciuncula on Jul 16, 2010 5:26 AM

Edited by: Gino Porciuncula on Jul 16, 2010 5:27 AM

[Jelena · Accepted solution]

I don't think you can change the amounts with periodic billing (it may or may not be possible with Milestone billing - I simply don't know, unfortunately). But from the limited information in the post I don't understand why do you need to change the billing amounts? Can't the 15% "chargeback" be handled through the standard rebate/chargeback process or something? I'm just confused as to why this has to be tied to the billing plan...

[Former Member · Accepted solution]

Hi Jelena,

Thanks for the reply. As explained in my post, my client (the mother company) has a subsidiary (a concessionary "food caterer") which sells food for their employees. Based on their gross sales, 15% will be remitted to the mother comany and thus, the remmitance will serve as revenue for the mother company. Unfortunately, this remmitance agreement is covered by a legal contract with the concessionaires valid for 1 or 2 years. The 15% remmitance will serve as their monthly rental payment instead of a fixed monthly rental payment and the monthly billing frequency is the reason why I need to have a billing plan. The concessionaire's sales varies for each month and also the 15% remmitance, that's the reason why I need the billing value in the billing plan to be editable so that they can manually enter the resulting value of the 15% remmitance monthly. I think the milestone billing may be applicable, however, I havn't had an idea if that is the best solution as it may require a WBS element in the PS module.

As you recommended, rebate may not be applicable because it results to a Credit Memo.

Hope you can help me on this one and if you need further info, please don't hesitate to reply.

Thank you so much!

Gino

[Jelena · Accepted solution]

>

> As you recommended, rebate may not be applicable because it results to a Credit Memo.

And what's wrong with the credit memo? I'm confused...

I'm assuming the subsidiary company bills the customers using a billing plan and needs to transfer 15% of the sales to the "mother" company. Also I'm assuming it's withing the same country and there are no additional currency/tax issues.

Does transfer of 15% need to happen as a lump sum or monthly (or at the same frequency as the billing plan)? Does it have to be a separate transfer per each sale to each customer? Are there any exceptions/variations/complications? (E.g. 15% of sales for the first year but 0% after that.)

Even if it was possible to edit the billing plan value, as you've asked, what would you do with it? If you make this field editable, how will you ensure that the users will enter the correct amount? What the document flow is going to be? AFAIK you can't separate one billing plan line into different documents.

If it's a simple scenario, why don't you just create a 15% pricing condition and then at the end of the month (or whenever) run a report on that condition and then create a payment to the "mother" company for the amount? This could probably even go into a separate GL account.

Have you looked into solutions for royalty payments? This is available with the Media IS, but I've seen others implementing royalties without it. Here is just one discussion, for example, run search to find more:

http://www.sapfans.com/forums/viewtopic.php?f=10&t=238070&start=0&st=0&sk=t&sd=a

[Former Member · Accepted solution]

Hi Jelena,

Thanks for the prompt response.

I'm sorry if I was not clear enough with my statements. The subsidiary company (concessionaires) is not a SAP user. The mother company treats the subsidiary company as a customer and therefore, the mother company (the SAP user) bills the subsidiary company for the rentals. That is why credit memo may not apply to the situation/scenario. And as part of the contract agreement, the mother company bills the subsidiary company with the 15% of their gross sales (monthly) instead of a fixed monthly rental fee. The monthly billing frequency will be the 15% monthly remmitance which will be payed by the subsidiary company to the mother company. I think milestone billing is applicable though. I've tested using "months" as milestone and the billing value will be encoded for each milestones.

Thanks for the feedback, hope to hear more from you.

Gino

[Jelena · Accepted solution]

If you're configuring the "mother company" side, then why use the contracts with billing plan at all? Usually the billing plans are used when we either need to bill certain amount regularly (e.g. a monthly subscription fee or rent) or when we have a contract for X amount that needs to be billed in installments (milestone billing).

In this scenario this is really neither. The amount is unknown in advance and will change every month. Why don't just create a separate debit memo (DR) every month and be done with it? If you still need a contract, e.g. for tracking purposes, you can create a contract (even with 0 amount) and create DRs with reference to it. That's what we do for our consulting projects.

The DRs could even be semi-automated. I'd provide a transaction for the users (or an interface of some sort) that would present them with the contract #, customer numbers/names and where they would just type in the amount next to each customer. The program then would call BAPI and create DRs automatically. I think this would make them more happy than having to go into contracts and type in the amounts in billing plan.

It depends on the number of contracts though. You mentioned 'subsidiaries' in plural, so I'm assuming there is more than one. Automation would probably be worth it if it's at least 30 contracts or so.

[Former Member · Accepted solution]

Hi Jelena,

Your current solution is very good! I think that I will apply this instead. But I have some clarifications, when you mentioned the debit memo (DR), are you referring to Sales Order Type Debit Memo Request (with SD document categ. "L")? After I create a Debit Memo Request then I'll proceed with the creation of Debit Memo Billing Document?

Thank you so much!

Gino

[Jelena · Accepted solution]

This can be configured as needed. We use just the standard sales order type DR (yes, it's category L) and link it to the regular invoice (billing type F2), not to L2. We don't use DRs in any other way, so this works for us. But you can also create ZDR if you'd prefer to keep the standard intact.

[Former Member · Accepted solution]

Hi Jelena,

Thank you so much for your recommendation. It's clear to me now, how I may approach to address the requirement. One last question, what would you recommend for the setup of material master? Well, my idea is to setup 12 materials representing the months, so that the billing date will be maintained accordingly for each month. Is this ok? In this way, when I generate a billing due list, it would show the item which will be billed per month.

Gino

[Jelena · Accepted solution]

Sounds like a good idea to me.

Good luck!

[Former Member · Accepted solution]

Thank you so much Jelena..