Billing Plans: Milestone or Periodic?

[former_member662164]

Hi everyone,

I need help from you to select the correct billing plan for my requirement. My requirement is as follows:

1) I have a sales order with billing plan. I want to have one single invoice for the customer. At this time total value will be posted to deferred revenue. The billing plan gets initiated and moves the revenue from deferred revenue to revenue. Which billing plan should I use? How do I get this configured ?

2) A third party system will sent the contract details to SAP. On this basis, we create sales order/ contract which has variable billing plan. The sales order can have more than one items which are all billing plans. The plan can be monthly/ quarterly/ semi-annually or annually. We need to invoice customer all together at the date of the sales order creation. At this time, we want to put everything in deferred revenue. Later we want to recognize revenue every month. How do we do this? Do I need to use billing plans or how does revenue recognition program identify the number of periods the item is invoiced for?

Kindly let me know your suggestions and also if you have additional questions which can help solve this problem.

Thanks

Nik

[Former Member]

hi,

This can be with Milestone billings as and when required to be posted,

If you are going for a Revenue recognition, you will have two types, one is Service based and one is time based, in time based as per your requirement you can post month on month the proportionate amount to the Revenue account, and on actual billing the total amount will get posted to deferred account, then when you do a revenue recognition run you wil have the amount posted from Deferred account to Revenue account according to the proportionate value each month.

For this revenue recogntion u need to take the permission from SAP, so kindly put the same query in SAP Service market place with the client id and you will get the remaining details accordingly

regards,

Sudhir

[Former Member]

Hi,

I hope you have to configure "Periodic billing plan" along with revenue recognition concept in sap.

go through this links.you can get better understanding.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/31/03953401024735e10000009b38f83b/frameset.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/ff/f8e07662884401b205b387642e4e0c/frameset.htm

Thank you,