For Automotive OEM, usually customer leverage their strong bargaining prower and resulting in suppliers accepting revised price changes. These change are warrant on existing older invoices and new invoice are created with the price adjustments. And these change can be on older invoice dated back beyond more than a year.
Similarly, in steel industry, where raw material price is warrant the base for price of finished. And price negotiation do take place even though the older invoices are already settled.
To counter this kind of unique business process, SAP provides a standard functionality, known as Retroactive billing (VFBR).
But note, to use this functionality there are some prerequiste you need to keep in place.
Refer Harpreet Singh Kohli's in following SDN thread for further details:
- Retro-Active Billing - Config. Guide
- Retro Billing - Normal Sales Process
If in case, you have any concern or doubt in understanding, then pin point the same in your revert back response.
Regards, JP
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.