Project related billing

[former_member210673]

hi All,

I am in need of preparing a process flow for "Project billing". I would like to clarify the way we can do billing against a project for T&M (Time & Material). I have checked the possibilities as "Create Quotation against Project/WBS Element" using DP82. The other is - Resource related billing which involves - Creating a billing document with reference to the Billing request document generated, based on settings in ODP1. Can I select "WBS Element" as a characteristic which helps eliminate the other actual postings made against "Activity type", as the dynamic items are created using postings made against only - Activity type, Cost Element and WBS Element?. Where can I find the Sales document generated based on settings done in ODP1, IF there are Actual cost postings made against the Characteristic (Ex: Activity type, Cost Element)?. Please advise.

I checked one of the forum postings which tells we can create a Quotation for a Project/WBS Element using DP82. When I try creating a Quotation against the project (DP82), I get the following error (Message no. VPK1310):

Resource related billing contains no expenditures for the posting timeframe you specified. Specify a different timeframe. In the case of quotations, there are no costs in the project or service order. Check whether they have been planned.

I refered to the following link regarding this error and checked the settings as mentioned in the link. I guess we are missing a "Material" which considers the "Cost Element" defined as "Material determination - Characteristic". I will need to configure this and see if I still get the error.

[Former Member · Accepted solution]

Go through this note,

Note 301117 - Enhanced documentation for dynamic item processor (DIP)

There is a document attached in the note "Intorduction to DIP 21.pdf". Go through this document. This should clear most of your doubts about RRB.

[former_member210673 · Accepted solution]

Gokul,

thank you for responding. I have checked "Intorduction to DIP 20" document earlier. But, thanks for sending me the link for the updated version. Please let me know if you have an answer for my questions posted in first message of this thread.

In additon Please let me know if you think the below steps should cover for T&M Billing (Resource used on hourly basis):

Ø Create a Project structure

Ø CATS Timesheet entry - User enters Activity Type, Receiver WBS Element

Ø Cost is captured on WBS

Ø Billing request document generated based on DIP Profile settings

Ø Billing document is created using this Billing request document

Note: Client uses a FT (Full-time), Hourly based employees sent from a consulting firm. They also would like to know the process for "Fixed cost" billing on a project. Please advise.

-Thanks

[Former Member · Accepted solution]

For T&M billing the process looks ok. For fixed billing the process should be fairly simple. Just a sales order with a proper selling/service material should do. You can then bill the fixed cost on a monthly basis/weekly basis using the milestone billing method. I dont think RRB would be required for fixed cost billing.

[former_member210673 · Accepted solution]

Gokul,

I have checked help.sap for Milestone billing process, and, observed the following statements which seem ambiguous to me:

SAP -http://help.sap.com/saphelp_erp60_sp/helpdata/en/aa/96853478616434e10000009b38f83b/frameset.htmstates:

The billing plan in the WBS element is for planning purposes only.

http://help.sap.com/saphelp_470/helpdata/en/4c/22631646e611d189470000e829fbbd/content.htm

You add dates to billing plans by using milestones in activities or WBS elements. When the milestone event is reached, the system copies the actual dates of the milestone to the billing plan and starts the billing process

Does the system generate an Invoice document automatically?. The statement seems conflicting with the sentence mentioned above of what a billing plan does. Please clarify.

Note: I have done Sales order postings with WBS in Billing plan & with billing block – 02 - Confirmation, and observed billing for that particular sales order is not possible unless the Network – activity confirmation is done.

[Former Member · Accepted solution]

1) The billing plan in the WBS element is for planning purposes only.

What do you find wrong in the above statement?

2) You add dates to billing plans by using milestones in activities or WBS elements. When the milestone event is reached, the system copies the actual dates of the milestone to the billing plan and starts the billing process

Do not go by the literal meaning of stuff mentioned in SAP Help. There are a lot of things mentioned in SAP Help that are contradictory or confusing. SAP Help is just for reference. When contradictions are found in SAP Help, an experienced SAP Consultant will always run through the scenario and check how the system actually behaves. I suggest you do the same. When a milestone is attached to an activity the billing block gets removed when the activity is confirmed. Similarly when a milestone is attached to a WBS element you need to enter the actual dates manually after the milestone is reached for the billing block to be removed.

The note that you have mentioned at the bottom is how SAP actually works. I find nothing wrong in that.

[former_member210673 · Accepted solution]

Gokul,

Thanks for clarifying. I would like to know, the generation process of Billing request while using DIP profile.

Q-1: As there will be postings each period, do we need to run any trx to capture the Actual costs to the Sales document (Sales doc. type maintained in DIP profile) item incurred for that particular period? Ex: same as we run CJ88 for Project settlements.

Q-2: for the Billing request document # generated by the system, "Introduction_DIP_21 document" specifies “Goto” menu (“Simulate salesand distribution docs”) as the path to check the document. I will verify this during my test process, but I wanted to clarify cuz if you worked on this earlier you will know better.

-thanks