Provisional and Monthly Bill

[Former Member]

Hello All,

We have a requirement as follows-

There is quantity one and only a whole sales order price

1) First bill will be raised for 1- 25th of a month say 4000$- Provisional Bill

The customer might or might not pay against this bill.

2) Second bill is raised for same complete month 1-30th of a month say 5000$- Monthly Bill

If the customer has paid agaisnt the provisional bill, the monthly bill should deduct the payment received and show the balance.

We have thought of Down Payment Cycle- But the issue here is the DPR is just a noted entry and doesnt hit the financials unless it is posted. This creates difficulty if we want an outstanding at a given point of time.

We have also thought of Invoice Correction Request- But there is no correction here and suppose if we receive full payment against the provisonal bill how do we raise an Invoice correction request.

Request your solutions or approach on the above.

Thank you,

Regards,

Saxena

[former_member205178 · Accepted solution]

Hi,

This might not be a fool proof solution.

I am assuming that this is a one time plan and every month you raise a New Sales Order. That being the case you might want to read further else just ignore the rest of this message.

Check use Periodic Billing Plan, where you bill for the first month on the 25th day for the amount and then make the Final Invoice and close the loop. 

The Final Billing Plan Payment can be manual and only for the remaining amount. This will change the status and if there are more than one Billing Plan items they will become irrelevant.

Hope I make sense.

Thanks.

[phanikumar_v3]

What is Provisional Invoice--Can you Please share the screen shot of VOFA.

Will it carry accounting entries/Payment terms etc...

As per your First Point, if customer not paid for any bills between 1st to 25th--then what about your agreed terms with your customer maintained in these bills.

As per your second point, if customer not paid for the 1st to 25th Bills--then in final invoice can be done in month end---so based on partial payments--obviously open items will be Adjusted.

Have you tried with Invoice list concept?

If customer is paying in partial and you want to bill for the remaining payment in moth end-then please try from FI end with FB70 for partial payments and in month end create a sales order with total amount.

Because from SD point of View --WE CANNOT CREATE BILL WITHOUT ANY SALES ORDER.

Actually i am bit confused with your Business process--can you give more details.

Phanikumar

[venu_ch8]

Dear Phani

Because from SD point of View --WE CANNOT CREATE BILL WITHOUT ANY SALES ORDER.
Actually i am bit confused with your Business process--can you give more details.

we can create billing with out sales order also plz check function module in se37

BAPI_BILLINGDOC_CREATEMULTIPLE

LET ME KNOW

[phanikumar_v3]

Thank you venu for helping me.

But the Bapi which you suggested will be done through enhancements---But i think we cannot create Billing without sales order in standard(without any technical help)

Venu-Thank you again in correcting--if any.

Dear other Members---Please correct me.

Phanikumar

[venu_ch8]

Dear phani

This is possibulity in standerd only

i will explain you why we use this , some times business wants to sell the material in NON-SAP EX small small parts so at the time they dont create any thing in the sap so after 10 days or 15 days they will create billing to customer in sap

simply non sap to sap

[phanikumar_v3]

Dear Venu--Thanks yar.

[Former Member]

Thank you all for your inputs.

It is still in blueprinting phase and so no SAP screenshots available.

Most probably we will be using a simple Milestone billing plan with two items.

The second item will act as a Monthly bill but any deductions and all will have to be calculated manually.

Regards,

Saxena

[former_member205178]

Hi,

That might work too. Just have two or three milestones and do the needful. It will be a manual process then.

Thanks.

[Former Member]

Hi Saxena,

for my understanding:

clients have a first invoice covering from 1-25th. If they don't pay you bill a second invoice from 1-30/31st. If they pay you deduct from 1-30/31st what was paid in invoice 1-25th (that is, invoice is from 26 to 30/31st).

What's the benefit for your customers/your client to have first invoice only 5/6 days before 2nd one?

From business point of view, if your client agrees with their customers to bill 1-25th, how is it that they can pay or not? Is not there a legal binding?

On the other side, when you create 2nd invoice I guess it may happen that you still don't know if first one was paid. What do you do? you wait until get payment confirmation from FI/client? Do you bill 2nd invoice just in case (1-30/31st)? All this involves manual extra working cancelling invoices (invoice 1-25 if not paid) or updating them (invoice 1-30/31st if paid).

Maybe your customer should review this process internally and discuss with their customers.

Regards,

JM

[Lakshmipathi]

May be you can consider raising bill directly from FI with TCodes like FB70 for the provisional and depending upon the payment received, commercial invoice can be generated from SD side.

G. Lakshmipathi