Regarding taxes in RRB

[Former Member]

Hi All

I have a query regarding RRB process, as i went through the standard configuration process once we create a odp profile and assign it to sales document, we can bill the customet actual costs which are logged against the WBS element assigned. I would like to know what about the taxes and overhead costs? How do we bill the customer these? Same for the milestone and periodic billing also, will the taxes maintained in the pricing procedures will get added to the billing amount when invoiced.

Appreicate your inputs on this.

Thanks and Best Regards,

Vaishnavi

[Former Member · Accepted solution]

Hi Abhishek

Thanks a lot the detailed response, the screenshot attached is very helpful.

To give more insight to my problem, ours is service based industry where the employees are materials and a WBS element and line item in sales document are created based on the competency and sales price.

Currently we are not using RRB, at the end of every month a delivery document is created manually based on the efforts logged against the WBS  by the employees and an invoice is created. We have service tax in the pricing.

Yes its a timesheet billing and The employees log their efforts using CATS, based on the activities created in WBS elements. If we switch to RRB how can we take care of the tax part.

Thanks,

Vaishnavi

[Former Member · Accepted solution]

Hi Vaishnavi,

Please find the detailed response for your query-

1) To give more insight to my problem, ours is service based industry where the employees are materials and a WBS element and line item in sales document are created based on the competency and sales price.

Exactly same I am following.

2) Currently we are not using RRB, at the end of every month a delivery document is created manually based on the efforts logged against the WBS  by the employees and an invoice is created. We have service tax in the pricing.

What is the purpose of creating delivery here, when you are creating Material Code treating as employee and the same you can create as an Activity Type (T Code - KL01) and subsequently you can assign in WBS element. Now you can assign Activity Type this CNR1 transaction against Plant and Work Center.

3) Yes its a timesheet billing and The employees log their efforts using CATS, based on the activities created in WBS elements. If we switch to RRB how can we take care of the tax part.

After CATS, subsequently you can use DP91 which will bring all the cost booked against that WBS element, this will generate debit memo request and later you can raise invoice. For Tax related issue, you need not to worry, system will bring the tax part in Debit Memo Request. You need to maintain the Plant/Billing Location in the material master and a condition record in VK11.

You will have to do few configurations to achieve this. The process in SD will flow as;-

Quotation(VA21)->Contract (VA41)->Project Creation (CJ20N)->Assign WBS in Contract(VA42)->DP91(Resource Related Billing)->Debit Memo Request(from DP91)->Invoice

I hope it clarifies your doubts.

Regards

Abhishek

[Former Member · Accepted solution]

Hi Abhishek

Thanks a lot for the detailed reply. I now understood the process well. We create delivery document for revenue recgonition (VF44) purpose for unbilled recievables every month.  Iam not aware of the Activity type creation part as you explained here. Anyways all my doubts got clarified will create a new profile and check the process.

Thanks Again,

Vaishnavi

[Former Member]

Hi Vaishnavi,

1) I would like to know what about the taxes and overhead costs?

For the Overhead Cost, we need separate DIP Profile named as Rechargeable. Under this you can maintain material codes used for this. Subsequently you need to create separate WBS element for this and need to assign in Contract/Sales order against that line item. Using DP91, it will fetch all Overhead Costs. Regarding Tax, it will not be shown in DP91 screen as this screen doesn't have Plant data. Please check below screen shot as per my config.

2) How do we bill the customer these?

   Please share me the details, what are the PROCESSES you are following? Viz. A)Time sheet        Based billing B) Transactions (No. of calls/chats/emails based billing or C) FTE based billing.

3) Same for the milestone and periodic billing also, will the taxes maintained in the pricing procedures will get added to the billing amount when invoiced.

    Yes

Please confirm and update this forum.

Regards

Abhishek