Billing plan

[Former Member]

Hi Guys,

My question is about billing plan.

How actually Billing plan process takes place? I appreciate if u explain with real time scenario.

My doubt is suppose if a business got a billin plan date how invoice raised on that particular date? how end user get to know that he has to charge a customer on a billin plan date?

Pls tell me what r the subsequent doc flow.

thanq

chaitanya

[Former Member · Accepted solution]

Billing Plan can be configured at Sales Order Document & Item Category Level. Billing Plan is activted in case if it is Milestone Billing or Periodic Billing.

Periodic Billing is Billing at regular Interval for eg, Monthly rent of an Apartment. In Milestone Billing, Billing is done whe the particular task or activity, eg Construction Industry.

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

Hi Chaitanya,

As you must be aware there are two kinds of billing plans - Milestone & periodic.

In case of periodic billing, when you create an order, you specify the start date and end date, and the periodicity of billing, i.e.monthly/quarterly. Based on these inputs the dates are generated.

In case of milestone billing, normally milestone dates are maintained in Project system. If required you can directly maintain the dates in sales order too.

for periodic billing, it is automatically due for billing every month/quarter on the billing date & in case of milestone-its due for billing once the milestone is confirmed in projects system or we have reached milestone dates.

Now, the flow is : Sales order - delivery -invoice.

How the end user comes to know that he has to bill today: He executes the billing due list by giving his selection criteria. The system than shows all the documents which are due for billing on/for that particular date & then he bills. Normally, invoicing is a batch program in most of the companies wherein, the invoices are generated automatically. Here too, its based on the on the selection criteria, system process all the orders/delivers due for invoicing.

Thanks

[Former Member]

thanx alot i clearly understood.

can you explain me what is aproject system and who is authorized to confirm the milestones and how?

thanx again.

chaitanya

[Former Member]

Project system is also one of the modules in SAP. Normally PS is used to track large implementations. In this case the sales orders are linked to projects and depending on the project stages, milestones are kept and confirmed in PS.

In case you want to link your sales order to projects - You need to assign the WBS element(which is also maintained in PS) to your line item in the a/c assignment tab. once you link to wbs, and then you come back to billing plan tab. There is a tab copy milestones, if milestone dates are maintained in PS for that WBS element- then those dates are copied in sales order billing plan by clicking on this tab.

Thanks

[Former Member]

Thanx alot, thanx for ur prompt reply.

suppose if there is quantity contract between customer and business.

i assign peiodic billing to billing plan type field in saled document type QC(KM).

i maintain the quantity contract in (VA41) and i raise the sales order with respect quantity contract and i raise the oubound delivery.

**invoice is raised once the date maintained in the periodic billing is reached.

is it correct?

and where can i maintain the dates for peiodic billing?

in IMG in-- maintain date proposal for billing plan type how can i add new billing plan type.

thanx again.

points awarded

chaitanya

[Former Member]

Yes invoice will be raised once the date maintained in billing plan is reached.

For periodic billing:

1. Define billing plan in IMG-Billing - Maybe you can copy the existing one and do the necessary changes as required.

2. Define an item category and attach the periodic billing plan to this item category.

3. Now when you execute your order, in the sales item you will get an additional tab called Billing plan ( this will come only in-case you have attached the periodic/milestone billing plan to the item category)

4. Here you specify start & End dates for contract & system automatically will calculate the billing dates as per periodic billing plan maintained.

In case you need clarity for Billing plan configuration, do a search in the forum for the same, You will get enough stuff.

Thanks

[bcrao]

in billing plan sch line contain billing date and other setting, on that billing date, billing index is created( order type billing), with collective processing end user can select doc due for billing