Accounting indicator and billing form in service order.

[Former Member]

Can anybody kindly tell me why accounting indicator and billing from is used in the service order. What effect does it have in revenue posting.

[Former Member]

<b>Accounting Indicators</b>

The accounting indicator is generally used in the Customer Service (CS/SM) module.

<b>Where-Used: Transactions</b>

IW31: Service order header

VA41: Service contract item (IW42, IW45 etc)

CAT2: Cross application timesheet

DP90: Resource related billing (DP80, DP91 etc)

VA01: Sales order item

VF01: Billing documents

KB61: Conversion of line items (was DP60)

KB65: Conversion of operating activity allocation (was DP60)

<b>Where-Used: User-Exits</b>

IWO10024: Service order: Changes to items for advance shipment

ICSV0005: Determining reason for rejection - resource-related billing

COOM0001: Customer Functions for Overhead Percentages

<b>Definition:</b>

Customer Service (CS)

Criterion according to which costs and revenues can be differentiated within the framework of service processing.

The accounting indicator serves as another distinguishing criteria in addition to distinction by cost element. In this way, incurred costs and earned profits can, for example, be identified by sales volume, warranty or good will.

Use:

Customer Service requires detailed information on the costs incurred by a particular service transaction. You can use an accounting indicator to identify costs on a service order, not just by cost element but also by how the cost was incurred (guarantee, free of charge delivery and so on). You assign the accounting indicator to the service order. When you perform resource-related billing, the accounting indicator is copied from the service order into the resulting debit or credit memo request item and subsequently into the debit or credit request item.

You cannot change the accounting indicator in the SD documents.

When the debit or credit memo is forwarded to Controlling, the accounting indicator is forwarded with it.

The indicator can be included in pricing to determine prices for guarantee or goodwill transactions. The condition type KBM1 has been defined in the standard system for calculating and recording discounts for these transactions. You can use it as a template for creating your own condition types.

Condition records of this type are forwarded to Controlling with the classification "Accounting indicator". By linking the condition record to the underlying billing document item, the system finds the relevant accounting indicator and the appropriate sales deduction account to which the information from the condition record and the billing document is posted.

Prerequisites:

If you want to use the accounting indicator in pricing, you can create your own condition tables, access sequences and condition types that contain the field "Accounting indicator". The following templates have been defined in the standard system:

Condition table 140

Access sequence KBMO

Condition type KBM1

You control that the accounting indicator is taken into account in account assignment by entering B in the Rel.Acc.Assig field on the detail screen for the condition type. You access this screen from the Customizing activity "Define condition types".

<b>Billing Form</b> - The billing form specifies whether a flat rate or the dynamic items are invoiced individually when performing billing using a resource-related billing document.Dynamic Items are the summarized intermediate level of data that is produced during processing (for example, during resource-related billing or quotation creation).

The system summarizes data (for example, line items that result from confirmations, or goods movements) from defined sources (for example, actual costs line items or actual costs totals records) into dynamic items. This summarization is controlled by the dynamic item processor profile.

Afterwards, the dynamic items can be transferred into sales documents (for example, billing requests(DP90) or quotations(DP80).

The DIP Profile handles resource related billing for that order. You create a sales order with components and operations. At some point you want to charge your customers for the services and products provided. The DIP Profile controls how the system will create sales items from materials and labour consumed in the order.

Thanks and regards,

[Former Member]

Hi KAUSTUV BASU

Sorry in delay in giving points, the explanation given by you was very helpful to me. You said that the accounting indicator will be copied into the billing request from the service order, my doubt is if we do billing with respect to the sales document(that is service order does not allow revenue posting) then how the accounting indicator details will be copied. Kindly give me the details.

thanks and regards.

[Former Member]

Purpose of Accounting indicator: Like Michail said mostly for giving types of discounts.

Examples: Warranty, Good will, contract, cash etc..

Purpose of billing form: How you wish to bill the customer. Do you wish to bill based on what resources u consumed for performing the service? Or flat rate for a particular job performed.

Example: When you are performing a 10000km service for a customers car if your policy is to bill say 2000 rupees for this service flat no matter what u did while performing this service then it is fixed rate. Alternatively if you bill the customer based on what u did while performing 10000km service (like replacing oil filter, fuel filter, labour etc.) then it is costs based.

[Former Member]

The billing form is the DIP Profile that handles resource related billing for that order. You create a sales order with components and operations. At some point you want to charge your customers for the services and products provided. The DIP Profile controls how the system will create sales items from materials and labour consumed in the order.

The accounting indicator is a field that you can include in the DIP Profile. Usually it is used for discounts or surcharges. You can use different accounting indicators to indicate that an item is billable or not. The accounting indicator can be set in the service order header or in each itemm.