Resource Related Billing using Release Orders

[Former Member]

We are using Resource related billing for our Time and Material cost, which is accumulated within Project System. Process is as follows

We start with a contract, which could last for many years, life of the program. where new lines are added every year for that year of the contract. Question: Is this the correct use of contract? should there not be new contract every year?

From the contract, release order is created by coping the contract line information to new release order.  Typically there is one release order per yea and lines get added to this release order every month when DP91 is run. Question: Is this really a best practice or should it not be creating new release order every month?

On a monthly basis as the cost is collected (Time and Material cost) within the project system under WBS element. Users run once a month DP91 by referring that year's release order for billing and as you save billing information in DP91 system adds new line to this release order and then bills it from there.

So my question is two folds:

     1. Using one contract per program, where same WBS is referenced to many times and one release order per year for billing is really recommended practice?

     2. Is there a way during RRB processing using DP91 you can give a message to user if they try to use completed Release Order?

thank you for your help in advance.

Sher

[Former Member]

You can configure user status profile for released order. Pls refer below link.

[former_member363633]

Thanks Lucky, I will configure status profile and refer in these release orders and see that would allow be to control use of completed release orders being 

Sher

[patrick_g1]

Hi Sher,

related to your questions:

1. Using one contract per program, where same WBS is referenced to many times and one release order per year for billing is really recommended practice?

--> A contract reflects an agreement with a customer for even consume a value or a quantity from you. One point is coming into my mind directly.... Archiving! You cannot archive documents as long as one document is still open within the document flow.

--> Further a contract summarizes terms and condtions agreed with the customer (price, surcharges, fees, etc.). I do not believe that the price is not changing over years.

--> Such a program / campaign process I would assume under SAP PS oder maybe SAP CS.

     2. Is there a way during RRB processing using DP91 you can give a message to user if they try to use completed Release Order?

--> I am not aware of such a message within SAP standard.

Best regards

Patrick

[former_member363633]

Thanks Patrick for the response.

I Agree Archiving is an issue. These long term program contracts have a high level amounts established but there are task authorizations get issued on a yearly basis, which becomes effectively a sub agreement for the year under this overall programt.

Our objective is to have program view of this contract but at the same time not to have same one contract document within sap be used for the life of the program.

My client is in defence contractor and nature of these contracts are long term. So my question should be then what is the best practice for defence contractors to manage these long term contracts from SD side. Starting with contracts to release orders to billing and invoicing where one uses RRB?

Many contracts, grouped by some characteristic value and run DP91 refering those contracts and create new release order every time.

Sher