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Use milestone billing plan for delivery relevant line item

Hi all,

We've come across a scenario as mentioned below.

- Sales orders are created with delivery relevant materials. It's a procure to order sales process, hence system will automatically raise PR. Once whole inbound process is completed, we'd create outbound delivery and post goods issue. It's important to note that partial deliveries are also applicable according to business process.

- Business need to use milestone billing for delivered products. User would manually enter billing plan details and remove billing blocks to proceed with invoicing.

Considering we use milestone billing process for whole order quantity (not partially delivered), is it possible to use milestone billing plans for above scenario ?

From what we found out so far, we've to use billing relevance as ' I ' in ZTAO item category to enable billing plan (copy of TAO item category was created as ZTAO). Therefore it restrict processing delivery related billing.

Is there any workaround to use milestone billing for delivery related line items ?



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2 Answers

  • Posted on Apr 08 at 05:11 PM

    Billing plan means order-related billing.

    If you just need to process down payments - there is a functionality SD condition based down payment. You can read about it here SD Condition Based Down Payments and also in note 1788841 - Consulting note for condition-based down payments, but probably it won't fulfill the business requirement.

    I am not sure why using order-related billing is problematic in your case. In my country we cannot use the down payment part for legal reasons, but I have not encountered a case where order-related billing by itself is forbidden. For TAO you still create deliveries, it is just that you bill the order.

    Would you please explain in more details what exactly does not work as expected in the standard TAO process, so that community members can try to help you find a solution?

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  • Posted on Apr 09 at 04:24 AM

    In a summary, this is what we need to achieve.

    - SO created with a trading material

    - PR automatically generated in SAP

    - PR converted to PO and goods received to warehouse

    - Outbound delivery created for trading materials in warehouse and goods issue posted

    - Trading materials need to be invoiced using milestone billing

    • 20% after receiving PO (before delivery)
    • 60% after delivering goods (after delivery)
    • 20% after sign off

    Currently we use TAB item category for trading material which generate PR (with 0.01 sales price) and separate service material with TAO item category for milestone billing (with sum of all trading materials value).

    Is it possible to use one material and achieve both processes ?

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