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Periodic billing and Milestone billing

Dear SD gurus,

Can anybody explain what is Periodic billing and Milestone billing?

If you have the configuration guide for the above, please send the same to my email id : mani.saphelp@yahoo.com

Thanks in advance

Regards

Manivannan R

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5 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Aug 23, 2007 at 08:29 AM

    HI MAIL SENT REWRAD IF HELPS

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 23, 2007 at 07:13 AM
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  • author's profile photo Former Member
    Former Member
    Posted on Aug 23, 2007 at 07:16 AM

    Hi,

    Milestone billing means distributing the total amount to be billed over multiple billing

    dates in the billing plan.

    As each milestone is successfully reached, the customer is billed either a percentage of

    the entire project cost or simply a pre-defined amount.

    During sales order processing, the system determines from the item category whether a

    billing plan is required and, if so, which type of plan

    The type of billing plan that is determined at this point is set up in Customizing and

    cannot be changed in the sales document.

    Billing plans for periodic billing and milestone billing plans for project-related milestone

    billing have different overview screens so that you can enter data relevant to your

    processing.

    For example, for milestone billing, you must be able to enter data to identify the

    individual milestones.

    IMG configuration requires :-

    1. Maintain billing plan types for milestone billing in OVBO.

    2. Define date description in SM30 - V_TVTB.

    3. Maintain Date Category for Billing Plan Type IN OVBJ.

    4. Allocate date category in SM30 - V_TFPLA_TY.

    5. Maintain date proposal for Billing Plan Type in OVBM.

    6. Assign Billing Plan Type to Sales Documents Type in OVBP.

    7. Assign Billing Plan Type to Item Categories in OVBR.

    8. Define rules for determining the date in OVBS.

    Milestone billing is typically used for billing projects, such as plant engineering and

    construction projects. Such projects often include a series of milestones that mark the

    completion of different stages of the work. In the SAP R/3 System, milestones are defined

    in a network along with planned and actual dates for the completion of work. The milestones

    are also assigned to the billing dates in the billing plan.

    Each milestone-related billing date is blocked for processing until the Project System

    confirms that the milestone is completed.

    Delivery-relevant order items for which a milestone billing plan applies are billed on the

    basis of the requested delivery quantity and not on the total of the confirmed quantities.

    The connection between the project and the sales document item is made in the individual

    schedule lines of the item. Each schedule item can be assigned to a network in a project.

    To display the project-related data for a schedule line, proceed as follows:

    In one of the overview screens of the sales document, select

    1. Item -> Schedule lines.

    2. Mark the schedule line and select Procurement details.

    The following figure shows an example of milestone billing where only the Contract have

    been billed :

    Order Item Turbine 100,000

    Billing Plan

    Billing date Description % Value Billing Block Milestone Billing Status

    01-10-94 Contract 10 10,000 - x x

    01-03-95 Assembly 30 30,000 x x

    01-04-95 Maintenance 30 30,000 x x

    01-05-95 Acceptance 30 30,000 x x

    01-06-95 Final invoice .. .. x

    Network/Activities

    Milestone Estimate Actual

    Assembly 01-03-95 01-03-95

    Maintenance 01-04-95

    Acceptance 01-05-95

    For each billing date in a milestone billing plan, you can specify whether the billing

    date is:

    1. fixed

    2. always updated with the actual date of the milestone

    3. updated with the actual date of the milestone, if the date is earlier than the

    planned billing date for the date

    reward points if it helps

    Regards

    Govind.

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 23, 2007 at 07:23 AM

    Hi friend,

    Periodic billing & Milestone billing are the billing plans used in Std SAP for billing process.

    Periodic Billing - This billing plan is used in the scenarios like...rental agreements, cycle billing, etc....

    When V assign this billing plan in the sales docemnt type, billing control screen, in Tcode VOV8.

    Milestone billing - Milestones are maintained as per the percentage of net value or as per the dates. While using this plan, in the sales order creation mode, in Billing plan tab for item....V have the option of maintaining % of value and billing date.

    Same Billing plan for all the scenatrios can be maintained in IMG config for Billing plan. If u want to have different billing plan in the sales order, U can change the plan for Items by unchecking the billing plan field in Header details - Billing plan tab of Sales order.

    Reward if helpful.

    Regards,

    Praveen.

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 23, 2007 at 09:36 AM

    Hi Manivannan,

    Please find the Notes on Perodic N Milestone Billing Below:

    Periodic Billing

    This can be configured using Periodic Billing.

    1. Create New Sales Order Type, say ZOR (Copy of OR) through T.Code: VOV8

    Maintain Delivery Type as LF & Billing Type As 'F1' - Order Related / 'F2' Delivery Related.

    IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Documents Types

    2. Assign New Sales Document Type to Sales Area, For Eg:

    1000 (S.Org) / 10 (D.Channel) / 10 (Division) / ZOR (S.O Type)

    IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Assign Sales Area to Sales Document Type

    3. Create New Item Category, say ZTAN - Copy of TAN (For delivery Related) / ZTAD - Copy of TAD (For Order realted) / ZTAS - copy of TAS (For Third Party)

    Maintain as under (others remaining same)

    Billing Relevance: I

    Billing Plan Type: 02

    IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item Category

    4. Assign Item Category, for ex (assuming Usage & higher level item category as blank):

    Sales Document Type | Item Category Group | Default Item Category

    ZOR | NORM | ZTAN

    ZOR | DEIN | ZTAD

    ZOR | BANS | ZTAS

    IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Assign Item Category

    Note: In the above Billing Type '02' plays the main controller for periodic billing. In Sales order, at item level, we require to maintain the billing plan

    Have a look to these SAP documents: very useful they explain all.

    http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MYSAP/SR_CS.pdf

    http://help.sap.com/printdocu/core/Print46c/en/data/pdf/CS/PMSMASC.pdf

    http://help.sap.com/saphelp_47x200/helpdata/en/31/03953401024735e10000009b38f83b/frameset.htm

    Milestone Billing

    This can be configured using Milestone Billing.

    1. Create New Sales Order Type, say ZOR (Copy of OR) through T.Code: VOV8

    Maintain Delivery Type as LF & Billing Type As 'F1' - Order Related / 'F2' Delivery Related.

    IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Documents Types

    2. Assign New Sales Document Type to Sales Area, For Eg:

    1000 (S.Org) / 10 (D.Channel) / 10 (Division) / ZOR (S.O Type)

    IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Assign Sales Area to Sales Document Type

    3. Create New Item Category, say ZTAN - Copy of TAN (For delivery Related) / ZTAD - Copy of TAD (For Order realted) / ZTAS - copy of TAS (For Third Party)

    Maintain as under (others remaining same)

    Billing Relevance: I

    Billing Plan Type: 01

    IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item Category

    4. Assign Item Category, for ex (assuming Usage & higher level item category as blank):

    Sales Document Type | Item Category Group | Default Item Category

    ZOR | NORM | ZTAN

    ZOR | DEIN | ZTAD

    ZOR | BANS | ZTAS

    IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Assign Item Category

    Note: In the above Billing Type '01' plays the main controller for milestone billing. In Sales order, at item level, we require to maintain the billing plan.

    Follow the Sales cycle as normal sales cycle for particular Scenarios

    Please Reward If Really Helpful,

    Thanks and Regards,

    Sateesh.Kandula

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