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Former Member

Milestone Billing for partial quantities


My client is having Milestone billing schedule where in they bill their customers as per the billing schedule maintianed in the billing plan tab in sales order.

Billing plan is activated at Item level as the various items in a sales order can have different schedules.

But the issue is that they bill their customer on pro-rata basis which means the the billing document created for different milestones in the billing plan for each item can happen for partial quantities of the item under consideration.

Standard SAP Functionality doesnot allow this. In Copy Control, I tried out using the Invoice Split in Data Transfer Routine in Copy Control which doesnot give me the desired fucntionality.Copy Requirements Formula used is 023 (Item ord.ref. w/o AZ) as i need to create invoices for each milestones at item level which is working fine. But just that i cannot do milestone billing (for individial milestones at Item Level) for rpartial quantities. It can only happen for the entire order quantity.

In short the condition BIlling Quantity = Order Quantity - Invoiced Quantity is not working. Always Billing Quantity = Order quantity.

Delivery Related billing will not serve their purpose either...

Can any one throw some light on the above issue? Can I achieve the desired rersult using some custom routines?



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    Former Member
    Feb 17, 2011 at 04:59 AM


    In a milestone billign scenario, this is not possible.

    When a milestone is confirmed in PS, it means that all the items have achieved that milestone, and when you are billing after the MS confirmation, you know that MS is done for all the items falling under that WBS and the billing is booked as revenue for the WBS element. WBS is common for all the quantities and not specific to some specific quantities of the item. So you have to create the billing for the entire item for that particular milestone. You cannot split the invoice partly.

    If you really want to do it, the only way is to put the quantities as two different items, and generate two different networks for the same WBS and then confirm the MS at different point of time for different line items. Consequently you can do invoicing for the specific item , but in full.

    Hope this helps. Lemme know if you need some more information

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    • Former Member

      Hi Navaneetha,

      Thanks for your reply.

      I do completely agree with you and informed the same to the client.

      I have activated Billing plan at item level and each item is been assigned with different WBS Element and everything is working Fine except the fact that partial billing is not possible for the quantities.

      Let me explain the business implications of the same.

      My client might have a billing schedule with 4 milestones for an Item A of 100 Quantities in a Sales order

      Milestone 1 : Upon the confirmation of Order Acceptance , they bill the customer for 10 %

      Milestone 2 : Upon the completion of designing part, they bill the customer for another 20 %

      Milestone 3 : Upon the dispatch of materials to the customer. they bill the customer for another 60 %

      Milestone 4 : Upon the submission of the documents and completion the legal aspects, the final invoice for the 10 % which completes 100 % Milestone billing

      Now here in the third milestone when the items are dispatched, they also need to create the excise invoice. here what they do is that they bill the customer for 60% of the net item value as explained above, but the taxes would be calculated for 100% net item value( VAT/CST & Excise Duties).and based on this commercial invoice, the excise document is created. I managed to map that. No problems

      But their concern is with third milestone. Milestone 1, 2 & 4 will happen for the full 100 quantities. But for third milestone, let us say that they dispatched 90 quantities of the item and for some reasons they could not dispatch 10 nos of items. They are entitled to bill their customers for the 90 nos of the Item and the rest 10 Nos they will bill it as a different invoice. Now SAP Doesn't allow this.

      One solution is to ask them to prepare Proforma/Commercial Invoice against the delivery Document and Excise Invoice against the invoice so created. But then it further complicates the process and already billing against billing plan is so complicated that they are complaining that their life was so easy before the implementation of SAP 😔

      They want some solution for this problem of theirs as when they mean one quantity of Item A, they mean some thing around 10-50 Crore Rupees.

      There is one note released by SAP but that is restricted to versions below 4. 7 and become obsolete for higher versions.

      Can any body help me out with this? How about possibility of a custom Routine in Copy Control or Data Transfer?

      The problem is that the moment i activate an item category with billing plan, it deactivate the copy control setting for partial order billing.

      Thanks & Regards,

      Nithin Mohanan