Partial Billing Issue

[Former Member]

Hi Experts,

I am in an implementation project. I have a business scenario which I find difficult to MAP in SAP. Can anybody suggest on this-

Scenario:

1. Industry is continuous production process and mostly MTO scenario. As it is a pure process industry there is no role of PS in the production process.

2. Production has three phases-

Phase 1 : Fully handled in SAP

Phase 2a : Handled in MES  application ( output is semi-finished goods and not taken in SAP stock)

Phase 2b ( Finishing process) :  Handled in MES application ( output is finished goods and  taken in SAP stock for sales)

3. Sales order has multiple line item. Billing condition is 80% customer payment on production completion ie Phase2a.

4. Problem is SAP has no knowledge that phase2A is completed and by what %. For the time being let us assume MES will directly send this information to the billing Clerk

5. Let us assume that a SO has two line items-

i. Material X

   Qty : 5 pc

   Unit price : 10 $

   Total line item value : 50 $

ii. Material Y

Qty : 10 pc

Unit Price : 20 $

Total line item value : 200 $

Total Sales Order Value : 250 $

Now let us consider that 5 pcs of Material Y ( Semifinished) is produced in phase 2a. ie total billing value will be 80% of ( 5 pcs x 20$)= 80% of 100 $= 80$

Now my question is how to map this billing scenario in SAP? How to bill this $80 to the customer? Please note-

i. Till now no material is delivered to customer as material is still undergoing the finishing process and production process is not completed

ii. We cannot generate invoice for 80% of entire sales order line item quantity and value ( ie 10 Pcs and $200).

Request billing experts to advise

Regards,

Parijat

[Former Member]

Hi Dear,

You can map this in PS module, but in your case there is no PS module then go for Billing plan

Please check the below link:

http://help.sap.com/printdocu/core/print46c/en/data/pdf/SDBIL/SDBIL2.pdf

http://help.sap.com/saphelp_46c/helpdata/en/dd/5606b5545a11d1a7020000e829fd11/content.htm

http://help.sap.com/saphelp_erp2004/helpdata/en/dd/56069b545a11d1a7020000e829fd11/content.htm

Regards,

[Former Member]

Hi Muhammad,

Thanks for your reply. We cannot use PS to map our scenario as it is a continuous process and not a discrete  industry although mostly order based.

We cannot do directly periodic billing as in periodic billing " Periodic billing means billing a total amount for each individual billing date in the plan, eg monthly rental". But in case my client is not billing a predefined fixed amount  in every specified period. Actual billing depends on actual output of phase2a process mentioned above. ie billing amount may vary each time for sales order.

Milestone billing may be more close to our requirement. But we probably cannot use milestone billing process as it is without improvisation either. As per normal milestone billing "We 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."  Now issue is we are not billing 80% of the sales order line item value. Billing value is 80% of the value of the material actually produced.

In fact billing value in real term depends on the decision of the decision makers which is a non standard process in SAP.

Can we suggest one thing whether we can take all the intermidiate money as advance in SAP and actually bill the customer when all materials are delivered through order related billing? Will there be any integration issue with FI or more eventually in CO? Can you kindly expedite?

Regards,

[Former Member]

Yes You can use Downpayment process first setup downpayment process in IDES or sandbox client run one complete sales cycle then show the accounting entries to FICO consultant.

Please check the below link

Note: 213526

https://websmp230.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=213526

Regards,

[Former Member]

Hi,

    You can go with billing plan like periodic billing or milestone billing, check and revert.

[Former Member]

Hi Srinibasan,

Thanks for your reply. But we cannot do directly periodic billing as in periodic billing " Periodic billing means billing a total amount for each individual billing date in the plan, eg monthly rental". But in case my client is not billing a predefined fixed amount  in every specified period. Actual billing depends on actual output of phase2a process mentioned above. ie billing amount may vary each time for sales order.

Milestone billing may be more close to our requirement. But we probably cannot use milestone billing process as it is without improvisation either. As per normal milestone billing "We 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."  Now issue is we are not billing 80% of the sales order line item value. Billing value is 80% of the value of the material actually produced.

In fact billing value in real term depends on the decision of the decision makers which is a non standard process in SAP.

Can we suggest one thing whether we can take all the intermidiate money as advance in SAP and actually bill the customer when all materials are delivered through order related billing? Will there be any integration issue with FI or more eventually in CO? Can you kindly expedite?

Regards,