Milestone billing Scenario

[moazzam_ali]

Hi Gurus

I need your experts opinion for my scenario.

I have a scenario where my client sign an agreement with customer to write a book for him. They have agreed on periodic payments and billing depends on %age completion of task. I know milestone billing is best possible solution for this. I am trying to configure milestone billing after studying and searching google and SDN I got some clues. I have created order type by copying OR and item category copy of TAD and changed them as per my requirement. I have used standard billing plan 01 Milestone Billing. Now I am creating order and in billing plan tab my screen is like this.

If I double click on some line item screen is this.

Now I am trying to create billing and system is creating 3 invoices. I am confused on this. If anyone has configured such scenario please elaborate in detail what I need to do?

Should I create some WBS or Network for this?

Do I need to go in project system and do some changes in WBS, Network or milestone nodes?

If we split milestones in 3 quarters and after completion of first milestone how do we tell to system that milestone is completed?

Please elaborate.

Please don't go for dates on percentage in first screen shot because I have added manually just for testing.

[former_member182378 · Accepted solution]

Moazzam,

Check if the billing block is assigned to the billing type.

Path: IMG>Sales and distribution>Billing>Billing documents>Define Block reason For Billing

Assign blocking reasons to billing types.

If the above configuration is not done then irrespective of setting of the block at line item level, in the sales order; the billing document(s) shall still be created.

[moazzam_ali · Accepted solution]

Dear Sir

Thanks for your comments. I need your help in this regard.

I have created new blocking reason and assigned it to billing type but it is not coming automatically in Sales document. If I assign it manually then it blocks for billing. But I think this is normal billing block. For milestone billing block there is billing block in billing plan tab in line item and it should work.

Q2 Please let me know when a milestone is completed how do we tell the system that milestone has been achieved.

Q3 When I click on billing plan tab following screen appears and currently I am just closing it but let me know do I need to give WBS element or network for milestone? Is it mandatory for mile stone billing?

[abhinav_sharma05 · Accepted solution]

Hi Ali,

Use Item category as "TAO"

Regards,

[former_member182378 · Accepted solution]

Moazzam,

but it is not coming automatically in Sales document. 

Billing block is set in the Data category. When a date category is assigned to a billing plan type, the billing block is automatically set for that particular line (w.r.t the billing date) in the Tab Billing Plan, in the sales order.

In IMG>SD>Billing>Billing Plan>Define and Assign Date Categories

Maintain Date Category for Billing Plan Type

Q2 Please let me know when a milestone is completed how do we tell the system that milestone has been achieved

I am very clear w.r.t. your question2.

At line level, in Tab billing plan, there is a field "BillSt" (billing status) when it is C = completely processed then system knows that that line is complete.

do I need to give WBS element or network for milestone? Is it mandatory for mile stone billing?

No. These things are not mandatory.

I have done some tests in IDES, I donot get this popup.

Note: For providing more clarity (from myside), I would need to do some more tests.

Later, when I have done there tests, I shall update you with my findings.

Please do extensive tests, on the configuration part and questions related to configuration i.e. Date category etc. shall become clearer.

[moazzam_ali · Accepted solution]

Dear TW Sir

I have done some tests and understood everything. Now I have only some doubts. Please help me understanding my little concerns.

Please check below screen shot and tell me.

When date 04.12.2013 will come do I need to remove billing block manually? Means every time on milestone date I need to remove billing block manually?

If I remove billing block before 04.12.2013 then system allowing me to create invoice. Is it standard functionality?

[former_member182378 · Accepted solution]

Moazzam,

Yes, the billing block is to be removed manually.

Thus taking the business example you are working on:

Case1: Your client finishes 50% of writing the book before 4-12-2013. Then a user (after getting confirmation from the writer) removes manually the billing block for billing date 4-12-2013 in the order. There after a billing document is created (in VF01).

Case2: Your client has not finished 50% of writing the book before 4-12-2013. Then a user (after getting confirmation from the writer) does NOT removes the billing block for billing date 4-12-2013 in the order.

If user has removed the billing blocks for billing dates 4-12-2013, 4-12-2014 and 4-12-2015. Then in VF01, in field Billing date give a date after 4-12-2013 and before 4-12-2014 and check how many and which lines (of the order) are being billed? (creation of billing document with which lines?)

[former_member182378 · Accepted solution]

Moazzam,

Did you test the suggestion given by me?

Typewriter:

If user has removed the billing blocks for billing dates 4-12-2013, 4-12-2014 and 4-12-2015. Then in VF01, in field Billing date give a date after 4-12-2013 and before 4-12-2014 and check how many and which lines (of the order) are being billed? (creation of billing document with which lines?)

If yes, then please update.

[moazzam_ali · Accepted solution]

Dear Sir

I am sorry for late post. I was working on some other issue thats why I got late.

I have tested this.

I have removed billing block from dates 10.12.2012, 10.12.2013 and 10.12.2014. Now in VF01 if I don't enter date system is creating 3 billing documents but when I save it gives error of posting period for 2013 and 2014.

If I enter billing date 10.12.2013 system is creating one invoice with three lines like in below screen.

If I enter billing date as 10.12.2014 then again system is creating one billing with three lines like above screen.

That is ok. We wont remove billing block from milestones which are not yet completed. But I would like to know one thing. If I enter billing rule in first milestone as 4 Down payment in milestone billing on percentage basis then system is creating billing document with 0 value. In condition tab all conditions are inactive. Why is this happening. What is exactly use of billing rule 4?

Thanks for your interest in my testing sir.

[Former Member · Accepted solution]

Hi

Your initial issue was 3 invoices at a time,was this because of incorrect reference billing plan?

Did you fix this issue by adjusting dates in your reference billing plan.

Throw some lights on how you fixed this?

[moazzam_ali · Accepted solution]

It was due to removal of billing block from milestones which were not yet achieved. If we don't remove milestones from billing plan system will behave in correct way.

T W sir I am awaiting your response

[former_member182378 · Accepted solution]

Moazzam,

If I enter billing rule in first milestone as 4 Down payment in milestone billing on percentage basis then system is creating billing document with 0 value. In condition tab all conditions are inactive. Why is this happening. What is exactly use of billing rule 4?

For a customer, in the billing plan we want to include Down payment functionality then billing rule 4 comes in to picture.

The configuration settings for Downpayment is to assign the Milestone billing plan with the Date category (03 / 04). By doing this step the billing rule (04), the billing type FAZ etc. (configuration related to downpayment) shall automatically populate in the sales order, item level, Tab Billing Plan.

After doing the above configuration in Billing Plan (i.e. IMG>Sales & Distribution>Billing>Billing Plan>Define and Assign Date Categories). Then after giving % for downpayment in In Tab Billing plan, go to Tab Conditions check for condition type AZWR.

This is the condition type that shall determine the value of the downpayment.

Please test this in IDES and update.

Also, in IDES, search for billing documents with FKART = FAZ, looking into those billing documents & their associated sales orders shall help you in your understanding (i.e. SE16N, table VBRK, field FKART = FAZ....you can also give your BUKRS, VKORG...if needed)

[ashish_kothari4]

This message was moderated.

[moazzam_ali]

Dear Mr T W

Thanks a lot for your help in this regard. I have go through the whole process and now I have good understanding of milestone billing process. Thanks

[Former Member]

Hello Ali,

Can u send the screen shot wht u are doing u said system is generating 3 invoices make sure u have blocked the 2 lines and the first one is released from blocked . We are also using same scenario Milestone on header level . if u need any help just ask.

[moazzam_ali]

Hi SD unknown

There is only one line item in sale order. And as you can see in billing plan tab I have blocked all three line items. But it is not working fine because system is generating 3 invoices for all three milestones.