Service Contract to Sales Order?

Dear SAP Guru,
Can I create Sales Order from Service Contract and bill the order without going thru Resource Related Billing? MV -> OR -> F2?
Or, straight from MV to FV?
What is the correct process flow?
Thanks,
Soo

Yes. you can very well refer a service contract to a sales order and bill the same. But, see that your sales order items are relevant for billing (in case you have service products as contract items).
Resource related billing should be used when you are billing your customer w.r.t a service order.
There isn't a fixed process flow. Have this thumb rule:
1. When you have fixed price for type of repair you have agreed in contract, then there is no use of doing resource related billing, if the same kind of repair is being performed.
2. In case your customer pays you on time & material basis, go through the RRB route to bill.
Hi Ananth,
Thanks for your reply.
For my scenario, it is based on time & material for a rental material. The sales order is created based on the number of days used by the customer for a rental material and billing is generated.
So, if RRB is used, that will mean a DIP profile has to be set up.
Question:
If RRB is used, what will be the process flow? From CS module, a service order is created from the sales contract and in the DIP profile, there is a default order type which is "LV" and DMR will be generated and eventually, a debit memo is created.
What about sales order? Any DMR being generated? Or what is the flow?
Thanks,
Soo

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