Diffe b/w periodic nad milestone billing? with examples

diffe b/w periodic nad milestone billing? with exaamples

Hi,
The best example for periodic billing is monthly rent.
Every month you will be giving a fixed amount for a period of time ( 4500/- per month for 2 years).
In the case of mile stone billing:
Example is a software project. The project will be devided into several stages 'milestones'.(preparation, development, testing, execution)
The project cost will be devided into these stages. When each milestome is reached, the amount will be billed.
Hope you are clear with the basic differences of these two.
Prase

Similar Messages

Milestone Billing with Down Payment

Hi,
I have a milestone billing plan with down payment. The process steps are as follows;
1. Create a sales order (ZPN, copy of OR) with 50% down payment using Milestone billing plan.
2. Create the down payment request (FAZ)
3. Receive the down payment.
4. Create delivery
5. Create final invoice
I have a copy of invoice F2 (ZFN) that I want to use for the Final Invoice, and an Item catgory copy of TAN (ZTAN).
when I want to generate the final invoice a message displays this :
"Item category ZPN ZTAN cannot be invoiced with billing type ZFN"
Can anyboy help me??
Thanks in advance
Itzel

1.CHECK THE COPY CONTROLS
2.Check the item category controls

Milestone billing with Partial Dispatch

Scenario..
1) The material we have is a large machine tool
2) We create a sales order for stage wise payments and raise down-payment requests for the advance and various stages of manufacture.
3) The M/c is assembled and checked for performance...
4) Since the machine is of large size it is now dismantled and dispatches of parts of the m/c take place.
5) We are not sure at the time of sales order as to what would be final configuration of the knocked down machine
6) The machine is packed -- child material of various sub-assembles are clubbed together and a packing list is prepared..
7) Delivery of these packs are made thru PS
8) Now I want to bill this m/c with 70% of the payment to be realized at the time of dispatch..
However the 70% of the payment to be realized has to billed in 4-5 lots as per the delivery of the individual packs delivered.
How do I Do the final billing ??
Kindly Help
Regards
Somnath

The billing plan for the sales order contains billing-relevant deadlines. As soon as you take away the billing block, you can carry out billing.
In billing those payments already made by the customer should be cleared. This happens because those payments already made are taken into the billing document as items to be cleared. They are set as items, after the billing items to which they refer, in the billing document. When printing (Report RVADIN01 with form RVINVOICE01) the customer receives for the down payment items the text payments made printed out. The down payment item value corresponds to those down payments made.
There is no billing: Billing amount - Down payment amount = the remaining amount to be paid. The customer merely receives the information concerning which amount he can transport during payment.
You can change the proposed down payment amount for clearing manually. The reason for this can be that part of the down payment should be proposed for further billing. Calculation formula 48 in the pricing procedure for the condition type AZWR merely checks that the amount cannot be increased.
The down payments assigned to a billing document for clearing cause the system to offset all the completed payments against receivables in Financial Accounting (FI).
The total amount of the final invoice is automatically posted in FI as a receivable, and the allotted down payments are cleared directly (down payment clearing).The transaction is finished with the incoming payment posting and the open items are cleared. Postings made to the relevant general ledger account in Financial Accounting reduce the down payments left to be cleared.
Final Billing with Down Payment Clearing
The sales order billing plan also contains the final billing date. As soon as you take away the billing block, you can carry out final billing.
In billing those payments already made by the customer should be cleared. This happens because those payments already made are taken into the billing document as items to be cleared. They are set as items, after the billing items to which they refer, in the billing document. When printing (Report RVADIN01 with form RVINVOICE01) the customer receives the text payments made printed out for the down payment items. The down payment item value corresponds to those down payments made and not yet cleared.
There is no billing. Billed amount - Down payment amount = remaining amount
to be paid. The customer merely receives the information concerning which amount he can transport during payment.
The down payments assigned to a billing document for clearing cause the system to offset all the completed payments against receivables in Financial Accounting (FI).
The total amount of the partial/final invoice is automatically posted in FI as a receivable, and the allotted down payments are cleared directly (down payment clearing).The transaction finishes when the incoming payment is posted and the open items are cleared. Postings made to the relevant general ledger account in Financial Accounting reduce the down payments left to be cleared.

Milestone billing with TAX

Hi
I have a billing plan type milestone billing assigned to sales order type and item category.
I have created date proposal and assigned to billing plan type, In date proposal, there is only one line item, which is closing invoice( i.e 100% of net price).
In the sales order, if the material is liable for tax and the tax value of the material is 100 $, how does this 100 $ gets posted. As in the billing plan tab in the sales order, it shows the net value and billing value as same (because its 100 %).
But what about the tax and how it is posted to accounting.
Regards
Sreekar

Hi
Is there any condition defined for tax determination.
So u r saying if the invoice is 100 then tax is 100 and hence total is 200.
According to me if u define the tax as 100% then billing value shows 100 only without considering tax. You can define a subtotal which is same as billing value. Put the tax value same as the billing value and then add together.
Reward if helpful
Kind Regards
Sandeep

Milestone Billing with DownPayment Clearing

Hi folks,
I have a problem that the Downpayment made by the customer and posted through transaction F-29 is not being shown as the second line item (below the actual billing item). Actually as per the SAP documentation "those payments already made are taken into the billing document as items to be cleared. They are set as items, after the billing items to which they refer, in the billing document"....However in my case , this is not happening. The other alternative is clearing the downpayment against the billing item through FI using F-39, which though works fine, is still a round-about way, hence can somebody help me with my problem. I'm sure somebody from you experts may have come across this problem. Pls note that all the settings in SD and FI as explained in the documentation ahve been done and are working fine, except the above feature.

This problem "was because in the Accounting settings of "Reconciliation accounts (A/R, A/P)" [OB14], the sales order field was suppressed. After unhiding this field, it started working fine as this is the field whch forms the link between the Downpayment recieved in the Accounting to be affected as a subsequent line item in the Billing Document.

Milestone Billing with Downpayments / Problem with AZWR

Hi All,
I have a problem as follows.
I have configured my MS billing and downpayments for the customer. These customisations are clear and doesnt need any advice!
When I create a downpayment request in VF01 using FAZ, the condition type AZWR is not fetching the value, though the reqmt and the base value routines are correctly assigned and it is configured before the tax condition types. What can be the problem and the solution for this.
Regards
S.Navaneetha krishnan

Did you check in the pricing analysis in the billing document for reason? Though you have verified configuration, it is worth taking another look into the details. I recommend going through OSS Note 213526 - Customizing of down payment processing SD/FI
Regards,

Milestone Billing for third party order process

hai Gurus
             Pls help me in understanding of milestone billing with example.
             Is it possible to link the milestone billing for Thirdparty order process?
             pls send me documents to my Id [email protected]
I will reward points for the helpfull answers
Regards
SaravananS
Message was edited by:
        Saravanan Sevuga perumal

Hello Saravanan,
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
<b>**REWARD IF THIS HELPS**</b>
Regards
AK

Milestone billing & Periodic Billing

Can anybody give me the complete configurationpart of Milestone billing & Periodic Billing.If with screen shots I will be highly obliged.

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
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.
Follow the Sales cycle as normal sales cycle for particular Scenarios
Regards,
Rajesh Banka

Configuration of Milestone billing / Periodic Billing

Dear Gurus,
I am now on the verge of completing study of SD module.
Request to please explain the configuration of Milestone and Periodic billing.
I am referring book (SAP - SCM 615). I think many topices are metioned with very limited / no explanation.
Thank you very much in advance.
Regards,
Ashish

Hi Ashish
All the best for your certification exam
https://www.sdn.sap.com/irj/scn/wiki?path=/display/erplo/milestone+billing.
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
https://www.sdn.sap.com/irj/scn/wiki?path=/display/erplo/periodicBillingConfiguration
Periodic Billing Configuration:
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.
Follow the Sales cycle as normal sales cycle for particular Scenarios
Regards
Raja

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 : [email protected]
Thanks in advance
Regards
Manivannan R

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.

Resource related billing and periodic billing and milestone billing

Hi friends,
Any one having resource related billing and periodic billing and milestone billing
documents are any config documents and any more details.
Waiting for reply urgently,
Regards.
kishore

Hi Kishore,
Pl. check these links :
<a href="http://help.sap.com/saphelp_47x200/helpdata/en/31/03953401024735e10000009b38f83b/frameset.htm">Periodic Billing</a>
<a href="http://www.sap-img.com/sd006.htm">Milestone Billing</a>
<a href="http://help.sap.com/saphelp_47x200/helpdata/en/4a/ac853478616434e10000009b38f83b/frameset.htm">Resource related billing</a>
Reward if useful.
Thanks & Regards
Sadhu Kishore

Reg : Milestone / Periodic and RRB Billing Configuration.

Hi SAP Gurus
we are integrating SD-PS to get back revenues on the project automatically. We are using WBS element as a real object at the item level of the Sales Order. There are going to be three kinds of Billing types: Periodic, Milestone and RRB (T&M and Travel). So we probably need an Order type and Item categories for different billing types. Travel expenses needs to be part of the Sales Order. For RRB, DIP profile needs to be configured to capture no. of hours worked on the project and travel expenses.
Please let me know what are things needs to be configured for this process. and how to configure the Milestone/ Periodic and RRB billing type.
Thanks

Hi,
http://help.sap.com/saphelp_46c/helpdata/en/dd/56069b545a11d1a7020000e829fd11/frameset.htm
http://help.sap.com/saphelp_46c/helpdata/en/59/54fc37004d0a1ee10000009b38f8cf/frameset.htm
http://help.sap.com/saphelp_46c/helpdata/en/59/54fc37004d0a1ee10000009b38f8cf/frameset.htm
Kapil

Sales order with milestone billing in real estate scenario

dear Sir;
My client is in real estate buisness; typically the process is sales order-mile stone billing. my client requirement is that they wants to change the sales order value in between milestone.
for ex: if sales order value is Rs 100 and they done billing of Rs20 by milestone billing, they wish to change the order value to Rs 80.
currently we are following process like reversing all the billing doc and posting and change the sale order value and re billed it.
please suggest some suitable solution.
regards
Ashish

Dear Friend,
This can be done by configuring billing plan in SAP SD.
Go through the following links.
Configuration of Milestone billing / Periodic Billing
Billing plans
Thank you,

Sales order with milestone billing

Hi,
We are migrating sales orders with milestone billing to ECC 6.0 system. There are line items in the sales orders in the billing plan which have been completely billed. For line items which have not been billed, there is billing block which flows from the WBS element attached to the line item.
We want to transfer the sales orders to the new system with same status of billing completed for the line items for billing dates which have been billed. This will ensure that billing is not done again in the new system for these billing dates.
Kindly guide as to how we can achieve this.
Regards,
T Saravanan

Hi,
We are moving the orders from ECC 6.0 system to ECC 6.0 system only.
The challenge is to that customer wants the orders with milestones completely billied as it is in the system.
When we bring the orders to the new system, how to ensure this status for milestones which have already been billed.
Regards,
T Saravanan

COPA document in ETO (Engineer to Order) Scenario with milestone billing

Hi All
I have some issue in COPA document generation in ETO Scenario.
In ETO scenario, we have following important points
--- Milestone billing (30 % downpayment, 60% on shipping and remaining 10% with closing invoice) in the Billing plan.
--- We have dropship ment kind of scenario where the Purchase requisition is created while creation of Sales order.
--- While GR for PO whill be statistical and we will be booking COGS in GR
We have an issue in COPA document while billing. The quantity field is not getting updated.
Please help.
Regards
Neeraj Bhardwaj

Hi,
Is this the same functionality as Revenue Recognition in SD ? In that case please refer note note 619498.
regards
Waman

Diffe b/w periodic nad milestone billing? with examples

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