Milestone Billing - Partial Invoice, Proportional Settlement

Can anyone advice the following statement from SAP documents? This is pertaining to milestone billing.
During partial invoicing, the amount of the down payment to be cleared can be changed (by changing the amount for condition type AZWR on the pricing screen for the item).
While doing the partial invoicing 'F2' after the inital downpayment request 'FAZ', i did not see condition 'AZWR' being proposed for me to make changes. Is there something i missing? Is the proportional settlement of downpayment done in SD billing?
Thanks
Peter

Hi,
Just make sure you configure the condition type AZWR in your pricing procedure, to let you change the downpayment during partial invoicing.
Regards,
Siddharth.

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Milestone billing - final invoice for every milestone

Hi, friends!
In a real estate implementation project: On confirmation of every milestone from PS, the billing block will be released. Suppose the unit costs 20,00,000 and there are 10 instalments with 10% of the value for billing each time. Each instalment will be 200,000. Since service tax is to be paid on accrual basis, each invoice needs to have a breakup into various components like basic sale price, preferred locatioon charges, floor rise etc. Each component attracts a different rate of service tax. The invoice for every instalment needs to show this breakup. This means that I have to back-calculate this amount of 200,000 into the various heads: basic sale price, service tax on the same, preferential location charges, service tax on the same etc.
Please guide on a method to achieve the same.
Thanks,
Kasturi

Hi,
One of the way is to create each charge as Material and then have a pricing for the same in the sales order. But in this you will have to attach billing plan for each material.
Another way would be to keep the charges as condition type. in this u will have to create routines to calculate the exact value for each charge as u have suggested. for service tax u can create 2 condition types one for 10% and another for 2.5% as these are the only two percentages applicable for service tax.
Regards,
Deepak

Milestone Billing in projects--Final Invoice

Hi all,
We are using Milestone billing in the project. Milestone confirmation in projects trigger the downpayment requests, partial invoice and final invoice in SD.
Everything works fine for down payment and partial invoice, but when the milestone for final invoice is confirmed in PS, the billing rule in the sales document item does'nt get removed. Consequently billing cannot take place.
Kindly thow some light on this. Is FNBL status on WBS , a must to carryout final billing ?
Warm regards,
Srinivas Potluri

Hi Srinivas,
Please check the Date Category of Milestone usage, the one u have selected for the final invioce. It should be 'Closing Invoice".
Please let me know if that resolve the issue.
Thanks,
Venkat

Milestone Billing for partial quantities

Hi,
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?
Regards,
Nithin

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

Error while creating Credit Memo Request for Milestone billing invoice

Hi All,
I have a scenario where i have Milestone billing(% based) at header level in Contracts. I create Invoice for that and then try to create Credit Memo Request with reference to the Invoice.
Problem comes when we try to change the qty in the credit memo request. we are able to change the qty but the value is not changing. It remains the same constant value of that milestone.
In my copy control from Invoice to Credit memo request for the item category i have maintained the pricing type as "C" because i want to copy and manual conditions.
So kindly let me know which config setting should be done so that whenever i change the qty the value should also be changed.
Please Note : This is happening only when my billing plan is at header level. For Billing plan at Item level its working fine.....
Thanks.....

Hiiii.....
Can anyone please advise on the below issue of mine.....
Thanks alot for the help.......in advance

Sales Order with Partial and down payment (milestone billing)

Hello Experts,
I have configured a scenario where a down payment and a partial payment and a closing invoice is done on the billing plan for a sales order. The down payment request was done and posted manually in FI and the process went well. The issue i have is that the down payment is not reflected in my partial invoice or my second invoice and my closing invoice as well is not reflecting the payment made for the partial invoice (which is suppose to contain the amount less the down payment).
Please, how do i resolve this issue?
Thanks.

Hi,
See from what i feel from your description is, the business process is as follows:-
1) You receive the down payment request, this goes to a special g/l with indicator "F". Now when you recieve the payment you subsequently clear the amount through T-code F-29. In this case the down payment amount or the advance is treated as a deposit, which you adjust against each partial invoice, or completion of certain project.
2)When you create a partial invoice, considering the example in my earlier post you book complete value of the invoice i.e. RS 800.
The client requires that RS 720 and Rs 80 should goto seprate g/l accounts. IN this case you need to define a condition type say "zadv" assign a new account key to it say "zad" in SPRO>SALES AND DISTRIBUTION>BASIC FUNCTIONS>ACCOUNT ASSIGNMENT/COSTING>REVENUE ACCOUNT DETERMINATION>DEFINE AND ASSIGN ACCOUNT KEYS.After billing of the correspoding amount I.e RS 80 will be cleared through F-39. Please check the same with you FI consultant.
3)Since the condition tab page is greyed out , SPRO>SALES AND DISTRIBUTION>BASIC FUNCTIONS>PRICING>PRICING CONTROL>DEFINE AND ASSIGN PRICING PROCEDURE>ASSIGN PRICING PROCEDURE TO BILLING TYPES. Also check in tcode VOFA wether oc. pric. procedure si assigned or not.After doing this you can add teh condition type "ZADV".
also you can refer to this link down payment condition type (azwr)
Regards
Aadesh Kamat
Edited by: aadesh123 on Jul 14, 2011 6:41 AM

Hi When i create the downpayment process in the invoice i get amount as value but my requirement is in percentage even after i select the percentage basis milestone billing please help what can be done

Hi When i create the downpayment process in the invoice i get amount as value but my requirement is in percentage even after i select the percentage basis milestone billing please help what can be done

downpayment percentage , so if i want 50 percent of order value to be paid and when i go to faz type the invoice is created for 0 value that 50 percent of the amount is not getting calculated , where as when i enter in order same as 50 percent in amount it gets calculated in invoice, any help ?

Milestone billing not splitting the invoice

Hi,
i specified Milestone Billing during a Sales Order but when i try to bill the customer using transaction VF01,
it bills the whole amount of the Sales Order even though i specified only 25% to be billed.
For example, i created a Sales Order with net amount $100, and specified in the Billing Plan for it
to invoice the customer 25% today. But when i do simulate the billing using transaction VF04, it
shows the invoiced amount as $100 instead of $25.
Can anyone help?
Thanks in advance.

Hi SHAMBHU SARKAR,
I got milestone billing to work by specifying billing type F2 under the 'Billing plan' tab in transaction VA02.
Also make sure that your 'Date Category' in the 'Billing plan' tab is set to 01 for milestone billing.
Otherwise, go to SPRO -> Sales and Distribution -> Billing -> Billing Plan ->.... to check that your settings are correct and that
you have assigned a Billing Plan to either your Sales Document Type or your Item Category depending
on whether you want to use milestone billing at header level or line item level.
Hope this helps.
Good luck!

Third Party Billing Plan Invoice problem

I have an issue in regards to using milestone billing with a third party order..
We currently use third party ordering to ship goods direct to our customers from our parent company in France. This process works well. I know have a scenario where our customer wishes to pay for goods in 2 installments . When they place their 3rd Party order they pay 50% of the total price up front then pay the remaining 50% plus an additional fee of 5% after 12 months. I have configured a new milestone billing plan for this scenario but I am unable to raise a billing document for the customer.
In the non billing plan scenario the document flow works as follows
Customer sales order raised - Automatic Purch Req - Purch order raised against parent company - Parent company ship to customer and bill us - vendor ivoice loaded against PO (MIRO) - Customer is billed via original sales order
The Billing plan scenario should work like this (but doesn't)
Customer sales order raised - Automatic Purch Req - Purch order raised against parent company - Customer Billed initial 50% - Parent company ship to customer and bill us - vendor ivoice loaded against PO (MIRO) - 12 months later Customer is billed via original sales order.
The issue I have is that the system cannot see an open billing quantity for the order even after the Vendor invoice has been loaded into the system against the purchase order.
Has anyone else had issues with this scenario and if so could they offer some advice on how to resolve
Many Thanks

Hi Mark,
This is expected in standard scenario.
In third party scenario, the billing relevance is either E or F in the item category.
If A, you can do invoice only for the quantity for which MIGO is done.
If F, you can do invoice only for teh quantity for which MIRO is done.
Your non-biling plan scenario is working fine, becos you are doing MIRO.
It is not workign in billing plan as you are not doing MIRO here.
So,
If you want to do partial billign in billign plan, you have to do MIRO for partial quantity and then do billing. In this case, only that part of teh invoice value will be used for creating the invoice.
However, I would suggest you to use someother item category for third party item with billing plan which doesnot have billign relevance as A or F, but has B or C. Then try doing billign as per billing plan. It will work.

Milestone Billing FI Configuration (Account Assignment)

Dear All,
I am configuring milestone billing is system. Upill i had defined a milestone billing type and all the configuration realted to milestone billing date and date categories is done
I have also defined the condition type AZWR in my pricing prcoedure with routines (2 and 48)
Q1) Now I defined my pricing procedure as follows
Step 10            Pr00                                                  ERL
Step 20            MWST 15% of step 10                       MWS
Step 30            AZWR                                               ERL
Now i think i am doing wrong by assigning the same account key ERL for both Price (PR00) and AZWR.
Q2) When i m posting the invoice now the system is giving an update error message that
Error Info...   FI 661: Maintain default revenue element in controlling area OGC
I had made the assignment in Revenue Account Determination
Should i make the assignment in Revenue Recognition as well.
Kindly help me on this GURUS i am totally confused
Thanks in advanc

Hi
But the error is related to controlling . Just go to OKKP and check wheather you have checked in the controlling area properly or not
make the following down payment configurations
item category group - 0005
item category - TAO
for this TAO item category a billing plan 01 (milestone billing plan -01) will be assigned and its billing relevance should be I which is order related billing .
billing doc type - FAZ
cancellation billing doc type - FAS
maintain a condition type AZWR which is down payment settlement , it has requirement as 2 and calc type as 48 acct key as ERL
Now when you enter a material in line item 10 and go to item data , you can see the billing plan tab.
now go to billing plan tab and enter the start date and enter the dates on which billing has to be done and then in billing request enter 0009 which is for down payment.once u press enter automatically it all the dates get blocked and billing request by default you get as 1 , that you change it to 4 or 5 . 4 is for down payment at value basis and 5 is for down payment at percentage basis. and beside that there will be a billing type .assign billing doc type as FAZ. to all dates
check the copying requirements are there at VTFA as 20 and for item category TAO copying requirements 23 is maintained or not
now do the cycle    OR - LF - FAZ (billing doc type)
Regards
Srinath

Quantity Issue- Milestone Billing

i am doing milestone billing, where the scenario is , i hav to bill the amount in 3 stages.
30-30-40.
Here i am using the billing type F1
earlier when i was creating a invoice for the first time by default the system was taking total vaule of the invoice where it should take only 30% of the amount and 30% of the quantity
Total Qty =100       Billing Amount 50,000
As per break up it is
qty                 Amount                 invoice
30                  15000                      F1
30                 15000                           F1
40                  20000                      F1
Now the billing should happen in the same way where if i invoice the customer for the first time the ststem should take the quantity as 30 and the amount as 15000.
As told i change the the copy control setting for pricing type for sales-billing , so now the system is picking up 15000 as the value for the first billing .
BUT THE QUANTITY WHICH THE SYSTEM IS PICKING IS 100, where it should pick up- only 30.
plz guide me for the solution

Hi Rishi
Your requirement can be fulfilled through Down payment configuration
Check the down payment configuration , it will help you and it will solve your problem
item category group - 0005
item category - TAO
for this TAO item category a billing plan 01 (milestone billing plan -01) will be assigned and its billing relevance should be I which is order related billing .
billing doc type - FAZ
cancellation billing doc type - FAS
maintain a condition type AZWR which is down payment settlement , it has requirement as 2 and calc type as 48 acct key as ERL
Now when you enter a material in line item 10 and go to item data , you can see the billing plan tab.
now go to billing plan tab and enter the start date and enter the dates on which billing has to be done and then in billing request enter 0009 which is for down payment.once u press enter automatically it all the dates get blocked and billing request by default you get as 1 , that you change it to 4 or 5 . 4 is for down payment at value basis and 5 is for down payment at percentage basis. and beside that there will be a billing type .assign billing doc type as FAZ. to all dates
check the copying requirements are there at VTFA as 20 and for item category TAO copying requirements 23 is maintained or not
now do the cycle    OR - LF - FAZ (billing doc type)
NOTE : Make this configuration in the billing plan
Total Qty =100 Billing Net Amount 50,000
qty Amount invoice
30 15000     FAZ
30 15000     FAZ
40 20000       F1
Hope this will solve your problem
Regards
Srinath

Rejected sales order item after partial invoice

Dear All,
We have a partially invoiced (and paid) sales order. Now the customer (and we) wants to cancel a sales order item. So we set reason for rejection at item level. In VA05 it still displays the SOI as open and status is being processed. How to proceed, it should not be displayed as open when it is rejected in VA05.
Can I change the billing plan so that the invoice does not mind the items I want to reject should I ste a billing block? Delivery Block?
Best regards,
Michaël
Edited by: spimic on Oct 5, 2010 6:21 PM

Hi,
Take the help of ABAP'er, and explain him that as soon as sales order is invoiced(partially), set the rejection reason to sales order.
And also define the rejection reason and assign these rejection reasons to billing types.
Regards
Ashutosh

Updation of Milestone Billing % in Sales Order

Hi All,
I am using Assembly Processing scenario and having milestone billing. I am able to create a sales order which creating project automatically and milestone are coping in sales order billing plan.
My query is : after creating sales order and automatic creation of project, client changes % amount in billing milestone which is not updating in sales order. Its showing the same amount which has been put in standard milestone.
Let me know how I can update this change in Sales Order billing plan when ever I change billing % in milestone.
Regards,
Atul R. Rajmane

Hi,
After Maintaining billing plan types for milestone billing,Please check the following,
In CJ20N , Create milstone under the activity of WBS,Fill the invoicing percentage in Billing plan section, be sure to tick on sales document date field, then go to the sales order it will copy the data automatically from the milstone .

Third Party Sales Order - Complete Upon Partial Invoicing

We have a third party sales order that creates a purchase order (No delivery is used). If there are 2 lines items and we completely invoice one of the line items and partially invoice the other, the sales order is showing in a complete status.
We are using an item category of: TAS
Billing Type: F2
Note: Completion rule on TAS is blank.
Does anyone have an idea of why the order would be going to a complete status when it is not fully invoiced?
Thanks,
Mark

Shiva,
Perfect answer. Thanks !
Mark

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 - Partial Invoice, Proportional Settlement

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