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.

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Final Billing with downpayment clearing

Hi Friends,
Total Bill Value:- Rs. 3000/-
Down payment :-Rs 300/-(FAZ) -10% of Total bill value
1st Billing:-         Rs 1200/-(F2)-40% of Total bill value
Final Billing:-         Rs 1800/-(F2)-60% of Total bill value
When i create final billing , what will happen to Down payment amount Rs.300/- which i am paying more
      30012001800= 3300
so how to clear amount 300?is this amount replicate in Final billing?
Regards,
Amol

Hi
This question is laready answered.
While processing the Final invoice , the down payment made are transferred as down payments to be cleared.
Within Financial Accounting, the down payments are deducted from the reconcialiation account and entered in the standard reconciliation account.
The down payments for clearing then appears as open items for the customer and reduces the receiviable total.
You can also search the forum.

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 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 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 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,

Progress Billing with Downpayment and Retention

Hi SAP Gurus,
I just wanted to check if you have encountered a scenario wherein the purchase is billed progressively and that downpayments and retention are recognized for the purchase. For example:
Total Contract Price: 9900000
1. Downpayment (30%)                                           - 2,970,000.00
2. First Progress Billing for 45% Accomplishment    - 2,673,000.00
    Value of Accomplishment           4,455,000.00
    Deductions
     10% Retention                       445,500.00
     30% Downpayment               1,336,500.00
     Subtotal                            1,782,000.00
3. Second Progress Billing for 83% Accomplishment - 2,257,200.00
    Value of Accomplishment           8,217,000.00
    Deductions
     10% Retention                    821,700.00
     30% Downpayment               2,465,100.00
     1st Progress                    2,673,000.00
     Subtotal                         5,959,800.00
And so on...
It is basically a scenario wherein the progress is based on the accomplishment and then the charges will be net of the downpayment and the retention. What I initially had in mind was to create the PO in 3 major segments, 1 PO item for the DP (30%), 1 PO item for the retention (10%) and the remaining 60% for the whole lot purchase.
Is there any other (better) way to go about this? I heard that there is a facility for downpayment and retention recognition via EHP4; however, I am not sure if it also accommodates mixing in progress billing.
Your responses will be most welcome.
Best regards,
DeLo

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.

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

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

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

Difference between downpayment and Milestone billing

Dear Guru's
can anyone tell me what is the difference between downpayment and milestone billing. And also tell me anyother things are there in this process.
regards,
Reshmi

hi
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.
<a href="http://help.sap.com/saphelp_470/helpdata/en/59/ac922bcb0411d2acbe0000e8a5bd28/frameset.htm">http://help.sap.com/saphelp_470/helpdata/en/59/ac922bcb0411d2acbe0000e8a5bd28/frameset.htm</a>

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 ?

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

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,

Problem with milestone billing.

Hello Experts,
I need your precious help on milestone billing.
When we create the contract system automatically determine Billing plan in sales order
When I check the order and I found that at header level system does not show Billing value but at item level system shows Billing value while creation of sales order and this is creating the problem we have other Billing Plan type but we don't face such issues.
User wants system should show billing value at item level and header level as well automatically.
When this issue came I provide the temporary solution and ask user to set the check box Header Billing Plan check box at item level and once we set this check box than system shows the net value at header level as well shown in below screen shots.
Once I set the check box Header Billing Plan exist at item level in Billing plan tab then system shows the Billing value/ net value in at Header level as well. as below.
I have provided temporary solution but I don't have permanent solution user does not wants to set check box Header Billing Plan every time manually.
User wants, check box Header Billing Plan should be set by default so user no need to do any manual interruption in SO.
Kindly provide me your valuable inputs.
Thanks.

Hello Experts,
My issue is still pending for solution. Anybody can help me out.
I want to know the functionality of check box Header Billing Plan which is exist at item level Billing Plan tab (as shown in above pictures).
One I set this check box then only I can get the Billing value at header level (Billing Plan tab) as shown above.
Please help me out.
Thanks,

Milestone Billing with DownPayment Clearing

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