Rental contract Periodic billing

Hi,
I configured the rental contract and periodic billing. When I create contract in the billing plan tab its taking full month rent for the first month and last month even though the contract started in the middle of the month and ended in the middle of the month. It should calculate for 15 days for the first and last months instead of full month. Where can I control this?
Regards

In the billing plan type configuration you control the start date. You should check the configuration settings for the rules for determining dates.
Maintain the billing plan in configuration IMG Sale and Distribution ->Billing->Billing Plan->Define Billing Plan Types. Check and see what the plan start date rule is and compare that to the contract profile rule (VOVR) assigned. Also the contract end rule in the profile should be in sync with with the billing plan dates.
Bottom line is to make sure the rules you are using in the Contract Profile are aligned with the rules you have configured for the Billing Plan. For example there are rules defined for contract start date to end of month, contract end rule and definition of the contract validity period, etc.

Similar Messages

Rental Contract with Periodic Billing Plan

Hello,
I need to have a rental contract created, But the payment is one shot.
For example, if the customer rents a cylinder for a contract period of 1 year, he pays the contract payment for 1 year in one single shot. So, i need to have the periodic billing plan tweaked to take the payment and have just one billing doc and invoice created with 1 whole payment.
Can this be done?
Also, i want the revenue recognition to be activated to have this whole 1 year's payment split and posted on a monthly basis to finance.
Can someone help me with this?
Also, how can this be changed , reverted in case of contract cancellation in the middle or addition of material on the same existing contract. Please let know.

Hi..On top of this i have 2 requirements... 1. One year contracts with one shot payment 2. 3year contracts with 1 shot payment. Can they be done as a single transaction, as in the rental contract profile we define the time period.Or they can be only done as 2 different transactions with 2 separate contract profiles?

Periodic Billing for Rental Contracts

Hi Gurus,
Periodic Billing for Rental Contracts
I have a customer requirement where in i need to create a Rental Contract of type say MV.
Billing should be periodic in nature. Say today is the GI date 22/SEP/2008, they give 7 days of lead time up to 29/SEP/2008. From this date onwards the customer is to be billed. They do the invoicing on a quartely basis. From 29/SEP/2008 up to 28/DEC/2008, they need to create one single invoice. This single invoice will be generated sometime in January 2009. How will i configure the system to generate date specific invoices...?
In Periodic billing system will generate billing only on month ends say 30/SEP/2008, 31/OCT/2008 and so on...
This is a high priority issue...Please reply with a solution as soon as possible;
Thanks in advance;
Regards,
Syed Nasir

Hi Syed,
This is not an easy option to do:
In our case, we have opted out of this scenario, but we have evaluated these two options:
1) You can do the monthly billing as present in the SAP, and then you can make one lumpsum invoice for the three invoices generated in a quarter. But the problem is that the revenue shows to be pending and can hurt the business targets.
2) If you have to create this process for only few customers. You can use any two special fields for the contract one field for date and a field for quaterly tagging. Then you have to just create a daily batch job which invoices the contract on the basis of contract type, date and tag. But if you have large number of contracts to process then this would not be recommendable solution.
Hope this helps,
Abhishek

Regarding Periodic Billing Plan in Rental Contract

Hi all,
Scenario.:
My client having a scenario, rental contract for the period of one year and billed periodically every month.Rent is fixed based on no of hours.(e.g. 200 Rs per hour)
But the total rent to billed for the month is changed every month because no of machine working hours are changing every month.How do i capture this scenario?By using periodic billing plan we can bill same amount of rent every month during contract validity period.Here we can't change no of hours every month.
Please give some idea.
Regards,
Kartheek.

Dear Kookie,
Initially i created rental contract with the service unit as no of hours and in the quantity field i have entered the total number of hours for the month.By this way i can able to only bill for the same quantity every month.But this is not working incase of machine hours changes every month.So am not able map this.
Please suggest the way to confirm the actual machine no of hours and billing the same periodically.
Thanks & Regards,
Kartheek.

Periodic billing (rental contract)

hi all
This is regarding the billing plan .currently my client is running his business by using periodic billing i.e(rental contract) and the contract is fomed in years and the billing is done on the monthly basis .now the company wants to the bill some of there customers on quarterly basis instead of billing on monthly basis .how can i achieve this ?what is that i need to configure for achieving the same
Thanks®ards
mohit

Dear Gauravjit
Thanks for your prompt reply
let me summarize what i have done
1)Taken the following path spro->sales&dist->billing->billing plan->define rules for determining dates.(tcode ovbs)
2)i was opposed with "rule table for determination" screen
defined new rule "55" and given the following description.End of Current Quarter
3)After defining the rule number "55" navigated to its details screen where in which i am able to see few fields as followed
A).base line date---->07 (billing date /invoice date )
B)Time period -
>1
C)Time unit -
>only four types of time units are available 1.day 2.weekly 3.monthly 4.year
(Note there is no time unit for quarter .My question is do i have to define new time unit as quarter for quartely billing to take place and if i have to define where should i define it iam not finding it any provision given in spro for defining the same
so i have assigned " 4 -year")
D) last month -
blank
E) calender id----- blank
the above two fieldsD&E are left blank
section 2
after doing the above config i went to the screen
Define billing plan type for periodic billing (tcode ovbi)
defined the billing plan type with the following settings
A)CONTRACT START DATE--13(CONTRACT START HEADER)
B)CONTRACT END DATE--14(CONTRACT END HEADER)
C)HORIZON--52 (HORIZON 1YEAR)
D)CONTRACT START DATE-- 11-CONTRACT START DATE
E)CONTRACT END DATE 09-CONTRACT END DATE
F)<b>NEXT BILLING DATE</b>----ASSIGNED THE DATE RULE "55" WHICH IS DEFINED PREVIUOSLY
NOW IF I TRY CREATIN A RENTAL CONTRACT THE SYSTEM IS BILLING YEAR WISE .my comprehesion is that since i have assigned time unit as year so it is billing year wise if i change the time unit to 1)week 2)day 3)month the billing is getting executed accordingly but i dont have option for defining quarter here as time unit .so that the billing can be exeuted quarterly
please correct me if i have done wrong or if there is any deviation in my configuration
Thanks&regards
mohite

Down payment request for contract with periodic billing

Hi Friends,
Could anyone help me in understanding the configuration settings for down payment / advance payment senario for a CONTRACT which has Order related billing (I have done for Order with milestone billing plan).
The contract has order related *periodic billing plan* where settlement period is suppose quaterly billing and actual invoice is happening on 1st date of the quarter. But i want to create a down payment request say 10 days before the billing date[(actual invoice(F2) date] of every quater as an advance payment/ down payment.
FYI...
For order i am using standard billing rule 1 in milestone billing plan for final invoice but for downpaymnet billing dates (added additional settlement periods then actual invoice settlement period like 3 adv pay ment og 20%, 30% 50% & one actual invoice period for whole amount 100% as D4 doc only) i am manually changing the billing rule as 4 to create a down payment req.
But in contract as its has periodic billing plan no billing rule changing option (no additional settlement period can be added, only settlement period for actual invoice is getting proposed) so i can't have two different rule for a settlement period. no settlement period can be added separately for adv paymnet/down payment.
Kindly respond ASAP.
Rgds
Manish

Hi, Many thanks for your response.
But the down payment functionality for a SO with milestone billing i have already implemented.
The question was for CONTRACT Side (say rental / service contract). The contract has periodic billing (monthly / Q'ly).
Kindly let me know if you/anyone has any idea for config settings for a contract with the senario mentioned in previous thread post.
Thnx & Rgds
MG

Periodic Billing Plan in Contract

Hi
I am trying to configure periodic billing plan in service contract scenario but when I assign it to Sales Doc. and item category, and create contract, the value in contract overview screen ( Net Document Value) does not match with Net header value . when I remove Billing plan then they match.Billing is to be done quarterly in this scenario.Please guide.

Hi,
for Contract end rule 10
In T.Code: OVBZ
maintain baseline date as 01= Todays date
time period as 1
time unit as 4= year.
Alternately maintain Contract Validity period as 1 year and check. It looks the contract end and validity are not uniform.
Hope this will help.
Regards,
sharan

Data Migration of Contracts with periodic billing and revenue recognition

Hello Experts,
I am trying to develop a legacy data migration plan for Contracts with periodic billing plan and revenue recognition.
Example of the scenario is given below:
Customer signed a contract for one year starting 01/01/2009.
Customer is billed quartely, billed in advance.
SAP going live on 04/01/2009
Customer is billed for 3 months and also for initial set up fees.
Revenue recognition is done monthly.
We have to migrate this contract to SAP.
Billing document posting may be necessay as it affects revenue recognition which spans across the total contract period.
Any ideas how to do this?
Thanks A Lot
Anil
Edited by: Anil Jose on Sep 17, 2008 9:38 PM

Hi Anil
How did you manage this? We also had the same problem in one of our contracts and what we did was that we copied the contracts from the legacy with the full value. That is suppose SAP went live on 1st April, 2009 and the contract was created on 1st January 2009 for a value of suppose 100 USD, with the first billing being done on 1st Jan for 33.33 USD for 4 months. We first created the contract with a validity from 1st Jan 2009 in the new system. We billed it with a billing type that we created that did not actually create new accounting entries as the accounting entries had already been created in the legacy system. In the new system then we recognised the revenue till the go live, so that the actual value remaining of the contract reduced. Then we started the billing plan of the contract from 1st of April 2009 for the remaining amount. So next invoice was created on 1st april for 33.33 USD. Can you share your solution.
Regards
Indranill

Shorter contract date, periodic billing plan reduced, not reflected in ECC

Hi,
We get quite a lot similar problems with service contracts with billing plan.
Because of new type of contracts (other material number) being sold to our customers, the old contract will change end date, let's say from 31.12.2012 to 31.05.2011. Next the line item will be put to completed.
The periodic monthly billing plan in CRM now only show billing dates as to 01.05.2011 which is correct.
However on the ECC side, the created contract still show the future lines of the billing plan with status open.
As a result they still appear in the billing due lists.
The problem does not seem to be situated in the middleware.
I changed the contract end date to 31.12.2013 (so even further in the future than in the initial status) and in ECC I see additional lines created for billing.
Now if I bring back the contract end date to 31.05.2011 the extra lines in ECC are gone (period 01.01.2013 - 31.12.2013), but all lines for period 01.06.2011 - 31.12.2012 stay in overall processing status "Open" because they are "Not invoiced".
Anyone came accross the same issue and knows how to solve it?
Best regards,
Geert

Reason was incorrect processing sequence in changing contract dates

Contract and periodic billing in sales order

Hii All,
Need some help.
We have a scenario where various sales orders having periodic billing are raised with respect to a contract. But after some period if the rates change then i will change those rates in the contract. Then this new rate should be copied in all the sales orders. How can this be done?
e.g. I have one contract having period 1 Jan 08 to 31 Dec. 2010. It has 10 sales orders. The billing monthly with 5000/- per month. Now if the rates change & i change the contract with new rates suppose 7000/- per month. This change can be applicable from 1 April 2009. Now for all the remaining periods in the my pre existing sales orders the rate should be copied as 7000/-.
Please suggest

Hi,
This order status will not be complete unless the delivered quantity is equal to the order quantity. You have 2 options. 1. Change the order quantity to 8 and delliver the rest 3 and the order status will be set to COMPLETE. 2. Otherwise, reverse the PGI in VL09n and delete the delivery and create the delivery again for 5 qty. This will set the order status as COMPLETE.
Regards,
Raghav

Create automatic billing from Rental contract

Hi ,
Scenario : We created one Rental contract document say "ZRNT" and one billing type we created "ZRNB" . Now requirement is "We create Rental contract for a particular customer for 1 year and i mention through billing plan that when to generate the rental bill for that customer , say for example 27th of every month .
Every Month on 27th , User will create a billing document with reference to this Rental contract and will sent to customer ,
But my requirement is , Billing document has to generate automatically by the system on 27th of every Month . Is there any setting like billing document to generate by the system in the background based on the billing plan
Regards
N.M.Pradeep Kumar

Hi
You can use Tcode VF06 for your requirement. Schedule your VF06 for every month 27th it will automatically create your invocies.
try and revert.

Periodic Billing plan -Contracts

Hi mates
I am just creating Quantity contract and trying to activate periodic billing plan.When i select the line item and click the billing plan tab
iam getting following error
"ITEM 000010 CANNOT BE INVOICED ACCORDING TO THE BILLING PLAN"
Can anybody explain me in detail the configuration involved in this so that periodic billing plan works
Thanx in advance

Dear Karthik,
For the Item Category TAO as per standard the item category group is 0005 which is for partial billing. So whenever you are doing the partial billing by using billing plans the item category group should be 0005 and item category TAO fir milestone and WYN for periodic.
KMN is for quanity contract item category..... also check the setting of billing relevance in VOV7.
Thanks,
Raja

Periodic billing or contract

Hi Friends,
we have contract where we give some equipment on lease to the customer and customer is using that for 28 days
Billing plan is PERIODIC BILLING
Now when we see billing plan for contract it shows settelment (01/01/2010) to (01/30/2010) now as customer is using that for say only for 28 days so we want (01/01/2010) to (01/28/2010).
How to make billing periods to 28 days, the system automatically adjusts the monthly rate by prorating the 28 days. We need a billing plan template that a) sets up a billing periods on a 28 day cycle and b) should prorate the monthly fixed rate
if we give condition value as 900 for month then it is calculating 900/30 = 30/ day
but now client wants it should calculate as 900/28 = 32.14
thanks
Vishal
Edited by: WISH on Mar 10, 2010 8:24 AM

Dear Vishal,
You can use Periodic Billing in this case.
In your Contract Definition (VOV8) there is a field for BIlling Plan. Enter a Billing Plan here.
To define the Billing Plan there go to IMG - SD - Billing - Billing Plan - Define Billing Plan Types - Maintain billing plan types for periodic billing.
Here there are fields for Horizon & Dates.
Difine Rules for Determining Dates (IMG - SD - Billing - Billing Plan - Define Rules For Determining Dates. Here there are fields for TIme Period & Time Unit, which is what you can set for BIlling 28 days in a month.
Hope this helps.. .
THanks,
Jignesh Mehta

Creation of delivery from rental contract MV

Hi,
Is creation of delivery document with reference to rental contract MV allowed? Do I need to create a sales order first?
Thanks,
NMD

Hi
Rental contract is similar to regular contract process but the only difference is you will have periodic billing type assigned to the transaction. Please check the links which may help you
Refer the following links for further information
http://help.sap.com/erp2005_ehp_03/helpdata/EN/5e/69a1228f6211d2a9f60000e8a6f09e/frameset.htm
http://help.sap.com/erp2005_ehp_03/helpdata/EN/31/03953401024735e10000009b38f83b/frameset.htm
Thanks and Regards
Srinath

Billing Plan - GL Account Problem. (Periodic Billing Plan)

Hi Every body,
I created rental agreement throguh contact and aslo I have configured the periodic billing plan. when i am saving the document,system through an error i.e., GL account not maintained.
can you please tell me, how to maintain this GL account and where i need to maintain.
thanks in advance .
Regards,
Srinivas.

Is this the incomplete log you are getting?
Normaly system should never ask for the GL account while creating a contract......
Anyways system is trying to create a billing doc in the background, try to create block the billing (you have the option available in billing plan) and save the transaction.
I think in the configuration you have the option where, when ever you create a billing plan the system should block the plan untill release it manualy or by milestone........
Rgds
Sudhir reddy
Edited by: sudhirreddy on Jun 29, 2009 6:09 PM

Rental contract Periodic billing

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