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Billing Plan for Milestone Billing




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Billing Plan for Milestone Billing

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 
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