Billing Form Usage
In our Item Category definition we have a Field called BILLING FORM
i would like to give a brief overview of Billing Form and its usage
Unlike our normal Billing ( standard Billing process) we also have a Time and Material Billing which is most widely used in SAP Project systems and Customer service. In this billing process, Customer is billed according to Materials consumed and Labour time booked during the course of project or while performing repair/Service
Billing Form is used to Bill Customer based on Flat-Rate
In order to understand Time and Material Billing , it is necessary to emphasis on Plan cost and Actual cost
Plan cost is cost which we plan to incur during our execution ( either Project or repair)
Actual Cost is which is actually incurred during out execution.
So here Using Billing Form we will bill customer on Flat Rate Billing which is Planned from Labor hours and Materials consumed
We have two types of Billing Forms defined in Standard SAP
1. Fixed Rate
VOV7 – Item category settings, Maintain Billing form either as 01 ( fixed Rate) or 02 (cost)
1. Customer Requests for Installation of Certain Equipment.
2. You will create a sales order for the customer with Service Product ( such as Installation) and all our standard Determinations will copy as per standard. Item category will be copied in which we have maintained Billing Form as 01 ( fixed Rate).
3. A service Order is created from Sales order to capture the Time and Material Cost
4. For example, you plan 10 hours of Labor hours and few Material Components to perform installation
5. Send Quotation to customer with Plan cost
6. If customer accepts Quotation, Billing Form will create a Debit Memo Request for Plant cost automatically in Background
Difference Between Fixed Rate and Cost Billing Form:
The Only difference between Fixed Rate and Cost Billing Form usage lies is Populating the cost to Debit memo Request from Quotation
When using Fixed Rate, Cost condition type EK01 is populated and for Cost Billing Form, Condition type EK02 is populated
Hi Vemuri Santosh Kumar
Very nice document,
I thought this billing form document has using for RRB scenario .....
Yes, this is basically for RRB. Instead of using DIP profile this document explains how Billing Form is used in RRB
It would have been good had you added more screen shots and the relevant transaction codes then and there.
For example, point-3 says "A service Order is created from Sales order". Here, you could have explained how and through which TCode a service order can be created and for that what are the config settings one has to maintain.
Similarly point-6 says "If customer accepts Quotation, Billing Form will create a Debit Memo Request". My question is how?? How system will come to know that the end customer has accepted the quotation and how the billing form will trigger the system to generate DMR?
Probably, you can reedit this blog showing screen shots with one complete cycle.
thank you for your suggestion
I will try to edit this section and put some screenshots where ever possible and necessary
I think the post of yours more helpful in CS Module not For SD.
But anyway very useful Document..Thanks for sharing...
Nowhere author has mentioned this is useful for SD or even CS. As Enterprise Asset Management space caters both PM & CS, this has been published here.
Billing Form can be used in DIP profile which caters the needs of CS & even PS.