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