Retroactive Billing System Hands on

Previously ,we have discussed basis concept of Retroactive Billing

In this unit we are more focused on Hands on configuration

Please find below Retroactive Billing Diagram 

SPRO Configuration 

Define Order Reasons

When you enter an order reason which has been assigned a type in Customizing, the billing document becomes relevant for retroactive billing as follows:

IMG → Sales →Sales Documents → Sales Document Header → Define order reasons

•Primary Document (order reason is assigned type 2)
•If you enter an order reason with type 2 in a credit or debit memo or memo request, the system will use this billing document in retroactive billing as a primary document.
•Example:" Poor quality" would be a typical order reason for this type
•
•Secondary Document (order reason is assigned type 1)
•If you enter an order reason with type 1 in a credit or debit memo or memo request, the
•system will use this billing document in retroactive billing as a secondary document.
•Example:" Price difference: price was too high" would be a typical order reason for this type

Maintain Pricing Type

IMG>>SalesandDistribution>>Basic Functions >>Pricing >> Pricing Control>> Define and assign Pricing Procedure

Maintain Condition Type (PDIF) in Pricing Procedure

IMG>> Sales and Distribution >> Basic Functions >> Pricing >>Pricing Control >>Define and assign Pricing Procedure >> Maintain Pricing procedure

Update Pricing Condition

Logistics>>Sales & Distribution>>Logistics>>Execution>>Master DataàConditions>>Discounts/Surcharges >>Others

Transaction code:VK12

New Pricing Agreement From Effective Date

Logistics >>Sales and Distribution >>Logistics Execution >>Master Data >>ConditionsàDiscounts/Surcharges >>Others

Transaction code:VK12

Retroactive Billing Processing steps as below 

Menu path: Logistics>> Sales and Distribution >> Billing >>Billing Document >> Retro-billing

Transaction code: VFRB

Enter Payer ,Sales Org Billing Date as below

List Of Billing Documents Relevant For Retro Billing

Retroactive Billing List Execution

Selecting Required Billing Document For Retroactive Billing Processing

Complete Retro Billing Documents By Using Simulation

Set Billing Types For Cr/Dr Memos And The Order Reasons

Simulate Retro Billing List

Retroactive Billing List-creating Credit/Debit Memo

SD Retroactive Billing

Concept of SD Retroactive Billing

Let explore concept of SD Retroactive Billing

Background of SD Retroactive Billing

A new pricing agreement is effective before the pricing date of the billing documents for customers

The calculation of difference amount arising out of the new pricing agreement will generate a new billing document (Debit / Credit Note ) for difference amount

 

Purpose of SD Retroactive Billing

To capture these frequent price changes & to avoid customer complaints an efficient system is needed

This process used for all Industry where new price agreement happens for the product for a customer or group of customer and needs to change mass billing document.

Pricing agreements in the component supplier industry (in Automotive industry) are made at specific times (for example, every three months, twice a year, or annually). However, they do not take effect immediately

Key Challenges of Retro Billing

Identify Primary and secondary document 

Identify Order reason 

Assigning type to order reason for retro billing. 

Retro Billing list 

Combination Currency , partner and material ( Listing criteria ) 

Retro billing value calculation System performance to run mass document at a time .

Process Flow Of Retro Billing

Primary Document

Primary documents are the following billing documents in which you have entered the relevant order reason:

•Invoices ( By default Primary Document )
•Credit memos that refer to returns
•Credit and Debit memos in which you have entered the relevant order reason
•You can also assign an order reason to a memo request which then passes it along to the referenced credit or debit memo

Secondary Document

Secondary documents are the following billing documents in which you have entered the relevant order reason:
•
•Credit and debit memo requests
•Credit and debit memos
•The system displays such a document only when it has been created with reference to the invoice and when the currencies in both documents match

Order Reason in Retroactive Billing - Use

Credit and debit memos and memo requests are not included in the retroactive billing list.

•However, you may find it necessary in some cases to designate these documents as relevant for retroactive billing. You do this by entering the relevant order reason in the billing document.

•Examples of order reasons include price changes, poor quality or ruined material. Depending on how the order reason you entered is customized, this billing document becomes relevant for retroactive billing.

Order Reason in Retroactive Billing- Prerequisite

• Create credit and debit memos and memo requests with the same payer, sold-to party, material, and sales organization as the referenced invoice 
• Create credit and debit memo requests with the same currency as the referenced invoice. This is particularly important for the change to Euro 
• Make sure that you carefully maintain order reasons in Customizing, in sales documents, and in credit and debit memos for retroactive billing
• The pricing type that entered for the list should be same from the pricing type determined for the credit and debit memos created by the system. Ideally, these two pricing types should be the same. 
• Make sure that the condition type PDIF is defined in the pricing procedure which is used when creating credit or debit memos

Retroactive Billing List

List containing billing documents relevant for retroactive billing:

•documents with open values to be processed for price changes
•documents that refer to these billing documents
•documents that have already been created and processed for price adjustments

The retroactive billing list consists of a Header and a List. 

Header will have:

- Payer

- Sales organization

- Currency

- Ordering party

Actual net value of the invoice a list of 

− billing document items with the original item net value

i.e. the value that has already been billed

− if retroactive billing has already taken place, billing document items created by the retroactive billing with retroactive billing value. the difference between the actual and item values, plus/minus values from the relevant credit and debit memos or memo request in the list

 − related document items that are not relevant to retroactive billing for information

Retro Billing Values

•For each retro-billing item, the system lists the:
•Actual net value

Value that would be determined for the item if you were to revaluate the billing document.
•Item net value

Value that has already been billed.
•Retro-billing value

The difference between the actual and item values, plus/minus values from the relevant credit and debit memos or memo requests in the list.

The system calculates a separate subtotal for each combination of currency, sold-to party and material

Retroactive Billing Calculation as below

Limitation For Retroactive Billing

The following billing documents or items do not appear in the retroactive billing list: 

•Cancelled invoices and cancellation documents
•Pro forma invoices
•Invoices with reference to a credit or debit memo request
•Billing document items without material
•Items without material in credit memos and debit memos