Let explore concept of SD Retroactive Billing
Background of SD Retroactive Billing
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
Order Reason in Retroactive Billing - Use
Order Reason in Retroactive Billing- Prerequisite
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
Header will have:
- Payer
- Sales organization
- Currency
- Ordering party
Retro Billing Values
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
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
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 .
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 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
•
•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
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.
•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.
- 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
•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
− 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
•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
•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
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
