3CRM & R3 Billing for CRM & R3 Transactions PrepareMe1TellMe2ShowMe3LetMe45HelpMe
4CRM & R3 Billing for CRM & R3 Transactions PrepareMe1TellMe2ShowMe3LetMe45HelpMe
5Purpose Billing is an essential part of Sales and Service processes. Billing comprises the collection of billable items in the billing due list and the functionality to invoice this data, producing billing documents that are transferred to accounting.On time, Accurate and Effective Billing process , ensure good financial health of an Enterprise.
6UseThe Billing function can handle generating invoices (Normal, Corrections & Cancellation invoices, Debit & Credit Memos) for Order and Delivery related transactions. This results in on time payment collections and also in settlement of customers’ grievances.You can use CRM Billing to combine Service order items and Sales order items in the invoices. This simplifies communication with your customers.BillingduelistBillingdocu-ments
7ChallengesReceiving timely payment from customers for delivered products and services as well crediting the customers for their claims, are increasingly critical to revenue, profitability and customer loyalty. This is especially true in environments where competition is intense, costs are rising and margins are dwindling. By deploying technology such as Integrating ERP packages, legacy systems, On line Billing intimation and collection options through Internet , mobile devices, leading companies around the world are dramatically improving service capabilities, competitive differentiation and corporate performance.
8CRM & R3 Billing for CRM & R3 Transactions PrepareMe1TellMe2ShowMe3LetMe45HelpMe
9Billing Process Overview The whole billing process comprises three major stepsInput Processing.
14Billing Process Overview The process flow for creating and issuing invoices using the CRM Billing can be divided into four sub-processes:Input ProcessingBillingCancellationOutput ProcessingDuring Input Processing, CRM Billing takes over billing-relevant items from different business transactions and saves them as billing due list items.As of CRM Release 5.0, you can use an external interface to copy data from non-SAP systems to the CRM Billing due list. It supports the formats IDoc; XML SOAP via HTTP; XML via SAP NetWeaver Exchange Infrastructure.From the billing due list, you can process both single and collective billing from billing due list items and also trigger these to run in the background.During billing, related billing due list items are also grouped together as far as possible from different CRM business transactions and transferred to a joint billing document.You can cancel individual billing documents and also execute collective cancellations. The system transfers information on cancellations automatically to Financial Accounting.Output processing is made up of invoice output, the transfer to SAP Financial Accounting and retrieval for SAP BW. You can choose from different output media (for example, print, fax or ) for invoice output, although output takes place using SAP Smart Forms. The ledger posting of billing data takes place either in SAP FI-A/R or in SAP FI-CA. CRM Billing provides all relevant billing data for the SAP Business Warehouse for statistical reporting.
15CRM Billing Imp Concepts Billing UnitThe billing unit is the organization in a company that handles the billing processes for the business partners involved in the sale.Its tasks include, among others, receiving and handling complaints.In the invoicing process it is used, among other things, to select billing request items and it effectively determines grouping in invoicing.In Intercompany Billing scenario also it plays important role.Convergent billing:Convergent billing is the integration of all service charges onto a singlecustomer invoice e.g. Many Service confirmations billed together.
16CRM Billing Imp Concepts :Billing Relevance The billing relevance defined at item level in the business transaction drives the billing process.It controls:When billing data is transferred to the billing due list (for example, after saving or in the case of a specific status)Whether the transaction or the delivery triggers billingWhere billing takes place: either within CRM or R/3 SDIn transaction-related billing, the business transaction provides all data necessary for billingSelection of billing due items via transaction numberUsed, for example, for service orders and contractsIn delivery-related billing, a combination of delivery and transaction data feed the billing processSelection of billing due items via delivery numberUsed, for example, for sales orders
17CRM Billing - Master Data & Services CRM Billing uses existing master data entities for:Business partnersPrices/conditionsOrganisational unitsProductsServices used by CRM Billing are:Partner ProcessingPricingText ProcessingAction Processing: Printing and other output actions by using the Post Processing Framework (PPF)Transfer to accounting (FI-A/R and FI-CA)BW adapter
18CRM Billing – Pre-Requisites General :Number Range, Master Data, Pricing Procedure, Tax configuration,Middleware, G/L setting, No Billing Block, Billing Type, Billing RelevanceItem Category and Copy Control etc. should have been maintainedFor CRM Billing :For Service Items the status should be confirmed,For Billing Plan the due date must be dueFor Delivery related CRM Billing ,PGI should have been done and therelevant status must be updated in CRMFor Delivery related R3 Billing for CRM Orders:Order should pass correctly from CRM to R3 PGI should have beendone.
19Key Billing Functionality available in CRM7.0 Transaction-related and delivery-related billingComplete integration with preceding processes (business transactions and deliveries)Complete integration with SAP FinancialsProvision for SAP Business IntelligenceBilling of Complaints (Credit / Debit memos)CancellationDirect billingMilestone billing and Periodic Billing PlanIntercompany processingSupplementary invoicesInvoice splitDifferential invoicingSupport of foreign trade processes (e.g. GTS, Extrastat, Intrastat Reports)External interface for billing due listIndividual configuration of billing application
20Example: Delivery-Related CRM Billing Flow SAP CRMCRM BillingBilling due list2aSales orderProduct QuantityBook pc.19Invoice86Sales order247In order-related billing according to the delivery quantity the following steps are carried out:1. You create the sales order in CRM2. The order is transferred to SAP R/32a. In parallel, a „dummy“-entry in the billing due list is created (the order provides information for billing)3. You create the delivery in R/34. When saving the delivery, the delivery status and the document flow in the CRM Order are updated5. You post goods issue in R/36. The delivered quantity and the document flow in the CRM Order are updated.7. Additionally, entries in the billing due list in the CRM System are created based on the delivery items.8. You create the billing document / invoice in CRM Billing.9. After billing, the billed quantity, the billed value, the status and the document flow in the CRM Order are updated, and the billing due list item is deleted.SAP R/3Delivery3Goods Issue5
21Example: Service Process CRM Billing Flow Prerequisites: The service process has the status Released. You have made the settings necessary for copying control and have entered the date type SRVC_ACTUAL (start of work/end of work) in the date profile.
22CRM Billing Confirmation without Service Process Order : Example: A customer asks a service employee, who is on site due to another order, to perform a repair. Because the device failed only an hour ago and therefore, the customer has not yet reported the problem, there is no existing service process from which the confirmation can occur. In this case, the service employee can perform the repair and subsequently create a confirmation. In this way, the working time and spare parts required for the repair can be invoiced to the customer.
24Example: Service Plan Billing Flow Service orderService QuantitySupport hr/pmOn Billing Due Date1CRM BillingBilling due list2CRM BillingBilling due list2SAP CRMInvoice8In order-related billing according to the delivery quantity the following steps are carried out:1. You create the sales order in CRM2. The order is transferred to SAP R/32a. In parallel, a „dummy“-entry in the billing due list is created (the order provides information for billing)3. You create the delivery in R/34. When saving the delivery, the delivery status and the document flow in the CRM Order are updated5. You post goods issue in R/36. The delivered quantity and the document flow in the CRM Order are updated.7. Additionally, entries in the billing due list in the CRM System are created based on the delivery items.8. You create the billing document / invoice in CRM Billing.9. After billing, the billed quantity, the billed value, the status and the document flow in the CRM Order are updated, and the billing due list item is deleted.
25Billing Plan – Example: Periodic Billing You can see the billing plan in a business transaction on the billing plan tab page.The system creates billing due list entries for every billing request item from the billing plan.Once the billing date of a billing request item (BRI) is reached, the system creates a billing document.Invoice 1Miller Inc.31. Jan.2.000 USDService ContractSold-to party: Miller Inc.Billing plan: Periodic billingBilling request items (BRI):31. Jan USD28. Feb USD31. Mar USDValidity period: Jan. - MarchBilling date: End of monthInvoice 2Miller Inc.28. Feb.2.000 USDBilling Due List EntriesInvoice 3Miller Inc.31. Mar.2.000 USD
26Billing Plan- Periodic & Milestone Billing A billing plan is a schedule of individual billing dates for a product or a service.Periodic billing:Bills the same amount at regular intervalsCan be used, for example, for maintenance or leasing contractsMilestone billing:Bills different amounts on predefined datesCan be used for items in high-value projects or long-term projects (for example, plant engineering and construction)31. Jan USD28. Feb USD31. Mar USD1st milestone 1. April 20% USD2nd milestone 31. Mai 40% USDFinal invoice 30. June 40% USD
27Supplementary Invoice The system creates an additional entry in the billing due list, if a partner with the partner function “bill-to party (supplementary invoice)” exists in the original transaction. This scenario is useful for example when one may be required to send a copy of invoice to Group company – another Bill to Party showing only Product Price without Freight, Tax and other charges-with NO Posting to FI being done.The system carries out a partner determination for the copied item.The system carries out pricing for the copied item.Only the customer invoice is provided to Financial accounting for further processingService orderBill-to party: Miller Inc.Bill-to party supplementary invoice:SLC Inc.Invoice 1Miller Inc.1.200 USDFinancial accountingInvoice 2SLC Inc.1.100 USDFinancial accounting
28Invoice Split Using Conditions You can split the net value of an item into two invoices.OrderInvoice 1Price 100 USDFinancial accountingPrice: 100 USDFreight: 20 USDInvoice 2Freight 20 USDFinancial accountingThe invoice split is triggered by the condition type and by a flag in the business partner master data (payer).The system then creates an additional entry in the billing due list.The invoices are handled separately in all following processes.
29Differential Invoicing Differential invoicing allows invoice corrections to be generated fromcomplaints. A value or quantity change in a complaint can trigger thecreation of a correction document.Invoice 1 (Original Invc)Product pc USDDifferential InvoiceProduct pc USDProduct pc USD-200 USDComplaintProduct pc USDFor detailed information please refer to the detail presentation „Claims and Returns“Shortage ComplaintQuantity 8 ReceivedOriginal Invoice Quantity Credited back in FullReceived Quantity is Charged
30Direct BillingVia direct billing, a billing document can be created directly, without the intermediate step of initiating billing via the billing due list:Direct billing is triggered by a flag in the business partner master data (payer)Incomplete or blocked due list items are excluded from direct billingIf an error during billing occurs, the item can be found in the billing due listYou can also use a Business Add-In (BAdI) to trigger direct billing
31Intercompany Billing Flow Intercompany billing: A process for internal invoicing in the case that the sales organization and the delivering organization of an enterprise belong to independent accounting units. This happens mostly in delivery related billing, but can happen in service related billing also where actual service is rendered by sister company for Service Order created by sister company.Sales org. GermanyCompany GermanyDelivery plantNew YorkCompanyUSIntercompany invoiceOrderDeliveryCustomer invoiceCustomer
32Information on Intercompany Billing UseYou use intercompany billing if both of the following apply:A product/ service is delivered by a unit other than the seller.The seller and supplier of a product are in the same enterprise group, but in different Company CodesIntercompany billing enables the supplier to bill the seller inthe above scenario.The system automatically recognizes a case of intercompanybilling when a supplier is entered in the order that has adifferent company code from the seller.
33Intercompany Processing – Characteristics System automatically determines whether vendor belongs to different billing organization than sales organizationSupports transaction and delivery-related intercompany processingCreates two or several billing due list items: one for customer invoice and one or more for intercompany invoice(s)Within direct delivery billing, integration with controlling provides determination for the profit center of the delivering party, and booking of cost of goods issued and revenue to new accounts.During the creation of a billing due list entry for an intercompany invoice, prices and partners are redetermined.
34Multi-Level Intercompany Billing Multi-level intercompany billing: For a given intercompany-relevant transaction, a chain of intercompany billing documents is derived to allow a general multi-level intercompany process.CustomerOrderDeliveryCustomer invoiceSales org. GermanyCompany GermanyCompanyholdingParisDelivery plantNew YorkCompanyUSIntercompany invoice 2Intercompany invoice 1
35Cancellation of Billing Documents In order to reverse the billing process you can cancel billing documents.The system does the following:Changes the billing document (status: canceled)Generates cancellation document (to reverse postings in FI)Creates new entries in billing due listCancellation documentFinancialaccountingBilling documentStatus: canceledBilling due list entries
36External Due List Interface The external due list interface is a XIF interface for the billing due list.The interface can be used to transfer external data to the CRM billing due list (for example, transfer of items to be billed from an external order entry or delivery system).
37Integration with SAP Financials The system transfers billing documents to SAP FI in order to post them as open items.Features are:Status and error handling in billing documents to control transfer to accountingPossibility to separate the creation of a billing document from its transfer to accountingFlexible account determination, either based on single mapping table or on condition techniqueCan be connected either to SAP R/3 FI-A/R or SAP R/3 FI-CASales transactions transfer the controlling attributes and planned values (incoming sales orders), whereas billing transfers the actual values (sales volume) to SAP R/3 FI-COMiddleware controls the connection between billing and accounting
38Differences between Billing in CRM vs. ERP CRM: Convergent billing based on collected itemsCRM: Import of external billing relevant dataCRM: Multi-level inter-company billing (Spare-Parts Scenario)CRM: Supplementary invoicing (via partner based derivation)CRM: Condition splitCRM: Flexible Billing application generation to streamline performanceERP: Editable header conditions e.g. Freight ConditionsERP: Display of archived billing documentsERP: Standard payment card supportERP: Enhanced Revenue recognition supportERP: Down payment support
39CRM & R3 Billing for CRM & R3 Transactions PrepareMe1TellMe2ShowMe3LetMe45HelpMe
40Configuration of Billing Applications You can configure your billing application and adapt it to your needs by activating additional features, such as:Advanced item category determinationEnhanced account determinationXIF connection (inbound processing)CRM integration to contract accounting (FI-CA)Supplementary invoiceInvoice split using conditionsMultilevel intercompany billingForeign trade connection (GTS)Enhanced attributes for pricingLocalization (country-specific functions)
41Customizing Settings for Billing The following customizing settings are necessary:Define settings for basic functions/services used by CRM Billing:Settings for pricing (pricing procedure)Settings for partner processing (partner-determination procedure)Settings for action processing (action profile)Settings for text processing (text-determination procedure)Define number ranges for billing documents and collective runsDefine billing units and assign them to sales/service organizationsDefine the billing relevance of transaction item categoriesDefine billing typesDefine item categories for billingMake settings for item category determination in billingMake settings for all additional functions you want to use (for example, intercompany billing and supplementary invoice)
42CRM Billing: “Native” Customizing Number RangesItem CategoriesBilling typesItem Category Determination
43CRM Billing: “Native” Customizing IMG: SAP Implementation Guide Customer Relationship Management Master Data Organizational Management Cross-System Assignment of Organizational Units Assign Billing Units to Sales OrganizationFind out that a Billing Unit “Sales US Billing Unit” is assigned to your Sales Organization “ (US Sales & Service)”. This billing unit should already have been created as Business Partner in CRM to represent as Company code in R3.
44CRM Billing: “Native” Customizing Assign Company code to Billing Unit / and Business Place. It means One Billing Unit to One Company Code like One Sales Org can be assigned to One company code only but one company code can have multiple Billing Unit. There will be intercompany sale when 2 Billing unit (Through their Sales Org Assignment ) assigned to different company code make sale to each other. Business Place is tantamount to Plant mostly used by FICO for Payment and Tax collection .
45Configuration for Billing Type Check whether the billing type e.g. F2 has the proper entriesIMG: SAP Implementation Guide Customer Relationship Management Billing Define Billing TypesHighlight “F2 / ZFSC Invoice” and press “Details”.
46Customizing for Sales Item Category Related Customizing in CRM transactionsTransactions Item CategoriesRelevance for Billing
47Configuration for Billing Item Category Assign your new Item Category to your source Process Category ZAXX and source Item Category TAN from your Transaction Type.Save your assignment.IMG: SAP Implementation Guide Customer Relationship Management Billing Define Billing Category (This helps in determining Item category and Pricing Procedure at the time of Billing )
48Determination of Billing Item Category Assign your new Item Category to your source Process Category ZAXX and source Item Category TAN from your Transaction Type.Save your assignment.IMG: SAP Implementation Guide Customer Relationship Management Billing Item Category Determination Assign Item CategoriesThis Source ProcessMeans Source transaction e.g. Order / Contract Transaction type and the Source Item Category refers to Item Category assigned to the Source Transaction type.
49Billing Plan – Customizing Customizing of billing plan:You define billing plan type(s)You define customer billing plan procedure(s) and assign it to customer master dataYou assign billing plan type to the business transaction or to the item category (dependent on billing plan procedure)
50Info on Supplementary Invoice UseYou can use this functionality to copy a billing due list entry during creation. It can, for example, be used to create another invoice for an order or delivery. The second invoice, which is based on a copy of the original billing due list entry, contains different partners and different prices.Activities1.Check whether the predefined partner access sequence 1004 meets your requirements.You will find the definition for the access sequence in the IMG, under Customer Relationship Management -> Basic Functions -> Partner Processing -> Define Access Sequences. The predefined access sequence has the following settings:
51Info on Supplementary Invoice Activities2. If it meets your requirements, use partner determination procedure3. In order to use other conditions for the copied billing due list item, you should create a pricing procedure that only creates the conditions that are relevant to the copied item. Assign this procedure to the billing item category and the billing type for the supplementary invoice. This means that you should definitely create your own billing type to be used for the copied billing due list item. Make sure that you do not select the "Copy Determination Procedure" indicator in the billing type.
52Controlling Invoice Split Through Conditions ActivitiesIMG under CRM -> Billing-> Invoice Split via Conditions
53CRM Billing: Integration with FICA Related Customizing in CRM for Account Determination Menu path
54CRM Billing: Integration with FICA The G/L determination takesplace based on :1-Condition type2-Distribution channel3-Division4-Product account group5-Country (of invoice recipient)
55Additional Customization Settings Configuring the Billing Application
57Input Processing – Billing Due List The billing due list receives the billing-relevant data from preceding processes, supplements it with customizing data and master data, checks it, and saves it in the form of a billing due list item.Transactions relevant for billing: For example,service order, contract, and deliveryBilling due list:Billing due list itemsOrganizational data: Determines the billing unitPartner data: For transferring and filtering business partnersPricing conditions: For transferring pricing conditionsText data: For transferring texts
61Output ProcessingCRM Billing enables invoice output through various media:PrinterFaxOptical archivingExternal printing channelsYou can output customer invoices:Automatically after the billing documents have been createdPeriodically (for example, at the end of a week or month)ManuallyThe billing capability uses action processing (post processing framework PPF) for creating the output.