CR71010 -CRM Billing SAP CRM 7.0.

CR CRM Billing SAP CRM 7.0

CRM-2007 – Billing System Landscape

CRM & R3 Billing for CRM & R3 Transactions
PrepareMe 1 TellMe 2 ShowMe 3 LetMe 4 5 HelpMe

Purpose 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.

Use The 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. Billing due list Billing documents

Challenges Receiving 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.

Billing Process Overview
The whole billing process comprises three major steps Input Processing .

Billing Process

Billing Execution

Output Processing

Billing Options: Billing Plans

Billing Process Overview
The process flow for creating and issuing invoices using the CRM Billing can be divided into four sub-processes: Input Processing Billing Cancellation Output Processing During 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.

CRM Billing Imp Concepts
Billing Unit The 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 single customer invoice e.g. Many Service confirmations billed together.

CRM 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 billing Where billing takes place: either within CRM or R/3 SD In transaction-related billing, the business transaction provides all data necessary for billing Selection of billing due items via transaction number Used, for example, for service orders and contracts In delivery-related billing, a combination of delivery and transaction data feed the billing process Selection of billing due items via delivery number Used, for example, for sales orders

CRM Billing - Master Data & Services
CRM Billing uses existing master data entities for: Business partners Prices/conditions Organisational units Products Services used by CRM Billing are: Partner Processing Pricing Text Processing Action Processing: Printing and other output actions by using the Post Processing Framework (PPF) Transfer to accounting (FI-A/R and FI-CA) BW adapter

CRM Billing – Pre-Requisites
General : Number Range, Master Data, Pricing Procedure, Tax configuration, Middleware, G/L setting, No Billing Block, Billing Type, Billing Relevance Item Category and Copy Control etc. should have been maintained For CRM Billing : For Service Items the status should be confirmed, For Billing Plan the due date must be due For Delivery related CRM Billing ,PGI should have been done and the relevant status must be updated in CRM For Delivery related R3 Billing for CRM Orders: Order should pass correctly from CRM to R3 PGI should have been done.

Key Billing Functionality available in CRM7.0
Transaction-related and delivery-related billing Complete integration with preceding processes (business transactions and deliveries) Complete integration with SAP Financials Provision for SAP Business Intelligence Billing of Complaints (Credit / Debit memos) Cancellation Direct billing Milestone billing and Periodic Billing Plan Intercompany processing Supplementary invoices Invoice split Differential invoicing Support of foreign trade processes (e.g. GTS, Extrastat, Intrastat Reports) External interface for billing due list Individual configuration of billing application

Example: Delivery-Related CRM Billing Flow
SAP CRM CRM Billing Billing due list 2a Sales order Product Quantity Book pc. 1 9 Invoice 8 6 Sales order 2 4 7 In order-related billing according to the delivery quantity the following steps are carried out: 1. You create the sales order in CRM 2. The order is transferred to SAP R/3 2a. 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/3 4. When saving the delivery, the delivery status and the document flow in the CRM Order are updated 5. You post goods issue in R/3 6. 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/3 Delivery 3 Goods Issue 5

Example: 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.

CRM 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.

Amount Allocation to CO for Service Order

Example: Service Plan Billing Flow
Service order Service Quantity Support hr/pm On Billing Due Date 1 CRM Billing Billing due list 2 CRM Billing Billing due list 2 SAP CRM Invoice 8 In order-related billing according to the delivery quantity the following steps are carried out: 1. You create the sales order in CRM 2. The order is transferred to SAP R/3 2a. 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/3 4. When saving the delivery, the delivery status and the document flow in the CRM Order are updated 5. You post goods issue in R/3 6. 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.

Billing 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 1 Miller Inc. 31. Jan. 2.000 USD Service Contract Sold-to party: Miller Inc. Billing plan: Periodic billing Billing request items (BRI): 31. Jan USD 28. Feb USD 31. Mar USD Validity period: Jan. - March Billing date: End of month Invoice 2 Miller Inc. 28. Feb. 2.000 USD Billing Due List Entries Invoice 3 Miller Inc. 31. Mar. 2.000 USD

Billing 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 intervals Can be used, for example, for maintenance or leasing contracts Milestone billing: Bills different amounts on predefined dates Can be used for items in high-value projects or long-term projects (for example, plant engineering and construction) 31. Jan USD 28. Feb USD 31. Mar USD 1st milestone 1. April 20% USD 2nd milestone 31. Mai 40% USD Final invoice 30. June 40% USD

Supplementary 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 processing Service order Bill-to party: Miller Inc. Bill-to party supplementary invoice: SLC Inc. Invoice 1 Miller Inc. 1.200 USD Financial accounting Invoice 2 SLC Inc. 1.100 USD Financial accounting

Invoice Split Using Conditions
You can split the net value of an item into two invoices. Order Invoice 1 Price 100 USD Financial accounting Price: 100 USD Freight: 20 USD Invoice 2 Freight 20 USD Financial accounting The 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.

Differential Invoicing
Differential invoicing allows invoice corrections to be generated from complaints. A value or quantity change in a complaint can trigger the creation of a correction document. Invoice 1 (Original Invc) Product pc USD Differential Invoice Product pc USD Product pc USD -200 USD Complaint Product pc USD For detailed information please refer to the detail presentation „Claims and Returns“ Shortage Complaint Quantity 8 Received Original Invoice Quantity Credited back in Full Received Quantity is Charged

Direct Billing Via 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 billing If an error during billing occurs, the item can be found in the billing due list You can also use a Business Add-In (BAdI) to trigger direct billing

Intercompany 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. Germany Company Germany Delivery plant New York Company US Intercompany invoice Order Delivery Customer invoice Customer

Information on Intercompany Billing
Use You 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 Codes Intercompany billing enables the supplier to bill the seller in the above scenario. The system automatically recognizes a case of intercompany billing when a supplier is entered in the order that has a different company code from the seller.

Intercompany Processing – Characteristics
System automatically determines whether vendor belongs to different billing organization than sales organization Supports transaction and delivery-related intercompany processing Creates 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.

Multi-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. Customer Order Delivery Customer invoice Sales org. Germany Company Germany Company holding Paris Delivery plant New York Company US Intercompany invoice 2 Intercompany invoice 1

Cancellation 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 list Cancellation document Financial accounting Billing document Status: canceled Billing due list entries

External 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).

Integration 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 accounting Possibility to separate the creation of a billing document from its transfer to accounting Flexible account determination, either based on single mapping table or on condition technique Can be connected either to SAP R/3 FI-A/R or SAP R/3 FI-CA Sales transactions transfer the controlling attributes and planned values (incoming sales orders), whereas billing transfers the actual values (sales volume) to SAP R/3 FI-CO Middleware controls the connection between billing and accounting

Differences between Billing in CRM vs. ERP
CRM: Convergent billing based on collected items CRM: Import of external billing relevant data CRM: Multi-level inter-company billing (Spare-Parts Scenario) CRM: Supplementary invoicing (via partner based derivation) CRM: Condition split CRM: Flexible Billing application generation to streamline performance ERP: Editable header conditions e.g. Freight Conditions ERP: Display of archived billing documents ERP: Standard payment card support ERP: Enhanced Revenue recognition support ERP: Down payment support

Configuration of Billing Applications
You can configure your billing application and adapt it to your needs by activating additional features, such as: Advanced item category determination Enhanced account determination XIF connection (inbound processing) CRM integration to contract accounting (FI-CA) Supplementary invoice Invoice split using conditions Multilevel intercompany billing Foreign trade connection (GTS) Enhanced attributes for pricing Localization (country-specific functions)

Customizing 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 runs Define billing units and assign them to sales/service organizations Define the billing relevance of transaction item categories Define billing types Define item categories for billing Make settings for item category determination in billing Make settings for all additional functions you want to use (for example, intercompany billing and supplementary invoice)

CRM Billing: “Native” Customizing
Number Ranges Item Categories Billing types Item Category Determination

IMG: SAP Implementation Guide  Customer Relationship Management  Master Data  Organizational Management  Cross-System Assignment of Organizational Units  Assign Billing Units to Sales Organization Find 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.

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 .

Configuration for Billing Type
Check whether the billing type e.g. F2 has the proper entries IMG: SAP Implementation Guide  Customer Relationship Management  Billing  Define Billing Types Highlight “F2 / ZFSC Invoice” and press “Details”.

Customizing for Sales Item Category
Related Customizing in CRM transactions Transactions  Item Categories Relevance for Billing

Configuration 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 )

Determination 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 Categories This Source Process Means Source transaction e.g. Order / Contract Transaction type and the Source Item Category refers to Item Category assigned to the Source Transaction type.

Billing 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 data You assign billing plan type to the business transaction or to the item category (dependent on billing plan procedure)

Info on Supplementary Invoice
Use You 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. Activities 1.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:

Info on Supplementary Invoice
Activities 2. If it meets your requirements, use partner determination procedure 3. 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.

Controlling Invoice Split Through Conditions
Activities IMG under CRM -> Billing-> Invoice Split via Conditions

CRM Billing: Integration with FICA
Related Customizing in CRM for Account Determination Menu path

CRM Billing: Integration with FICA
The G/L determination takes place based on : 1-Condition type 2-Distribution channel 3-Division 4-Product account group 5-Country (of invoice recipient)

Additional Customization Settings
Configuring the Billing Application

View Sales Order and its Output on WEBUI

Input 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 delivery Billing due list: Billing due list items Organizational data: Determines the billing unit Partner data: For transferring and filtering business partners Pricing conditions: For transferring pricing conditions Text data: For transferring texts

CRM Billing - Billing Due List(BEA_DL_01)

CRM Billing - Billing Document Overview
Document Status Initiate Cancellation View Error Log

CRM Billing - Billing Document
Header Details Document Flow Access CRM

Output Processing CRM Billing enables invoice output through various media: Printer Fax Optical archiving External printing channels You can output customer invoices: Automatically after the billing documents have been created Periodically (for example, at the end of a week or month) Manually The billing capability uses action processing (post processing framework PPF) for creating the output.

View CRM Bill and its Output on GUI

Search Billing Doc on WEBUI of CRM7.0

Detail View Billing Doc on CRM 7.0-WEBUI

LetMe Important Transaction Codes BEA_BTY Maintain Billing Types
CRMD_ORDER Transaction Processing VA01/2/3 Create / Change/ Display R3 Sales Order VL01/2/3N Create / Change/ Display R3 Delivery VF01/2/3 Create / Change/ Display R3 Billing BEA_BD_01 Maintain Billing Documents BEA_DL_01 Maintain Billing Due List

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CR71010 -CRM Billing SAP CRM 7.0.

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CR71010 -CRM Billing SAP CRM 7.0.

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