India SAP CoE, Slide 1 CR71010 -CRM Billing SAP CRM 7.0.

India SAP CoE, Slide 1

CR71010 -CRM Billing SAP CRM 7.0


CRM-2007 – Billing System Landscape


CRM & R3 Billing for CRM & R3 Transactions

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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.


UseThe 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

duelist

Billingdocu-ments


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.



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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 email) 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 ConceptsBilling 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 RelevanceItem 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 dueFor 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


SAP R/3

SAP CRM

Example: Delivery-Related CRM Billing Flow

7

6

Goods Issue5

4

Sales order

2

CRM Billing

Billing due list

2a

9Sales order

Product Quantity

Book 12 pc.

1

Invoice

8

Delivery3


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


SAP CRM

Example: Service Plan Billing Flow

CRM Billing

Billing due list

2

Service order

Service Quantity

Support 100 hr/pm

On Billing Due Date

1

Invoice

8

CRM Billing

Billing due list

2


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.

Service Contract

Sold-to party: Miller Inc.

Billing plan: Periodic billing

Billing request items (BRI):31. Jan. 2.000 USD28. Feb. 2.000 USD31. Mar. 2.000 USD

Validity period: Jan. - March

Billing date: End of month

Billing Due List Entries

Invoice 1Miller Inc.31. Jan. 2.000 USD

Invoice 2Miller Inc.28. Feb. 2.000 USD

Invoice 3Miller Inc.31. Mar. 2.000 USD


• 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)

Billing Plan- Periodic & Milestone Billing

1st milestone 1. April 20% 2.000 USD2nd milestone 31. Mai 40% 4.000 USDFinal invoice 30. June 40% 4.000 USD

31. Jan. 2.000 USD28. Feb. 2.000 USD31. Mar. 2.000 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

Invoice 1Miller Inc.1.200 USD

Invoice 2SLC Inc.1.100 USD

Financial accounting


Service order

Bill-to party: Miller Inc.

Bill-to party supplementary invoice:SLC Inc.


– 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.

Invoice Split Using Conditions

• You can split the net value of an item into two invoices.Invoice 1

Price 100 USD

Invoice 2

Freight 20 USD



Order

Price: 100 USD

Freight: 20 USD


Differential Invoicing

Complaint

Product 1 8 pc 800 USD

Invoice 1 (Original Invc)

Product 1 10 pc 1000 USD

Differential Invoice

Product 1 8 pc 800 USDProduct 1 10 pc -1000 USD -200 USD

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.

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

Sales org. Germany

Company Germany

Delivery plantNew York

Company US

Customer

Order

Customer invoice

Intercompany invoice

Delivery

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.


Information on Intercompany Billing

UseYou use intercompany billing if both of the following

apply:1. A product/ service is delivered by a unit other than the

seller.

2. 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 BillingMulti-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.

Sales org. Germany

Company Germany

Delivery plantNew York

Company US

Intercompany invoice 2

Customer

Order

Customer invoice

Delivery

Companyholding

Paris

Intercompany invoice 1


Cancellation of Billing Documents

Cancellation document

Billing due list entries

FinancialaccountingBilling

documentStatus: canceled

•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


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



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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

CRM Billing “native” customizing

Number Ranges

Item Categories

Billing types

Item Category Determination


CRM Billing: “Native” CustomizingIMG: 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 “50000609 (US Sales & Service)”. This billing unit should already have been created as Business Partner in CRM to represent as Company code in R3.


CRM Billing: “Native” CustomizingAssign 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 TypeCheck 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 InvoiceUse– 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.

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:


Info on Supplementary Invoice

Activities2. If it meets your requirements, use partner determination procedure 100009.

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 type2-Distribution channel3-Division4-Product account group5-Country (of invoice recipient)


Additional Customization Settings

Configuring the Billing Application


View Sales Order and its Output on WEBUI


Input Processing – Billing Due List

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

The billing due list receives the billing-relevant data from precedingprocesses, supplements it with customizing data and master data, checks it,and saves it in the form of a billing due list item.


CRM Billing - Billing Due List(BEA_DL_01)


CRM Billing - Billing Document Overview

Initiate Cancellation View Error LogDocument Status


CRM Billing - Billing DocumentHeader Details

Document Flow

Access CRM


Output Processing

The billing capability uses action processing (post processing framework PPF) for creating the output.

• CRM Billing enables invoice output through various media:– Printer– Fax– E-mail– 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


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



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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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India SAP CoE, Slide 1 CR71010 -CRM Billing SAP CRM 7.0.

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Transcript of India SAP CoE, Slide 1 CR71010 -CRM Billing SAP CRM 7.0.