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SAP RRB Overview

The document discusses resource-related billing (RRB), which involves billing customers based on the resources consumed. Industries that commonly use RRB include airlines, defense contractors, engineering, consulting, and public sector. The document outlines different contract types involving complex billing calculations, such as cost-plus and fixed price contracts. It discusses billing complexities like overhead costs, fees, and disallowed costs. Finally, it provides an overview of how SAP can be used to build invoices and store data for RRB by linking projects, materials, costs, and pricing to generate invoices.

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Chuks Osagwu
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396 views15 pages

SAP RRB Overview

The document discusses resource-related billing (RRB), which involves billing customers based on the resources consumed. Industries that commonly use RRB include airlines, defense contractors, engineering, consulting, and public sector. The document outlines different contract types involving complex billing calculations, such as cost-plus and fixed price contracts. It discusses billing complexities like overhead costs, fees, and disallowed costs. Finally, it provides an overview of how SAP can be used to build invoices and store data for RRB by linking projects, materials, costs, and pricing to generate invoices.

Uploaded by

Chuks Osagwu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Resource-Related

Billing
Complex Billing Environments

Amlan Sarkar
Role -SAP Functional Consultant
Agenda

• What is Resource-Related Billing (RRB)?


• The Power of Pricing
• Cost Plus Billing Scenario
• Fixed Price with Progress Payments Scenario
• Conclusions
• Questions
Resource-Related Billing
Any company who bills their
customers based on resources
consumed

Industries include but not limited to:

 Airline Operations
 Defense Contractors
 Engineering & Construction
 Service Industry
 Consulting Industry
 Public Sector
Contract Types with Complex
Billings
Cost-plus-fixed-fee Cost-plus-incentive-fee
Max
Fee
Max Fee

Fixed Award Fee Pool


100/0 Share Target Share Ratio
Fee
Fee
Min Fee Base
Fee
Base Fee (0-3%)

Estimated Cost Target Cost Estimated Cost

Firm-fixed-price w/PP Fixed-price incentive w/PP

Share Ratio Multiple


Target
Profit Profit (PTA) Incentive
0/100 Share

Ceiling
Price

Cost Target Cost


Billing Complexities
The amount to bill may depend on different calculations:
 Resource-Billing
 Based on resources consumed
 Based on estimated resources to be consumed
 Based on labor hours consumed
 Disallowed costs
 Cost Funding
 Cost Withholds
 Overheads
 G&A
 Material
 Production
 Cost of Money
Billing Complexities cont.

 Fees
 Fixed
• Percentage of costs incurred given negotiated cost
• Percentage of labor hours consumed
• Fee Retention
• Fee Funding
 Award
 Incentive
 Schedule
 Cost
How can we use SAP for RRB?

• The SAP R/3 system is a toolbox from which you can


build and store many different things.

Our job is to build invoices


and
store the data for future use
Resource-Related Billing
Equation
Dynamic
Item Sales & Distribution
Project System Processor
Project Structures Pricing Procedure
Pricing Routines

Controlling/FI =
Costing Sheets
Cost Tables

Invoice
Materials Management
Material Master
How does RRB Work?
Resource-Related Billing is used when the
amount to invoice the customer is based
Sales Contract/Order
on the resources consumed by the project
Line Item Qty
10 Product A 1
Proj
WBS-1/DIP Profile
20 Product B 1 Resource Bill
WBS-2/DIP Profile
Dynamic
Item
WBS-1 WBS-2 Processor

Active Project
with Postings Processing FI&CO documents from postings

Postings DTE Postings DTE Postings DTE Postings DTE


Sample Progress Pay DMR
Fixed Price Item Flow

Sales order

Header

Item 10
Progress
Payment
Item 20 De Down
li ve
P/N12345 r Payment
$

ll
r
Clea
Bi
Invoice Pricing
l

Price
B il

LESS

Liquidation
Questions
Thank you for attending!

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