4/18/2021 SAP SD - Billing Methods - Tutorialspoint

SAP SD - Billing Methods

A billing method determines whether you have to create an invoice for every delivery or you want to
send an invoice to the customer each month.
You can use the following billing method types −
Individual Billing per sales document.
Collective Billing method for multiple sales document.
Invoice Split for several billing documents for one or more sales document.
In Individual Billing method, you can make the setting in system to create single billing document
for each sales document. Example: One invoice per delivery.
In Collective Billing, it allows you to combine different documents like sales orders and/or deliveries
either partially or fully in a common billing document.
Invoice Splits allow you to create invoices as per the specific criteria.

Billing Plan

A billing plan in SAP SD is defined as a plan with individual billing dates for goods and services and
it doesn’t depend on the delivery of goods. Using this bill plan, you can bill for a service or product
at regular time intervals or at specific dates defined in the system in advance.
As per the business transactions, a system allows you to process any of the billing plan type. There
are two types of billing plan −
Milestone Billing
Periodic Billing
Milestone billing includes dividing the total billed amount in multiple billing dates that are defined in
a billing plan. When there is a milestone reached as per defined in the system, customer is charged
as per the project cost or a predefined amount as per the bill plan. Milestone billing is normally
used for long term projects.
Periodic billing includes charging of bill amount at a regular interval of time. Example: Suppose you
have to pay a rental amount monthly as per the contract. The system can process monthly
payment as per the schedule. Periodic billing plan is normally used in the following categories −

For a Service like Annual Maintenance contracts, etc.

For lease agreements.
Intellectual Property Management.

Assigning Billing Plans to Business Transactions

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In SAP system, you can mention if one billing plan is applicable for all the products in a business
transaction or you can define separate bill plans for each transaction goods as per the requirement.
Note that you can define a billing plan in SAP CRM system − Customer Relationship Management
→ Transactions → Basic Settings → Billing Plan
You cannot use billing plans created in SAP CRM system in SAP ERP system.

Revenue Account Determination

Revenue account is used for revenue recognition and is used for integrating SAP SD module and
Finance Accounting module. As per the billing document to account, system determines the correct
G/L account for posting the revenue as per the revenue account determination.
To configure Revenue Account Determination: Use T-Code: OVK5
OR
Go to SPRO → IMG → Sales and Distribution → Basic Function → Account Assignment/Costing
→ Revenue Account Determination → Check Master data relevant for Determination.

Using this, you can define −

Account Assignment for Materials
Account Assignment for Customers
Select any one of them and click Choose.

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Materials − Account Assignment Groups − Using this option, you can divide materials into different
groups, services and retails groups. You maintain this in Material Master MM01/MM02 under Sales
→ Sales Org 2 view.

Customers − Account Assignment Groups − Using this option, you can divide customer into
different groups. Example: You can divide customers into domestic customers and non-domestic or
overseas. You maintain this in Payer Customer Master using VD01/XD01/VD02/XD02 under billing
document tab of Sales Area Data.
To create and display the condition table for revenue account determination −

Go to SPRO → IMG → SD → Basic Function → Account Assignment → Account

Assignment/Costing → Revenue Account Determination → Define dependency of Revenue
Account Determination → Execute.

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A new window will open, then you can select the relevant option related to the condition table and
click Choose.

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The following T-Codes can be used for managing condition tables

S.No. TCode & Description

1 V/12
Account Determination : Create tables

2 V/13
Account Determination : Change table

3 V/14
Account determination : display tables

4
OV25
Field catalog : Allowed fields for the tables

The next step is to define access sequence and account determination type.
Define and Assign Account Determination Procedure −

The first step is to define and assign an account key and then
Assignment of General Ledger account.

Useful Structure in Revenue Account Determination −

S.No Structure & Description

1 KOMKCV
Account Determination Communication Header

2 KOMPCV
Account Determination Communication Item

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