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August 28, 2015 | 7 minute read
SD Sales

Billing Plan (Periodic)-SAP SD-Part1

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a. Periodic billing Plan Related Questions 

b. Milestone billing Plan Periodic Billing Plan Extension
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When To Use Periodic billing plan :-
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NOTE:- The sum of every line item added to the Net the value of the contract . Sales order with billing plan - Billing plan
to be included in incompletion
 RSS Feed Example– One service contract being billed on monthly basis . By Former Member Sep 27, 2015

Start date -27.08.2015

End Date – 26.10.2015 Join the Conversation 

Settlement From Settlement To Billing date Billing Value SAP TechEd
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27.08.2015 26.09.2015 27.08.2015 100 MYR inspiration. Upskill your future.

27.09.2015 26.10.2015 27.09.2015 100 MYR

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From the above example value of the contract will be 200 MYR. SAP Business Technology
Platform Learning Journeys.
When To Use Milestone billing plan :-
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Milestone billing is used for sales products in big projects when the product is paid in various
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[Link] billing plans are used in sales quotations and sales orders or Items in service orders .You
Discussion Group.
have a sales product with a known net value.

NOTE:- You distribute the net value over several milestones.

Example- One sales order created having value 200 MYR.

Value of 200 MYR will be distributed among various dates( % or amount ) as per the configuration.

Billing Date Description Billing Value

27.08.2015 Phase -I Completion 50 MYR

27.09.2015 Phase -II Completion 100 MYR

27.11.2015 Phase- III Completion 50 MYR

From the above example value of the sales order will be 200 MYR.

Configuration steps for Periodic billing plan

 1. Define Billing Plan Types

Follow Spro> S&D >Billing >Billing Plan

Maintain billing plan types for periodic billing

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A. Start date :- Date from which billing plan will start .Start date is compared with next billing date(5) and gives
first date of “Settlement To” and “Billing date” in periodic plan. ie. If your start date is the 24rd of a month and
you are billing monthly, all billing date will start on the 23rd” (if there are no further conditions discussed in the
later part of the document ).

B. End Date :- Date on which billing plan ends .

Screen shot from rental contract header.

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[Link] :- This is optional field .If there is no End date entered or Contract end date is far in the future . Not all
billing dates can be accomodated in the billing date [Link] horizon calculates the last billing date in the

billing plan, based on the current date plus a specified time period.

Example-

If the rental /service contract which is valid from 24.08.2015 until 23.12.2098 .

Before : Rental contract with no Horizon

Screen 1 – End date far in future

Screen 2 – No Horizon period

Screen 3 – Billing dates created up to 2098 .

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After : Rental contract with Horizon

Screen 1 – End date far in future

Screen 2 – Horizon period

Screen 3 – Billing dates created only up to Horizon period.(Only for current quarter ).
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Note : – Schedule a back ground job for RVFPLAN01(T-code V.07) to create the future billing date for the given
horizon period.

D. Dates From To : – These date has meaning when item level has certain validity . Billing plan will be deactivated
after validly expired on item level.

Example- Rental contract has two line Items.

Item 10- Header plan- validity from 27.08.2015 Until 26.08.2016 . (Billing dates created up to 26.08.2016)

Item 20 Item level Dates from – 27.08.2015 to Dates Until 26.09.2015 .So Item second has validly only until
26.09.2015.(Billing dates created up to 26.09.2015)

E. Rule for Origin of Next Billing/Invoice Date :- This is copied from customization , The rule assigned here is
compared with start date and billing dates are proposed in the [Link] refer to point number A.

F. Rules for determining deviation in Billing/Invoice date :-

This field determines if there is exception or deviation in billing dates proposed by billing rule .The customer is to
be billed retrospectively for the rental of a photocopier at the end of every month. The customer, however,wants
 to be billed two days before the end of each month. You enter a date determination rule, which subtracts two
days from the billing date determined by the system.
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Example :- Your client is billing the customer at the end of every month. Client wants to bill the customer 2 days
before end of the month. With deviation rule you can force system to calculate billing date before or after
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Before : No data maintained for deviation rule

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After : Maintained billing deviation rule ( 2 days before month end )

Billing date is 2 days before compared to other screen above .

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G. Days in year/Days in Month :- Give number of days in year or months if rental contract has to be billed for
given number of days in month or days in year.

H. Autom. Date Creation in Billing/Invoicing Plan Maintenance:-Mark this (X) if you want system to propose
billing /invoice dates automatically . Leave it blank if you want to enter the billing date manually .

Before : If you do not check (X)

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After : If you do check (X)

 I. Billing/Invoice Creation in Advance :- Check (X) this field if you want to system to propose advance billing date
(rental on 1st date of the months ).
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Example – Client has retroactive rental contract with customer

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01-01-2015 to 31-01-2015 .System proposing billing date on 31-01-2015 .

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After check (X)- Rental contract 1 yr.

01-01-2015 to 31-01-2015 .System will propose billing date on 01-01-2015.

J. Automatic creation of correction dates in Billing Plan :- If this field is checked (X) , system can determines if
correction date has to be proposed .

Logic – if End date of or To date changed and it falls before the last billed date , System propose a correction
date and correction amount automatically

Example – In the below screen customer was billed for the period of billing Plan dated 01.07.2015 until

31.07.2015 for 100 Euro . But later contract was foreclosed dated [Link] issued to the customer for
the period of 26.07.2015 to 31.07.2015
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2. Define Date Description:-

Date descriptions are defined to describe the various purposes for which billing Plans can be [Link] is only for
description only. It has no effect in transaction.

Path – Spro> S&D >Billing >Define Date Description

3. Define and assign Date Category:-

Path – Spro> S&D >Billing >Define and assign Date Category

Date category has following information.

i. Billing Plan type- Periodic billing

ii. Date category – Its free text

iii. Date description – Date description proposed as maintained in previous step.

iv. Billing Rule – assign the billing rule to period billing .

v. Pricing – If you want to carry out new pricing at the time of billing.

vi. Billing Type- This is the default billing type proposed at the time of contract creation in billing Plan.
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4. Allocate date category :- Assign the date category to billing plan

5. Assigning Billing Plan Types to Sales Document Type :- This assignment will tie sales document type with
header periodic billing plan.
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This is the last section of the documentation for periodic billing [Link] proceed with T-code va41 and test
on different scenarios .

Related Sap Notes :-

1112798 – FAQ note billing plans

499688 – FAQ: Ending an invoicing plan / restricting date period

537779 – Date generation for Periodic Invoicing Plans Related user exits for billing plan

Related Exits :-

BILLING_SCHEDULE_DELTA

USEREXIT_MOVE_FIELD_TO_FPLT

USEREXIT_MOVE_FIELD_TO_FPLA

USEREXIT_DATE_PROPOSAL
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10 Comments
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Sanchez Wang
June 28, 2016 at 7:04 am

Hi,

when will u provide the second part 'part II' regarding milestone billing plan?

BR Joshua

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Former Member | Blog Post Author

July 17, 2016 at 4:53 pm

Hi Joshua,

Thank you for your comments . Badly tied up with Project work . I will try my best at the earliest

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Daniel Cunha
September 25, 2020 at 4:40 pm

will not provide the second part? (milestone)

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 PRASHANT SHARMA
July 18, 2016 at 7:34 am

Hello Santosh,
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Highly thanks for such a very good document.

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Looking for milestone Billing Plan documents

Regards,  RSS Feed

Prashant Sharma

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Former Member | Blog Post Author

August 11, 2016 at 3:56 pm

Hi Prashant

Thank you for your appreciation . I will work on it

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KHK SAPSD
November 21, 2016 at 3:46 am

great document thanks ..

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Raj kumar
December 30, 2016 at 11:51 am

Hi Santosh,

Nice document.
Eagerly waiting for milestone billing.
Br,
Raj.
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Former Member
January 11, 2017 at 10:06 am

Hi Santosh,

Really its great help me to read in implementation billing plan,

Again thanks,

Majid

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Himanshu Patel
July 21, 2018 at 10:13 am

Hi,

It is very good document.

when will u provide the second part ‘part II’ regarding milestone billing plan?

Regards,

Like 1 | Share

Pradeep Mani
September 18, 2019 at 4:56 pm
While using billing plan,invoice created will be only order related?

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