This scope item provides a way to bill customer projects. It supports the billing of fixed-priced, time and expenses and usage-based contract types, including account payments. Additionally, you can write off or postpone full amounts or quantities, as well as partial amounts or quantities. A decision point for using this new billing process or the existing billing process is made at the customer project header level while creating the project meta-data.
On selecting this new billing mechanism, you choose the billing elements, which are the Work Breakdown Structure (WBS) elements that are associated to one or more work packages in your projects. Once you start preparing the billings for these billing elements, a Project Billing Request is generated. The Project Billing Request is an intermediary document out of which a Billing Document Request (BDR) is generated. The difference between a Project Billing Request and a BDR is that the amount which is to be billed, written off, and postponed to the next billing cycle is captured in the Project Billing Request, whereas the amount which gets billed to the customer is captured in the BDR. The final billing document which is sent to the customer is referenced out of this BDR.
The Billing Specialist role, has been introduced with the Project Billing (4E9) scope item. The Billing Specialist is responsible for preparing the billing as per their billing cycles, and monitoring the billing elements using the Manage Project Billing app.
- The planned revenue calculation in project planning does not respect the flexible material determination in the project billing profile.
- Scale rates.
Key Process Steps
The key process steps supported by Project Billing include:
- Managing Project Billing
- Monitoring Billing Elements
- Preparing Billing
- Automating the Billing process, scheduling the Project Billing preparation job
- Submitting BDRs
The benefits of Project Billing are:
- Reducing time to bill for a project billing manager or billing team.
- Reporting and tracking of different financial values that are relevant for billing.
- Ability to write off or postpone full amounts or quantities.
- Enabling of flexible material determination so that new activity types and sales materials can be defined.
The following Core Data Services (CDS) Views have been released for Manage Project Billing, which allows users to consume data related to project billing for analytical purposes:
- Project Billing Element (I_ProjectBillingElement)
- Entries for Project Billing Element (I_ProjectBillingElementEntry)
- Entry Flow for Project Billing Element (I_ProjectBillingElementEntrFlw)
- Billing Plan for Project Billing Element (I_PrjBlgElmEntrBillgPlnLink)
- Journal Entry for Billing Element (I_PrjBlgElmEntrJrnlEntrLink)