SD-Pricing Procedure determination

Transaction price will be determined/calcuated by Pricing procedure. There could be

diff PD in the system, but you need specific one for your transaction based on Sales
area (Sales org/Dis channel and division), Sales document type and sold to party.
https://www.youtube.com/watch?v=vMfNVV4nWBc
https://www.youtube.com/watch?v=xnnhP_89QOU
https://www.youtube.com/watch?v=n31STkxjNlw

VK31 to create condition record

VK11 to create condition type PR00, which key combination condition technique
(customer/material release status)

SAP SD Item category

https://www.youtube.com/watch?v=RoKDiCLeoXo

Item Category Determination

Background
Item category controls the item behavior .e.g. Item category define that item is
relevant for Billing or Pricing.
The item category in the sales document depends on the sales document type
and the material.
Item Category Determination is done by T-code VOV4. There are Many
Standard Item Categories provide by SAP, Some of them is belowDescription

TAN

Standard Item

TAB

Individual Purchase Order

TAS

Third Party Item

TAD

Service

TATX

Text Item

TANN

Free Of Charge

AFX

Inquiry Item

AGX

Quotation Item

Step-1
1.

Enter T-code VOV4 in Command Field.

2.

A list of existing item category displayed.

3.

To Create a New item category click on New Entries

Button.

Step-2
To Create New Item Category ,Enter following data

Sales Doc. type.

Item cat. group.
Item category (Default item category,this can be overridden with manual
item category value).

Manual item category (if business demands,we can add manual item
category to override default item category).
Note : Default item category will be picked up automatically for sales
document type in which it's define. Manual Item Category can be used in place
of default item category OR we can replace default item category in sales
document with allowed manual item category. e.g. Default item category( YTA2)
can be replaced with Manual item category (TAP,TAQ,TANN).

Step-3
Click on Save

Button.

A Message "Data Was Saved " displayed as below -

Item Category
Purpose
This wiki page will breify discuss about functionality of Item Category in SAP Sales and Distribution transaction.

Introduction
Item category is critical and esstential part of sales order and sales process. It generally controls the behaviour of item in a
sales order, like, pricing, TOR, etc.

Functionalities of Item Category

Item Type

Whether the item is standard or text or value item.

Completion Rule

The rule for establishing when a quotation or

contract is complete.

Business Data Item

Whether business data in the item can be

different to that of the doc header.

Relevant for billing

Schedule Line Allowed

Items that are relevant for del will

always have schedule lines.

Order Quantity

=1

Item Relevant for Delivery

We need to check this field in item

category TATX.

Create Delivery Group

You use a delivery group to determine

a common delivery date for all
the items that it contains.
Especially used in BOM.

Determine Cost

Indicates whether, during pricing, the system

determines the cost
(stock value) of a sales document item.

Relevant for weight and volume

Credit active

Pricing

In the case of text items, however, pricing would

not make sense.

Types of Item Category

The following table will discuss about different type of standard item category available:

Item Category

Description

BVN

Cash Sale

TAB

Individual order purchase

G2N

Credit memo

TAK

Make to order

KBN

Consignment fill up

KRN

Consignment return

TAQ

Extent delivery- BOM

TAS

Third party

REN

Returns

L2N

Debit memo

Features

Item Category

Description

TAC

Configurable material

KEN

Consignment issue

KAN

Consignment Pickup

TAP

Extent delivery higher lever item in BOM

TAE

Explanation - BOM

TAW

Value Item

AGN

Standard item in QT

Features

Pricing, Schedule Line Allowed, Not

relevant for billing

TAN

Pricing, Schedule Line Allowed, Relevant

Standard item in Order

for billing

TANN

No pricing, Schedule line allowed, not

Free of Charge Item in order

relevant for billing

TATX

No pricing, No schedule lines, relevant for

Text item in Order

billing

Text items do not require processing for

Item Category

Description

Features

pricing,
taxes & weight calculations
Items that are not relevant for del, such as
credit
memo requests, do not have schedule lines.
Usually, items that do not have schedule
lines cannot
be copied in to a delivery. Text items are an
exception.
You do not need pricing or del quantities &
dates (i.e.
schedule lines) for a text item (item cat: TATX), in
the
standard order.

Item Category Determination

Depending on the item category group that you apply & the sales doc type you are processing the system automatically
proposes an item category in the document.

SPRO Path

IMG - Sales and Distribution - Sales - Sales Document - Sales Document Item - Assign Item Category

Transaction Code

VOV4

Determination Rule

Item Category

= Sales Document Type

+ Item Category Group

from material master

Example

+ Usage

+ Higher Level Item Category

from preceeding line item

Sales Document Type

Item Category Group

OR

NORM

OR

NORM

OR

NORM

Usage

Higher Level Item Category

Default Item Category

TAN

TANN

TAN

FREE

TAN

TANN

Billing plan
A billing plan is a schedule of individual billing dates for a single item in a sales document. You can
define a billing plan at header level, which is then valid for all items assigned to it.
Depending on the kind of business process you are carrying out, the system can automatically
propose one of two different types of billing plan: periodic billing or milestone billing.
Periodic billing means billing a total amount for each individual billing date in the plan. For example,
if you are creating a rental contract, the system can propose a schedule of monthly rental payments,
according to the length and conditions of the contract.
Milestone billing means distributing the total amount to be billed over multiple billing dates in the
billing plan. For example, you can use a billing plan for billing a make-to-order item that is assigned
to a project in the SAP Project System. When you enter the project-related make-to-order item in the
sales order (or assembly order), the system proposes a billing plan based on milestones defined for
networks in the project. As each milestone is successfully reached, the customer is billed either a
percentage of the entire project cost or simply a pre-defined amount.
For more information on this, go thru this link
[Billing Plan|http://help.sap.com/printdocu/core/Print46c/en/data/pdf/SDBIL/SDBIL2.pdf]

There are Two Billing Plans.

1. Milestone Billing
2. Periodic Billing
The difference between milestone billing and periodic billing can be described as follows.
Milestone billing bills an amount distributed between dates until the total value is billed. Periodic
billing bills a total amount for each date until a predefined end date is reached. Proceed with
maintaining the billing plan types for periodic billing. In this view, you assign data to a relevant
periodic billing plan type. You assign a start date, which may be the start date of the rental contract,
as well as an end date, which may be the contractu2019s end date.
Below is the step by step config for Milestone billing.
Billing Plan for Milestone Billing
Milestone billing means distributing the total amount to be billed over multiple billing
dates in the billing plan.
As each milestone is successfully reached, the customer is billed either a percentage of
the entire project cost or simply a pre-defined amount.
During sales order processing, the system determines from the item category whether a
billing plan is required and, if so, which type of plan
The type of billing plan that is determined at this point is set up in Customizing and
cannot be changed in the sales document.
Billing plans for periodic billing and milestone billing plans for project-related milestone
billing have different overview screens so that you can enter data relevant to your
processing.

For example, for milestone billing, you must be able to enter data to identify the
individual milestones.
IMG configuration requires :1. Maintain billing plan types for milestone billing in OVBO.
2. Define date description in SM30 - V_TVTB.
3. Maintain Date Category for Billing Plan Type IN OVBJ.
4. Allocate date category in SM30 - V_TFPLA_TY.
5. Maintain date proposal for Billing Plan Type in OVBM.
6. Assign Billing Plan Type to Sales Documents Type in OVBP.
7. Assign Billing Plan Type to Item Categories in OVBR.
8. Define rules for determining the date in OVBS.
Milestone billing is typically used for billing projects, such as plant engineering and
construction projects. Such projects often include a series of milestones that mark the
completion of different stages of the work. In the SAP R/3 System, milestones are defined
in a network along with planned and actual dates for the completion of work. The milestones
are also assigned to the billing dates in the billing plan.
Each milestone-related billing date is blocked for processing until the Project System
confirms that the milestone is completed.
Delivery-relevant order items for which a milestone billing plan applies are billed on the
basis of the requested delivery quantity and not on the total of the confirmed quantities.
The connection between the project and the sales document item is made in the individual

schedule lines of the item. Each schedule item can be assigned to a network in a project.
To display the project-related data for a schedule line, proceed as follows:
In one of the overview screens of the sales document, select
1. Item -> Schedule lines.
2. Mark the schedule line and select Procurement details.
The following figure shows an example of milestone billing where only the Contract have
been billed :
Order Item Turbine 100,000
Billing Plan
Billing date Description % Value Billing Block Milestone Billing Status
01-10-94 Contract 10 10,000 - x x
01-03-95 Assembly 30 30,000 x x
01-04-95 Maintenance 30 30,000 x x
01-05-95 Acceptance 30 30,000 x x
01-06-95 Final invoice .. .. x
Network/Activities
Milestone Estimate Actual
Assembly 01-03-95 01-03-95
Maintenance 01-04-95
Acceptance 01-05-95
For each billing date in a milestone billing plan, you can specify whether the billing

date is:
1. fixed
2. always updated with the actual date of the milestone
3. updated with the actual date of the milestone, if the date is earlier than the
planned billing date for the date

Billing Plan (Periodic)-SAP SD-Part1

Billing Plan
You can store a detailed billing plan instead of a single billing date at item level in the sales document during
order processing.
The billing plan specifies the time at which the given amount or percentage rate should be billed. This form of
invoice creation plays an important role, for example, in settling rental contracts on a periodic basis and in
milestone billing for projects with predefined billing dates.
Each billing plan has a unique billing plan number which is assigned internally by the system.
The following sections describe the settings in Customizing for the billing plan.

During your project you may need to implement SAP SD billing plan functionality .I am publishing part I of
SAP Billing plan documentation .This part of documentation mostly covers Periodic billing plan used in SAP
SD.I will cover Milestone billing plan in my part II section of documentation .
Billing plan
In SAP SD a billing plan is a schedule of individual billing dates for a single item in a sales document. You can
define a billing plan at header level, which is then valid for all items assigned to it.Depending on the kind of
business process you are carrying out, the system can automatically propose the billing plan.
Types of billing plan
SAP SD has two billing plans
a. Periodic billing Plan
b. Milestone billing Plan
When To Use Periodic billing plan :-

Periodic billing plans are used for service products such as rentals or maintenance mostly. You should have a
service product with a time-dependent price (i.e. calculation type M, N, O or P) which need to be billed
regularly, e.g. monthly, quarterly, etc.Client can raise the rental or maintenance/service invoices based on
monthly , quarterly ,yearly etc. basis to their customers.
NOTE:- The sum of every line item added to the Net the value of the contract .
Example One service contract being billed on monthly basis .
Start date -27.08.2015
End Date 26.10.2015
Settlement From Settlement To Billing date

Billing Value

27.08.2015

26.09.2015

27.08.2015

100 MYR

27.09.2015

26.10.2015

27.09.2015

100 MYR

From the above example value of the contract will be 200 MYR.
When To Use Milestone billing plan :Milestone billing is used for sales products in big projects when the product is paid in various
installments.Milestone billing plans are used in sales quotations and sales orders or Items in service orders
.You 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

Spro> S&D >Billing >Billing Plan
Maintain billing plan types for periodic billing

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.

C.Horizon :- 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 screen.The horizon calculates the last billing date in the
billing plan, based on the current date plus a specified time period.
ExampleIf 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 .

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 ).

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 contract.Please 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.
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
deviation days .

Before : No data maintained for deviation rule

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

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

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)

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 ).
Example Client has retroactive rental contract with customer
Before Check- Rental contract 1 yr.
01-01-2015 to 31-01-2015 .System proposing billing date on 31-01-2015 .
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 25.07.2015.Credit issued to the customer for
the period of 26.07.2015 to 31.07.2015

2. Define Date Description:Date descriptions are defined to describe the various purposes for which billing Plans can be used.This 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.

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.

This is the last section of the documentation for periodic billing plan.Please 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

Milestone Billing.
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Created by Rajesh Banka, last modified on Jun 27, 2008

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Milestone Billing.
1. Create New Sales Order Type, say ZOR (Copy of OR) through T.Code: VOV8
Maintain Delivery Type as LF & Billing Type As 'F1' - Order Related / 'F2' Delivery Related.
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Documents Types
2. Assign New Sales Document Type to Sales Area, For Eg:
1000 (S.Org) / 10 (D.Channel) / 10 (Division) / ZOR (S.O Type)
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Assign Sales Area to Sales
Document Type
3. Create New Item Category, say ZTAN - Copy of TAN (For delivery Related) / ZTAD - Copy of TAD (For Order realted) /
ZTAS - copy of TAS (For Third Party)
Maintain as under (others remaining same)
Billing Relevance: I
Billing Plan Type: 01
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item Category
4. Assign Item Category, for ex (assuming Usage & higher level item category as blank):
Sales Document Type | Item Category Group | Default Item Category
ZOR | NORM | ZTAN
ZOR | DEIN | ZTAD
ZOR | BANS | ZTAS
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Assign Item Category
Note: In the above Billing Type '01' plays the main controller for milestone billing. In Sales order, at item level, we require to
maintain the billing plan.
Follow the Sales cycle as normal sales cycle for particular Scenarios

Periodic Billing
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Created by Rajesh Banka, last modified on Jul 26, 2007

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Periodic Billing.
1. Create New Sales Order Type, say ZOR (Copy of OR) through T.Code: VOV8
Maintain Delivery Type as LF & Billing Type As 'F1' - Order Related / 'F2' Delivery Related.
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Documents Types
2. Assign New Sales Document Type to Sales Area, For Eg:
1000 (S.Org) / 10 (D.Channel) / 10 (Division) / ZOR (S.O Type)
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Header > Assign Sales Area to Sales
Document Type

3. Create New Item Category, say ZTAN - Copy of TAN (For delivery Related) / ZTAD - Copy of TAD (For Order realted) /
ZTAS - copy of TAS (For Third Party)
Maintain as under (others remaining same)
Billing Relevance: I
Billing Plan Type: 02
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item Category
4. Assign Item Category, for ex (assuming Usage & higher level item category as blank):
Sales Document Type | Item Category Group | Default Item Category
ZOR | NORM | ZTAN
ZOR | DEIN | ZTAD
ZOR | BANS | ZTAS
IMG > Sales and Distribution > Sales > Sales Documents > Sales Document Item > Assign Item Category
Note: In the above Billing Type '02' plays the main controller for periodic billing. In Sales order, at item level, we require to
maintain the billing plan.
Follow the Sales cycle as normal sales cycle for particular Scenarios