CR71010 -CRM Billing

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CR71010 -CRM Billing  SAP CRM 7.0
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CRM-2007 Billing System Landscape
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CRM R3 Billing for CRM R3 Transactions
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CRM R3 Billing for CRM R3 Transactions
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Purpose

• Billing is an essential part of Sales and Service
  processes.
• Billing comprises the collection of billable
  items in the billing due list and the
  functionality to invoice this data, producing
  billing documents that are transferred to
  accounting.
• On time, Accurate and Effective Billing process
  , ensure good financial health of an Enterprise.

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Use

• The Billing function can handle generating
  invoices (Normal, Corrections Cancellation
  invoices, Debit Credit Memos) for Order and
  Delivery related transactions. This results in on
  time payment collections and also in settlement
  of customers grievances.
• You can use CRM Billing to combine Service
  order items and Sales order items in the
  invoices. This simplifies communication with your
  customers.

Billing due list
Billing docu- ments
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Challenges

• Receiving timely payment from customers for
  delivered products and services as well crediting
  the customers for their claims, are increasingly
  critical to revenue, profitability and customer
  loyalty. This is especially true in environments
  where competition is intense, costs are rising
  and margins are dwindling. 
• By deploying technology such as Integrating ERP
  packages, legacy systems, On line Billing
  intimation and collection options through
  Internet , mobile devices, leading companies
  around the world are dramatically improving
  service capabilities, competitive differentiation
  and corporate performance.    

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CRM R3 Billing for CRM R3 Transactions
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Billing Process Overview

• The whole billing process comprises three major
  steps
• Input Processing

• .

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Billing Process
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Billing Execution
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Output Processing
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Billing Options Billing Plans
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Billing Process Overview

• The process flow for creating and issuing
  invoices using the CRM Billing can be divided
  into four sub-processes
• Input Processing
• Billing
• Cancellation
• Output Processing
• During Input Processing, CRM Billing takes over
  billing-relevant items from different business
  transactions and saves them as billing due list
  items.
• As of CRM Release 5.0, you can use an external
  interface to copy data from non-SAP systems to
  the CRM Billing due list. It supports the formats
  IDoc XML SOAP via HTTP XML via SAP NetWeaver
  Exchange Infrastructure.
• From the billing due list, you can process both
  single and collective billing from billing due
  list items and also trigger these to run in the
  background.
• During billing, related billing due list items
  are also grouped together as far as possible from
  different CRM business transactions and
  transferred to a joint billing document.
• You can cancel individual billing documents and
  also execute collective cancellations. The system
  transfers information on cancellations
  automatically to Financial Accounting.
• Output processing is made up of invoice output,
  the transfer to SAP Financial Accounting and
  retrieval for SAP BW. You can choose from
  different output media (for example, print, fax
  or email) for invoice output, although output
  takes place using SAP Smart Forms.The ledger
  posting of billing data takes place either in SAP
  FI-A/R or in SAP FI-CA. CRM Billing provides all
  relevant billing data for the SAP Business
  Warehouse for statistical reporting.

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CRM Billing Imp Concepts

• Billing Unit
• The billing unit is the organization in a company
  that handles the billing processes for the
  business partners involved in the sale.
• Its tasks include, among others, receiving and
  handling complaints.
• In the invoicing process it is used, among other
  things, to select billing request items and it
  effectively determines grouping in invoicing.
• In Intercompany Billing scenario also it plays
  important role.
• Convergent billing
• Convergent billing is the integration of all
  service charges onto a single
• customer invoice e.g. Many Service confirmations
  billed together.

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CRM Billing Imp Concepts Billing Relevance

• The billing relevance defined at item level in
  the business transaction drives the billing
  process.
• It controls
• When billing data is transferred to the billing
  due list (for example, after saving or in the
  case of a specific status)
• Whether the transaction or the delivery triggers
  billing
• Where billing takes place either within CRM or
  R/3 SD
• In transaction-related billing, the business
  transaction provides all data necessary for
  billing
• Selection of billing due items via transaction
  number
• Used, for example, for service orders and
  contracts
• In delivery-related billing, a combination of
  delivery and transaction data feed the billing
  process
• Selection of billing due items via delivery
  number
• Used, for example, for sales orders

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CRM Billing - Master Data Services

• CRM Billing uses existing master data entities
  for
• Business partners
• Prices/conditions
• Organisational units
• Products
• Services used by CRM Billing are
• Partner Processing
• Pricing
• Text Processing
• Action Processing Printing and other output
  actions by using the Post Processing Framework
  (PPF)
• Transfer to accounting (FI-A/R and FI-CA)
• BW adapter

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CRM Billing Pre-Requisites

• General
• Number Range, Master Data, Pricing Procedure, Tax
  configuration,
• Middleware, G/L setting, No Billing Block,
  Billing Type, Billing Relevance
• Item Category and Copy Control etc. should have
  been maintained
• For CRM Billing
• For Service Items the status should be confirmed,
  
• For Billing Plan the due date must be due
• For Delivery related CRM Billing ,PGI should have
  been done and the
• relevant status must be updated in CRM
• For Delivery related R3 Billing for CRM Orders
• Order should pass correctly from CRM to R3 ?PGI
  should have been
• done.

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Key Billing Functionality available in CRM7.0

• Transaction-related and delivery-related billing
• Complete integration with preceding processes
  (business transactions and deliveries)
• Complete integration with SAP Financials
• Provision for SAP Business Intelligence
• Billing of Complaints (Credit / Debit memos)
• Cancellation
• Direct billing
• Milestone billing and Periodic Billing Plan
• Intercompany processing
• Supplementary invoices
• Invoice split
• Differential invoicing
• Support of foreign trade processes (e.g. GTS,
  Extrastat, Intrastat Reports)
• External interface for billing due list
• Individual configuration of billing application

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Example Delivery-Related CRM Billing Flow
SAP CRM
SAP R/3
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Example Service Process CRM Billing Flow

• Prerequisites The service process has the status
  Released. You have made the settings necessary
  for copying control and have entered the date
  type SRVC_ACTUAL (start of work/end of work) in
  the date profile.

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CRM Billing Confirmation without Service Process
Order

• Example A customer asks a service employee, who
  is on site due to another order, to perform a
  repair. Because the device failed only an hour
  ago and therefore, the customer has not yet
  reported the problem, there is no existing
  service process from which the confirmation can
  occur. In this case, the service employee can
  perform the repair and subsequently create a
  confirmation. In this way, the working time and
  spare parts required for the repair can be
  invoiced to the customer.

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Amount Allocation to CO for Service Order
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Example Service Plan Billing Flow
SAP CRM
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Billing Plan Example Periodic Billing

• You can see the billing plan in a business
  transaction on the billing plan tab page.
• The system creates billing due list entries for
  every billing request item from the billing plan.
• Once the billing date of a billing request item
  (BRI) is reached, the system creates a billing
  document.

Invoice 1 Miller Inc. 31. Jan. 2.000 USD
Invoice 2 Miller Inc. 28. Feb. 2.000 USD
Billing Due List Entries
Invoice 3 Miller Inc. 31. Mar. 2.000 USD
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Billing Plan- Periodic Milestone Billing

• A billing plan is a schedule of individual
  billing dates for a product or a service.
• Periodic billing
• Bills the same amount at regular intervals
• Can be used, for example, for maintenance or
  leasing contracts
• Milestone billing
• Bills different amounts on predefined dates
• Can be used for items in high-value projects or
  long-term projects (for example, plant
  engineering and construction)

31. Jan. 2.000 USD 28. Feb. 2.000 USD 31.
Mar. 2.000 USD
1st milestone 1. April 20 2.000 USD 2nd
milestone 31. Mai 40 4.000 USD Final
invoice 30. June 40 4.000 USD
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Supplementary Invoice

• The system creates an additional entry in the
  billing due list, if a partner with the partner
  function bill-to party (supplementary invoice)
  exists in the original transaction. This scenario
  is useful for example when one may be required
  to send a copy of invoice to Group company
  another Bill to Party showing only Product Price
  without Freight, Tax and other charges-with NO
  Posting to FI being done.
• The system carries out a partner determination
  for the copied item.
• The system carries out pricing for the copied
  item.
• Only the customer invoice is provided to
  Financial accounting for further processing

Financial accounting
Financial accounting
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Invoice Split Using Conditions

• You can split the net value of an item into two
  invoices.

Invoice 1 Price 100 USD
Order
Financial accounting
Price 100 USD Freight 20 USD
Invoice 2 Freight 20 USD
Financial accounting

• The invoice split is triggered by the condition
  type and by a flag in the business partner
  master data (payer).
• The system then creates an additional entry in
  the billing due list.
• The invoices are handled separately in all
  following processes.

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Differential Invoicing
Differential invoicing allows invoice corrections
to be generated from complaints. A value or
quantity change in a complaint can trigger the
creation of a correction document.
Shortage Complaint Quantity 8 Received
Original Invoice Quantity Credited back in
Full Received Quantity is Charged
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Direct Billing

• Via direct billing, a billing document can be
  created directly, without the intermediate step
  of initiating billing via the billing due list
• Direct billing is triggered by a flag in the
  business partner master data (payer)
• Incomplete or blocked due list items are excluded
  from direct billing
• If an error during billing occurs, the item can
  be found in the billing due list
• You can also use a Business Add-In (BAdI) to
  trigger direct billing

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Intercompany Billing Flow
Intercompany billing A process for internal
invoicing in the case that the sales
organization and the delivering organization of
an enterprise belong to independent accounting
units. This happens mostly in delivery related
billing, but can happen in service related
billing also where actual service is rendered by
sister company for Service Order created by
sister company.
Intercompany invoice
Order
Delivery
Customer invoice
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Information on Intercompany Billing

• Use
• You use intercompany billing if both of the
  following apply
• A product/ service is delivered by a unit other
  than the seller.
• The seller and supplier of a product are in the
  same enterprise group, but in different Company
  Codes
• Intercompany billing enables the supplier to bill
  the seller in
• the above scenario.
• The system automatically recognizes a case of
  intercompany
• billing when a supplier is entered in the order
  that has a
• different company code from the seller.

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Intercompany Processing Characteristics

• System automatically determines whether vendor
  belongs to different billing organization than
  sales organization
• Supports transaction and delivery-related
  intercompany processing
• Creates two or several billing due list items
  one for customer invoice and one or more for
  intercompany invoice(s)
• Within direct delivery billing, integration with
  controlling provides determination for the profit
  center of the delivering party, and booking of
  cost of goods issued and revenue to new accounts.
  
• During the creation of a billing due list entry
  for an intercompany invoice, prices and partners
  are redetermined.

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Multi-Level Intercompany Billing
Multi-level intercompany billing For a given
intercompany-relevant transaction, a chain of
intercompany billing documents is derived to
allow a general multi-level intercompany process.
Customer
Order
Delivery
Customer invoice
Intercompany invoice 2
Intercompany invoice 1
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Cancellation of Billing Documents

• In order to reverse the billing process you can
  cancel billing documents.
• The system does the following
• Changes the billing document (status canceled)
• Generates cancellation document (to reverse
  postings in FI)
• Creates new entries in billing due list

Cancellation document
Financial accounting
Billing due list entries
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External Due List Interface

• The external due list interface is a XIF
  interface for the billing due list.
• The interface can be used to transfer external
  data to the CRM billing due list (for example,
  transfer of items to be billed from an external
  order entry or delivery system).

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Integration with SAP Financials

• The system transfers billing documents to SAP FI
  in order to post them as open items.
• Features are
• Status and error handling in billing documents to
  control transfer to accounting
• Possibility to separate the creation of a billing
  document from its transfer to accounting
• Flexible account determination, either based on
  single mapping table or on condition technique
• Can be connected either to SAP R/3 FI-A/R or SAP
  R/3 FI-CA
• Sales transactions transfer the controlling
  attributes and planned values (incoming sales
  orders), whereas billing transfers the actual
  values (sales volume) to SAP R/3 FI-CO
• Middleware controls the connection between
  billing and accounting

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Differences between Billing in CRM vs. ERP

• CRM Convergent billing based on collected items
• CRM Import of external billing relevant data
• CRM Multi-level inter-company billing
  (Spare-Parts Scenario)
• CRM Supplementary invoicing (via partner based
  derivation)
• CRM Condition split
• CRM Flexible Billing application generation to
  streamline performance
• ERP Editable header conditions e.g. Freight
  Conditions
• ERP Display of archived billing documents
• ERP Standard payment card support
• ERP Enhanced Revenue recognition support
• ERP Down payment support

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CRM R3 Billing for CRM R3 Transactions
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Configuration of Billing Applications

• You can configure your billing application and
  adapt it to your needs by activating additional
  features, such as

• Advanced item category determination
• Enhanced account determination
• XIF connection (inbound processing)
• CRM integration to contract accounting (FI-CA)
• Supplementary invoice
• Invoice split using conditions
• Multilevel intercompany billing
• Foreign trade connection (GTS)
• Enhanced attributes for pricing
• Localization (country-specific functions)

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Customizing Settings for Billing

• The following customizing settings are necessary
• Define settings for basic functions/services used
  by CRM Billing
• Settings for pricing (pricing procedure)
• Settings for partner processing
  (partner-determination procedure)
• Settings for action processing (action profile)
• Settings for text processing (text-determination
  procedure)
• Define number ranges for billing documents and
  collective runs
• Define billing units and assign them to
  sales/service organizations
• Define the billing relevance of transaction item
  categories
• Define billing types
• Define item categories for billing
• Make settings for item category determination in
  billing
• Make settings for all additional functions you
  want to use (for example, intercompany billing
  and supplementary invoice)

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CRM Billing Native Customizing

• CRM Billing native customizing
• Number Ranges
• Item Categories
• Billing types
• Item Category Determination

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CRM Billing Native Customizing
IMG SAP Implementation Guide ? Customer
Relationship Management ? Master Data ?
Organizational Management ? Cross-System
Assignment of Organizational Units ? Assign
Billing Units to Sales Organization Find out
that a Billing Unit Sales US Billing Unit is
assigned to your Sales Organization 50000609 (US
Sales Service). This billing unit should
already have been created as Business Partner in
CRM to represent as Company code in R3.
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CRM Billing Native Customizing
Assign Company code to Billing Unit / and
Business Place. It means One Billing Unit to One
Company Code like One Sales Org can be assigned
to One company code only but one company code can
have multiple Billing Unit. There will be
intercompany sale when 2 Billing unit (Through
their Sales Org Assignment ) assigned to
different company code make sale to each other.
Business Place is tantamount to Plant mostly used
by FICO for Payment and Tax collection .
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Configuration for Billing Type

• Check whether the billing type e.g. F2 has the
  proper entries
• IMG SAP Implementation Guide ? Customer
  Relationship Management ? Billing ? Define
  Billing Types
• Highlight F2 / ZFSC Invoice and press Details.

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Customizing for Sales Item Category

• Related Customizing in CRM transactions
• Transactions ? Item Categories
• Relevance for Billing

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Configuration for Billing Item Category

• Assign your new Item Category to your source
  Process Category ZAXX and source Item Category
  TAN from your Transaction Type.
• Save your assignment.
• IMG SAP Implementation Guide ? Customer
  Relationship Management ? Billing ? Define
  Billing Category (This helps in determining Item
  category and Pricing Procedure at the time of
  Billing )

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Determination of Billing Item Category

• Assign your new Item Category to your source
  Process Category ZAXX and source Item Category
  TAN from your Transaction Type.
• Save your assignment.
• IMG SAP Implementation Guide ? Customer
  Relationship Management ? Billing ? Item Category
  Determination ? Assign Item Categories

This Source Process Means Source transaction
e.g. Order / Contract Transaction type and the
Source Item Category refers to Item Category
assigned to the Source Transaction type.
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Billing Plan Customizing

• Customizing of billing plan
• You define billing plan type(s)
• You define customer billing plan procedure(s) and
  assign it to customer master data
• You assign billing plan type to the business
  transaction or to the item category (dependent on
  billing plan procedure)

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Info on Supplementary Invoice

• Use
• You can use this functionality to copy a billing
  due list entry during creation. It can, for
  example, be used to create another invoice for an
  order or delivery. The second invoice, which is
  based on a copy of the original billing due list
  entry, contains different partners and different
  prices.
• Activities
• 1.Check whether the predefined partner access
  sequence 1004 meets your requirements.
• You will find the definition for the access
  sequence in the IMG, under Customer Relationship
  Management -gt Basic Functions -gt Partner
  Processing -gt Define Access Sequences. The
  predefined access sequence has the following
  settings

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Info on Supplementary Invoice

• Activities
• 2. If it meets your requirements, use partner
  determination procedure 100009.
• 3. In order to use other conditions for the
  copied billing due list item, you should create a
  pricing procedure that only creates the
  conditions that are relevant to the copied item.
  Assign this procedure to the billing item
  category and the billing type for the
  supplementary invoice. This means that you should
  definitely create your own billing type to be
  used for the copied billing due list item. Make
  sure that you do not select the "Copy
  Determination Procedure" indicator in the billing
  type.

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Controlling Invoice Split Through Conditions

• Activities
• IMG under CRM -gt Billing-gt Invoice Split via
  Conditions

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CRM Billing Integration with FICA

• Related Customizing in CRM for Account
  Determination? Menu path

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CRM Billing Integration with FICA
The G/L determination takes place based on
1-Condition type 2-Distribution
channel 3-Division 4-Product account
group 5-Country (of invoice recipient)
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Additional Customization Settings
Configuring the Billing Application
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View Sales Order and its Output on WEBUI
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Input Processing Billing Due List
The billing due list receives the
billing-relevant data from precedingprocesses,
supplements it with customizing data and master
data, checks it,and saves it in the form of a
billing due list item.
Transactions relevant for billing For
example, service order, contract, and delivery
Billing due list Billing due list items

• Organizational data Determines the billing unit
• Partner data For transferring and filtering
  business partners
• Pricing conditions For transferring pricing
  conditions
• Text data For transferring texts

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CRM Billing - Billing Due List(BEA_DL_01)

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CRM Billing - Billing Document Overview
Initiate Cancellation
Document Status
View Error Log
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CRM Billing - Billing Document
Header Details
Document Flow
Access CRM
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Output Processing

• CRM Billing enables invoice output through
  various media
• Printer
• Fax
• E-mail
• Optical archiving
• External printing channels
• You can output customer invoices
• Automatically after the billing documents have
  been created
• Periodically (for example, at the end of a week
  or month)
• Manually

The billing capability uses action processing
(post processing framework PPF) for creating the
output.
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View CRM Bill and its Output on GUI
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Search Billing Doc on WEBUI of CRM7.0
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Detail View Billing Doc on CRM 7.0-WEBUI
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CRM R3 Billing for CRM R3 Transactions
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Important Transaction Codes
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CRM R3 Billing for CRM R3 Transactions
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