Milestone Billing 

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 following figure shows an example of milestone billing:

 

For each billing date in a milestone billing plan, you can specify whether the billing date is:

  • fixed
  • always updated with the actual date of the milestone
  • updated with the actual date of the milestone, if the date is earlier than the planned billing date for the date
  • updated with the actual date of the milestone, if the date is earlier than the planned billing date for the date

As of Release 3.0C it is also possible to assign milestones to the dates of the billing plan during milestone billing if no network plan has been opened.

In order to do this you must assign the milestone manually in billing plan maintenance. For you to be able to make this assignment, the Fixed date field of the proposed date category of the billing plan type must not be blank. The additional fixed value (as of Release 3.0C) of Fixed date ‘ ‘ means that you cannot assign it to a milestone. Milestone assignment is possible for all other values. You make these settings in the Implementation Guide.

 

Integration Between Sales and the Project System

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:

  1. In one of the overview screens of the sales document, select Item
® Schedule lines.
  • Mark the schedule line and select Procurement details.
  •