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Purpose

Introduce Milestone Billing.

Overview

Milestones are an event with a special meaning. It can be used in a project to designate significant events or the completion of a project phase.

These are used in the Project System:

  • For progress analysis
  • As release stop indicators
  • To trigger predefined functions and workflow tasks

Function 

In milestone billing, the following functions are carried out at item level:

  • Determining billing document value on a percentage basis
  • Dates at header level are copied from all item billing plans assigned to that header. When you make changes at header level (e.g. new billing dates or changes to percentage rates), the related items are automatically changed accordingly. The system does not allow you to make changes at item level.

Handling milestones

Dates generated in the header billing plan and milestones set in the header billing plan (Edit ® Generate dates ® Manual milestones) are copied to the item billing plans assigned to that header.

If you want to schedule milestones in an item separately from the header, you must first remove the item from the header billing plan before milestones can be assigned to it.

All manually set milestones will be deleted when you reassign this item to the header billing plan. Header data will once again be valid for the item.

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 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. These can be attached to both WBS and Activated

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

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 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.

       2.      Mark the schedule line and select Procurement details

Suggested T Codes:

  • CN11
  • CJ20N
  • CJ27
  • CJ2D
  • CNMT

Related Content

Related Documents

Related SAP Notes/KBAs

1 Comment

  1. Amaresh,

    I really appreciate your effort and interest in making this wiki page, however, I have observed that the major portion of the wiki content(from function to integration between Sales and the project system)  is nothing but the SAP Help content which is available in the following links 
    http://help.sap.com/erp2005_ehp_04/helpdata/en/31/03953401024735e10000009b38f83b/frameset.htm
    http://help.sap.com/erp2005_ehp_04/helpdata/en/31/03953401024735e10000009b38f83b/frameset.htm

    I would suggest you to replace the contents with the appropriate links as a reference and provide your own explanation in the wiki. 

    Regards,

    Wiki Editor.