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SAP SD/CS/PS Billing Form usage in Item Category VOV7


Hello,
In our Item Category definition  VOV7 we have a Field called BILLING FORM 

i would like to give a brief overview of Billing Form and its usage
Definition:-
Unlike our normal Billing ( standard Billing process) we also have a Time and Material Billing which is most widely used in SAP Project systems and Customer service. In this billing process, Customer is billed according to Materials consumed and Labour time booked during the course of project or while performing repair/Service
Billing Form is used to Bill Customer based on Flat-Rate
Usage:-
In order to understand Time and Material Billing , it  is necessary to emphasis on Plan cost and Actual cost
Plan cost is cost which we plan to incur during our execution ( either Project or repair)
Actual Cost is which is actually incurred during out execution.
So here Using Billing Form we will bill customer on Flat Rate Billing which is Planned from Labor hours and Materials consumed
Types: –

We have two types of Billing Forms defined in Standard SAP
1. Fixed Rate
2. Cost
Configuration: –
VOV7 – Item category settings, Maintain Billing form either as 01 ( fixed Rate) or 02 (cost)
Business Scenario:-
1. Customer Requests for Installation of Certain Equipment.
2. You will create a sales order for the customer with Service Product ( such as Installation) and all our standard Determinations will copy as per standard. Item category will be copied in which we have maintained Billing Form as 01 ( fixed Rate).
3. A service Order is created from Sales order to capture the Time and Material Cost
4. For example, you plan 10 hours of Labor hours and few Material Components to perform installation
5. Send Quotation to customer with Plan cost
6. If customer accepts Quotation, Billing Form will create a Debit Memo Request  for Plant cost automatically in Background
Difference Between Fixed Rate and Cost Billing Form:
Case 1: FIXED RATE
When we use Fixed Rate in the Item Category, After accepting quotation, system will create automatically Billing Request from the Plan Cost and after Confirmation of services or components system does not allow to Create a Debit Memo for second time

Case 2: COST 
When we use Fixed Rate in the Item Category, After accepting quotation, system will create automatically Billing Request from the Plan Cost and after Confirmation of services or components system does  allow to Create a Debit Memo for second time

this behavior is standard and it is controlled in Exit  "EXIT_SAPLV46H_001"
Youtube channel link:

https://youtu.be/BoLvKVIHE_8

 https://youtu.be/BoLvKVIHE_8


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