SD2023 - SD Retroactive Billing

v 1.0

India SAP CoE, Slide 1

 Retroactive Billing?
A new pricing agreement is effective before the pricing
date of the billing documents for customers

The calculation of difference amount arising out of the

new pricing agreement will generate a new billing
document (Debit / Credit Note ) for difference amount

India SAP CoE, Slide 2

Retroactive Billing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 3
Retroactive Billing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 4
Purpose

The competitive environment has kept the business always on toe

Meeting the customers expectations remain a primary goal to

sustain business growth & can influence frequent price revisions

To capture these frequent price changes & to avoid customer

complaints an efficient system is needed

India SAP CoE, Slide 5

 Use
This process used for all
Industry where new price
agreement happens for the
product for a customer or
group of customer and needs
to change mass billing
document.

Pricing agreements in the

component supplier industry
(in Automotive industry) are
made at specific times (for
example, every three months,
twice a year, or annually).
However, they do not take
effect immediately

India SAP CoE, Slide 6

 Challenges
Identify Primary and secondary document
Order reason
Assigning type to order reason for retro billing.
Retro Billing list
Combination Currency , partner and material
( Listing criteria )
Retro billing value calculation
System performance to run mass document at a time .

India SAP CoE, Slide 7

Retroactive Billing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 8
Retroactive Billing Need

India SAP CoE, Slide 9

Process Flow Of Retro Billing

Change Pricing Retro billing Retro billing list

effective date

Simulation / Choose required Display Retro

document from Billing List
Retro Billing list

Processed Credit /
Background
document Debit note
list Processing Generated

India SAP CoE, Slide 10

 Primary Document
Primary documents are the following billing
documents in which you have entered the relevant
order reason:

Invoices ( By default Primary Document )

Credit memos that refer to returns
Credit and Debit memos in which you have entered
the relevant order reason
You can also assign an order reason to a memo
request which then passes it along to the referenced
credit or debit memo.

India SAP CoE, Slide 11

Secondary Document
Secondary documents are the following billing
documents in which you have entered the relevant
order reason:

Credit and debit memo requests

Credit and debit memos
The system displays such a document only when it
has been created with reference to the invoice and
when the currencies in both documents match

India SAP CoE, Slide 12

Order Reason in Retroactive
Billing - Use
Credit and debit memos and memo requests are not
included in the retroactive billing list.

However, you may find it necessary in some cases to

designate these documents as relevant for
retroactive billing. You do this by entering the
relevant order reason in the billing document.

Examples of order reasons include price changes,

poor quality or ruined material. Depending on how
the order reason you entered is customized, this
billing document becomes relevant for retroactive
billing.

India SAP CoE, Slide 13

Order Reason in Retroactive
Billing- Prerequisite
Create credit and debit memos and memo requests
with the same payer, sold-to party, material, and
sales organization as the referenced invoice
Create credit and debit memo requests with the
same currency as the referenced invoice. This is
particularly important for the change to Euro
Make sure that you carefully maintain order reasons
in Customizing, in sales documents, and in credit
and debit memos for retroactive billing

India SAP CoE, Slide 14

Order Reason in Retroactive
Billing (continued)
Prerequisite
The pricing type that entered for the list should be same
from the pricing type determined for the credit and debit
memos created by the system. Ideally, these two pricing
types should be the same.
Make sure that the condition type PDIF is defined in the
pricing procedure which is used when creating credit or
debit memos

India SAP CoE, Slide 15

 Retroactive Billing List
List containing billing documents relevant for
retroactive billing:

documents with open values to be processed for

price changes
documents that refer to these billing documents
documents that have already been created and
processed for price adjustments

India SAP CoE, Slide 16

Retro Billing List - Structure

The retroactive billing list consists of a Header

and a List.

Header will have:

- Payer
- Sales organization
- Currency
- Ordering party

India SAP CoE, Slide 17

Retro Billing List Structure
(continued)

List will have

Actual net value of the invoice

a list of
billing document items with the original item net value
i.e. the value that has already been billed
if retroactive billing has already taken place, billing
document items created by the retroactive billing with
retroactive billing value. the difference between the
actual and item values, plus/minus values from the
relevant credit and debit memos or memo request in
the list.
related document items that are not relevant to
retroactive billing for information

India SAP CoE, Slide 18

Retro Billing Values
For each retro-billing item, the system lists the:
Actual net value
Value that would be determined for the item if you were to
revaluate the billing document.
Item net value
Value that has already been billed.
Retro-billing value
The difference between the actual and item values,
plus/minus values from the relevant credit and debit
memos or memo requests in the list.

The system calculates a separate subtotal for each

combination of currency, sold-to party and material.

India SAP CoE, Slide 19

Retroactive Billing Calculation
Invoice Credit Memo

F2
G2

101 10pc @ Eur100 101 10pc @ Eur10

Retroactive billing*

Net Value = Eur 1000 Difference = Eur 100

*New Price Eur 90 / Per pc New total Net value= Eur 900

Retro-billing value = Actual net value -Item net value

India SAP CoE, Slide 20

Limitation For Retroactive
Billing
The following billing documents or items do not appear in
the retroactive billing list:
Cancelled invoices and cancellation documents
Pro forma invoices
Invoices with reference to a credit or debit memo request
Billing document items without material
Items without material in credit memos and debit memos

India SAP CoE, Slide 21

Retroactive Billing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 22
Define Order Reasons
When you enter an order reason which has been assigned a type in
Customizing, the billing document becomes relevant for retroactive
billing as follows:

IMG Sales Sales Documents Sales Document Header

Define order reasons

India SAP CoE, Slide 23

Order Reasons (continued)
Primary Document (order reason is assigned type 2)
If you enter an order reason with type 2 in a credit or debit memo or
memo request, the system will use this billing document in
retroactive billing as a primary document.
Example:" Poor quality" would be a typical order reason for this type

Secondary Document (order reason is assigned type 1)

If you enter an order reason with type 1 in a credit or debit memo or
memo request, the
system will use this billing document in retroactive billing as a
secondary document.
Example:" Price difference: price was too high" would be a typical
order reason for this type

India SAP CoE, Slide 24

Order Reasons (continued)

Relevant for secondary document in

retro billing

Relevant for Primary document in

retro billing

India SAP CoE, Slide 25

Pricing Type

Pricing Type

IMGSalesandDistributionBasic Functions Pricing Pricing

Control Define and assign Pricing Procedure

India SAP CoE, Slide 26

Condition Type (PDIF) in Pricing
Procedure

IMG Sales and Distribution Basic Functions Pricing

Pricing Control Define and assign Pricing Procedure Maintain
Pricing procedure

India SAP CoE, Slide 27

Update Pricing Condition

New pricing value

effective from
01.09.2007

LogisticsSalesandDistributionLogisticsExecutionMaster
DataConditionsDiscounts/Surcharges Others
Transaction code:VK12

India SAP CoE, Slide 28

New Pricing Agreement From
Effective Date

Logistics Sales and Distribution Logistics Execution Master Data

ConditionsDiscounts/Surcharges Others
Transaction code:VK12

India SAP CoE, Slide 29

Pricing Agreement From Previous
Date

Previous amount effective upto

01.08.2007

Logistics Sales and Distribution Logistics Execution Master Data

ConditionsDiscounts/Surcharges Others
Transaction code:VK12

India SAP CoE, Slide 30

Retroactive Billing Processing
Invoice
Assign type to If a new pricing
Order agreement is
Cr./Dr.Memo reason effective before
or Memo Request the pricing date of
Billing documents

Retro billing Payer

Sal. Org.
Combination of To- and from date
Currency Pricing type (B/C)
Retro billing list
Payer
Material
Automatic
Cr./Dr. Memo Creation
=Diff. between Actual & Item values,
+/- values from relevant
Cr./Dr. memos or memo request
Retro billing Value

India SAP CoE, Slide 31

 Retroactive Billing Processing
Retro-billing
Generate a list of
documents affected by
price changes

Review list and select

documents to be retro-billed

Create credit and debit

memos directly

Review error log

Simulate

Menu path: Logistics Sales and Distribution Billing Billing

Document Retro-billing
Transaction code: VFRB

India SAP CoE, Slide 32

Retroactive Billing (continued)

India SAP CoE, Slide 33

List Of Billing Documents Relevant
For Retro Billing

3. Use the Retro-billing

button to trigger production of
retroactive billing documents

2. Use the Simulate button

to review results

1. Select
Documents to
process

India SAP CoE, Slide 34

Retroactive Billing List Execution

Document for open items

India SAP CoE, Slide 35

Selecting Required Billing Document
For Retroactive Billing Processing

Order reason is assigned for poor

quality to type 1 treated as secondary
documents

India SAP CoE, Slide 36

Complete Retro Billing Documents
By Using Simulation

India SAP CoE, Slide 37

Set Billing Types For Cr/Dr Memos
And The Order Reasons

India SAP CoE, Slide 38

Simulate Retro Billing List

India SAP CoE, Slide 39

Retroactive Billing List-creating
Credit/Debit Memo

India SAP CoE, Slide 40

Retroactive Billing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 41
Transaction Codes
Transaction code Description

VFRB To Run Retroactive billing

VK12 For changing pricing
VA02 Change order reason

SPRO Customization
SE16 To view tables

VF05 List of billing documents

India SAP CoE, Slide 42

Additional Information
Table Description
VBAK Debit/Credit Header
memo details
VBAP Debit/Credit Item
memo details
VBRK Billing document
header details
VBRP Billing document Item
details
India SAP CoE, Slide 43
 Exercise
Create/change a condition record for customer material
price .
Effective date should be earlier than current date .
Execute Retroactive billing process.
Assign order reason for required billing document .
Chose the billing document for which retroactive billing
run is required .
Simulate / Run Retroactive billing.
Save the log .

India SAP CoE, Slide 44

Retroactive Billing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 45
Retroactive Billing Process - SAP
Terminology
Primary Document
Secondary Document
Order Reason
Type
Retroactive billing list
Credit memo request
Credit memo
Debit memo request
Debit memo
Cancellation document
Pro-forma Invoice
Pricing agreement date
Pricing effective date
Retroactive billing date

India SAP CoE, Slide 46

Retroactive Billing Process -
SAP Terminology (continued)
Retroactive billing calculation
Pricing type
Pricing procedure
Condition type (PDIF)
Partner relevance ( Payer and Sold to Party )
Material
Currency
Sales Organization
Billing Date from and to

India SAP CoE, Slide 47