SD – RRB Process Document

In our Company we receive invoices from our Vendors which we need to charge back to our Customers at
Cost without any mark up. Normally business used to first process vendor invoices using MIRO or FB60
depending on whether it is a PO based invoice or non-PO based invoice. Then they processed customer
invoice using FB70 TCode.

SAP RRB (Resource Related Billing) sub-module under Sales and Distribution Module provides an
automated solution where vendor invoices are linked with customer invoices by using an Internal Order
and Material.

In this process, a Sales Contract needs to be first created using a material which has been configured in
the RRB Profile which is created using TCode ODP1 along with an Internal Order which is created for each
customer. This Internal Order acts as a bridge between Vendor Invoice and Customer Invoice.

Once the Contract is created then next step is to start processing vendor invoices. At the time of
processing vendor invoices, we need to make sure that it contains same Internal Order which has been
assigned in the Contract. In the vendor invoice processing step, we also need to assign it to a material
number. Material is used to differentiate between different services or items which need to be charged
back to the customer.

Once the Vendor invoice is created either through MIRO or FB60 depending on PO based or non-PO based,
next step is to create a Debit Memo Request using TCode DP90.

In TCode DP90, system allows us to create a Sales Order with reference to the Sales Contract created in
the first step of this process against an Internal Order and Material. Beauty of this process is, it allows us
to generate a partial invoice to a customer against vendor invoice if there is some dispute. Vendor invoices
are accumulated against an Internal Order and Material combination for each month separately.

Through TCode DP90, we create a Sales Order which is called as Debit Memo Request in SAP terminology,
however it is nothing but a Sales Order as TCode used is also VA01 / VA02.

After this we generate Customer Invoice document using VF01 against this Debit Memo Request and then
release it to Accounting.

Internal Order reporting transaction KOB1 provides us complete information about what is pending
against a material which needs to be invoiced to a customer.

In effect it’s a complete automated process to generate customer invoice against a vendor invoice.

Now I will share SAP screen to run through the complete cycle.
TCode – VA41 – Creation of a Contract

I have configured Sales Contract named as ZRRB

Here I assigned Material which is configured in ODP1 TCode and assigned an Internal Order.
I also assign an estimated Contract value here. I have configured Pricing Procedure for this purpose. It is
recommended that you create a Contract for a fairly long period as this Contract is used as a base to
generate the customer invoice against a vendor invoice.

After this I save this transaction and system tells me that a contract for RRB has been created.
After Contract creation, I am done with the basic part and now I am ready to receive vendor invoices and
create customer invoices against them.

Now I will post a test vendor invoice.

TCode FB60 – Non-PO based Vendor Invoice

We can do PO based vendor invoice in the same way.

One important point to remember while processing Vendor Invoice is that, we always have to use a
specific G/L Account which has been configured in ODP1 Profile to collect the cost.

In vendor invoice I need to assign the same Internal Order which has been assigned to the Contract I
created in earlier step.

Now I have posted a vendor invoice using the same Internal Order and assigned a material number to
identify with a specific service.

Now I check Internal Order Report using TCode – KOB1

Right now it shows only vendor invoices and it tells me that this I need to invoice to customer.

Now I will create Debit Memo Request using DP90 TCode.

TCode – DP90

Here I need to enter the Contract number in Sales Document field and choose source – Posting date to –
up to which system will check and display vendor invoices which need to be billed to customer.
System here allows me to do either of 3 actions:

1. Carry out Customer Billing for full amount

2. Postpone a part of the amount to be billed and invoice remaining amount. This can be achieved
by inputting a partial amount in the Amount Postponed field.
3. Postpone or Reject full amount to be invoiced

Here I would process the full amount. For this, I need to select the line and click on “Billing Request” field.

I receive below message:

Click on Yes and system generates a Debit Memo Request or Sales Order.

As can be seen, TCode used is VA02, however Heading says “RRB Deb. Memo Request”.

From here itself I can now generate Customer Billing document or can use VF01 to generate customer
billing.
Once I click on Billing, System will generate Customer Billing document.
Customer Billing document has been generated now.

System generated this Billing document. I can release this billing document either through VFX3 or from
here itself, if you want to segregate authorization.

Now system generates Accounting Document:

Accounting Document is generated against the same Internal Order and Material number. G/L Account
814200 is generated through configuration in VKOA TCode.

Now if I see Internal Order Report using TCode KOB1, it should show me zero balance as vendor invoice
has been charged to customer.
I can also see in VA43 – Contract Document flow

System shows all the Debit Memo Requests created under this contract so far.

This ends the process of creating a RRB Invoice against a vendor.