Sales & Distribution Billing Day 1

Mini-Case Study Billing

Citrus-n-Soups is extremely proud of its ability to create billing documents efficiently, post to the general ledger accounts accurately, and collect payment from its customers quickly. One of the features of their current billing policy is the ability to invoice certain customers on certain days of the month. In particular, sales organization (EASx) creates invoices for a customer called Fabulous Food Market on the last day of every month. The billing department has agreed to use the standard payment terms that SAP provides but they require one additional one: 2% discount if the customer pays within ten days of the posting date. Otherwise, payment is due net within 30 days. Sales organization (EASx) has very strict accounting policies. It has separate general ledger accounts for each of its discounts. In particular, the marketing funds get posted to general ledger account 889001 - Marketing Fund Deductions and the sales funds get posted to general ledger account 889002 - Sales Funds Deductions. (Use the marketing and sales funds that you created in the pricing mini-case study). Citrus-n-Soups is well known for its generous rebate agreements. In particular, at the end of each year the vegtable division of sales organization (EASx) grants a rebate to Fabulous Food Market. Some of the details of the agreement include a rebate of $.25/can for every can of tomato soup (material number TOMATOx) that Fabulous Food Market buys within that year. Settlement is performed at the end of the year. * x = team number.

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Sales & Distribution Billing Day 1

Mini-Case Study Billing

Objectives: To learn how to set up and process a billing schedule for a customer, create a new payment term, configure revenue account determination, and create and process a rebate agreement. Pointers: 1. Use the sales organization (EASx), distribution channel, and division that you created in the first mini-case study. You do not need to create a new account determination procedure or condition types. Use existing customer and material account assignment groups. Use CSCA as the chart of accounts. Use the sales order type created in the previous case studies (ZGPx). 2. For the revenue account determination, find what sales deduction account is normally used for discounts and copy this general ledger account to create two new accounts, 889001 and 889002. To create the G/L accounts: ACCOUNTING > FINANCIAL ACCOUNTING > GENERAL LEDGER > MASTER RECORDS > IN COMPANY CODE>select the create icon.

3. Create new account keys for the marketing and sales funds. Call the account key for sales funds (SLx)* and marketing funds (MKx)*. Assign the account keys to your pricing condition types. Be sure that ERL is assigned to PR00 4. Assign your new G/L accounts in the Account Key table. Allocate each of your new accounts for SD applications, KOFI condition type, CSCA chart of accounts, your sales organization, and your account key, and new GL accounts. Your rebate also needs account determination, but we will do that later. 5. Create a billing calendar. Remember rebates are settled at the end of the year. You will need dates that extend to the rebate settlement date. 6. Create a new payment term called (ZGPx)*. 7. Create the customer Fabulous Food Market and assign the billing calendar and the new payment term to the customer. The payment term appears in the Payment Transaction view and the Billing view. Which do you use? Make sure the customer is able to receive rebates. 8. Create the material (TOMATOx)*. 9. Create the rebate agreement on the functional side. Add the material rebate condition to your pricing procedure to calculate the accrual amount for each order. Then configure revenue account determination for the accrual amount. Assign account key

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Sales & Distribution Billing Day 1

Mini-Case Study Billing

ERB and accrual account key ERU to the condition type BO02. Assign G/L account 889000 to the account key ERB in the Account key table. Then find the G/L account assigned to account key ERU. Copy as and substitute your sales organization. 10. Test your work. Create an order for tomatoes for your customer Fabulous Food Market. deliver it, and bill it. On the billing document, check that the billing date is at the end of the month. Check that the billing document reflects the new payment term. (Header>Detail) Post the invoice, look at the accounting document and check that the relevant G/L accounts were hit for PR00, SL0x, and MK0x. Display your rebate agreement and check that your order was accrued. There are many ways you can see this. Options (from the Overview screen): - Hit the "Sales Volume" icon or use the menupath Rebate Payments>Sales Volume - Hit the "Conditions" button. Then select the line and hit the "Payment data" icon (puzzle piece) Rebate Payments >Drill down. Scroll right. Totals are listed at the bottom. Release your agreement for settlement (hint: change the status) and settle the rebate. REBATE AGREEMENT > CHANGE.... Choose status "B" in the overview screen and select execute settlement button.

4CONFBILL.DOC

09/16/03