Milestone Billing - SAP SD

[Brinda911]

Hello Experts,

I am trying to replicate PS Milestone Billing Scenario in Public Cloud. However, I cannot find any option to create Milestone at WBS or Network Activities. But In the Billing Plan tab of Sales Order I find the Milestone option and when I click on it, it gives me to choose between WBS/ Network. 

Firstly, I wanted to know if we could create Milestones at WBS/ Activities and Second, I wanted to know if there are any CBC configs required for Milestone Billing from Professional Services/Project Management.

Customer is an AD service company, and we are going to use Milestone Billing solution in place.

When I create a Sales Order line item there is two options one for Create Dates and one for Milestones and it is asking for Network and WBS element. I have no clue what these are and how to create them. 

Or is it possible to create a milestone billing plan without Project Systems?

Could somebody guide me with the above, thank you!

-Brinda S

SAP S/4HANA SAP S/4HANA Cloud Public Edition SAP S/4HANA Cloud Public Edition Sales SD (Sales and Distribution) SAP Commercial Project Management for SAP S/4HANA SAP Commercial Project Management 

[Ken_Melching · Accepted solution]

Currently in Public Cloud the Enterprise Project Milestones do not link to a Sales Order Item to create the Billing Plan similar to how it works in Private Cloud/On-Prem.  For Public Cloud it is on the roadmap to have this functionality.

Also, in Public Cloud there are only WBS elements, Network Activities are not there.

[evans_aarons · Accepted solution]

Hi Ken,

I am currently on public cloud and I believe there are Network Activities present and this can found when you are creating a Sales Order.

Regards,

Evans Aarons

[Ken_Melching · Accepted solution]

Trust me, they are not there. The transaction to generate a billing plan from network activity project milestones has its roots from the On-Prem code but you can't create network activities.

[evans_aarons]

Hi Brinda,

First and foremost, WBS is solely for the purpose of planning the cost & revenue for the particular project which would be expense planning, staffing and timesheet etc. and hence you cannot maintain any billing milestones here in the workpackage.

The reason why you see WBS/NETWORK when you click on Milestone in Billing tab is "WBS element is directly associated to Billing milestones which helps in the revenue recognition calculation".

The best approach would that creating the billing milestone on the project level itself which saves your time of creating Sales Order separately. I would assume that you are creating a project in "Create Customer Projects" application and maintain the workpackage to plan your costs and revenues and later when you arrive to the "Billing" tab; select Contract type, Product, Description, Assign the workpackage (created earlier in previous step) and enter the amount to be billed. Now go inside this billing item and maintain your milestones after this when you return back to main screen and click on save a Sales Order would be automatically created.

Hope this helps.

Regards,

Evans Aarons

[Brinda911]

Thanks for the inputs. We are not using Project Services in the current project. But it is still possible to create milestone billing without PS right? If so, where can we maintain those billing dates and when I manually give billing dates in the billing plan tab it is automatically placed in billing block and billing type FAZ (Down Payment Request). But I would like to see how billing block can be removed by system automatically and with billing type F2?

[NayanitaM]

Hi Evans Aarons, do we have the possibility to maintain % of Revenue as Milestone instead of value

Client is on Service Business. They will get Full scale orders and can bill based on certified amount of service completed which is possible with scenario that you have explained above. There are scenarios where I complete certain service task and can claim bill for the same, which usually % of contract value. how do we achieve this as part of Milestone

Bala

[Ken_Melching]

Currently in Public Cloud the Milestones create for an Enterprise Project cannot be used to create the Billing Plan on a Sales Order.  So the Billing Plan must be maintained manually.

Now this functionality should be available in Q1 2025  where the Project Milestone can be used to generate the Sales Order Billing Plan.

[NayanitaM]

Hi Ken,

Thanks for Update, since you monitor this thread, quick question

Is there a way that multi-level WBS can be marked as Billing Element in Enterprise Project. Have this requirement as the client would create a project based on contract from their end customer which is a multiyear contract. There would be small execution activities which client want to monitor with simple WBS structure below L1 WBS and bill to end customer based on milestone. since L2 WBS cannot be made Billable element, not able to maintain L2 WBS account assigned to Sales Order and maintain Billing plan manually as you suggested above.

We can wait for Q1 2025 for Milestone update and support client on Milestone Billing later, but this Billing element restriction only to project level makes solutioning difficult for scenario mentioned above. Any suggestions on this please...

Balasai

[Ken_Melching]

Yes you can mark multiple billing element WBS in an enterprise Project.

The first thing you need to do is check the Multiple Sales Order Items when you are first creating the project.  This must be done prior to the first save and cannot be changed afterward.

Then in your structure the billing element WBS cannot be in the same hierarchy branch.  WBS as billing elements cannot be on top of one another.

[MarkoPa]

Hi Ken! Thanks for that helpful comment. Would you know a workaround for that yet? Since it is not mentioned in the current Roadmap.

We are trying to link the Milestone to the Billing Plan, the function is there at VA01 but its simply not working. 

[Ken_Melching]

As of S/4HANA 2502 Public Cloud on Enterprise Projects milestones have moved from just the project to WBS elements. These milestones still cannot generate the billing plan on the Sales Order but that is on the roadmap for Q1 2026.

[Ken_Melching]

MarkoPa,  you could look into developing a BPA on BTP to read the WBS milestones and write them to the Sales Order Item Billing Plan.