Payment Plan - Budget Billing

[Former Member]

Hi,

I would like to know if standard out of the box solution meets my requirements. My requirement is "based on the last 12 months of billing/invoicing history of the individual customer at a given premise, he/she can enroll on an equal payment plan". Does standard SAP out of the box provide this feature with out any customization/enhancements?

If yes can you please provide the steps required?

Thanks,

Sachin

[AmlanBanerjee · Accepted solution]

Hi Sachin,

In Standard SAP,the start date of the extrapolation period ((period for which extrapolation takes place to determine the payment scheme amount) is either set to the start date of the current periodic billing period, or to the move-in date if this lies

within the current billing period. The end date is the same as the end date of the current billing period.

The extrapolation period is determined in event Determine Extrapolation Period for Payment Scheme (R510).So you need to code in here to determine the extrapolation period.

The extrapolation result is evaluated in event Determination of Payment Scheme Sample Lines from Billing Document (R511). In the standard logic provided by SAP, the net amounts of all extrapolation document lines that are relevant to budget billing and posting are added together for each contract.If these lines have different debit subtransactions,the system uses the first subtransaction it finds as the valid transaction for all further processing.If individual extrapolation lines have a credit subtransaction, the extrapolation amount is reduced.

The system uses the data from event R511 to create a payment scheme sample line in event Determine Budget Billing Amount for Payment Scheme (R512). In the standard logic provided by SAP for this event,the system first determines the payment scheme amount for each due date item.The extrapolation amount determined in event R511 and the amount from the open items that was transferred to the payment scheme are added together. This sum is divided by the number of payment scheme requests remaining in the billing period. The number of payment scheme requests depends on the start date of the

payment scheme, the payment frequency, and the end of date of the billing period.

Hope it helps....

Thanks,

Amlan

[william_eastman]

Sachin:

Amlan mentions payment scheme - there is also payment plan and budget billing. You need to specify which type of plan you are looking to use.

regards,

bill.

[Former Member]

Thank you, Amlan and Bill. I am not looking for payment scheme instead I wanted to know about payment plan where customers can pay equal amount of money towards their bill and have it true up at the end of the plan .

I wanted to know if standard sap out of the box supports payment plan amount based on the individual customers 12 month bill history at a given premise. If there is no customer bill history, I understand we can maintain manual history for the contract.

What would happen in a scenario when there is no 12 months of customer history and we still need to enroll the customer on a payment plan? Are there any best practices in how we can offer payment plan to these set of customers? What are our options here in SAP and does standard SAP without any enhancements propose payment plan amount based on the individual customers 12 month bill history?

Please advise.

[william_eastman]

Sachin:

For payment plans, the standard is to look at billed history and generate an average. For accounts without history, a template can be used. Of course, if the customer has just moved to a new location, then their billed history is not appropriate. In that case, you would need to enhance the plan creation process to use different information.

regards,

bill.

[Former Member]

Hi Sachin,

It is a standard process of SAP .It will simulate all the previous. 12 months invoice amount and then take the average bill in the payment plan . If consumer don't have previous history then you can create manual history for the consumer . In customizing you can put the minimum number of months and maximum number of months .

Regards,

Khurram SIddique