BUSINESS PROCESS PROCEDURE
Milestone billingSDFile Name: FI_SD_VA41 Createa sales contract-Milestone.DOCRelease: R/3 4.6BResponsibility: CBO staff andController’s OfficeStatus: Ready for review by team
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Generally, sponsored projects are invoiced on a cost reimbursable (resource-related billing) basis;however, some awards require specific billings of predetermined amounts on set dates. This BusinessProcess Procedure (and FI_SD_VA41a) will document the steps necessary to set up scheduled billings forthese awards so that invoices are produced at the predetermined dates and amounts.R/3 supports two basic types of fixed amount billing methods. The first type of billing method is milestone(ZMP is the R/3 billing type). In the traditional milestone project, invoicing occurs as a major phase ormilestone of the project is completed. For example you might have a contract requiring billing 1/3 of thecontract amount upon completion of the field research, a second 1/3 at completion of the draft report, withthe balance due when the research report is accepted by the sponsor. Although these technical completiondates may vary, the award document normally gives estimated dates that are used to initially set up thepayment schedule in R/3. In addition, UT will use milestone billing for (1) contracts with irregular invoiceamounts on preset dates, and (2) quarterly, semi-annual, or annual fixed amount invoicing. For example:$10,000 is to be billed at the start of the contract, $15,000 at the contract midpoint, and $25,000 at thecontract conclusion. Another example would be $5,000 is to be billed each calendar quarter during the termof the contract.The second type of fixed amount invoicing is scheduled billings (ZSCH is the R/3 billing type). In this award,a constant amount is invoiced monthly. For example, $1,000 is to be billed on the first day of the month overthe life of the contract. This BBP to document scheduled billings is FI_SD_VA41a, “Create a sales contract-scheduled”.
Business Process Procedure Overview
This document describes the method to establish a sales contract with its schedule for milestone billings.
Input – Required Fields
Please see the various steps for input fields
Output - Results
Milestone billings produced at the appropriatetime based on the award documentrequirements.
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