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Billing and Invoicing
Introduction
Introduction
• SAP ISU Billing And Invoicing
• The SAP Utilities (IS-U) component is a sales and information system that
supports all business processes and utility services of a utility company. You can
use IS-U for managing and billing residential, commercial and industrial, and
prospective customers. This component also allows you to manage and bill
customers who receive services, purchase goods, or pay fees and taxes.
• Billing and Invoicing module explain the process that starts with Billing and
Invoicing and finishes with Bill print out. Here you will also get knowledge of all
ISU/CCS master data and functions relevant to Billing. Detail analysis of rates
and prices modelling is presented in most simplistic way.
Following are some of the business processes which can be handled by this
module:-
 Billing & Invoicing
• . Introduction of Billing
• Business Scenario
• Billing in ISU Data Model
• Utility Industry : Term explained
Billing & Invoicing
Integration Model
Master Data
Master Data
• This component contains data for the Utilities Industry (IS-U)
component that remains unchanged over a long period of time. The
graphic below illustrates the master data and shows how the various
objects are related to each other.
• There are two different types of master data:
Business master data and technical master data
Master Data
Business Partner
• Business Partner. A person, organization, group of persons, or group
of organizations in which a company has a business interest. You use
this business object for a variety of business transactions. You create
and manage your business partners (BPs) centrally along with the
roles they assume for your company.
Various Business Partner
Roles of Business Partner
Business Partner Data
Contract account
This component enables you to create and manage contract account
master data. In Contract Accounts Receivable and Payable , each
business partner posting is assigned to one business partner and to
one contract account. In the contract account master record, you can
define, for each business partner, the procedures that apply when
posting and processing the line items of a given contract account.
These include, for example, payment and dunning.
Contract Account Data
Contract-Definition
• Utility contracts are utility service agreements between the utility company and
its business partners. The following contract categories exist:
• Delivery contracts, for example for residential contracts, nonresidential contracts,
cable television, telecommunications
• Purchase contracts for small power producers, solar installations and other forms
of energy transmission
• Plant consumption contracts for generation and distribution installations of the
utility company
• Company consumption contracts, for example for the electricity consumption of
offices at the utility company
• Waste disposal contracts for the waste disposal industry.
Contract data
Connection Object
• A connection object is usually a building but can also be a piece of
property or a facility, such as a fountain or construction site.
• Since an address is allocated to a connection object, the connection object
links premises, device locations and connections to the postal regional
structure.
• Integration
• The connection object is a functional location from the Plant
Maintenance (PM) application component. Therefore, maintenance is
managed using the functions of the Service Management (PM-SMA)
component, for example, if you wish to organize the repair and
maintenance of devices at the connection object level. Maintenance and
repairs are billed using the Sales and Distribution (SD) application
component.
Connection object Data
Premise
• Definition
• The premise is an enclosed spatial unit that is supplied with energy, for example,
an apartment or factory.
• Use
• A premise can have several utility installations. Since the premise is division-
independent, you can allocate electricity and water installations to the same
premise, for example.
• The premise is allocated to a connection object and to the address of that
connection object.
• For each premise you can maintain the following fields:
• Additional street data enables you to manage additional information on the
street name of the connection object. You can also store different street names.
• Storage data helps field service employees to quickly identify premises.
Premise Data
 Installation
• Definition
• An installation groups together the devices, registers, and, if applicable, reference values that belong to the same division and
are allocated to the same premise, and that are therefore billed together, such as an on-peak and an off-peak rate meter.
• An installation is allocated to one contract only. In exceptional cases (such as an installation under construction or an
installation without an owner) an installation is not allocated to a contract.
• Use
• The billing-relevant installation data is managed historically . This enables you to change the rate category within a billing
period, for example, without any problems.
• In addition to divisions such as electricity, gas and water, you can also allocate the waste management division to an
installation. For more information, see the Waste Management component.
• To calculate charges that are not based on measurements, reference values are used. These charges are made for the
provision of energy or water. The following types of reference values exist:
• General reference values (for example, location, value to be billed, indicator for billing relevancy)
• Streetlights (for example, address, ownership status, operation modes)
• The energy charge is calculated according to the burning hour calendar.
• Heating installations (for example, description, charging control, special agreements)
• Container
Installation Data
 Point of Delivery (PoD)

• Definition
• Point to which a utility service is supplied, or for which a utility service can be determined.
• Use
• A point of delivery can be identified by a unique key, called the point of delivery ID . This key is used for
communication with external systems. It ensures that, for example, misunderstandings and incorrect data
allocations can be avoided, even if a customer switches utility companies.
• Structure
• Communication Types
• There are two communication types:
• Communication in the deregulated energy market
This refers to communication between different utilities in a deregulated energy market. For example a distributor
may exchange consumption information with a supplier.
• Technical Communication
Refers to communication with an automated meter reading system (AMR), for example. This type of
communication is used in the Energy Data Management component (IS-U-EDM) for importing profile values.
Point of Delivery Data
Billing Master Data
• This component manages the master data and basic settings that remain
unchanged over a long period of time and that controls contract billing. Here you
define the rate structures that contain the billing rules for the utility company.
• Managing Tariffs
• you store the billing rules for the utility company in this component. The rate is
the most important element of billing. The appropriate rate is derived from the
rate category and the rate type during rate determination.
• A rate category is allocated to each utility installation. It contains data that
controls the cross-rate processing of meter reading data and billing. The data can
be overridden by individual entries in the installation.
• The rate type establishes the rate allocation of the registers and is usually stored
in the installation structure. It can also be stored in the rate category or in the
installation, for example, in the case of flat-rate installations. The graphic below
illustrates the interaction between the different elements of contract billing.
Billing Master Data Overview
Billing/Invoicing Business Scenario
 Billing/Invoicing Business Scenario
• The following is involved in the billing and invoicing processes:
• Modeling new rates by creating new billing master data
• Using new rates in customer and installation master data
• Billing simulation
• Invoicing simulation
• Releasing the rates to the user department, which then makes them available to
the company's
• Customers
• The business scenario contains all the work steps
• required for the initial creation of billing master data
• The business scenario is the basis for the practical
• exercises that you will be doing during the course
Bill creation Process
 Billing Procedures
• The following billing procedures are supported:
• Periodic billing is consumption billing carried out on a regular basis.
• Floating backbilling is a form of monthly periodic billing. If necessary, values from previous
• months in a billing year are recalculated and backbilled using a current value.
• Period-end billing is carried out separately after a billing cycle. Periodic billings can, if
• necessary, be recalculated and backbilled.
• Interim billing is not controlled by scheduling functions and can be carried out manually at any
• time (upon customer request, for example).
• Final billing is triggered when a customer moves out.
• In the budget billing plan, an average amount is determined either by simulation or manually. The
customer pays this average amount for a period of 12 months. At the end of this period, a new
simulation is run for the next period.
• In Average Monthly Billing/Equalized Billing, the customer is charged an average amount based
• on billings over the next 12 months (or less in the case of new customers).
Business Objects/Utility Services
Link Between contract text and SAP Utilities
 Link Between contract text and SAP Utilities
• The rate category classifies the installation for billing.
• The following are some examples of rate categories:
Household rate
• Commercial rate
• Commercial rate with demand measurement
• Industrial rate
• Minimal consumption rate
• Basic price rate 1
Basic price rate 2
Domestic water
Reserve water
• Water for fire fighting
Link Between contract text and SAP Utilities II
Link Between contract text and SAP Utilities II
• The rate type classifies the register for billing. The following are some
examples of rate types:
• On-peak rate active energy
• Off-peak rate active energy
• On-peak rate reactive energy
• On-peak rate active power
Gas consumption
• Water consumption
The rate types are usually known at the beginning of the project and only
need to be maintained
• once.
Link Between contract text and SAP Utilities
III
Link Between contract text and SAP Utilities
III
• In this example, two rates are determined (on-peak household rate and off-peak household rate)
with
• both rate types (on-peak rate and off-peak rate) in connection with the rate category (household
• customers without measured demand).
• In this case, the energy price for the single-rate meter is identical to that of the on-peak rate meter,
so
• the same rate can be used for both single and on-peak rates; in other words, you can use just one
rate
• type for both single and on-peak rate. If the prices were different, then an additional rate type
(single
• rate) and an additional rate (single household rate) would be necessary.
• The rate bills the consumption from the register. It is determined in a Customizing table using the
• combination of rate category and rate type.
Link Between contract text and SAP Utilities IV
Link Between contract text and SAP Utilities
IV
• Variant programs are contained in rates as rate steps. Variant
programs are basic calculation steps (e.g. consumption x price,
determination of the basic price, or determination of the rental
price). In this case, the demand price (basic price flat rate) and the
rental price are included in the on-peak rate as variant programs.
Link Between contract text and SAP Utilities
V
Link Between contract text and SAP Utilities
V
• The prices in the system must be entered as price keys. Each
application requires that different price categories are entered (e.g.
quantity-based price, time-based price).
Link Between contract text and SAP Utilities VI
Link Between contract text and SAP Utilities VI
• All rates that can be billed together in the same contract/installation
(for example, on-peak rate for household customers, off-peak rate for
household customers) must be brought together in one billing
schema.
• The schema contains the billing logic and the processing order of the
rates and rate steps (variant programs). A schema can contain one or
more rates.
Universal Billing Engine
 Universal Billing Engine
• The "billing engine" is at the core of billing.
• The billing process follows a fixed procedure.
• Data collection and analysis
All data that is needed for billing is collected and prepared for analysis.
• Proration
If duties, prices, or taxes have changed during a billing period, the values relevant to billing (for example, consumption) must be
prorated according to the date of the change.
• Quantity conversion
The quantities to be billed are determined from the meter reading results. Meter factors, PT/CT ratios, and conversions due to
thermal gas billing are taken into account, for example.
• Quantity valuation
• Quantity valuation is the actual contract billing: rates and their variant programs are processed on the basis of the billing
schema.
• Validation of billing results
The billing results are validated after valuation.
• Generation of billing line items
 Billing Master Data
• Billing Class
• Rate type
• Price
• Operand
• Variant Program
• Rate
• Fact Group
• Schema
• Rate Category
Billing class
 Billing class
Billing Class:
In SAP ISU a billing class is used to classify installations for billing in the same divisions. Example can be water, electricity for
deregulated markets or you can group installations as Residential or Commercial. You can allocate the different billing master
data to different billing classes
• The billing class is used in the following objects:
• Installation
• Rate category
• Rate type
• Price
• Rate
• Schema
• Portion
• MR unit
• You can allocate the different billing master data to different billing classes. This means that each time the billing class is used,
a mutual check is carried out for permissibility and consistency. The check is performed in connection with the division.
• The billing class is optional in the meter reading unit, portion, and rate type.
Rate Types
Rate Type
 Rate Type
• Rate Type
The purpose of rate types in ISU Billing is to classify registers, devices, flat rates and reference values for billing. Example for rate
types can be peak rate or off peak rates. Must be relevant for either register, device or facts.

• The rate type is used in conjunction with the rate category to determine the rate
• Generally, you enter the rate type in the register. Examples of rate categories are peak and off-peak rates for active energy,
peak rates for reactive energy, peak rates for active power, as well as gas and water consumption.
• You can also allocate the rate type to the following objects:
• Device
- For devices without registers (such as ripple control receivers) you can use the rate type to find special rates. Using these, you
can calculate a device-based clearing price.
• Facts
- Used to determine rates that cannot be derived from registers.
- Also used to determines rates for flat rate installations without installed devices.
• Reference Values
- Used to model street lights, for example
• Rate types are generally maintained in the register. In some cases, it can be maintained at device level or in the installation
facts. The rate type can also be entered in the rate category.
Prices
Price
Price:
Prices valuate measured quantities, demand values and flat rates. The result
of this valuation is an amount that appears on a bill as a receivable or credit
memo.
• Integration
• You can store prices in the facts for the:
• Rate
• Rate category
• Installation
• In the facts, you allocate values to the operands. For price operands, you
specify the price key and the system supplies the operand value indirectly.
Operands
• Operands:
Operands are descriptive variables defined by the utility company. The
rate allocates values – such as price or demand – to the operands. The
operand values serve as input and output parameters for the variant
programs.
The contractual billing rules are stored in the variant programs (for
example, quantity x price). You define how billing values such as
measured consumption or demand are to be processed and calculated.
Variant Program

• Variant Program
• Variant program is small ABAP program.
• Analysis of Variant COMPUT25COMPUT25 variant program helps to
calculate the weighted quantity based average price. ...
FunctionalityA price is multiplied by a factor. This new price is
updated (operand update). Prorations of thefactor are taken into
account.
Rate
• Rate
The rate is the most important element of billing. The
appropriate rate is derived from the rate category and the rate type
during rate determination. A rate category is allocated to each utility
installation. It contains data that controls the cross-rate processing of
meter reading data and billing.
Fact Group
• Grouping of individual facts that are allocated to a rate. Several
rate fact groups can be allocated to one rate. Rate fact groups enable
you to use the same rate but apply different operand values.
Schema
• Schemas are a combination of rates with assigned variant programs
and operands. The relationship between rates also plays a very
important role in conditional billing. Rates are used as basic rates for
the entire billing period.
Rate Category
• A rate category is allocated to each utility installation. It contains
data that controls the cross-rate processing of meter reading data
and billing. ... It can also be stored in the rate category or in the
installation, for example, in the case of flat-rate installations.

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