Configuring Reimbursable Orders and Resource-Related Billing Below is a snippet from one of hundreds of articles available to ERPtips subscribers. If you would like a complimentary copy of the full article, please email
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Configuring Reimbursable Orders and Resource-Related Billing
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Configuring Reimbursable Orders and Resource-Related Billing:
A Hands-On Guide for Public Sector (and other) SAP® Users By Simon Core, FI/FM Consultant Editor's Note: SAP® FI/CO and Public Sector expert Simon Core returns this issue for his second SAPtips white paper. This time around, Simon tackles reimbursable expenses—a topic that has application inside and outside of public sector projects. After all, no company wants to swallow project costs that are eligible for reimbursement if properly identified and invoiced. This screenshot-laden white paper guides the reader step-by-step through the process Simon uses to capture project costs in PS and CO, and bill customers for them using SD. As Simon illustrates, Resource-Related Billing functionality in PS provides the ideal way to link up with SD for the purposes of tracking and billing reimbursable expenses. One of my favorite parts of this excellent paper comes at the end, when Simon takes the time to review the trickiest issues in reimbursable order processing and offer his project-tested solutions. I.
Background on Reimbursable Funding and Orders
Reimbursable funding is non-appropriated money that an agency can use to perform work for a customer with the anticipation that any collections from the customer will offset the expenditures, essentially “reimbursing” the funded amount. Reimbursable authority is granted above and beyond any direct authority that an agency may receive for a fiscal year, and it can exist as one or multi-year funding. Once an agency receives reimbursable authority in SAP, this money will be distributed in Funds Management and will be available for commitment, obligation, costing, and disbursement. As the performing agency incurs expenses and pays its vendors, it must track these amounts and bill the relevant customers. This is where the configuration of the Sales and Distribution module can be integrated with Project Systems, via Resource Related Billing, to provide and end-to-end solution for capturing costs and performing periodic billing to customers. Resource Related Billing is a powerful tool that links CO and SD, and allows the user to create a billable sales document based on actual costs. Specific cost element ranges can be configured so that certain costs, like interest, are not passed on to the customer. This “hands-on” white paper walks the reader through the main steps of configuring R/3 to enable Resource Related Billing for reimbursable expenses. After the configuration steps are outlined, the white paper closes with a series of tips for a smoother implementation. Although some of the material covered pertains specifically to the SAP IS-PS solution, much of the configuration is relevant to private sector R/3 users who are looking for ways to capture project costs via PS and CO and bill customers for those costs as needed via SD. Please note that while this paper assumes the user is running on a 4.6C system, the bulk of the tips in this paper should apply to SAP users running on R/3 3.1 and up. II. Configuring SD for Reimbursable Orders Federal Reimbursable Orders use standard configuration found in the Sales and Distribution (SD) module. The following section outlines some of the pivotal items that must be configured before orders can be recorded in SAP. Once the minimum requirements have been met, additional functionality can be added to block specific materials from the sales order screen, print billing forms automatically, and accomplish other tasks that will refine the process and eliminate user error. Initially, pricing must be configured for sales orders. This can be found in the following area of the IMG. (See Figure 1.) Copyright © 2003 by Klee Associates, Inc. www.SAPtips.com
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Configuring Reimbursable Orders and Resource-Related Billing:
A Hands-On Guide for Public Sector (and other) SAP® Users
Figure 1: Pricing for Sales Orders in the IMG Reimbursable orders contain direct costs along with different types of overhead charges that are billed to the customer. These charges include contract administration, labor, and other indirect costs that an agency may want to track separately on the order. To accomplish this, individual condition types are configured for each surcharge type. (See Figure 2.)
Copyright © 2003 by Klee Associates, Inc. www.SAPtips.com
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