SAP Resourcerelated Billings

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SAP Resource-related Billings

• Resource items - individual materials, internal
  company services and costs - are passed on to the
  customer.
• A line item is created in the billing request for
  each of the resource items.
• Information on quantity, cost and unit of measure
  is also copied to the billing request from the
  individual items.
• If a billing request has already been created for
  an object, then the system checks which items
  have already been requested when creating a new
  billing request.
• In the billing request, the system only copies
  items that have not yet been requested.
• If only a partial quantity was billed, only the
  remaining quantity is copied into the billing
  request.

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CO Cost Quantities Transferred to SD
Project Systems
WBS
WBS
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SampleDetail Transaction Report
Notice on the next slide that it is the detail
that is being billed, not the summary categories.
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SampleBilling Request
Quantity, Unit of Measure, Net value brought from
CO or MM to billing request
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Cost Element Roll Up-OKI2
X999 designates unallowables
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Gaps Between SAP MIT Requirements

• Unallowables (X999)
• Purchase Order billing instead of Invoice
  billingIf 2 computers are ordered (single line
  item, qty gt 1) one is invoiced in April other
  is invoiced May 1 and we run April bills on May
  3, SAP creates billing request for both
  computers. We must correct and bill only for the
  computer invoiced in April.
• Cost overruns
• Stocked materialA few stocked items will end up
  being charged against a cost reimbursable WBS.
  Since Facilities is far removed from our
  sponsored billing process, they frequently forget
  to include the sales views when they create the
  material master for the stocked item.
• Above the line Settlements
• ReversalsIf a document is created in April and
  reversed on May 10, the April expense will be
  picked up when the April bills are run on May 3,
  but the following month the May 10 credit is not
  picked up. SAP ignores all reversed documents and
  the documents that reverse them.
• Cost sharing
• Unit of MeasureAll unit of measure must be
  translated to each for our materials. Unit of
  measure should not be a concern when billing our
  sponsors for research.
• Lincoln Lab specific - one WBS on multiple sales
  orders

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Current Solutions to Functionality Gaps

• User exit - customization KSDIEX01
• Dummy CO credits created reversed
• Exception reporting

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Customization KSDIEX01User Exit ZXEBBU01

• We exclude unallowables (X999)
• We convert PO billing to Invoice billing
• We convert all stocked material to MS
• We add above the line settlements
• We fix cost overrun reversals
• We convert above units of measure to EA
• We handle one WBS on multiple sales orders

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Dummy CO Documents
KB11 is used to create credit for Costs in Excess
of Award Total, and KB14 is used to reverse the
credit.
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Cost Overruns
Credit appears on Billing Request
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Exception Reporting
Reversal
Cost Sharing
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High Maintenance Costs

• 14 transports to production in March May, 2002
• When fixed, only fixed temporarily
• Breaks frequently during upgrades
• Breaks when seemingly unrelated configuration
  changes are implemented
• Very sensitive to any changes in any of the
  modules!
• Shadow table confusing, hidden - difficult to
  understand and fix
• 5 custom production programs necessary to support
  it

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After 4.6C

• SAP no longer supports current process
• We must convert to one of the following
• SAPs DIP (Dynamic Item Processing)
• SAPs New Add-on Grant Management Module
• Programmatically Create our own Billing Requests

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1. Dynamic Item Processing

• DIP requires extensive configuration
• DIP involves new learning curve
• We must write our own conversion program to
  convert all of our billed items to DIP billed
  items, therefore we must get under the hood of
  DIP processing.
• Does DIP address enough of the functionality
  gaps?
• Can we we address the one WBS multiple Sales
  Orders need?

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2. DIP Fixes

• Unallowables
• Purchase Order billing instead of Invoice billing

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2. SAP Grant Management Module

• Requires converting all our Periodic Deferred
  Revenue billing from sales contracts to sales
  orders (the 4th conversion!)
• Requires implementing new module
• Supported module? (Some add-ons not supported)
• New module covered in our current SAP contract?
• Uses DIP therefore requires configuration
  learning curve
• We must write our own conversion program (DIP)
• Doesnt offer much over DIP

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2. Grant Management Fixes

• Unallowables
• Purchase Order billing instead of Invoice billing
• Above the line Settlements
• Cost sharing

It might fix stocked materials, reversals unit
of measure problems. It does not fix cost
overruns or one WBS on multiple sales orders.
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3. Create Billing RequestMIT Solution

• Addresses the MIT Functionality Gaps
• Sustainable support
• SAP Grant Management development team considered
  implementing the same solution!
• Based on what was really billed - not a shadow
  table or billing requests
• Easier for end-user technical support to
  understand - no shadow table
• Non-standard SAP solution even if we dont create
  our own.

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3. MIT Solution Fixes

• Unallowables (continues to use roll up table)
• Purchase Order billing instead of Invoice billing
• Cost overruns
• Stocked material
• Above the line Settlements
• Reversals
• Unit of Measure
• One WBS on multiple sales orders

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Proof of ConceptOld Program
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Proof of ConceptNew Program
Results are identical to old program on last
slide!
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Proof of ConceptBill Created from New Bill Req
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Proof of ConceptFI Posting
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Proof of ConceptBill Cancelled
The bill was cancelled and behaved just as a
normal FI document, bill billing request (see
next slide)
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Proof of ConceptCancelled Bill Request
Can be modified or re-billed