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Presentation on resource related billing

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Resource related Billing

Resource related Billing

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  • Difference types of contracts have been defined by the government to ensure they pay a fair price and can manage the program. These types can be quite extensive in calculation.

Presentation on resource related billing Presentation on resource related billing Presentation Transcript

  • Resource-RelatedBillingComplex Billing EnvironmentsAmlan SarkarRole -SAP Functional Consultant
  • • What is Resource-Related Billing (RRB)?• The Power of Pricing• Cost Plus Billing Scenario• Fixed Price with Progress Payments Scenario• Conclusions• QuestionsAgenda
  • Resource-Related BillingAny company who bills theircustomers based on resourcesconsumedIndustries include but not limited to: Airline Operations Defense Contractors Engineering & Construction Service Industry Consulting Industry Public Sector
  • Contract Types with ComplexBillingsCostFirm-fixed-price w/PPProfit0/100 ShareCost-plus-fixed-feeEstimated CostFixedFee100/0 ShareBase Fee (0-3%)Award Fee PoolMaxFeeBaseFeeEstimated CostMultipleIncentiveTargetFeeCost-plus-incentive-feeShare RatioTarget CostMax FeeMin FeeFixed-price incentive w/PPTarget CostTargetProfitCeilingPriceShare Ratio(PTA)
  • Billing ComplexitiesThe amount to bill may depend on different calculations: Resource-Billing Based on resources consumed Based on estimated resources to be consumed Based on labor hours consumed Disallowed costs Cost Funding Cost Withholds Overheads G&A Material Production Cost of Money
  • Billing Complexities cont. Fees Fixed• Percentage of costs incurred given negotiated cost• Percentage of labor hours consumed• Fee Retention• Fee Funding Award Incentive Schedule Cost
  • How can we use SAP for RRB?• The SAP R/3 system is a toolbox from which you canbuild and store many different things.Our job is to build invoicesandstore the data for future use
  • Resource-Related BillingEquationProject SystemControlling/FISales & Distribution=InvoiceMaterials ManagementPricing ProcedurePricing RoutinesProject StructuresCosting SheetsCost TablesMaterial MasterDynamicItemProcessor
  • How does RRB Work?Active Projectwith PostingsProjWBS-1 WBS-2Resource-Related Billing is used when theamount to invoice the customer is basedon the resources consumed by the projectPostings DTE Postings DTE Postings DTE Postings DTESales Contract/OrderLine Item Qty10 Product A 1WBS-1/DIP Profile20 Product B 1WBS-2/DIP ProfileDynamicItemProcessorResource BillProcessing FI&CO documents from postings
  • Sample Progress Pay DMR
  • Fixed Price Item FlowItem 10ProgressPaymentItem 10ProgressPaymentHeaderHeaderItem 20P/N12345Item 20P/N12345Sales orderBillBillDeliverClearDownPayment$
  • Invoice PricingBillBillPriceLiquidationLESS=
  • Questions
  • Thank you for attending!