Resource-related billing involves invoicing customers based on resources consumed. It is common in industries like airlines, defense contracting, engineering, consulting, and public sector. Billing can be complex depending on contract type and calculations that consider resources, overheads, and fees. SAP allows building invoices by linking project systems with controlling, finance, sales, and materials management modules. Dynamic item processors generate invoices by processing financial and cost accounting documents from project postings.

2. Resource-Related
Billing
Complex Billing Environments
Amlan Sarkar
Role -SAP Functional Consultant

3. • What is Resource-Related Billing (RRB)?
• The Power of Pricing
• Cost Plus Billing Scenario
• Fixed Price with Progress Payments Scenario
• Conclusions
• Questions
Agenda

4. Resource-Related Billing
Any company who bills their
customers based on resources
consumed
Industries include but not limited to:
 Airline Operations
 Defense Contractors
 Engineering & Construction
 Service Industry
 Consulting Industry
 Public Sector

5. Contract Types with Complex
Billings
Cost
Firm-fixed-price w/PP
Profit
0/100 Share
Cost-plus-fixed-fee
Estimated Cost
Fixed
Fee
100/0 Share
Base Fee (0-3%)
Award Fee Pool
Max
Fee
Base
Fee
Estimated Cost
Multiple
Incentive
Target
Fee
Cost-plus-incentive-fee
Share Ratio
Target Cost
Max Fee
Min Fee
Fixed-price incentive w/PP
Target Cost
Target
Profit
Ceiling
Price
Share Ratio
(PTA)

6. Billing Complexities
The 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

7. 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

8. How can we use SAP for RRB?
• The SAP R/3 system is a toolbox from which you can
build and store many different things.
Our job is to build invoices
and
store the data for future use

9. Resource-Related Billing
Equation
Project System
Controlling/FI
Sales & Distribution
=
Invoice
Materials Management
Pricing Procedure
Pricing Routines
Project Structures
Costing Sheets
Cost Tables
Material Master
Dynamic
Item
Processor

10. How does RRB Work?
Active Project
with Postings
Proj
WBS-1 WBS-2
Resource-Related Billing is used when the
amount to invoice the customer is based
on the resources consumed by the project
Postings DTE Postings DTE Postings DTE Postings DTE
Sales Contract/Order
Line Item Qty
10 Product A 1
WBS-1/DIP Profile
20 Product B 1
WBS-2/DIP Profile
Dynamic
Item
Processor
Resource Bill
Processing FI&CO documents from postings

11. Sample Progress Pay DMR

12. Fixed Price Item Flow
Item 10
Progress
Payment
Item 10
Progress
Payment
HeaderHeader
Item 20
P/N12345
Item 20
P/N12345
Sales order
Bill
Bill
Deliver
Clear
Down
Payment
$

13. Invoice PricingBill
Bill
Price
Liquidation
LESS
=

14. Questions

15. Thank you for attending!