EVD Task Develop Business Process Procedures

EVD Deliverable Name Business Process Procedures

Document Title Manage and control Contract
Date 17 April 2024
Revision V1.0

Business Process Porcedure 745680600.doc

Table of Contents
1. Document History.................................................................................................1
2. Approvals.............................................................................................................2
3. Executive Summary...............................................................................................3
4. Overview.............................................................................................................4
4.1 Process Information..........................................................................................4
4.2 Trigger............................................................................................................4
4.3 Business Process Description..............................................................................4
4.3.1 Inputs.......................................................................................................4
4.3.2 Outputs.....................................................................................................4
5. Procedural Steps...................................................................................................6
5.1 Access Transaction By:......................................................................................6
5.2 Executing the Transaction..................................................................................6
5.2.1 Screen One................................................................................................6
6. Controls Considerations.........................................................................................9

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1. Document History
Version Change Description Author Date
Released
1.0 Initial document created

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2. Approvals
The individuals listed below will be required to review and approve this document.

Role/Title Name Signature Date

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3. Executive Summary
This process will explain the tasks to be performed to manage and control the contract to a
third-party, such as check the billing plan, the conditions, contract start and end date
versus the legal document attached to the contract.

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4. Overview
4.1 Process Information
Process Transaction Name Role
Validate the billing plan CRM Transaction Billing agent
Display Third-Party Contr. VA43 Billing agent

4.2 Trigger
The process begins with the validation of the billing plan in CRM by the billing agent. After
final validation, the contract will be replicated in ECC for final check.

4.3 Business Process Description

The first step to do is to validate the billing plan in comparison with the legal contract
signed at least by the customer. The billing agent will receive an alert by email for the
incoming new contract or amendment, and will give feedback to the CAM. After final
validation done by CAM, the contract will be replicated in ECC with a billing block. The billing
agent will check the datas described in this Business Process Procedure and remove the
billing block if the billing plan is correct.

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4.3.1 Inputs

Billing plan validation in CRM

Log on in CRM. The task is displayed in your homepage.

Open the task.

Billing check list

1. Check the billing plan type, frequency, amount, item categories, free use or free of
charge
2. Check the billing dates in the billing plan
3. Check the pricing conditions in the price details such as total value of the contract
4. Check the tax parameters:
a. - EU transactions : customer tax classification (header) and product tax
classification (items)
b. – US transactions : check material group at item level
c. – US transactions : check USF-relevance flag
5. For project billing, check the billing block
6. Check billing and payment parameters (e.g. invoice grouping rule, payment terms…)

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 7. Check the vendor (plant) and sales organization (make sure that transfer pricing
policy authorizes such transactions)
8. Check the indexation : is there an indexation date indicated, if yes which date it is
and make sure that the index will be entered as soon as it is known for ECB and for
Statec, it needs to be indicated as per contract.
9. Check the customer and the sales organization

All those checks need to be done for each new contract or contract amendment.

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Click to open the transaction in order to perform the checks according to the billing check-
list.

List of the pricing conditions and description

ZCB0 – Base list price

ZCBM – Base list price manual
ZIND – Calculated Index
ZINR – Reference index
ZINC – Current index
ZDIM – Distributor margin
ZSAF – Sales Agent Fee
ZNDI – Sales Manual discount
ZUFE – One Time Fee

Pricing conditions for usage-based billing and description

ZUB0 – One Time Registration Fee

ZUB1 – Monthly Service Fee
ZUB2 – VoIP
ZUB3 – Free Zone
ZUB4 – FUP Reset
ZUB5 – Add GB
ZUB6 – VoIP Free Zone
ZUB7 – VoIP Plus

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The column “billed” will be flagged each time when a billing line is invoiced from ECC.

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The column “Billing Block” is driving the blocking reasons. If a billing line is blocked in CRM
for billing, the contract will be replicated anyway in ECC with the billing block. For
milestones billing plan, the billing block must be removed by the project controller. All other
billing block can/must be removed by the billing agent in CRM.

Check the indexation date.

After changing the status of the billing plan, an alert will be send to CAM for further actions.

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Customer references to add in the CRM contract

If the customer communicates a purchase order or a specific reference, it is possible to

enter it in CRM.

For the Purchase order, use following in the additional data block of the contract :

It is also possible to choose the way you want to send the invoices to the customer.
Defaulting is one invoice by contract but other options are possible like :

Grouping invoices:

One invoice covering all contracts with same payment terms, billing address, SES bank
account, contact person, counterparty, currency.

PO Grouping:

Grouped invoice per customer purchase order number

ItemCat grouping:

One invoice which is grouping items from different contracts of the same customer. The
items must be similar. Ex.: all bandwidth lines together in one invoice and all uplink lines
together in another invoice.

If another specification needs to appear on the invoice, it is possible to enter it in the

contract notes. It can be entered at contract header or in each item of the item list.

At header level, the text will appear on the top of the invoice (just below the invoice dates)

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At item level,the text will appear in the invoice description.

Be careful when you enter a reference, the text should not be too long otherwise you may
face some issue with the text indicator on the invoice.

Contract in ECC

After activation of the contract in CRM, it will be replicated in ECC in order to trigger the
billing. Note that no modification of the contract can be done in ECC, as CRM is the master.
If a modification needs to be performed before billing, please go in CRM to make this
change or revert to CAM.

Display Third-Party Contr. B.

Field Name Static Value

Material Generic field that indicates the
material selected by the sales
manager
Billing Plan Type Determines the recurrence and
periodicity of the billing
Start Date Contract start date
End date Contract foresees end date
Dates from Date that re-determines the billing
start date in case of postponed billing
due to free-use period f. ex.
Dates until Date that re-determines the billing

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 end date in case of postponed billing
due to free-use period f. ex.

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5. Procedural Steps
5.1 Access Transaction By:

Via Menus Logistics – Sales and Distribution – Master Data –

Agreements – Contracts - Display
Via Transaction Code VA43

5.2 Executing the Transaction

5.2.1 Screen One

Display Contract: Initial Screen

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Partner Selection Box

Contract

The system shows the last contract replicated from CRM. Select this contract number or
enter it manually and press Enter or click on the green flag on the left upper side.

5.2.1 Screen Two

Display Contract: Overview – Header data

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Click on the billing plan button to view the billing datas.

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Field Name Description R/ User Action and Values Values
O/C
Third-par. Determines the contract R N/A Contract number is unique
Contr. B. number and is replicated from CRM
Sold-To Customer number R N/A Customer number is
Party replicated from CRM
PO Number Indicates either the R Enter the date in format
Purchase Order or the dd/mm/yyyy
Legal Agreement
number

5.2.1 Screen Three

Display Contract: Item Data – Billing plan tab

There are different billing plans according to the contract terms.

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Periodic Billing plan:

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2. Milestone Billing plan (without WBS number)

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A milestone billing plan is also used for project billing. For more informations, please refer
to the business process procedure for Project Billing.

3. Usage-based billing (mainly Astra2Connect)

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Partner Selection Box

BillingPlanType

This function drives the billing frequency. Check the recurrence and the periodicity.

Start date / End date

Indicates the legal dates of contract start and end. It might be different than the billing
dates.

Dates from / until

If the billing date is different than contract start date, these dates will trigger the billing
start and end.

Click on the button conditions to spring in the conditions tab.

5.2.1 Screen Four

Display Contract: Item Data – Conditions

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Partner Selection Box

ZIND Calculated index

Indicates the indexation calculation if any foresees in the legal contract.

PI02 Inter-company %

Indicates and calculates the level of percentage to be back-charge to another legal entity
through the intercompany process. See the business process procedure Manage and control
contract with back-to-back process for more details.

AZWR – Down Pay. /Settlement

Indicates if any down payment process needs to be done. See the business process
procedure of Down Payment Request Settlement for more details.

Click on the green arrow to go back in the item.

5.2.1 Screen Five

Display Contract: Item Data – Account assignment tab

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Indicates the relevant profit center and profit segment. For most of the cases, it should be
the satellite indicated. For non-satellite billing, the profit center is pointed to “NON_FLEET”.
For more informations regarding the profit center and profit segment, please refer to the
Business Process Procedures in Controlling.

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Where to find the customer references in ECC :

!!! The purchase order number can be found in the field “Your reference” !!!

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Text tab at header level

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Text tab at item level

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6. Controls Considerations
Control Point Description
Billing plan validation in The legal contract must be available for validation of the
CRM billing plan.

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