Retrobilling in Procurement

If the price of a purchase contract or an item is modified because of price renegotiations, the retrobilling functionality can be used to re-invoice the previously invoiced items for purchase orders or schedules. Price differences are handled using price change advice lines, which are based on the purchase payable receipts of the order or schedule. After approving and processing a retro-billed advice line, an additional (retro-active) payable receipt line is generated for the order or schedule.

Retrobilling master data

To set up retrobilling:

  1. Specify this data in the Procurement Parameters (tdpur0100m000) session:

    • Retro-Billing
    • Number Group for Retro-Billed Advices
    • Series for Retro-Billed Advices
    • Retro-Billing for Cost / Service Items
    • Date for Generating Retro-Billed Advice
  2. Select the Retro-Billing Applicable check box in the Buy-from Business Partners (tccom4520m000) session.
  3. Select the Item applicable for Retro-Billing check box in the Items - Purchase Business Partner (tdipu0110m000)and Item Purchase (tdipu0101m000) session.
Note: If you use the Enterprise Modeler Content Pack with LN, consider using the MPU3300 (Retrobilling Purchase) wizard to set up retrobilling. You can execute this predefined wizard from the Wizards by Project Model (tgwzr4502m000) session after you specified the business function model for your company. See Business function model.

Retrobilling manual price changes

To retrobill manual price changes:

  1. Specify a price change advice in the Purchase Retro-Billed Advice (tdpur3670m000) session. Specify an Update Type ( Percentage or Value).
  2. Click Generate Advice Linesto generate price change advice lines for the specified range of purchase orders, schedules, or receipts. If landed cost lines exist, these lines are also included. Price change advice line information is displayed on the Retrobilled Price Change Advice Lines tab. You can modify or delete the price change advice line information before you approve the line.
  3. Approve the price change advice (line) in the applicable session, or use the Approve Purchase Retro-Billed Advices (tdpur3270m100) session.
  4. Process the price change advice (line) in the applicable session, or use the Process Purchase Retro-Billed Advices (tdpur3270m200) session. Retro-Active payable receipts are generated that can be invoiced. The payable receipts are displayed in the Purchase Payable Receipts (tdpur4130m000) and Purchase Payable Receipts for Schedules (tdpur3118m000) sessions.
  5. Select the order or schedule in the Process Purchase Invoices (tfacp2107m000) or Purchase Invoice Entry (tfacp2600m000) session, and click Match Retroactive Lines on the Appropriate menu. The Match Consumptions (tfacp2544m100) session is displayed wherein you can match the lines. If landed cost lines are linked to the advice line, click Match Retroactive Landed Costs to match these lines in the Match Landed Cost Lines (tfacp2144m000) session.
  6. Approve the invoice in the Process Purchase Invoices (tfacp2107m000) or Purchase Invoice Entry (tfacp2600m000) session. Consequently, the status of the price change advice is set to All Approved.
  7. Process the purchase order in the Process Delivered Purchase Orders (tdpur4223m000) session and the purchase schedule in the Process Purchase Schedules (tdpur3223m000) session. Consequently, the status of the price change advice is set to Finalized.
Note: You can delete price change advices and advice lines with Open or Finalized status in the Delete Purchase Retro-Billed Advices (tdpur3270m300) session.

Retrobilling contract price changes

To retrobill contract price changes for the linked purchase orders or schedules:

  1. Specify a price or discount change and select the Selected for Retro-billing check box in the Purchase Contract Prices (tdpur3103m000) session.
  2. (Re)activate the contract. Consequently, the Generate Purchase Retro-Billed Advice (tdpur3270m000) session is started.
  3. Specify the selection criteria and click Generate.
  4. View the generated price change advice in the Purchase Retro-Billed Advice (tdpur3670m000) session. The Update Type field is set to Contract for this price change advice.
  5. Complete steps three to seven specified in Retrobilling manual price changes.
Note: If the contract price changes are approved using ION Workflow, the price change advice lines are generated automatically. The Generate Purchase Retro-Billed Advice (tdpur3270m000) session is not started.

Retrobilling price changes using change requests

If you use change request to update purchase orders and purchase contracts, the retrobilling process can be initiated only using a change request.

To specify a price or discount change for an invoiced or processed purchase order:

  1. Update the price or discount in the Purchase Change Request Payable Receipts (tdpur4130m100) or Landed Cost Lines (tclct2100m010) sessions.
  2. Approve and process the change request. A price change advice is generated in the Purchase Retro-Billed Advice (tdpur3670m000) session. The Update Type field is set to Purchase Order Change Request and the Status field is set to Approved for this price change advice.
  3. Complete steps four to seven specified in Retrobilling manual price changes.

To specify a price or discount change for a purchase contract:

  1. De-activate the price revision in the Purchase Contract Change Request Prices (tdpur3103m100) session.
  2. Update the price or discount and select the Selected for Retro-billing check box in the Purchase Contract Change Request Prices (tdpur3103m100) session.
  3. Activate the changed price revision.
  4. Approve and process the change request. Consequently, the Generate Purchase Retro-Billed Advice (tdpur3270m000) session is started.
  5. Specify the selection criteria and click Generate.
  6. View the generated price change advice in Purchase Retro-Billed Advice (tdpur3670m000). The Update Type field is set to Contract for this price change advice.
  7. Complete steps three to seven specified in the Retrobilling manual price changes section.
Note: If the Process Purchase Contract Change Requests Automatically check box is selected in the Purchase Contract Parameters (tdpur0100m300) session, or if the change request is approved using ION Workflow, the price change advice lines are generated automatically. The Generate Purchase Retro-Billed Advice (tdpur3270m000) session is not started.
Related topics
  • Change requests - overview