Exploring Period Control – ISU Billing

Period Control is a calculation procedure used to calculate the length of Time Portions.

The time portion is the billing period in days or months based on the period control used. The Proration of charges happens based on the Time portion.

There are 3 standard methods that are commonly used to calculate the length of Time Portions.

1. To the Day
2. Monthly time portions dependent on a key date
3. Monthly time portions dependent on an interval

1. To The Day (00).

When we select Period control “00 – To the Day”, the exact days in the billing period are used to calculate the time portions. Here the charges are calculated on a per day basis. Period control is maintained at the Rate step level.

Tcode: EA32

The Price is configured as $50 for 1 month. Tcode: EA91

We will perform Interim billing. Below we can see that the Time portion is the exact number of days that comes under the billing period and the amount is calculated accordingly.

Billing Period: 05-01-2017 to 06-16-2017 (47 Days)

Since the price is maintained on a per-month basis, to get the per-day price, the 50$ is multiplied by 12 (months) and then divided by 365(days).

Price for 1 year = $50 (Price configured for 1 month) x 12 (Months) = $600

Time portion = 47 (Number of days in the billing period)

600/365 = 1.6438356164 (Price per day)

1.6438356164 x 47 = $77.26 (Price for 47 days)

2. Month-based using key date (01).

When we select Period control “01 – Month-based using key date”, the Key date is used to calculate the time portions. Period control is maintained at the Rate step level.

In the Rate Step, select the Period control “01” as shown below and save the Rate.

The Key date is maintained inside the MRU.

We will perform Interim billing. Here the billing period will cover from 15th of July till 15th of August. Since two Key dates are falling within the billing period, the amount should be calculated for 2 time portions.

Billing Period: 07-01-2017 to 08-16-2017

In the billing document, we can see that the Time portion is shown as 2 and the amount is calculated accordingly.

Price amount is $50 and Time portion is 2 so the Net amount is 50 x 2 = $100.

3. Month based with interval. to the day Move I/O (02).

When Period Control “02 – Month based using Interval” is selected, if the total number of days in a billing period falls within the Interval period specified inside the Portion, then the account is billed for one billing period. The period control is maintained at the Rate step level.

The Interval days are maintained inside the Portion.

We will perform Interim billing. Here the bill period is still within the interval date specified in the portion.

Billing Period: 09-01-2017 to 10-04-2017 (34 Days)

In the billing document, we can see that since the total number of days are within the interval days, it is calculated as 1 time portion.

When the number of days in the billing period does not fall within the interval days, the time portions are first calculated for an exact number of days. Then these time portions in days can be converted to the standard month.

In the below example, we can see that the billing period only has 24 days, so the time portion is calculated for 24 days and shown in months.

Billing Period: 09-01-2017 to 09-24-2017 (24 Days)

24/30 = 0.8 Month

We will also see how this Period control works in case of a Moveout.

A Moveout was carried out and a Final bill is created.

Billing period: 09-01-2017 to 10-04-2017

Here the billing period contains 34 days, and the time portion is calculated for 34 days on a “To the day” basis as configured in the Period Control.

34/365 = 0.0931506849315068

0.0931506849315068 x 12 = 1.117808219178082

4. Creating Custom Period Control.

Based on business requirements, we can also create custom Period controls.

Before creating the custom Period Control, we need to create a Category of enhanced interval procedure by going to Tcode SPRO.

Path: SAP Utilities ➡ Contract Billing ➡ Billing Master Data ➡ Rate Structure ➡ Rate ➡ Period Control ➡ Basic Calculation Procedures ➡ Month-Based Calculation Using Interval

Execute “Define Category for Enhanced Interval Procedure”

Click on New Entries and create Interval Procedure Category as shown below. 

Go back to SPRO path and execute “Define Type for Enhanced Interval Procedure.”

Click on New Entries and create Interval Procedure Type as shown below.

Go back to the SPRO path and execute “Define Additional Values for Enhanced Interval Procedure.”

Click on New Entries and define additional values as shown below.

Go to Tcode E41C and add the “Cat. of Enhanced Interval Procedure” to the portion.

Go to Tcode SPRO and open the path mentioned below:

Path: SAP Utilities ➡ Contract Billing ➡ Billing Master Data ➡ Rate Structure ➡ Rate ➡ Period Control

Click on the Execute button next to “Define Period Control.”

Click on “New Entries” button to Create a new Period Control.

Create a new Period Control by providing the Period control, Description, Period Procedure as 03, and the Cat. of Enhanced Interval Procedure as shown below.

Using this method, when we have a new requirement and the standard Period control does not fulfill the requirement, we can create a custom Period Control and use it at the Rate Step.