In the SAP S/4HANA Project System, billing a project is made easy through sales functions linked to Work Breakdown Structure (WBS) elements. Two key billing processes are explained: Milestone Billing and Resource-Related Billing.

1. Milestone Billing:

In the SAP S/4HANA Project System, milestone billing entails taking the specifics of the billing plan and extrapolating them from project milestones. In the early phases, the billing items linked to these benchmarks are locked and are only utilized for forecasting revenue and payments. When the associated milestones are reached, the system releases these things automatically. After that, sales order billing is started, which results in the creation of invoices or requests for a down payment. This procedure makes sure that the project’s billing components automatically reflect the real revenues, giving a thorough and precise financial picture through the project’s lifecycle.

Milestone Billing
2. Resource-Related Billing:

Ideal for projects lacking pre-established services or materials, the SAP S/4HANA Project System offers resource-related billing. This method involves billing based on the actual costs incurred during project execution. The process is governed by a Dynamic Item Processor (DIP) profile, which controls the billing and summarization of actual data. The Expenses view presents hierarchically structured actual data, such as costs and key figures, while the Sales Price view displays material numbers for individual sales document items. As billing requests are created, actual revenues are generated on the project, providing a flexible and accurate approach to billing in alignment with the project’s evolving needs.

Resource-Related Billing
3. Combining Milestone and Resource-Related Billing:

SAP S/4HANA Project System provides flexible control over resource-related billing, allowing organizations to determine when this billing method is most appropriate. The system enables the creation of both down payment requests and billing requests by project milestones. The interplay between project milestones and resource-related billing options offers a dynamic and responsive approach to invoicing, ensuring that billing aligns effectively with the progress and requirements of the project.

Combining Milestone and Resource-Related Billing
Example: Cross-Company Code Process:

In an illustrative example of a Cross-Company Code Process, the SAP S/4HANA Project System accommodates collaboration among employees from distinct company codes. This functionality enables resource-related billing between these company codes, fostering a seamless and efficient approach to financial transactions. For instance, consider a robotics project involving collaboration between Germany and the United States. Within this project, employees from both company codes contribute, and the SAP S/4HANA Project System facilitates resource-related billing based on their activities.


The SAP S/4HANA Project System stands out for its versatile billing options, effectively integrating milestone and resource-related billing. This seamless integration allows organizations to handle project finances with agility, offering real-time updates and ensuring a responsive and comprehensive approach to project financial management.

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