What is 'billable item cost type' in SAP FI-CA-INV - Convergent Invoicing?

billable item cost type - Overview

• Component: FI-CA-INV

• Component Name: Convergent Invoicing

• Description: Definition of the business meaning of a billable item with reference to its costs.

billable item cost type - Details

• 
  Key Concepts: 
  Billable item cost type is a feature of the FI-CA-INV Convergent Invoicing component of SAP. It allows users to assign a cost type to each billable item, which is used to determine the cost of the item when it is invoiced. The cost type can be either fixed or variable, depending on the nature of the item. 
  
  How to use it: 
  To use the billable item cost type feature, users must first create a cost type in the system. This can be done by navigating to the FI-CA-INV Convergent Invoicing component and selecting “Create Cost Type” from the menu. Once the cost type has been created, it can be assigned to each billable item when creating an invoice. 
  
  Tips & Tricks: 
  When creating a cost type, it is important to consider how it will affect the overall cost of the invoice. For example, if a fixed cost type is used for an item that has variable costs associated with it, then the invoice may end up being more expensive than expected. 
  
  Related Information: 
  For more information on using billable item cost types in SAP, please refer to the official SAP documentation on FI-CA-INV Convergent Invoicing.