What is proration in SAP IS-U-BI - Contract Billing?

SAP Term: proration

• Component: IS-U-BI

• Component Name: Contract Billing

• Description: Splitting of a billing period due to changes in data. &EXAMPLE& A rate changes in the middle of the month. Consumption is calculated using the old rate for the first half of the month and the new rate for the second half of the month.

Smart SAP Assistant

• Key Concepts: 
  Proration is a feature in the IS-U-BI Contract Billing component of SAP that allows for the adjustment of billing amounts based on the length of time a customer has used a service. This is done by dividing the total cost of the service by the number of days it was used and then multiplying that amount by the number of days the customer actually used it. 
  
  How to use it: 
  To use proration in SAP, you must first set up a billing plan for your customer. This plan should include the total cost of the service, as well as the length of time it will be used. Once this is done, you can then enter the start and end dates for when the customer will be using the service. The system will then automatically calculate the prorated amount based on these dates. 
  
  Tips & Tricks: 
  When setting up a billing plan for a customer, make sure to include any discounts or promotions that may apply. This will ensure that the prorated amount is accurate and reflects any discounts or promotions that may have been applied. Additionally, make sure to double-check all dates entered into the system to ensure accuracy. 
  
  Related Information: 
  For more information on proration in SAP, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed information on how to use proration in SAP.