1) Either you change the package name and create a new app (don't
publish) and use that one to test the in-app billing.
2) Or you keep the package name and upload the new app as you would a
new version of your existing app but without publishing the new apk.
The existing app would still be live and the new one only uploaded as
an apk but not published. This is sufficient to test the in-app
billing and also a precondition for you to create in-app billing
products.

Which one to pick would depend on whether you want the new app to be
an update to the existing app or really a new app on the market.

Cheers
Emanuel Moecklin
1gravity LLC

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