Billing

Billing is the final processing stage for a business transaction in sales and distribution.

Billing can be created with reference to a preceding document such as either a delivery, order or another billing document.

All billing documents have the same structure. They are made up of a document header and any number of items.

In billing you can:

1)      Create invoices, pro forma invoices and issue credit and debit memos.

2)      Cancel billing documents

3)      Transfer billing data to Financial Accounting (FI)

All billing documents are created within a sales area and a company code. For that you have to create a unique assignment between a sales organization and a company code

The data will be automatically posted to financial accounting. Billing document serves as the main interface between sales and distribution and financial accounting.

Header

Header contains general data that is valid for the entire billing document such as:

1)      Billing date

2)      Customer number payer

3)      Customer number of the sold-to party

4)      Net value of the entire billing document

5)      Document currency

6)      Business data such as: Terms of payment and Incoterms

7)      Pricing elements

Item

Item level contains data specific to each item such as:

1)      Material number

2)      Billing quantity

3)      Net value of the individual items

4)      Weight and volume

5)      Number of the reference document for the billing document.

6)      Pricing elements relevant for the individual items

Billing type

The object that controls the billing document is the billing type.

In the standard SAP system you can found different billing types to process the different business needs such as:

1)      F2 - Invoice

2)      F8 - Pro forma invoice

3)      G2 - Credit memo

4)      L2 - Debit memo

5)      RE - Returns

6)      S1 - Cancellation invoice

7)      S2 - Cancellation credit memo

8)      LR - Invoice list

9)      LG - Credit memo list

10)  IV - Intercompany billing (invoice)

11)  IG - Intercompany billing (credit memo)

12)  BV - Cash sale

A billing type controls the following:

1)      Number range

2)      Invoice list type (For the subsequent transaction)

3)      Cancelation billing type

4)      Special feature for FI interface

5)      Posting block

6)      Rebate relevance

7)      Account determination

8)      Partner determination

9)      Text determination

10)  Out-put determination

Proposal for a Billing document

Proposal for the billing document type will come from the preceding sales document type. That means customizing at the sales document type you can configure the billing document type for the transaction.

In the sales document type you can specify different the billing type for delivery related and order related billing.

Customizing at item category level you can also specify whether the item is relevant for billing or not.

Customizing at the item category level, you can define whether the billing is to be carried out with reference to a delivery or an order.

You can use an invoice to refer to an order and a delivery simultaneously.