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SAP – Sales and Distribution – Billing – Lesson 16

SAP – Sales and Distribution – Billing – Lesson 16

Previous Lesson

Billing

A Billing document is legal document given by company to customer for goods or services provided. It contains the terms and conditions agreed between two parties along with details on items and prices along with taxes. The Sales area is responsible for creating and sending document on the terms agreed.

  • In Sales & Distribution, Billing represents the final processing stage for any business transaction.
  • Billing is linked with Order and delivery processing and information is available at each stage. Billing Document is always created with reference to a preceding document, either an Order, Delivery or Credit/Debit memo request.
  • Billing transactions can be assigned a specific sales area from where the bill would be generated towards the customer.
  • An interface to Accounting exists from Billing hence company code needs to be associated with Billing document.
  • Billing document is controlled by Billing Type.

Different billing types are provided in system for different business transactions

Billing Type

Name

F1

Order Related Invoice

F2

Delivery Related Invoice

F5

Proforma Invoice

G2

Credit Memo

L2

Debit Memo

S1

Cancellation Invoice

IV

Intercompany Invoice

 

Credit Memo & Debit Memo: These are Billing documents created on basis of customer complaints. Credit memo reduces receivables while Debit memo adds on to it.

Proforma Invoice: Invoice document created for exported goods to indicate cost of goods to authorities is Proforma Invoice. There is no difference between Invoice and Proforma except that Proforma does not pass on to accounting.

  • F5 – Order related Proforma
  • F8 – Delivery related Proforma

F5 F8 Proforma Invoice

 

Following methods are used in Billing

  • Individual Billing Document: A single Billing document is created for each sales document, example one Invoice per delivery. In copy control routine can be defined to have an individual billing document.

Invoice

  • Collective Billing: Collective Billing combines different documents (orders / deliveries) into a single Invoice document provided certain data specified is common across these source documents. The Header data appearing in billing document must be same.

Invoice

  • Invoice Split: If Invoices are to be created separately according to some predefined criteria even for items originating from same source document invoice split can be used. In copy control requirements can be defined with split criteria to ensure sales orders or deliveries are not combined into a collective billing document.

Example – Invoice split based on material group in figure

    Invoice Split

    Proforma Invoice: Invoice document created for exported goods to indicate cost of goods to authorities is Proforma Invoice. There is no difference between Invoice and Proforma except that Proforma does not pass on to accounting.

     

Integration with Accounting

Integration of Billing Document in Sales & Distribution with Accounting is one of the main integration points in system.

Here integration consists forwarding billing data to

  • Financial Accounting (FI – Accounts Receivable)
  • Controlling (CO) module

On creation of billing document system can automatically create documents for

  • General Ledger (G/L) in FI-AR
  • Profit Center
  • Profitability Analysis (CO-PA)
  • Cost Accounting.

System can post entries from Billing documents to relevant accounts via ‘Account determination’.

Costs and revenue can be posted to following accounts

  • Customer Accounts receivables.
  • Revenue accounts
  • Sales deductions
  • Accrual accounts for rebates etc.
  • General Ledger accounts.

Reference number and Assignment number can be carried from Billing document to Financial document to be used as reference when incoming payments are posted from customer.

Billing document can get blocked for accounting for two reasons i.e if it is set in customizing to block for the billing type or if errors occur in account assignment.

System has provided with a tool to analyse errors in account determination with which errors can be corrected and billing document released to accounting.

For certain Billing documents or certain scenarios it is required that Billing documents be first checked by relevant authorities prior to releasing it to accounting, in such cases automatic block is setup in customizing.

In integration with Controlling, costs and revenues from billing document data can be transferred to following sub-ledger accounts

  • Profit & Cost center
  • Extended General Ledger O Make-to-order Sales orders O Profitablity (CO-PA)
  • Projects

Customization for activation of Controlling area and integration needs to be setup for transfer to take place.

Invoice List

Invoice List is a functionality within billing provided by system to create, at specified time intervals or on specific dates, a list of billing documents, to be sent to a Payer.

Billing documents in Invoice list can be individual or collective documents.

Standard system includes two type of invoice lists

  • LR – For Invoice and Debit memo’s
  • LG- For Credit Memo’s

 

1. Configuring Billing Documents

1.1 Define Billing Document Types

This configuration setting enables creation or modification of billing document type. Billing document type is an indicator which enables system to process different business transactions in different ways.

Various Billing types are pre-configured in system and can be used for various scenarios. There are three options for configuring new sales document types:

  • Change existing Billing type
  • Copy existing Billing type and change it to new requirements.
  • Create a new Billing type.

Definition and configuration of sales document type can be divided in three parts

  1. Definition of Billing type itself (with key example - F2 etc.)
  2. Definition of additional billing functions (like number ranges etc.)
  3. Configuration for general billing functions (like pricing etc.)

We will study the configuration of SAP provided sales document type for standard delivery related billing ‘F2’.

Instructions

Follow Menu Path: IMG ® Sales and Distribution –> Billing –> Billing Documents –> Define Billing Types

1. Click clip_image001[8]

Following pop-up is displayed

Billing Document Types

Click on clip_image003 and click on clip_image004

Billing Types

Here the three options explained in background are applicable.

a. If existing Billing type is to be modified, choose the document type from list and click on clip_image007 to get into details

b. For copying existing Billing type to new one select the sales document type to be copied and click on clip_image008 or F2.

c. For creating a new Billing type click on clip_image009

Here we will follow option ‘a’ and select Billing type F2 and click on image. To search for correct order type click on image and enter the key.

Following screen is displayed

Billing Document Types

The controls are grouped in various blocks like Number Systems, General Control, Account Assignment etc.

2. Maintain the fields as explained below: The explanation is provided block wise

F2 Invoice

Field Name

Field Description and Value

Billing Type

4 character key for the Billing type. Description is next to it

Created by

Name of person creating the object

No.range int.assgt.

No range to be used for Billing document numbers if assigned internally

Item no.increment

Increment of item no in billing document.

F2 Invoice

Field Name

Field Description and Value

SD document categ.

A basic classification of document types used in Sales processing.

clip_image016

Etc.

Transaction group

Grouping that controls certain characteristics of sales doc processing.

Posting Block

This check box controls blocking of billing document transfer to accounting.

Statistics

Check box controls whether system stores the billing information for statistical purposes and reporting.

Billing Category

Used to differentiate billing document requirements. Generally left blank

Document Type

FI document type can be assigned here

   

Negative posting

A correspondingly set posting on the debit side reduces the credits side of the account. A credit posting reduces the debit side of the account.

Indicator is used for credit memos and cancellations.

clip_image017

Branch/Head Office

Indicator controls which partner functions can be passed on to Accounting

clip_image018

Credit memo w/ValDat

Used for Value date to be filled in case of Credit Memo

Invoice List Type

Invoice List type assigned to Billing type

Rebate Settlement

Indicator to control if billing type is used for Rebate settlement exclusively.

clip_image019

Rel for Rebate

Check box, which controls if a Billing type is relevant for rebates.

Invoice Cancellation - S1

Key fields are explained below:

Field Name

Field Description and Value

Cancellation Billing type

Cancellation billing type to be assigned to this billing type to be used when billing documents is to be cancelled.

Copying requirements

In case copying requirements are to be assigned here.

Reference number

Additional information to be passed on to Accounting from SD

clip_image021

Allocation

number

Additional information to be passed on to

accounting line item level.

 

clip_image022

AcctDetermProc.

Account determination procedure is assigned here to Billing document type. If this is not assigned the document cannot be passed on to accounting. Example Proforma Billing type

Doc. pric. Procedure

Document pricing procedure is assigned here in case separate Pricing procedure needs to be determined in Billing document.

Example – Inter-company billing document.

Acc. det. rec

Account determination procedure for

Reconciliation accounts

Acc. det. cash.

Account determination procedure for Cash accounts

Acc. det. pay.

cards

Account determination procedure for Payment

cards

Billing Output

 

Key fields explained below, rests are system copied.

Field Name

Field Description and Value

Output determ proc.

Output determination procedure is assigned here

Application

Application is V3 for Billing

Output Type

Default output type proposed when printing

Header partners

Partner determination procedure for Billing Header

Item Partners

Partner determination procedure for Billing Item

TextDetermProcedure

Text determination procedure for Billing Header

Text Determ. Proc. Itm

Text determination procedure for Billing Item

Delivery text

Check box if texts from delivery are to be copied to Billing

Click clip_image024 and back.

EFFECT OF CONFIGURATION

Billing type configured here would be used for creating Billing document in specific scenario.

1.2 Define Number Ranges for Billing Documents

This configuration setting enables us to define the number ranges for Billing document. Number ranges are defined directly in the production system.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Billing Documents –> Define Number Ranges for Billing Documents

1. Click clip_image001[9]

Number Ranges for Billing Documents

2. Click clip_image026

Number Ranges for Billing Documents

3. Click clip_image029 to add new number range interval, mark check for external if it is an external number range.

4. Click clip_image030

5. Click clip_image024[1]

Effect of Configuration

Number range maintained here will be assigned to Billing type as explained earlier and used for billing document creation.

2. Maintain Copy Control for Sales Documents

This configuration enables copy between sales documents at order level and delivery level to Billing document level, various controls for document and data flow are also available here

In this configuration copy control is maintained for following options

  • Sales document to Billing document
  • Billing document to Billing document
  • Delivery document to Billing document

The controls specify how and what data needs to be copied on to the target billing document from the source.

Instructions Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Maintain Copy Control for Billing Documents

1. Click clip_image001[10]

Following pop-up is displayed.

Copy Control for Sales Documents

2. Click on clip_image032 and click

clip_image033

Following screen is displayed

Copy Control for Sales Documents

Target – This is the Billing type, which would be created.

Source – This is the Delivery type used as reference from which new data would be transferred to create new Billing document.

For existing Billing types provided in system copy control is maintained. Let us study configuration of Target ‘F2’ and source ‘LF’.

3. Select entry and click on clip_image007[1]

Following screen is displayed

Copy Control for Sales Documents

Following fields are maintained

Field Name

Field Description and Value

Copying requirements

Routine no is assigned here for Copying requirements to be checked at header level while creating billing document.

Determ.export data

Where system should get export data is specified here.

clip_image038

Allocation number

Additional information to be passed on to accounting line item level.

 

clip_image022[1]

Reference Number

Additional information to be passed on to Accounting from SD

clip_image021[1]

Copy Item number

Indicates whether system copies item no from source to target document.

Click clip_image039 to go back.

4. Click on clip_image040 on Left hand side to maintain copying information for item data

Following screen is displayed

Copy Control

Select ‘TAN’ and click on clip_image007[2]

Following screen is displayed

Copy Control

Fields to be maintained as below

Field Name

Field Description and Value

Copying requirements

Copying requirements to be checked at item level.

Data VBRK/VBRP

Routine for data transfer at header & item level. Here routine can be assigned for creating Individual Billing documents etc.

Billing quantity

Specifies which quantity system copies from source document.

clip_image045

   

Pos/neg. quantity

Specifies when copying quantity in target document has positive, negative or no effect of quantity in source document.

clip_image046

In this case the delivery document is updated with positive quantity

Pricing Type

Specifies how system treats pricing data when creating billing document. There are many pricing types , generally used one’s are below

clip_image047

Pricing Exchange rate type

Determines pricing exchange rate type.

clip_image048

Cumulate Cost

Check box indicates if cost of sub-items is to be cumulated in main item

Price Source

Sequence and source from where prices are to be copied

 

clip_image049

Click clip_image024[2] and back.

Similar configuration can be carried out forclip_image050 &clip_image051

Difference here is that Source is Delivery & Billing Document.

Effect of Configuration: Copy Control is setup for Billing document creation.

3. Define Blocking Reason for Billing

This configuration enables definition of Reasons for blocking of billing documents. These reasons can be used to block billing creation for customer.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Define Blocking Reason for Billing

1. Click clip_image001[11]

Following pop-up is displayed

Billing Block

Click on clip_image053 and click clip_image033[1]

Billing Block

clip_image024[3]Click on clip_image009[1] for maintaining new one’s. and then click Following fields are maintained

Field Name

Field Description and Value

Block

2 character key for billing block

Description

Description of billing block

Click clip_image024[4] and clip_image055.

2. Click on clip_image056 and click clip_image033[2]

Billing Block

Click on clip_image009[2] for maintaining new one’s. and then clickclip_image024[5]

Effect of Configuration Billing block reasons are defined and assigned to Billing types.

4. Configuration for Invoice List

4.1 Assign Invoice List Type to Billing Type

Invoice List type is also a Billing type and is created in Billing type creation configuration menu. Here for Invoice Lists to be created they needs to be assigned to billing types. This configuration is provided for this purpose.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Invoice Lists –> Assign Invoice List Type To Each Billing Type

1. Click clip_image001[12]

Invoice List Type to Billing Type

Billing types are available here. The Invoice List type is assigned to billing types.

Click clip_image024[6] and clip_image055[1].

Effect of Configuration Invoice Lists can be created in system for Billing documents.

5. Define Rules For Determining Dates

This configuration setting enables creation or modification of rules for determining dates in Billing plan.

Various Rules are preconfigured in system and can be used for various scenarios. There are three options for configuring new rules:

  • Change existing rule
  • Copy existing rule and change it to new requirements
  • Create a new rule.

You define the rules for date determination on the basis of the following dates:

  • The possible baseline date is predefined by a fixed value range (for example current date, beginning of the contract) and cannot be changed.
  • You can define the period in any way by specifying a number with a corresponding time unit.
  • If you use a calendar ID to define a rule, the system determines the next possible workday starting from the baseline date. If you use a calendar ID, you may NOT specify a period.

We will study the configuration of SAP provided rule ’50 – Monthly at end of each month’.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Billing Plan –> Define Rules for Determining Dates

1. Click clip_image001[13]

Rules For Determining Dates

Here the three options explained in background are applicable.

d. If existing Rule is to be modified, choose the Rule from list and click on clip_image007[3] to get into details

e. For copying existing Rule to new one select the Rule to be copied and click on clip_image008[1] or F6.

f. For creating a new Rule click on clip_image009[3]

Here we will follow option ‘a’ and select Rule ‘50’ and click onclip_image007[4]. To search for Rule click on clip_image063 and enter the key.

Following screen is displayed

Rules For Determining Dates

 

Maintain the fields as explained below:

Field Name

Field Description and Value

Date Det.rule

2 character code for Indirect rule determination of dates in Billing plan. Here ‘50’ exists in system, for new any two characters can be entered.

Description

Text description of rule for identification

Baseline date

This is baseline date from which further dates are calculated. This is predefined in system and following entries exist:

clip_image066

Here ‘07’ is selected

Time Period

Time Period, which is to be added or subtracted from baseline date, is added here.

Time Unit

Time Unit of time period defined above

clip_image067

Last of Month

Last of month switch for date determination

clip_image068

   

Calendar ID

If Calendar is to be used to influence date determination, example actual dates in month it has to be entered here.

Contract data

Used for Contract items where item date has not to be selected from baseline date, but from Header date.

Click clip_image024[7] and back.

EFFECT OF CONFIGURATION

Rule for date determination are defined to be used in Billing plans.

6. Define Billing Plan Types

This configuration enables definition of Billing Plan types, which contain the basic control data for billing plan.

There are two basic billing plan types pre-configured in system:

  1. Periodic Billing.
  2. Milestone Billing.

There are three options for configuring new billing plan types:

  • Change existing plan type
  • Copy existing plan type and change it to new requirements.
  • Create a new billing plan type.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Billing Plan –> Define Billing Plan Types

1. Click clip_image001[14]

Following pop-up is displayed.

Billing Plan Types

2. clip_image070Click on and click clip_image033[3]

Following screen is displayed

Billing Plan Types

Here the three options explained in background are applicable.

a. If existing Billing Plan type is to be modified, choose from list and click on clip_image007[5] to get into details

b. For copying existing Billing Plan type to new one select the Rule to be copied and click on clip_image008[2] or F6.

c. For creating a new Billing Plan type click on clip_image009[4]

Billing Plan Types

Using option ‘a’ here, select entry ‘02’ and click on clip_image007[6] Following screen is displayed

Following important fields are explained

Field Name

Field Description and Value

Billing plan type

2 character code for Billing plan type can be entered

Start date

Date rule for determining origin of Billing plan dates

End date

Date rule for determining end of Billing plan

 

dates

Horizon

Rule for determining horizon of Billing plan i.e. period from start date till when billing plan applies in future.

Next bill. Date

Rule for determining next billing date in billing plan

Calendar ID

Calendar for defining dates relevant for billing

Online order

Mark ‘x’ if automatic proposal of dates is required in order.

In advance

If field is activated billing is carried out in advance

FCode- OvervScrn

Overview screen to be displayed after entering original billing plan data.

Click clip_image024[8] and clip_image039[1].

3. Click on clip_image075

Following screen is displayed

Billing Plan Types

Here the three options explained in background are applicable.

a. If existing Billing Plan type is to be modified, choose from list and click on clip_image007[7] to get into details

b. For copying existing Billing Plan type to new one select the Rule to be copied and click on clip_image008[3] or F6.

c. For creating a new Billing Plan type click on clip_image009[5] Using option ‘a’ here, select entry ‘01’ and click on clip_image007[8]

Following screen is displayed

Billing Plan Types

Fields to be maintained as below

Field Name

Field Description and Value

BillingPlanType

2 character code for Billing plan type can be entered

Start date

Date rule for determining origin of Billing plan

 

dates

Online order

Mark ‘x’ if automatic proposal of dates is required in order.

FCode- OvervScrn

Overview screen to be displayed after entering original billing plan data.

Click clip_image024[9] and clip_image039[2].

Effect of Configuration

Billing Plan type is now configured for Periodic and milestone billing and can be used for creating billing plan in sales documents.

7. Define Date Descriptions

This configuration enables definition of Date Descriptions for billing dates in billing plans. These reasons are used for textual reasons only.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Billing Plan –> Define Date Descriptions

1. Click clip_image001[15]

Define Date Descriptions

Click on clip_image009[6] for maintaining new entries apart from one’s defined in system.

Fields maintained are

Date description – Four character code for Date description

Description – Text description of date description. Click clip_image024[10] and clip_image039[3].

8. Define and Assign Date Categories

In this configuration date categories can be created and assigned to Billing plan types. There are various controls on combination of date category and billing plan type. It also specifies description for billing date.

Several date categories can be specified for a billing plan type hence a default date category is also specified here for each billing plan type.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Billing Plan –> Define and Assign Date Category

1. Click clip_image001[16]

Following popup is displayed

Define and Assign Date Categories

Click on imageand clip_image084

For maintaining new entries click on clip_image009[7]. Here we will see existing entry. Select entry of Billing Plan type ‘02’ and Date Category ‘01’ and click on clip_image007[9]

Define and Assign Date Categories

Fields to be maintained as below

Field Name

Field Description and Value

BillingPlanType

2 character code for Billing plan type is selected here from list created earlier

Date Category

2 character code for Date category to be entered here.

Date Description

Description of Billing date to be selected here from List of descriptions created in previous task.

Billing Rule

Specifies for Billing plan date how the value to be billed is determined.

clip_image089

In this case it’s a equal split in no of billing dates defined.

Billing block

Default billing block to be proposed for billing dates in plan in sales document.

Click clip_image024[11] and BACK .

2. Click on clip_image091 and clip_image084[1]

Define and Assign Date Categories

Default Date category is to be assigned to Billing Plan type in this configuration.

Click clip_image024[12] and BACK.

Effect of Configuration Date rule is defined here for Billing Plan types.

9. Maintain Date Proposals for Billing Plan Types

Date Proposal specifies the sequence of dates, which can be used during order processing as reference for date determination.

Date proposal is used only for Milestone billing. When sales order is created with milestone billing dates are copied according to reference and re determined on based of current rules.

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Billing –> Billing Plan –> Maintain Date Proposals for Billing Plan Types

1. Click clip_image001[17]

Select ‘01’ and click on clip_image007[10]

Date Proposals for Billing Plan Types

Click on clip_image098

image

Click on image

Date Proposals for Billing Plan Types

Following fields are maintained

Field Name

Field Description and Value

Billing Date

Billing date for billing plan

Date

Description

Description of Billing date in plan

%

Percentage of total amount to be billed in milestone

Block

Default billing block for billing date

Billing rule

Billing rule for milestone is selected here

clip_image105

Billing Type

Default billing type to be used if required.

Click on clip_image106

Number of Billing plan would be generated on screen

Click clip_image024[13] and BACK.

Effect of Configuration

Date proposal is assigned to Milestone billing plan, which would be used as reference when creating billing plan in sales documents.

10. Assign Billing Plan Types to Document Types

Billing Plan type defined can be assigned in this configuration to Sales Document type. This configuration enables Billing plan creation at Sales Header level, which would apply to all items in sales document.

Instructions

Follow Menu Path: : IMG –> Sales and Distribution –> Billing –> Billing Plan –> Assign Billing Plan Types to Sales Document Types

1. Click clip_image001[18]

Billing Plan Types to Document Types

Assign Billing Plan type to Sales document type

Click clip_image024[14] and .

Effect of Configuration Billing plan creation at Sales Header level is enabled.

11. Assign Billing Plan Types to Item Categories

Billing Plan type defined can be assigned in this configuration to Sales Item Categories; also Billing relevance is also assigned here. This enables Billing plan creation at item level.

Instructions

Follow Menu Path: : IMG –> Sales and Distribution –> Billing –> Billing Plan –> Assign Billing Plan Types to Item Categories

1. Click clip_image001[19]

Billing Plan Types to Item Categories

 

Billing Relevance - clip_image113 is assigned to Item Category and Billing Plan Type created earlier.

Click clip_image024[15] and BACK.

Effect of Configuration

Billing Plan type is assigned to Item level and billing plan can be created at sales document item level.

12. Configuring Sales Document Header

12.1 Define Sales Document Types

Complaints and Returns start with a sales order and hence configuration of Sales orders types is first step in cycle. The entire configuration is explained in Configuration guide for ‘Sales’. Here we will see the order types provided in Standard system for complaints and returns processing.

The standard order types used are
   
  • Subsequent Delivery Free of charge - SDF
  • Returns - RE
  • Credit Memo request  - CR
  • Debit Memo request - DR

Instructions

Follow Menu Path: IMG –> Sales and Distribution –> Sales –> Sales Documents –> Sales Document Header –> Define Sales Document Type

1. Click clip_image001[20]

Define Sales Document Types

Here the three options explained in background are applicable.

g. If existing Sales document type is to be modified, choose the document type from list and click on clip_image007[11] to get into details

h. For copying existing sales document type to new one select the sales document type to be copied and click on clip_image008[4] or F6.

i. For creating a new sales document type click on

clip_image009[8]

A. Order Type – SDF (Subsequent Delivery Free of charge)

Here we will follow option “a” and select order type SDF and click on . To search for correct order type, click on

and enter the key.

Following screen is displayed

Order Type – SDF
Thus important thing here is that SD document category is image

And document pricing procedure is clip_image122

B. Order Type – RE (Returns)

Select order type RE and click on image. To search for correct order type, click on imageand enter the key.

Following screen is displayed

Order Type – RE (Returns)

Here the important controls are:

SD Document Category as clip_image125

C. Credit Memo Request – CR

Select order type CR and click on . To search for correct order type, click on and enter the key.

Following screen is displayed

Credit Memo Request – CR

Here the important controls are:

SD Document Category as clip_image128

D. Debit Memo Request – CR

Select order type DR and click on . To search for correct order type, click on and enter the key.

Following screen is displayed

Debit Memo Request – CR

Here the important controls are:

SD Document Category as clip_image131 Click clip_image024[16]

Effect of Configuration

Sales Document types for respective business scenarios within complaints and returns processing are defined.

For further configuration tasks related to entire business process refer configuration guide for Sales, Delivery and Billing.

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