SAP Billing Processing

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Right Solution, Right Time, Right Price
         Business Process Workshop

    The objectives of the Billing workshop is to:

    • Provide an overview of the Billing Business Processes
    • Demonstrate how SAP will be used to manage these processes.


    I. Overview
    II. Processing Individual Billing Documents
    III. Processing Billing Due List
    IV. References

    I.   Overview

    Billing Documents
    Billing document is a generic term for invoices, credit memos, debit memos,
    proforma invoices, and cancellation documents.
    A billing document is made up of a header, which contains data that applies to the
    whole document, and of any number of items.
    An accounting document records changes in values in a company code arising
    from accounting transactions. They consist of one or more line items (postings)
    each of which represents an individual transaction posted to an account.
    When posting an accounting document, the system updates the transaction figures
    in the accounts the document is posted to.

             Billing Document (Invoice)
                                                          List of Accounting
                                                         Documents for Invoice

    Billing Documents
    The Billing Document represents the final function in the SD order
    process chain.
    Billing documents can be issued through deliveries, sales orders,
    credit memos, and debit memos.

    II.   Processing Individual
           Billing Documents

    Types of Billing Documents
    In SAP, there are a variety of different billing documents that can be generated.
    Most billing documents will originate from outbound deliveries. However
    other types can be created off an order. For example, credit memos never have
    deliveries; therefore the billing document is generated from the order as a
    credit memo request.

     SAP Code                       Billing Document Description
         F2      Invoice that references a delivery note.
         F5      Proforma Invoice for an order.
         F8      Proforma Invoice for a outbound delivery.
        G2       Credit Memo
         L2      Debit Memo
        FV       Invoice Contract - Service
        ZF2      Customer Property Invoice
        RE       Credit for Returns

    Creating a Billing Document
    Invoices will typically be created using the Billing Due List which
    creates invoices in bulk that are due for billing. (See section III).

                                     However, an individual billing
                                     document can be created in VF01
                                     following the menu path: Logistics,
                                     Sales and Distribution, Billing,
                                     Billing Document, Create.

    Creating a Billing Document
                                                                   Enter the document to
                                                                   be billed and hit enter.
                                                                   The billing type will
                                                                   automatically default
                                                                   from the type of
                                                                   document entered.

    If creating FD Related party invoices or Proforma invoices, you must designate that
    first in the billing type before entering the document number.

     Creating a Billing Document
     The next screen will show you what is on the reference document that you
     entered. The example below, the reference document originated from a
     delivery document. The material on the delivery will be invoiced once the save
     icon is clicked.

                                                                     Review the
                                                                     document to
                       Save Icon
                                                                     check pricing,
                                                                     taxes, freight,etc.
                                                                     are correct. Then
                                                                     click on the save
                                                                     icon to complete
                                                                     the invoice.

     Creating a Billing Document

                          Once the system is finished processing
                          the invoice, it will move to this screen.
                          At the bottom will be a notice that your
                          invoice and it‟s corresponding number
                          have been saved.

                          NOTE: The billing document is not
                          complete until the corresponding
                          accounting documents have been

     Displaying a Billing Document
                      Follow the menu path Logistics, Sales and
                      Distribution, Billing, Billing Document,
                      Display. Double click.

                                                  Enter the billing
                                                  document number.

     Displaying a Billing Document
                                     The invoice
                                     lines will be

     Displaying a Billing Document
                               While in the invoice, you can view
                               the accounting documents by
                               clicking on the accounting button.

                            A list of the accounting documents
                            associated with the invoice will be
                            displayed. Double click on a specific
                            document to view it.

     Proforma Invoices
     A proforma invoice is an invoice that is generated before the shipment is made.
     Often the proforma invoice is used by our customers to obtain importation
     license when shipping overseas.
     There are two methods by which a proforma invoice is generated:
     • For an entire sales document—issued for the entire open order.

     • For an outbound delivery—issued for just the material on a specific delivery.
     Note: Data from Proforma invoices is not transferred to Accounting.

Creating a Proforma Invoice from a Sales Document

                                                      From the drop down
                                                      menu, choose the
                                                      billing type
                                                      „Proforma for

                                                    Enter the sales order
                                                    document number.
                                                    Hit enter.

Creating a Proforma Invoice from a Sales Document

                                                                The material on the
                                                                order will be listed.
                                                                To finish processing
                                                                your proforma
                                                                invoice, click on the
                                                                Save icon.

                           Once the invoice has been generated,
                           the document number will appear at
                           the bottom of the screen.
                           The document will automatically
                           print to the user‟s designated printer.
     Creating a Proforma Invoice from a Delivery
                                                   From the drop down menu,
                                                   choose the billing type „Pro
                                                   Forma Inv f Dlv‟.

                                                   The material on the
                                                   delivery will be listed.
                                                   To finish processing your
                                                   proforma invoice, click on
                                                   the Save icon.

                                                    The document number
                                                    will appear at the bottom
                                                    of the screen. The
                                                    document will
                                                    automatically print.

     Printing a Billing Document
     When a billing document is created, it automatically prints at the designated printer
     of the user. However if another print out is required, output can be generated.
     Printing any type of sales document in SAP is referred to as “output”.
     You can generate output for Billing documents in several locations:
     VF03—Display Billing Document
     VF31—Issue Billing Documents


     Where are the majority of invoices going to be

     What is a proforma invoice?

     What are the two ways a proforma invoice can be

     III. Processing Billing Due List

     Billing Due List
     The Billing Due List is a list of sales documents that are ready to be processed.
     Example: All deliveries and orders that have been processed for the day (i.e. post
     goods have been issued) will be invoiced when the Billing Due list is processed.
     Note: Billing date will be the same day as the day the post goods was issued for
     deliveries. The billing dates on credit and debit memos will be updated by the
     The list can be created using different selection criteria such as sold-to party,
     shipping point, etc. Also, you can decide whether the billing list should include
     just delivery-related documents, order-related, or both.
     The billing due list can be run in background as a batch job at a specific time of
     the day. However, <Client> will not use this functionality at 9/00
     If during processing any problems or errors arise, you view the billing log to
     determine which billing documents were created from the billing due list and
     whether any errors occurred.

     Processing the Billing Due List
     While individual billing documents are created by Sales, the Billing Due List will
     be processed by Finance. All deliveries, credit memos, debit memos, billings,
     returns, etc. are processed through the Billing Due List daily.

                                                    Follow the menu path:
                                                    Sales & Distribution,
                                                        Billing Document,
                                                            Process Billing
                                                            Due List

     Processing the Billing Due List

                                       The Billing Due List is
                                       generated based on the
                                       criteria you enter.
                                       The billing date will
                                       default to today‟s date.
                                       documents will also

     Processing the Billing Due List

        Below is an explanation of the different criteria by which the
        Billing Due List can be generated. These are optional filters.

          Field Name                     Description                       Field Name                     Description
     Billing date from/to   Range of billing due dates to be          Destination country    Identifier for the country of the ship-to
                            selected                                                         party
     Billing type           Identifier for the types of billing       Sort Criterion         Sort term that determines how the
                            documents that require different                                 documents are sorted w hen the
                            processing by the system                                         system creates the billing documents
     SD document            Number of the reference document          Order-related          Flag that determines if the system
                                                                                             should select sales documents that
                                                                                             have not been invoiced
     Sales Organization     Organization responsible for the sale of Deliveries              Flag that determines if the system
                            certain products                                                 should select deliveries documents that
                                                                                             have not been invoiced
     Distribution channel   The w ay product and services reach a Request for rebate         Flag that determines if the system
                            customer                                                         should select rebate sales documents
                                                                                             that have not been invoiced
     Division               Grouping of a materials                   Intercompany billing   Flag that determines if the system
                                                                                             should select intercompany
                                                                                             transactions that have not been
     Shipping Point         A Physical location from w here material No docs w ith billing   Flag that determines if the system
                            is shipped                               blocks                  should select sales documents that
                                                                                             have been blocked for billing
     Sold-to party          Number of the sold-to party

     Processing the Billing Due List

                                       Once all of the pertinent
                                       criteria has been
                                       entered, click on the
                                       Execute DisplayBillList
                                       to process the list.

                                       Both order-related and
                                       Delivery-related documents
                                       should be checked when
                                       running the daily list.
                                       Note: <Client> will not utilize
                                       rebate-related and intercompany
                                       billing functions here.

     Processing the Billing Due List

     The next screen will display all of the documents ready to be billed that fit the
     criteria given. All the lines are automatically highlighted for billing. To unselect
     them, you can use the Deselect all button.

                               Deselect All

     Processing the Billing Due List
     Highlight the documents that you would like to bill by clicking on the lines. If you are
     only billing one document, click on the Individual Billing Document. If you are selecting
     more than one document, carefully highlight the desired documents to be billed.
     Then click on the Collective Billing document button.

      At the bottom of the screen, the system will indicate what sales
      document it is currently processing.
     Processing the Billing Due List
                                                       To see the a log of what
                                                       billing document
                                                       numbers were generated
                             Log Display Icon          and if any errors
                                                       occurred, click on the
                                                       log icon. (This can also
                                                       be accessed from the
                                                       drop down menu by
                                                       following the path Edit,

                                                The condensed log will
                                                be displayed. To see
                                                more detail, click on the
                                                „Documents‟ button.

     Processing the Billing Due List
                                       The Billing
                                       document number
                                       will be displayed.

                                       Clicking on
                                       „Disp. Doc.‟
                                       button would
                                       show each
                                       document detail

     Processing the Billing Due List

                                       Clicking on the
                                       „Document flow‟
                                       button would show a
                                       list of all the sales
                                       document associated
                                       with each billing

     Errors when Processing the Billing
     Due List
                                  If an error occurred while
                                  processing a sales document, it
                                  would show as an error on the
                                  Processing log.

                                   The unprocessed document can be
                                   accessed by clicking on “Display

     Processing the Billing Due List

                                       While in the document, click on
                                       „Edit‟, then „Log‟.

                                       The error log will be displayed
                                       with the specific problem on the
                                       sales document.


     Who will processes the Billing Due List?

     Where can the results of the Billing due list be viewed ?

     IV. References

      SD Document Ranges and Types
     From Number To Number              Sales Document    Types                Delivery Document Types            Billing Document   Types

      0000000001   0004999999   Consignment Fill-up (KB)
                                Consignment Issue (KE)
                                Free of Charge Delivery (FD)
                                Subsequent Delivery Free of Charge (SD)
                                Rush Order (SO)
                                Standard Order (OR)
                                Customer Property Repair (ZCPR)

      0005000000   0005999999   Third Party Order (ZTA)
      0010000000   0014999999   Inquiry (IN)
      0020000000   0024999999   Quotation (QT)
      0030000000   0034999999   Scheduling Agreement (DS)
      0040000000   0044999999   Quantity Contract (CQ)
      0050000000   0054999999   Service Contract (WV)
      0060000000   0064999999   Credit Memo Request (CR)
                                Returns (RE)
                                Returns Exchange (ZE)
                                Returns Customer Property (ZE1)
                                Consignment Pick-up (KA)
      0065000000   0065999999   Consignment Returns (KR)
      0066000000   0069999999                                                                                  Credit Memo (G2)
      0070000000   0074999999   Debit Memo Request (DR)
      0075000000   0079999999                                                                                  Debit Memo (L2)
      0080000000   0083999999                                             Outbound Delivery (LF)
                                                                          Outbound Delivery Consignment (ZX)
      0090000000   0090999999                                                                                  Invoice (F2)
                                                                                                               Invoice Contract – Service (FV)
                                                                                                               Credit for Returns (RE)
                                                                                                               Customer Property Invoice (ZF2)
                                                                                                               Pro Forma for Order (F5)
      0095000000   0095999999                                             Customer Property Repair (ZC)
      0096000000   0099999999                                             Rush Outbound Delivery (ZF)
      0084000000   0084999999                                             Returns Delivery (LR)
                                                                          Returns Exchange (ZR)


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