Billing Flashcards
Billing Process
Business is able to invoice the customer for materials or services rendered.
Takes place after the delivery process has been completed
Process could be order- or delivery-related, and may include billing of standard deliveries as well as the creation of debit and credit memos
Process may include invoicing for financial depositis for large projects prior to construction and inception
Structure
Has a header, and item level, but no schedule line level
Must configure the header document type and the relevant item categories
Billing document only uses internal assignments regarding number range assignments. It’s not possible to have an external number range.
Billing document: Posting block
stops automatic release of the billing document to accounting
Billing document: Statistics checkbox
Inidcates that the document is relevant for updating the informations systems
Billing document: Transaction group
7 for billing documents, 8 for pro forma invoices
Billing document: Billing category
Further sub-division of billing document type and transaction group
Used for selection of screen variants and classifications
Billing document: Document type
Used when accounting document is created
Billing document: Negative posting
Only effective if the Company Code for which posting is carried permits negative posting
Billing document: Brand/head office
Determines which customer master record is used to update the accounting documents.
If Payer is different than the sold-to-party, payer is transferred to Financial Accouting as the customer
Billing document: Credit memo w/ValDat
Used for credit memos to set the baseline date as the date with the original billing document
Billing document: Invoice list type and Rebate settlement
Represents the document type that may be used to create invoice lists for this billing document
Indicating the billing document is related to the rebate process by indicating what rebate type of document it is
Billing document: Rel. for rebate
Indicates that billing document is relevant for rebate accurals
Billing document: Standard text
Generally not used
Cancellation Data
Used by the system when a document type of the type you are defining is cancelled
System will automatically use the cancellation billing type as well as any copying requirements you maintain
Rarely used in practice, typically businesses use credit or debit notes
Standard invoice cancellation type for F2 billing documents is S1
Cancellation of cash sale uses SV
Cancellation fields
- Cancell. billiing type
- Copying requirements
- Reference number, passed to accounting
- Allocation number, similar to reference number
Account Assignment and pricing control area
Used for account determination and pricing determination
Billing Document: AcctDetermProc
Used by the system to propose to which general ledger acounts entries must be posted
Billing Document: Doc. pric. procedure
Used to determine the pricing procedure to be used, in conjunction with the sales area and customer pricing procedure indicator
Billing Document: Acc det. rec. acc.
Used to determine the reconciliation account to be used
If used, the reconciliation account on the company code doesn’t get used
Billing Document: Acc. det. cash. set.
Account determination cash settlement, used to determine if the value should be posted to a different account, as opposed to the standard increase in accounts receivables
In a cash sale there would be no need to increase the customer’s open items. However, you may wish to post the value somewhere
Billing Document: Acc. det. pay. cards
Used to determine which general ledger accounts must be posted to payment cards
Output/Partners/Text Control Data
The data entered in the header document type for the billing document is used by the system in determining the output, partner, and teext determination of the itme level
Billing Document: Output determ proc, Application, and Item output proc
These three determine the Output Type
Billing Document: Header partners and Item partners
Specifies the gorup of partner functions the system proposes automatically for a billing document of this type
Billing Document: TextDetermProcedure and Text determ.proc.item
Assigned to the billing document header
Standard Billing types
- F1, order-related
- F2, delivery-related invoice
- F5, Pro forma invoice for sales orders
- F8, Pro forma invoice for deliveries
- G2, Credit memo
- L2, Debit memo
- RE, Credit for returns
- S1, Cancellation invoice
- S2, Cancellation credit memo
- IV, Inter-company billing
Billing Documents Info
It’s necessary to maintain the copy control rules for all standard document types
Item categories in billing documents are copied from the previous document
There are no settings to make for the item category in the billing document
Copy control rules must be defined at header and item level
Special Billing document types: Pro Forma invoice
Billing type F8
Invoice that does not post any financial amounts into any general ledger
Used for information purposes only
Special Billing Document Types: Cancellation Invoice
Billing type S1
Used when a billing document has errors in it, so original needs to be cancelled and recreated
Illegal in some countries
Special Billing Document Types: Inter-company invoice
Represents an internal invoice used between two company codes belonging to the same business
Inter-company refers to a sales transaction where more than one company code belonging to the business is used in the process
Intra-company sales refers to a transaction within one company code
Collective Billing
Invoices can be accumlated and created collectively
System can combine multiple deliveries/sales orders into one invoice
Done by using a combination of the factory calendar assigned to the payer master record and the billing copying rules
Copy Control Billing Documents
- Sales documents to billing document, Used for credit memos and debit memos that have no delivery documents
- Billing document to billing document, Used by the system to determine copying control, for example, between an invoice and an inter-company invoice
- Delivery document to billing document, Most widely used, covers the standard sales process
Delivery Document to Billing Document fields: Copying requirements
A number which is the key to a routine
Delivery Document to Billing Document fields: Determ. export data
Used to redetermine the export control (foreign trade data) automatically in the billing document
Delivery Document to Billing Document fields: Reference number
Passed to accounting
For self-billing, the value “C” is used meaning the delivery number is used as a reference. This also means that the delivery number will be passed to accounting as the reference field. Thus the system cannot combine deliveries as it does in a collective invoice as it does not know what number to use as a reference.
Delivery Document to Billing Document fields: Allocation number
Similar to reference number
This field is represented as the “assignment number” in the table VBRK
Delivery Document to Billing Document fields: Billing quantity
Used to determine the quantity of items to be invoiced
Delivery Document to Billing Document fields: Positive/Negative quantity
Used to update the open/remaining quantity or value in the source document
Delivery Document to Billing Document fields: Pricing type
Determines what type of pricing the system is to automatically use
Delivery Document to Billing Document fields: PricingExchRate type
*
Delivery Document to Billing Document fields: Cumulate cost
Used to cumulate sub-item costs into the main item cost
Ex. you have a delivery with an item that is free of charge and not relevant for billing, but is a sub-item of a main item
Delivery Document to Billing Document fields: Price Source
Used to determine where the pricing conditions are sourced
Generally left blank, resulting in the copy being determined from the sales document
Delivery Document to Billing Document fields: Copy Requirements
Used the same way as in the sales and delivery process–that is, all elements requested by the requirement must be fulfilled in order for the billing document to be created
Delivery Document to Billing Document fields: Data VBRK/VBRP
The data that is important to whatever key is in this field
VBRK table contains billing header data
VBRP contains billing item data
Standard Billing split dynamic
There’s a field, ZUKRI, in the table VBRK
ZUKRI holds 40-characters.
The input in ZUKRI for a given record, is compared with the ZUKRI for another record, if these two values are not equal, the document will not be combined
Self-billing
Used by large automative companies
Process whereby a company who purchases your goods sends you an invoice, which actually represents the invoice you intend to send them for the goods you sent them
Invoice Lists
LIsts of billing documents (individual and/or collective) that are combined into one document for a particular payer
Two types
- LR, invoices and debit memos
- LG, credit memos
Has header and item data
Can’t change info of the invoices once on an invoice list
Invoice list maintenance
- An invoice list type must be assigned to each billin gtype that you want to use to process invoice lists
- Copying control requirements must be maintained between the billing document and the invoice list document
- Should a factoring discount be used, use condition type RL00 and the factoring discount tax condition type MW15 must be maintained and placed in the pricing procedure
- Customer calendar must be defined specifying dates on which invoice lists are to be processed.
- Output condition records for condition types LR00 and RD01
Billing Plans
Milestone billing, final billing in full at a particular milestone according to itmes sold or services rendered
Ex. A project milestone, such as the completion of an artchitet’s blueprint for which the service is invoiced
An amount distribued between dates until total value is billed
Periodic billing, uses a predefined date proposal, which bills the customer at periodic intervals
Ex. Billing for rental of an object
Bills total amount for each date until a predefined end date is reached
Periodic Billing: Start date and end date
Date settings are not actual dates, but date rules
Start date, rule representing the contract start date
End date. rule representing the contract start date
Periodic billing: Horizon
Not the end date of the billing plan, but the last day that the billing plan will use to bill
Periodic billing: Dates from and Dates until
Date rules, used to further restrict the start and end dates of the billing plan dates
Periodic billing: next bill date and Dev. Bill Date
Next bill date, the rule for how next bill date is determined
Deviation billing date, rule that may be set to determine if the customer is billed, for example, two days prior to the billing date determined by the system
Periodic Billing: Online order
Used to set the deadlines to be created automatically in the sales order
Periodic Billing: In advance
indicates whether the system should bill in advance.
Should this indicator not be set, the system will automatically bill in arrears.
Periodic Billing: Aut.corr. dates
Used to automatically create a credit memo should the end date of the bill plan move closer to the start date and for which a billing date has already been or is about to be executed.
Periodic Billing: FCode-OvervScrn
One can define which screen the system uses to display as its overview screen for a billing plan by setting the default FCODE
Milestone Billing: Start date
Usually set as “Today’s date” (the date of the document) and the reference bill plan number, which refers to the standard billing plan or invoice plan as configured in the PS module
Milestone Billing: Date category
Uses value of “01” for milestone billing to determine the date proposals.
Defining and Assigning Date Categories
Billing rule, used by the system in takeing the full billing amount, and dividing it up into partial amounts
Fixd date, used to inherit the dates from the settings of the billing plan in PS. Can put “0” if you wish to use a fixed date that does not fluctuate with the project milestones.
Billing block used to set a billing block against all dates. Block is removed automatically when PS confirms tha t a milestone has been reached.
Maintaining Date proposals for Billing Plan Types
Milestone Billing has an allocation for date proposals. These milestones are defined in the settings on the maintain date proposals for billing plan types screen.
Rebate Agreements
An agreement between the business and a customer
Takes the form of a special discount paid retroactively (after the fact) to the customer
Based on the sales volume for the customer over a specific time period
Has separate condition records for each product the customer buys. These condition records specify the rebate amount or percentage due to the customer for each product
Settled once a credit memo is issued to a customer for the accumulated rebate total
SAP Standard Rebate agreement types
- Group Rebate, 0001
- Material Rebate, 0002
- Customer Rebate, 0003
- Herarchy Rebate, 0004
- Independent of Sales Vol. 0005
- Exp. Group Rebate, 00E1
- Exp. Material Rebate, 00E2
- Exp. Customer Rebate. 00E3
- Exp. Hierarchy Rebate, 00E4
- Exp. Revenue Indepenent, 00E5
Rebate Agreement field: Condition type group
This is not a condition type, nor the same condition type used in pricing
Usually has more than one condition type assigned to it, but it’s possible to have only one assigned
Rebate Agreement field: Varification levels
Determines the level of detail one sees when displaying totals for a rebate agreement
Rebate Agreement field: Manual accurals order type
Sales document type assigned to the rebate agreement.
The sales document type assigned, should have the order-relevant billing type assigned
SAP standard rebate billing type B4, and rebate sales document R4
Rebate Agreement field: Payment procedure
Should you wish to make manual payments of the rebate to the recipient
Rebate Agreement field: Partial settlement
When a manual payment is carried out, the system automatically creates a credit memo request of the type specified in the partial settlement field for the sepcified amounts.
Make sure the credit memo request type is assigned an order-relevant billing type
SAP standard partial settlement document type R3 and associated order related billing type B3
Rebate Agreement field: Reverse accurals
Check this field, it ensures the system will reverse the accurals up to the amount specfified in the manual payment.
If the accurals are not as high as the payment to be made, the system will reverse whatever accurals it has
Rebate Agreement field: Final settlement
You must ensure the credit memo request for final settlement is assigned to the final settle field
Make sure the credit memo request has the associated order-relevant billing type assigned
SAP standard credit memo request B1 with billing type B1
Rebate Agreement field: Minimum status
Status the rebate agreement must reach before the final settlement may be carried out
Condition type groups
Assigned to rebates agreement
Also used in sales deals
If you create one by copying another, the system does not copy the associated assignments of condition types. You need to make all the necessary assignments manually.
Assigning Condition Type/Table to Condition Type Groups
Cntr, Counter number column, represents the access steps or the sequence in which the condition types will be determined
No. column, actually equal to the pricing condition table number
Assigning Condition Type Groups and Agreement Types
Agreement types, can be rebate agreements or sales deals or promotions. You are to assign them to the relevant condition type group.
Rebate Condition Type field: Rebate procedure
Indicates if the condition is dependent or independent of sales volume
Rebate Condition Type field: Provision con field
Actually the accurals correction procedure, indicates if accurals must be corrected when a partial rebate payment has been made
Rebate Condition Types Info 1
Rebate condition types must have an account key assigned to them in the pricing procedure used by the sales document type for orders and billings
One account key is assigned for revenues and teh opposite account key is assigned for accurals. These account keys are assigned individual genral ledger accounts.
Material Rebate Groups
Additional field that SAP offers in order for you to group together certain materials
This grouping allows you to use this field and its value in a condition record as opposed to listing materials individually
Rebate Condition Field: Material for settlement
Important for rebates for which a material group is used instead of a material
If you use a rebate agreement that does not use materials as the basis, but instead a customer and a material group, you would need to define a material the system can use in order to process relevant credit memo requests.
The system would take all necessary data from this material for the settlement field to create the credit memo requests and thus the credit memo
Retroactive Rebate Processing
You can create a rebate agreement with a validity period starting in the past
The rebate index
Used to settle retroactive rebate agreements
Changes that warrant restructuring the rebate index
- New rebate relevance of sales organizations
- New rebate relevance of billing types
- New rebate relevance of payers
- Creation or inclusion of new accesses for rebate processing
Inter-company Sales Transaction
Occurs when a sale occurs and the sales organization belongs to a different company code than that of a delivering plant
Ex. Sales org 3001 belongs to company code 3000. 3001 creates an order, and uses the delivering plant XXX which belongs to company code 1000. 3001 invoices the customer of the order, system simultaneously creates an inter-company billing document. The inter-company invoice is sent from plant XXX to 3001.
Two billing documents are created.
Inter-company Stock transfer
Stock transfered between company codes
Ex. Company code 3000 has plant 3000 creates a purchase order sotck from plant 1000 based in company code 1000. Stock is delivered to plant 3000. Company code 1000 creates an inter-company invoice and bills company 3000 for the stock
Defining Order Types for Inter-company sales transaction
You need to define which sales document types may be used in conjunction with inter-compay sales.
SAP standard for inter-company sale billing document type is IV
Assigning Organizational units by plant
You assign a sales area to a delivering plant, the plant uses this to process inter-company billing
Inter customer number by sales organization
Internal customer number represents which sales organization is to be invoiced in inter-company sales processing
Inter-company sales processing checklist
Enterprise structure must be maintained correctly
Inter-company customer numbers must be assigned to the relevant sales organizations
Delivering plant must be assigned the sales organization
The material sold must exist in the original and delivering plant
The sales order must be relevant for inter-company sales and have an assigned billing document type
Copy control rules must be defined between the standard invoice
Pricing procedure may have a special condition type assigned to it. This special condition type may represent the price to the inter-company sales organization. Or it may represent a special discount offered to the inter-company sales organization for the materials sold.
SAP standard inter-company condition types
- PI01, Represent inter-company price as quantity dependent
- PI02, Represent inter-company condition as a percentage
Payment Terms
Terms of payment the company offers the customer
Dunning, the customer is sent letters in a level of severity in accordance with the time period that he has not responded or paid
