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Billing<Site>

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.

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Agenda

Topics:

I. Overview

II. Processing Individual Billing Documents

III. Processing Billing Due List

IV. References

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I. Overview

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Billing DocumentsBilling 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

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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.

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II. Processing Individual Billing Documents

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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.

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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 MemoL2 Debit MemoFV Invoice Contract - ServiceZF2 Customer Property InvoiceRE 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.

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Creating a Billing Document

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

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

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Creating a Billing Document

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

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.

Save Icon

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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 generated.

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

Enter the billing document number.

Displaying a Billing Document

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Displaying a Billing DocumentThe invoice lines will be displayed.

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Displaying a Billing DocumentWhile 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.

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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.

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Creating a Proforma Invoice from a Sales Document

From the drop down menu, choose the billing type ‘Proforma for Order’.

Enter the sales order document number. Hit enter.

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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.

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Creating a Proforma Invoice from a DeliveryFrom 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.

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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

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Review

Where are the majority of invoices going to be generated?

What is a proforma invoice?

What are the two ways a proforma invoice can be generated?

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III. Processing Billing Due List

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Billing Due ListThe 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 approver.

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 implementation.

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.

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Processing the Billing Due ListWhile 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: Logistics

Sales & Distribution,

Billing,

Billing Document,

Process Billing

Due List

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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.

Delivery-related documents will also default.

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Processing the Billing Due List

Field Name Description Field Name Description

Billing date from/to Range of billing due dates to be selected

Destination country Identif ier for the country of the ship-to party

Billing type Identif ier for the types of billing documents that require different processing by the system

Sort Criterion Sort term that determines how the documents are sorted w hen the 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 certain products

Deliveries Flag that determines if the system should select deliveries documents that have not been invoiced

Distribution channel The w ay product and services reach a customer

Request for rebate Flag that determines if the system 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 invoiced

Shipping Point A Physical location from w here material is shipped

No docs w ith billing blocks

Flag that determines if the system should select sales documents that have been blocked for billing

Sold-to party Number of the sold-to party

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

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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.

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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.

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Deselect All

Processing the Billing Due ListHighlight 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.

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Processing the Billing Due List

To see the a log of what billing document numbers were generated 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, Log).

Log Display Icon

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

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Processing the Billing Due List

Clicking on ‘Disp. Doc.’ button would show each billing document detail individually.

The Billing document number will be displayed.

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Processing the Billing Due List

Clicking on the ‘Document flow’ button would show a list of all the sales document associated with each billing document.

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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 Doc.”.

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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.

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Review

Who will processes the Billing Due List?

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

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IV. References

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SD Document Ranges and Types

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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)