Introduction to Invoicing

Aparna Gopinath

Agenda
     

Order to Cash process Document Flow Invoice and its contents Invoice Types Additional Processes Billing Document Creation

Order to Cash Process

Document Flow
Inquiry Quotation

Sales Order

Delivery

Billing

Accounting Doc

Invoice Definition

Business document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. Billing represents the final processing stage for a business transaction in Sales and Distribution

Billing Document Structure

Transaction code Invoice creation VF01 Invoice Cancellation VF11 Tables Header Data VBRK Item Data VBRP

Contents Of An Invoice
              

Heading Specifying the type of invoice Unique invoice number Date of the invoice. Name and address of the supplier Name and address of the Bill to customer Name and address of the Ship to customer Tax or company registration details of supplier.Eg: VAT registration number VAT registration number for European Union customers Service/ product rendered date Purchase order number Description of the product(s)/ service Price Tax if relevant(e.g GST or VAT) Terms of Payment Data Source In SAP Payment Instruction Billing type +Ref. Doc+ Customer +Price

Billing Document Screen

Types Of Invoice


Commercial Invoice
Invoice issued by a seller to buyer. Content would differ based on country specific rules.

Pro Forma Invoice

A pro forma invoice appears exactly the same as a customer invoice. The difference is that this invoice does not need to be paid. Therefore, the system does not forward data to Financial Accounting (FI).( Eg: Used in export of goods where customs authority should be shown with cost of the goods)

Types Of Invoice


Debit memo
When a company fails to pay or short-pays an invoice. This increases receivables in Financial Accounting. (Eg: you have not charged the customer enough) . In function of Debit memo is similar to invoice.

Credit memo
A sales document created on the basis of a customer complaint. This reduces receivables in Financial Accounting.(Eg:defective goods or because you have overcharged a customer)

Types Of Invoice


Electronic invoicing
Transfer of structured data by agreed standards from one computer system to another . Eg: EDI [Electronic Data Interchange], XML messages, PDF etc.

Collective Invoicing
Processing of invoice collectively. The header data appearing in the billing documents must be the same.

Types Of Invoice
Cancellation Memo


Billing document created after cancellation. The cancellation document copies data from the billing document and transfers an offsetting entry to the accounting department. The cancellation document causes the reference document for the billing document (e.g. the delivery) to be reopened.

Additional Processes
 

Intercompany Billing Rebates

Billing Document Creation

 

Individual Invoices per order or delivery. Billing due list

- Back ground Processing - Manual processing based on selection criteria.

Thank you