Billing in SAP

Billing represents the final processing stage for a business transaction in sales order processing. Information on billing is available at every stage of order processing and delivery processing. Billing functions include:

• Creation of invoices based on deliveries or services
• Issue of credit and debit memos and pro forma invoices
• Cancelling billing transactions
• Comprehensive pricing functions
• Issue rebates
• Transfer billing data to financial accounting

Like all parts of sales order processing in mySAP ERP, billing is integrated into the organizational structures. Thus, you can assign the billing transactions a specific sales organization, a distribution channel, and a division. Because billing has an interface to financial accounting, the organizational structures of the accounting  department (the company codes as well as the sales organizations assigned to the company codes) are important. During a billing processing it is possible for you to create, change, and delete billing documents.

It is possible to create billing documents:

• With reference to a sales order document
• With reference to a delivery document
• With reference to external transactions
• By having the system automatically process a billing due list as a background task
• By manually processing from a worklist
• By creating a billing document explicitly
• By combining several sales order documents into a collective billing document
• By billing one or more sales order documents with several billing documents
• By creating an individual billing document for every sales document

Billing and Financial Accounting
The system automatically posts the amounts to the appropriate accounts by means of account determination. Costs and revenue can be posted to the following accounts:

• Customer accounts receivable
• General ledger (for example, a cash clearing account)
• Revenue
• Sales deductions
• Accruals (for rebate agreements)
• Accrual account
• Accrual clearing account

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