Purpose of Document Type in SAP

A Document type is specified at the Header level during transaction entry and serves many purposes. It defines the numbe range in the documents and allows you to control the type of accounts that can be posted to assets, vendor, customer. Document type can also be used for reversal of entries.

Document type is also used to differentiate theĀ  business transactions like vendor invoice, Credit memo, sales order, purchase order and so on…!