SAP SD - Introduction to Billing

In SAP Sales and Distribution module, billing is known as the final stage for executing business transactions. When an order is processed and delivery is made, billing information is available at each stage of this order processing.

Billing contains the following components −

  • Credit and Debit memos for return goods.
  • Invoice creation for delivery and services.
  • Cancel Billing transactions.
  • Pricing Functions.
  • Discount and Rebates.
  • Transferring billing data to Financial Accounting FI.

Billing is closely integrated with organization structure and it can be assigned to Sales Organization, a Distribution Channel, and a division.

Key functions in Billing −

  • Types of Billing
  • Match codes
  • Number Range
  • Blocking Reasons
  • Display billing list
  • Display billing due list

Billing Document Types

A billing document is created for a credit memo, debit memo, an invoice or a cancelled transaction. Each billing document has a header and list of items under it. Billing documents are normally controlled by the billing type.

In a billing document header, it contains general data like −

  • Date of Billing
  • Payer identification number
  • Billing value
  • Currency
  • Partner Identification numbers like ship to party, sold to party, etc.
  • Pricing Elements

In the list of items, you should maintain the following data −

  • Material Number
  • Quantity of goods
  • Volume and weight
  • Value of Individual items
  • Pricing element for individual items

While doing the billing processing, you create, change and delete the billing documents like − invoices, credit memos, debit memos, etc.

Billing Processing also includes creation of billing documents as per the below reference −

  • To a sales order
  • To a delivery
  • To external transactions

You can refer to an entire document, individual items or partial quantities of items.

A Billing document can be created in the following ways −

  • When a system processes a billing due list automatically as a background task.

  • By manually processing from a worklist.

  • You can also create a billing document explicitly

Creation of Billing Documents

Use T-Code: VF01

Go to Logistics → Sales and Distribution → Billing → Billing Document → Create.

Billing Documents

A new window will open, then you can enter the Billing Type, Date and enter the document number you want to create. Click save.

Create Billing Document
  • VF02 − To change the Billing Document

  • VF03 − Display Billing Document

  • VF11 − Cancel a Billing Document

  • VF05 − List Billing Document