Introduction to Invoicing Process

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Introduction to Invoicing

Aparna Gopinath


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Agenda

Order to Cash process

Document Flow

Invoice and its contents

Invoice Types

Additional Processes

Billing Document Creation


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Order to Cash Process


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Document FlowInquiry

SalesO

rder

Billing

Delivery

Accounting Doc

Quotation


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Invoice Definition

Business document issued by a sellerto the buyer, indicating the products,

quantities, and agreed prices for products orservices 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


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BillingDocument Structure

Transaction code

Invoice creation VF01

Invoice Cancellation VF11

Tables

Header Data VBRK

Item Data VBRP


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Contents OfAn 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

Payment Instruction

Data Source In SAPB

illing type +Ref. Doc+ Customer +Price


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BillingDocument Screen


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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 systemdoes not forward data to Financial Accounting (FI).( Eg: Used in export of goods

where customs authority should be shown with cost of the goods)


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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)


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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.


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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.


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Additional Processes

Intercompany Billing

Rebates


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BillingDocument Creation

Individual Invoices per order or delivery.

Billing due list

- Back ground Processing

- Manual processing based on selection criteria.


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Thank you

Introduction to Invoicing Process

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