Billing
Billing in SD creates the customer invoice, posting revenue and the receivable to finance, the step that turns a fulfilled order into money owed. Billing documents are created with VF01, often from deliveries.
Billing is the finance-facing end of order-to-cash: it posts revenue and AR in FI (via revenue account determination) and feeds profitability analysis (CO-PA).
- Billing generates the invoice for delivered goods or rendered services: it copies data from the reference document (delivery or…
- Billing types (invoice, credit/debit memo, cancellation).
- Delivery-related vs order-related billing.
- Watch out: Revenue account determination errors, failed/mis-posted billing.
What billing does
Billing generates the invoice for delivered goods or rendered services: it copies data from the reference document (delivery or order), applies pricing, and posts to FI, revenue accounts and accounts receivable (the customer’s liability to pay). It can bill per delivery, collectively, or on a schedule.
Key concepts
- Billing types (invoice, credit/debit memo, cancellation).
- Delivery-related vs order-related billing.
- Billing due list & collective billing.
- Revenue account determination (which G/L accounts).
Integration
Billing is the finance-facing end of order-to-cash: it posts revenue and AR in FI (via revenue account determination) and feeds profitability analysis (CO-PA). Correct account determination is what makes billing post to the right accounts; errors there cause billing/accounting failures.
Common pitfalls
- Revenue account determination errors, failed/mis-posted billing.
- Wrong billing type.
- Billing blocks not resolved, invoices delayed.