Executing the Billing Process and the Integration to SAP S/4HANA Finance

Objectives

After completing this lesson, you will be able to:

  • Create a billing document
  • Describe the posting of payments in SAP S/4HANA Finance

Billing Document Creation

After the shipping process has been completed, Felix from the billing department creates the billing document. This can be done manually, automatically, or in a batch job. The billing document is a data source for financial accounting.

Billing supports:

  • Creating invoices for goods and services
  • Canceling previously posted billing documents
  • Automatically transferring billing document data to accounting

When selling physical products, the billing document is created with reference to one or more outbound deliveries. When selling services, the billing document is created with references to sales orders. In both cases, the relevant information is copied from the preceding documents into the billing document.

The system can combine a number of related documents (such as outbound deliveries or sales orders) in one billing document, providing these documents have the same values for some relevant characteristics, such as the following:

  • The payer
  • The billing date
  • The destination country

The main type of billing document is the invoice (F1 invoice or F2 invoice). The creation of invoices is often the last step in a sales and distribution process. The system can create invoices either online or as a background job to be executed during off-peak hours.

Note
Other types of billing documents, such as credit memos, also exist, but these are not covered here.

When Felix saves the billing document, the system automatically generates all the required documents for accounting.

The figure illustrates the effects of a billing document.

The system creates the following postings:

  1. Postings on the general ledger account.
  2. Documents for controlling, such as profitability analysis (co-pa).
  3. Update of sales statistics in SAP S/4HANA Embedded Analytics or SAP BW/4HANA.
  4. Update of the customer's credit limit data (if the corresponding function is used).
  5. Status update of all the related sales, delivery, and billing documents.

SAP S/4HANA Demonstration

Learn how to create and display a billing document in the following system demo and how to review the automatic data transfer into accounting.

Note
If you have access to the SAP practice system, go to the practice system now and do the exercise Create a Billing Document.

Payment in Finance

As outlined before, the SAP system generates all the required documents for accounting as soon as the billing document is saved. The next step, the posting of incoming payments, is then done in the financial accounting department.

Payment in Finance supports:

  • Posting payments against invoices
  • Reconciling differences
Note

Strictly speaking, recording incoming payments is not part of the core sales and distribution process. Nevertheless, if you check the line of credit for your customers during order creation, the standard sales process can be affected by unpaid invoices.

How is the incoming payment from the customer recorded in accounting?

As soon as the financial department posts the incoming payment from the customer, the data on the relevant general ledger accounts are automatically generated by the system:

  • A debit posting on the cash account

  • A credit memo on the customer’s receivables account

How to Post Incoming Payments: System Demonstration

Review the billing documents in accounting in the system demo below and learn how to post incoming payments for a customer.

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