Describing Invoicing Functions

Convergent invoicing provides different invoicing functions that either use FI-CA capabilities for deferred revenue management, or allow additional layout designs for invoices as there are invoicing list.

The figure shows the process flow for invoicing.

When you execute an invoice, the system requests an invoicing process. The invoicing process defines which category of source document is selected for invoicing.

The Charges and Discounts function supports the levying of charges and the granting of discounts in invoicing in contract accounts receivable and payable. It enables you to calculate charges or discounts on a base amount and post them in contract accounts receivable and payable (FI-CA).

The calculation of a discount or charge consists of the following 4 process steps:

1. Define a discount or charge key with a calculation rule

2. Activate the invoicing function for charge or discount calculation in the invoicing process

3. Calculate the base amount in the invoicing document

4. Create an FI-CA document for revenue and tax correction

You define the rules for calculating charges and discounts under the charge and discount key.

When you configure the charge and discount key, you define the calculation rules for the charge to be made or the discount to be granted, dependent on the amount limits of the base amount.

The figure shows the components of a scale discount.

Base amount: Fixed base amount added to the percentage charge/discount amount.

Business example:

A customer with a credit limit of 0 buys goods with a total net amount of EUR 800.

• For the first EUR 100 he gets a discount of EUR 2 + 1% (EUR 100 = EUR 3)

• For the next EUR 400 he gets a discount of 2% (EUR 400 = EUR 8)

• For the last EUR 300 he gets a discount of 3% (EUR 300 = EUR 9)

Total discount = EUR 20.

A customer with credit limit 1 buys goods with a total net amount of EUR 300.

300 + 1.5% = EUR 4.5

Total discount = EUR 4.5

IMG → Integration → Invoicing in Contract Accounts Receivable and Payable → Invoicing → Invoicing Processes → Additional Functions.

Find customizing for additional invoicing functions in Financial Accounting (New) → Contract Accounts Receivable and Payable → Convergent Invoicing → Invoicing → Additional Functions.

In customizing, choose Integration → Invoicing in Contract Accounts Receivable and Payable → Invoicing → Invoicing Processes → Additional Functions → Define Key for Charges and Discounts.

In customizing, choose Financial Accounting (New) → Contract Accounts Receivable and Payable → Convergent Invoicing → Invoicing → Additional Functions → Charges and Discounts → Define Key for Charges and Discounts.

Choose Financial Accounting (New) → Contract Accounts Receivable and Payable → Convergent Invoicing → Invoicing → Additional Functions → Charges and Discounts → Assign Charge and Discount Keys (posting area 2617).

As long as the base amount for determining charges and discounts is calculated from the amounts of the open items, you can select these items in customizing for contract accounts receivable and payable under Financial Accounting (New) → Contract Accounts Receivable and Payable → Convergent Invoicing → Invoicing → Additional Functions → Charges and Discounts → Define Item Selection for Determination of Base Amount for Charge/Discount.

In addition to invoicing billing documents, you can also use an invoicing process to create collective invoicing documents. The collective invoicing processes the invoicing orders of source document category COLBI. These represent the collective bills (posting documents from FI-CA) that were posted during the invoicing of the individual accounts of a collective bill. In collective invoicing, the collective bills are grouped into a collective invoicing document. Several individual documents can reference a joint collective bill.

If you want to create a collective bill for contract account 1 together with other contract accounts, such as contract 2, you can enter the relevant collective bill account in contract account 1 and contract account 2.

Posting result:

All posting records for this contract account and other related contract accounts are recorded additionally as statistical collective billing documents in the collective bill account and billed in the totals.

The creation of a collective bill requires the execution of two invoicing processes.

The creation of a collective invoicing document covers two invoicing process step. The initial invoicing process step involves the following sub-steps:

1. Invoice individual contract accounts assigned to collective bill contract account.

   In the first step, you execute the normal invoice process, which summarizes billing documents into invoice documents. The system creates further documents for collective invoicing, if a collective contract account is found in the master data of an individual contract account.

2. Create FI-CA documents for individual accounts.

   Postings relevant to the general ledger are made on the contract account.

3. Create a statistical FI-CA document for the collective bill account.

   A statistical posting document is created automatically for the collective bill account, or is created partially (DFKKOP-STAKZ S). The posting items for this collective bill document have the clearing restriction 7 (Collective Bill: Only Payable after Collective Invoicing) The posting items can only be paid after you have executed the invoicing function Create Collective Invoicing Document.

4. Create invoicing order.

   During invoicing of the individual accounts, an invoicing order with the source document category COLBI is created for step 2 (table DFKKINV_TRIG).

The collective invoicing process step involves the sub-steps 5-7:

5. Input data for the collective invoicing process:

You enter invoicing orders of source document type COLBIL for the collective invoicing process. These were already created by the normal invoicing process for the individual accounts.

6. Execute processing of the collective bill:

The primary task of the process is to bundle the collective bill items to one collective bill.

If you execute the invoicing function INV_COLLBILL, the system groups all source documents with the value COLLBI and the following properties together to form an invoicing unit:

• Collective bill contract account

• Business partner

• Due date

Source documents where the value in one of these fields does not agree, cannot be grouped into one invoicing unit. Within the collective invoicing document, the items of the collective bill document have the invoicing item type 0COLLBIL, which is included in the final amount.

A collective bill can group a maximum of 500 individual documents. If this number is exceeded, the system automatically creates a new collective bill.

Event 2225 can be used to define additional summarization criteria.

6. Delete clearing restrictions:

Clearing restrictions in FI_CA documents are deleted. The posting items can now be paid, because the invoicing function Create Collective Invoicing Document has been run.

7. Print the collective bill:

You can print a collective bill. It may be useful to define your own application form for rendering collective bills.

In customizing, you need to define an additional invoicing function with collective billing capabilities.

In customizing, choose Integration → Invoicing in Contract Accounts Receivable and Payable → Invoicing → Invoicing Processes → Define Invoicing Processes → Select Z2.

Go to Selection Control (screen 1)

Go to Invoicing Functions (screen 2)

The invoicing list groups individual invoicing documents together into one invoicing document.

Using the invoicing list, you can periodically list a number of existing, single invoicing documents in a new invoicing document. You can also send the overview invoice to the recipients of the single invoicing documents, or to an alternative recipient.

You create an invoicing list in two steps. Each of these steps is supported by the invoicing functions Preselect Invoicing Document for Invoicing List and Create Invoicing List.

Using the invoicing function Preselect Invoicing Document for Invoicing List, you create an invoicing order for an invoicing document so that you can enter the invoicing document in an invoicing list. These invoicing orders form the basis for creating the invoicing list in the Create Invoicing List function. The invoicing document created by the Create Invoicing List function is essentially a list of the single invoicing documents that were entered in it. The list contains information such as the document number, tax amount, and total amount of these single documents.

Business example:

You send out the invoicing list every second week, but create the single invoices daily.

To create an invoicing list, you need to execute 2 invoicing functions.

Create the invoicing document:

1. Run the process for creating an invoicing document with the additional Preselect Invoicing Document for Invoicing List function (SUBINV_TRIG).

   Single invoicing documents for which an invoicing order was created are identified in the document header in the Invoicing Document Is Single Document of Invoicing List field. The single invoicing document does not lose its identity as a single document by being added to the invoicing list. The document retains its characteristics, both with regard to invoice printing and payment of the invoice amount.

2. Create an invoicing document to create an FI-CA document.

   An FI-CA document is created in the normal invoicing process. There are no posting activities in later invoicing processes. Payments are referenced to this FI-CA posting document.

3. Create an invoicing order with document category SUBIN.

   Use invoicing function SUBINV_TRIG to preselect the invoicing document for the invoicing list. You create an invoicing order for an invoicing document to enter the invoicing document in an invoicing list. Single invoicing documents for which an invoicing order was created are identified in the document header in the Invoicing Document Is Single Document of Invoicing List field. An invoicing list trigger is created with the source document category SUBIN.

You can create multilevel invoicing lists. This means that you can create an invoicing list as a single invoicing document in another invoicing list. For example, you could create an invoicing overview for a subsidiary, which in turn is included in the overview of subsidiary invoices for the headquarters of the parent company.

If you use constructs of this kind, it is important not to create invoicing lists of different levels in the same invoicing process. To keep the lists separate, you can use a different source document type (for source document category SUBIN) for each of the levels. For instance, using the above example, you could use source document type INA for the subsidiaries and source document type INB for the parent company. You then use these source document types in the selection control of the invoicing process.

You assign the source document type in the Preselect Invoicing Document for Invoicing List function when you create the invoicing order for the single invoicing document. The invoicing list provides an overview of the single invoicing documents that were generated, and is not intended to be used as a basis for handling payment of the single invoicing documents.

Process steps for Activate Line Items Posted Before Invoicing include the following:

1. Select the open items.

   Using the Activate Open Items invoicing function, you can request preselected open items from contract accounts receivable and payable (FI-CA) for invoicing when invoicing is performed. You can use this invoicing function for the following scenarios:

   • You want to request certain items posted between two invoice dates along with the regular invoice (for example, dunning charges). It is not necessary to send separate correspondence to the business partner for these items.

   • You want to use invoicing to create correspondence for certain items (such as requesting an installment plan request).

   In both cases, the items have clearing restriction (8) Items cannot be processed until next regular invoice.

2. Create an invoicing document.

   In the invoicing document, invoicing items with invoicing item type 0ACTITEM or 0ACT_IPL and the reference document type 0ACT are created for the posting items activated.

3. Create an FI-CA document for the remainder of the invoice except the selected open item.

4. Remove the clearing restriction.

   Invoicing removes the clearing restriction from items of this kind and adjusts the due date to the due date of the invoice. The items are displayed in the invoice and the amounts are considered in the final invoice amount. The items can be paid with the invoice.

For installment plans and repetition documents, the clearing restriction has the effect that each invoicing requests the next installment or repetition item.

Customizing

You specify which open items receive clearing restriction 8 when they are entered, by using posting area 2627. In customizing for contract accounts receivable and payable, choose Convergent Invoicing → Invoicing → Additional Functions → Preselect Items for Activation in Invoicing.

With regard to the selection behavior of the items to be activated in invoicing, the system supports the following options:

Selection using the invoicing order (table DFKKINV_TRIG).

If you want certain open items that are to be activated to trigger invoicing themselves, an invoicing order of source document category ACTIT must exist for these items.

The invoicing order can then be created automatically when the open item to be activated is posted. This is controlled by means of posting area 2627.

As a result, the items are activated by the invoicing processes that can process the source document category ACTIT.

Contract Accounts Receivable and Payable → Organizational Units → Set Up Company Codes for Contract Accounts Receivable and Payable.

In customizing, choose Integration → Invoicing in Contract Accounts Receivable and Payable → Invoicing → Invoicing Processes → Additional Functions → Maintain Preselect Items for Activation in Invoicing.

Customizing Steps:

1. In customizing, choose Contract Accounts Receivable and Payable → Organizational Units → Set Up Company Codes for Contract Accounts Receivable and Payable and select the Include All Receivables In Total Invoice field.

2. Define the posting areas 2627 and 2628 for finer control.

3. Activate the Preselect Items for Activation in Invoicing function within one invoicing process.

Using the Ad Hoc Invoicing function, you can also perform invoicing for contract accounts for which there is currently no source document to be invoiced.

The system automatically offers Ad Hoc Invoicing in the invoicing dialog if the following prerequisites are met:

1. The Ad Hoc Invoicing function is active in the invoicing process to be performed.

2. There are no invoicing orders for the contract account to be invoiced.

If, during the invoicing of a contract account, no source document is processed, and the invoicing document to be created does not contain any invoicing items and posting items, then the system does not save the invoicing document.

Revenues that have not yet been realized are posted to a separate revenue account. From here, they are posted to the actual revenue account at the time they affect revenue, either at a predefined time or when the services are performed.

The process steps in deferred revenue for time-based scenarios include the following:

1. Create billable items with a transferred posting date for delayed revenues.

   Create billable items with additional information about the deferred posting date. The deferred revenue interface component is required here, which includes the field extension for the billable item.

2. Post the full invoice amount as an open item.

3. Create an additional FI-CA document to transfer revenue to the deferred revenue account.

4. Make transfer postings from the deferred revenue account with a time trigger to the revenue account.

When the receivables document is posted, it is not clear on which dates and in which amounts the corresponding partial revenues from the deferred revenue account will be transfer posted to the revenue account.

Example: Purchase of a voucher and redemption in partial amounts at various dates.

The information about the credit card that was used can be forwarded using billable items.

A customer orders several items in a web shop and adds the items to his basket. Once he has completed his shopping, he enters his credit card information. This information is communicated together with the purchased items as one BIT, which is then billed and invoiced together with the items.

The invoicing process also generates the cleared purchase item that is used to trigger the credit card clearing run.

With the billing document, you can transfer card data (containing authorization data along with other data) for immediate payment of the receivable. This card data is processed by the Card Payment with Immediate Clearing invoicing function. The invoicing function performs the following activities:

1. Executes authorization checks

2. Creates payments with the payment card

3. Updates card data supplements for the contract accounting document for further processing of the card billing

4. Clears the receivables immediately

Financial Accounting (New) → Contract Accounts Receivable and Payable → Integration → Billing in Contract Accounts Receivable and Payable → Billable Item Classes → Maintain Billable Item Classes.

Select TDAT

In the Maintain Billable Item Classes menu, choose Display → Choose Interface Components.

To generate a card payment in invoicing for billing documents from billing in contract accounts receivable and payable, you have to ensure that the necessary fields are available during the configuration of the billable item classes. For the data that has to be transferred to the billable items for a card payment, we provide the card payment interface component (PCARD_PAYM). You select this interface component when configuring the billable item class. In customizing for contract accounts receivable and payable under Integration and billing in contract accounts receivable and payable under Maintain Billable Item Classes, you specify which interface components are used for each billable item class.

Basic data for payment processing:

If this is active, the payment data Items record type is included for the billable item class.

Payment reference:

This makes the fields available for generating the payment reference in invoicing in the interface for transferring billable items. The payment reference is used for processing payments for posting items that are derived from the billable items.

Card payment:

The card payment interface component provides fields in the interface for transferring billable items to the system. These are the fields that you can use for transferring card data for handling the payment of receivables that result from billable items.

Interface payment card data:

This provides fields in the interface for transferring billable items that you use to transfer detailed information (particularly authorization data) for payment cards.

You can find the interface components under: Financial Accounting (New) → Contract Accounts Receivable and Payable → Convergent Invoicing → Basic Function → Billable Items → Billable Item Classes → Maintain Billable Item Classes.

In the Maintain Billable Item Classes menu, choose Edit → Choose Interface Components.