To support various business processes, SAP offers a number of distinct billing document types. The billing type determines the kind of billing document that is generated. Below is an overview of some of the most common document types and the business contexts in which they are utilized.
Customer Invoice
Regular invoices can be used to bill the client for goods delivered or services done. Depending on the reference document, billing types F1 and F2 are specified for order- and delivery-related billing, respectively.
The billing type to be utilized in order-related and delivery-related billing situations is specified when you define a sales document (VOV8).
Credit and Debit Memos
Using credit memos (G2) and debit memos (L2), you can change any invoice amounts or issue any refunds to customers. These records are typically produced in response to a request for a credit (or debit) memo. It is an order-related billing in that situation. But invoice references can also be used to establish credit and debit memos.
In the case of a return, you can also provide a consumer a credit. In this situation, a unique billing type called RE can be used. This is typically made in reference to a returned delivery or order.
Pro-forma Invoice
Pro-forma invoices are used as supporting materials for shipments. It contains information about the shipment's value and contents. An invoice that is pro-forma has no effect on financial accounting. At any point in the sales cycle, you can print as many pro-forma invoices as you need.
With reference to a sales order (billing type F5) or a delivery (billing type F8), you can construct a pro-forma invoice.
Intercompany Invoice
In an intercompany sales scenario, the delivery plant in a sales order is from another company code than the sales organization. In this instance, the plant ships the item to the client and bills the ordering company code for the products or services rendered. The term "intercompany invoice" refers to this internal document. In this scenario, the billing type is IV.
Invoice List
A periodic statement that includes the specifics of all the billing papers generated within a specific time period is preferred by some customers. An invoice list is the name of this document. In an invoice list, you can combine one or more billing documents. A large set of businesses may have multiple sold-to parties, but just one payer. In these situations, it is typical to send the payer a list of periodic invoices so that they can pay on the group's behalf. The amount is internally collected by the group payer from each sold-to party. For these services, the payer occasionally receives a discount (known as a factoring discount).
Through the SAP Easy Access menu, proceed to generate an invoice list:
Logistics ➢ Sales And Distribution ➢ Billing ➢ Invoice List ➢ Create (VF21)
Figure 1 Invoice List creation
Although only utilized for an invoice list, the transaction is comparable to VF01. A standard invoice list might contain one or more invoices as well as debit notes. SAP provides the LR billing type. The LG invoice list is a separate invoice list that includes credit memos.
A list of invoices should already contain the billing documents that have been posted to accounting.
Invoice Cancellation Documents
You can produce another billing document known as a cancellation document to counteract the effect if any invoice that has been filed to accounting needs to be erased. The document for the cancellation is also posted to the accounting and makes adjustments there.
The reference document (order or billing) is now once more due for payment. A few instances of cancellation billing types are S1, S2, LRS, and LGS.
Use the menu to create a cancellation documents:
SAP Menu ➢ Logistics ➢ Sales And Distribution ➢ Billing ➢ Billing Document ➢ Cancel (VF11)
Figure 2 Invoice Cancellation
Enter the canceled billing document and complete the transaction. The transaction is comparable to VF01.
The significant SAP billing categories are listed in Table 1.
Billing Type | Description |
F1 | Order-related billing |
F2 | Delivery-related billing |
L2 | Debit memo |
G2 | Credit memo |
RE | Credit for returns |
F5 | Pro-forma for order |
F8 | Pro-forma for delivery |
IV | Intercompany billing |
LR | Invoice list |
LG | Invoice list for credit memos |
S1 | Cancellation document |
Table 1 Billing Types
