Billing Document
A billing document is the SAP document that records an invoice, credit memo, debit memo, or cancellation for a customer. It is typically created in SAP SD based on sales orders or deliveries.
Billing
Explanation
Billing documents contain the billed items, quantities, prices, taxes, and payment terms. Common types include:
• invoices for delivered goods or services,
• credit memos and debit memos for corrections,
• pro forma invoices for information purposes,
• cancellation documents that reverse a billing document.
When a billing document is released to accounting, it creates a receivable in financial accounting.
Why It Matters
Without a revenue subledger, the billing document usually posts revenue directly. With SAP Revenue Accounting and Reporting (RAR), billing documents are transferred as invoice items to RAR, while revenue is recognized based on performance obligations and fulfillment. The billing document then typically posts to clearing or deferral accounts instead of final revenue accounts. Correct account determination prevents double counting.
Related Terms
SAP SD · Credit Memo · Billing Plan · Revenue Accounting Item · Contract Liability
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