INVOICE vs BILLING in SAP
Both are the same in SD point of view.
- In SD terminology we call as Billing Document and
- In FI terminology we call as INVOICE.
- In MM again the only INVOICE will be there for Vendors.
Invoice is a document indicating to deliver goods and Billing is a receipt of payment.
If we receive the goods from vendors that is called bill if we give the goods to the customer that is called invoice.
Bill means we have to pay the amount against bill invoice means we have to receive the amount against the invoice.
Invoice is for both: Vendor Invoice and Customer Invoice.
Calculate Billing & Invoice in SAP
- Billing = Accounts Payable = Goods/Services Received from Suppliers.
- Invoicing = Accounts Receivable = Goods/Services Delivered to Customers.
Note: According to SAP Contract Accounting partner entity is allowed to be both, or to switch between being creditor and debtor, therefore bills and invoices may well apply to the same third party entities at different times.
- VF01 create a billing document. The delivery order comes up auto.
- VF02 the billing doc comes up auto. View the accounting entries
- FB60 Create an invoice with respect to raw material and tax.
- FB70 Invoice entries with respect to sales and tax