0

Billing and Invoicing

Contents:

Billing
Overview
Basic components of billing
Special functions
Invoicing
Overview
Invoicing functions
Creation of contract accounts receivable and
payable (FI-CA)
and print documents

SAP AG 2003

SAP AG IUT110 9-1

0.2
Billing and Invoicing: Course Objectives

At the conclusion of this unit, you will be able to:

Describe the billing process

Billing procedure, simulation
Credit memo, manual backbilling
Outsorting, billing reversal
Explain the invoicing process
Invoicing tasks and procedure
Special features of invoicing
Use of invoicing documents

SAP AG 2003

SAP AG IUT110 9-2

0.3
Billing

Contents

Overview
Billing procedures and special functions
Billing and simulation procedures
Design of billing rules
Basic components of billing
Scheduled dates and periods
Billing procedures
Billing and simulation
Document display
Special billing functions
Credit memo, manual backbilling
Outsorting, reversal
SAP AG 2003

SAP AG IUT110 9-3

0.4
Billing: Introduction

Contract billing of the supply and services

provided is the most important function of a
utility company.
Integrated processing of both residential and
commercial and industrial customers requires
several billing rules.
SAP Utilities
Increased competition requires the billing
process to be flexible and efficient.
Different types of simulation enable the correct
billing to be performed.

SAP AG 2003

SAP AG IUT110 9-4

0.5
Billing: Business Scenario

Move-out processing in the customer center

Move-out date and meter readings reported by
telephone
Implausible meter reading requires meter reading by
the company
Meter reading processing
Create meter reading order
Enter or estimate meter reading results
Start of billing and invoicing
Final billing, followed by invoicing

SAP AG 2003

SAP AG IUT110 9-5

0.6
IS-U/CCS: Billing

Business Divisions
partner
Residential
customer Water/
Electricity Waste water District
Commercial heating
and industrial
customer

Cable
Gas
Consumption television
Charges
Energy Multimedia
services Taxes
suppliers
Flat rates Duties

Billing rules, variants

.. .. .. Price
Price Discounts,
Discounts, General
General Proration
Proration Franchise
Franchise .. .. ..
adjustment
adjustment surcharges
surcharges Duties
Duties Duties
Duties

SAP AG 2003

SAP AG IUT110 9-6

0.7
Billing Procedure: Overview

Billing procedures: Special functions

Interim billing

Month-based Outsorting for bill verification

Key date Simulation
Period Manual backbilling
To the day Manual credit memo

Season-based Reversal

Comparative Unbilled revenue reporting

(Most favorable billing)

For employees
Rolling (back-billing, final
billing)

SAP AG 2003

SAP AG IUT110 9-7

0.8
Definition of Billing

Meter reading

Billing

Invoicing

Billing order processing that involves valuating

consumption and services for individual
contracts, and creating billing documents for
invoicing.

SAP AG 2003

SAP AG IUT110 9-8

0.9
Billing Tasks

Determination and
Determination of
conversion of
billing periods
quantities

Determination of
Valuation of
change date and Billing quantities with
proration to that
prices
date

Determination of Creation of billing

Rate data documents for
Price data invoicing

SAP AG 2003

SAP AG IUT110 9-9

0.10
Billing Periods

Length of period for periodic billing

x days; 1, 2, 3, 4, 6, or 12 months MO
1
TU WE TH
2 3 4
FR
5
SA SU
6 7
8 9 10 11 12 13 14
Length of period for period-end billing 15 16 17 18 19 20 21
21 22 23 24 25 26 27
28 29 30 31
x + x days; 1, 2, 3, 4, 6, or 12 months
Billing for an exact number of days
based on the date of the meter reading
Month-based billing
dependent on key date
Month-based billing
dependent on intervals

SAP AG 2003

The billing period for which the utility bills the customer can be determined in a number of ways.
These are:
For an exact number of days Determines the exact length of the billing period in days, for example
the period between the last billed meter reading and the current day of meter reading.
Month-based
Bills a specific number of complete months. If the case of a move-in or move-out, the month-based
procedure can be billed based on the number of days.

SAP AG IUT110 9-10

0.11
Forms of Billing

Periodic billing
Recurring periodic billing
Floating backbilling
Special form of monthly periodic billing in which
backbilling is performed for previous months
using a current value
Example: monthly comparison of n peak averages
Period-end billing
After completion of the billing cycle
Example: 13th billing, backbilling for a year
Interim billing
Unscheduled billing at any time
Example: initiated by customer request
Final billing
Examples: customer move-out or termination of contract; service territory
transfer

SAP AG 2003

SAP AG IUT110 9-11

0.12
Special Forms of Billing

Best-rate billing
The most favorable rate is chosen for the
customer on the basis of several billing
rules.
Quantity-based rate for basic price
The annual quantity consumed is used
to determine the billing
rule that applies.
Demand-based rate determination
The measured demand is used to determine the billing rule that
applies.
Season-based billing
Examples: Different prices for each season, different billing rules
for each season.

SAP AG 2003

SAP AG IUT110 9-12

0.13
Generation of Schedule Records

End of
Portion 1 Scheduled billing date Sched.
billing
27.7. 28.7. 29.7. 30.7. 31.7. 1.8. 2.8. 3.8. period

Meter reading period for MR unit 1

End
End of
of
Billing period
MR
MR
Scheduled Meter reading period for MR unit 2
period
period
MR for all MR units
date
Meter reading period for MR unit 3

2001
2001 2002
2002
Portion 1 Portion 1
27.7. 28.7. 29.7. 30.7. 31.7. 1.8. 2.8. 3.8. 27.7. 28.7. 29.7. 30.7. 31.7. 1.8. 2.8. 3.8.
Meter reading Meter reading
Billing Billing

SAP AG 2003

End of the billing period: Portions should be billed for the first time on this date. The length of the
scheduled billing period (period length) in conjunction with this date determine the date of the next
billing.
Scheduled billing date:
Date on which billing of contracts that belong to a particular portion should begin.
This date is calculated as follows during generation of the schedule records: Date of the end of
the billing period of the schedule record, minus the number of days between the end of the billing
period and the scheduled billing date of the schedule master record.
The SAP calendar is used for this.
End of the meter reading period: Used as the baseline date for determining the schedules of the
following meter reading periods. This date may not be later than the end of the billing period for the
allocated portion.
Scheduled meter reading date: Date on which all extrapolations and estimations are performed.

SAP AG IUT110 9-13

0.14
Billing Process: Overview

MR
MR Invoicing Bill
Order Billing
entry printout
creation

Billing order Billing order Billing Bill printout

document

Plausible
MR
MR
order
results
MR
Implausible correction
MR
results

SAP AG 2003

Meter reading order creation: Meter reading orders are created per register
Billing orders are created for each contract.
A billing order is automatically created with the meter reading order. However, the billing order does
not have a billable status. The billing order can only be billed once plausible meter reading results
have been entered.
The billing order is deleted during billing. The billing process creates a billing document that is the
basis of invoicing.

SAP AG IUT110 9-14

0.15
Universal Billing Engine

Data relating to Rate data Procedure data

customer and
installation Schema 1
Prices and Rate Var.pr. Values E
rate facts Rate 1 X
Contract - Step 1 VarProg. A x1 E
- Step 2 VarProg. B x2
. . .
C
Rate 2 U
Rate Rate 1 - Step 1 VarProg. A
- Step 2 VarProg. C
x3
x4
T
Installation cate Rate - Step 3 VarProg. D x5 B
go ry . . .
deter- . . .
O
mination . . . N
. . .
Inst.
Inst. structure
structure pe Rate n Rate n
Rate ty
Rate cat.
cat. facts/
facts/ a t e - Step 1 VarProg. A xxx

Installation facts R
Installation facts

Execution
Data Quantity of variant Validation Generation
entry conversion programs of of billing
and and according to billing line items
analysis proration schema results

SAP AG 2003

SAP AG IUT110 9-15

0.16
General Billing Functions

Decision variants

Energy price Usage hours

Demand price Billing Best-rate billing

Block and scale

Service price
prices
Season-based
values and variants

SAP AG 2003

Energy price
Measured or calculated consumption is valuated using energy charges. For example:
Adjustment of calculated consumption over the course of the billing period
Comparison with maximum/minimum purchase quantities and further processing of difference
quantities
Breakdown/valuation of energy quantities using different percentage rates or time criteria
Demand price
Measured or calculated demand is valuated using demand prices. The number of the measured
demand values used for calculating the demand to be billed is variable. For example:
Comparison with minimum demand, maximum demand, or other demand established in the
contract, and further processing of the difference demand (such as excess demand)
Breakdown and valuation of demand using different percentage rates
Service price
Any number of demand replacement values can be valuated with time-based prices for the supplying
of energy. The demand replacement values can also be levied as a flat rate.
Block and scale prices
Season-based values and variants
Decision variants

SAP AG IUT110 9-16

0.17
Special Billing Functions

Determination of
Billability check taxes, duties, and
charges

Consideration of Energy feeding

register Billing from small power
relationships producers

Billing of company
Manual credit memos
and plant
and backbilling
consumption

SAP AG 2003

SAP AG IUT110 9-17

0.18
Billing and Simulation

reached
Choose
Billing date Enter selection
criteria
Choose billing
type

billing type
Billing Simulation
chosen chosen

Start Start simulation

billing

Check billing Check

Billing types
documents simulation
documents

Start invoicing
Billing documents Billing documents Billing documents simulation
implausible correct incor rect

Outsort Start invoicing Reverse billing

documents

Description: Description:
IS-
IS-U
Creation of billing documents used Creation of simulation
only for further processing in documents that are only used for
invoicing further processing in invoicing
simulation
Billing Simulation
Processing steps: Processing steps:
The billing order is deleted and Billing order is retained and
cannot be billed again and can still be used for
simulation
Meter reading results cannot be
changed again Meter reading results can still
be changed
Billing document is created
Simulation document is
created
SAP AG 2003

SAP AG IUT110 9-18

0.19
Simulation Types

Billing date Enter selection Choose billing

reached criteria type

Choose
Billing Simulation
chosen
simulation chosen

Start
billing type Start simulation

Check billing Check

Simulation
documents simulation
documents

Start invoicing
Billing documents Billing documents Billing documents simulation

types
implausible correct incorrect

Outsort Start invoicing Reverse billing

documents

Description: Description:
IS-
IS-U
Billing can be simulated without a Billing is simulated on the basis
billing order for any group and for of a billing order that can be
any period of time. processed.
Billing
Simulation simulation
Processing steps: Processing steps:
Simulation period can be Period is determined by the
freely defined billing order
Extrapolation that takes Meter reading results relevant
account of meter reading to billing are required
results
Valuation of billing
Period can already have been
Billability check
billed
SAP AG 2003

SAP AG IUT110 9-19

0.20
Document Types

Billing date Enter selection Choose billing

reached criteria type

Billing
chosen
Check Simulation
chosen

Start
documents Start simulation
billing

Check billing Check

documents simulation

Simulation
documents

Start invoicing
Billing documents Billing documents Billing documents simulation
implausible correct incorrect

Outsort Start invoicing Reverse billing

documents

Billing
Description:
Simulation produces a
simulation document
Simulation
document Billing produces a billing
document Billing
document
Purpose
Documents the procedure
Saves and validates the results
Used for further processing of
billing line items

SAP AG 2003

SAP AG IUT110 9-20

0.21
Document Information

Billing date Enter selection Choose billing

reached criteria type

Billing Billing
chosen
Check Simulation
chosen

documents
line items Start
billing
Start simulation

Check billing Check

documents simulation

Internal
documents

Start invoicing
Billing documents Billing documents Billing documents simulation

billing
implausible correct incorrect

Rate data Outsort Start invoicing Reverse billing

data
documents

Documents
from
Account data Price data
Simulation
Billing

Print data Device data

Meter reading
data

SAP AG 2003

SAP AG IUT110 9-21

0.22
Further Processing of Documents

Billing date Enter selection Choose billing

reached criteria type

Billing Simulation
chosen chosen

Start Start simulation

billing

Invoicing Process
Check billing Check

Invoicing documents simulation

documents

documents Start invoicing

simulation
Billing documents Billing documents Billing documents simulation
implausible correct incor rect

Outsort Start invoicing

further
Reverse billing
documents

Documents
from
Simulation
Billing

Billing Outsorting
reversal

SAP AG 2003

SAP AG IUT110 9-22

0.23
Outsorting Procedure

Billing date Enter selection Choose billing

reached cr iter ia type

Billing Simulation
chosen chosen

Start Start simulation

billing

Check billing Check

documents simulation

Outsort
documents

Start invoicing
Billing documents Billing documents Billing documents

Outsort
simulation
implausible

documents
correct incor rect

documents
Outsort Start invoicing Reverse billing

Description:
documents

Billing documents which have

failed validation are outsorted Description:
automatically. IS-
IS-U
Billing documents for a contract
for which the outsorting indicator
is set are not automatically
Possible validations:
processed further.
Percentage or absolute
amount that the billing Automatic Manual Purpose
document exceeds or falls
below the following: Check special contract billing
documents
Amount limit
Check new rates
Bill sum total
Check consumption values in
Budget billing complex installations
Bills with a balance of zero Check proration for different
time slices

SAP AG 2003

SAP AG IUT110 9-23

0.24
Process of Outsorting

Billing date Enter selection Choose billing

reached cr iter ia type

Bill
Billing Invoicing Billing
chosen
Simulation
chosen

printout Start
billing
Start simulation

Check billing Check

documents simulation
documents

Start invoicing
Billing documents Billing documents Billing documents simulation
implausible incor rect

Outsort
correct

Check documents
Outsort
documents
Start invoicing Reverse billing

documents

Exception Outsort Outsorting reasons

list documents
Failed validation
Indicator set in the contract
Further processing
Reverse Release
documents documents Reversal
Release

SAP AG 2003

SAP AG IUT110 9-24

0.25
Billing Reversal

Billing date Enter selection Choose billing

reached cr iter ia type

Billing Simulation
chosen chosen

Start Start simulation

billing

Check billing Check

Reverse billing
documents simulation
documents

Billing documents
implausible
Billing documents
correct Reverse
Billing documents
incor rect
Start invoicing
simulation

Outsort Start invoicing

documents
Reverse billing
documents

Description: Description:
Only one billing document is IS-
IS-U More than one document is
reversed. This can occur with or reversed. Selection takes place
without a subsequent correction using document intervals or lists
bill. of individual documents.
Individual Mass
reversal reversal
Possible reasons: Possible reasons:
Incorrect conditions for Incorrect billing group
nonresidential contract
Incorrect rates and prices
Incorrect meter reading result
Incorrect sales tax
Technical fault
...
...

SAP AG 2003

SAP AG IUT110 9-25

0.26
Billing Reversal Process

Document Billing date

reached
Enter selection
cr iter ia
Choose billing
type

outsorted
Restart Billing
chosen
Simulation
chosen

Reverse Correct data

billing Start Start simulation

billing billing

Check billing Check

documents simulation
documents

Document Billing documents

implausible
Billing documents
correct Reverse
Billing documents
incor rect
Start invoicing
simulation

implausible Outsort Start invoicing

documents
Reverse billing
documents

Billing order

Incorrect 16.2.04 Reversed 23.2.04 Corrected 24.2.04

billing document billing document billing document
Jane Smith
Jane Smith Jane Smith
Electricity . . . . 600
Electricity . . . . 900 Electricity . . . . 900 Gas . . . . . . 1.000
Gas . . . . . . .1.000 Gas . . . . . . 1.000 Water . . . . . . . 700
Water . . . . . . . 700 Water . . . . . . . 700 Total . . . . . . . 2.300
Total . . . . . 2.600 Total . . . . . . .2.600

Reversal indicator set

SAP AG 2003

SAP AG IUT110 9-26

0.27
Billing Overview

Billing date Enter Choose billing

reached selection type
criteria

Billing Simulation
chosen chosen

Start Start
billing simulation

Check billing Check

documents simulation
documents

Start invoicing
Billing Billing Billing simulation
documents documents documents
implausible correct incorrect

Outsort Start Reverse billing

documents invoicing

SAP AG 2002
2003

SAP AG IUT110 9-27

0.28
Billing: Unit Summary

Billing processes billing orders, valuates

consumption and demand, and creates billing
documents for invoicing.
There are two types of billing:
Simulation, which creates simulation documents

Billing, which creates billing documents

Outsorted billing documents require additional

processing - Documents must be either released or
reversed. Reasons for outsorting:
Failed validation

Indicator set in the contract

Individual or mass reversals enable quick correction

and subsequent billing.

SAP AG 2003

SAP AG IUT110 9-28

0.29
Invoicing: Introduction

Invoicing links contract billing to contract accounts

receivable and payable, and prepares bill printout.

The bill sum total is determined after clearing billing

documents against the budget billings already paid,
and against the taxes, charges, and duties that are
due.
SAP Utilities
Flexible clearing options, such as payments for
open items, reduce the amount of manual
processing required.

SAP AG 2003

The bill sum total is calculated as follows:

Bill sum total = Total receivables from billing
- paid budget billings
- other credits (credit memo, payment on account)
+ other receivables (backbilling, dunning charge)

SAP AG IUT110 9-29

0.30
Invoicing: Business Scenario

Move-out processing in the customer center

Move-out date and meter readings reported by
telephone

Implausible meter reading requires meter reading by

the company

Meter reading processing

Create meter reading order

Enter or estimate meter reading results

Start of billing and invoicing

Final billing, followed by invoicing

SAP AG 2003

SAP AG IUT110 9-30

 Definition of Invoicing

Meter reading

Billing

Invoicing

The process that links the billing documents to

contract accounts receivable and payable, and
provides the basis for bill creation.

SAP AG 2003

SAP AG IUT110 9-31

1
Invoicing: Overview

Billing: Contract accounts receivable

Provides the processes relevant and payable:
to payment and manages the Contract Accounts Receivable and
individual accounts. Payable makes available items
relevant for payment and manages
the individual accounts.

Invoice-relevant transactions Invoice-relevant transactions

Billing documents Open items
IS-
IS-U FI-
FI-CA
Credit memos Paid budget billings
Backbillings Manual postings
Dunning charges
Payments on account

Invoicing
Bill printout
Budget billing plan
Due date determination
Clearing
Use of credits

SAP AG 2003

SAP AG IUT110 9-32

1.2
Tasks of Invoicing

Creation of
Joint invoicing budget billing
plan

Cross-company Invoicing Due date

code invoicing determination

Account Credit clearing

determination
Budget billing
clearing

SAP AG 2003

Invoicing is the process that integrates contract billing with the Contract Accounts Receivable and
Payable (FI-CA) component. It also forms the basis for bill creation.
Invoicing is used for the following:
Grouping together billing documents of contracts from the same contract account into one joint
bill.
Posting documents to FI-CA (sub-ledger accounting)
Supplying bill printout documents for bill creation
Processing budget billing plans

SAP AG IUT110 9-33

1.3
Invoicing Units

Date for Enter selection Choose

invoicing criteria invoicing type
reached

Creation of invoicing units

Invoicing
Invoicing chosen simulation
chosen

Start
Start invoicing Start invoicing
simulation

invoicing
Summary of the billing documents in a contract account Check the FI-CA
document
Check bill
printout
document
Check
simulation
documents

can be controlled at contract level. Invoicing

documents
implausible
Invoicing
documents
correct
Invoicing
documents
incorrect
Simulate bill
printout

Mandatory
Start bill

Outsort Reverse
documents printout invoicing

Contracts for which the documents must be invoiced together

Optional
Contracts for which the documents can be invoiced together
Exclusive
Contracts for which the documents must be invoiced separately

SAP AG 2003

SAP AG IUT110 9-34

1.4
Mandatory and Optional Contracts: 1

Contract Billing Invoicing

account
Contract
Contract 11 Document
Document 11
Mandatory
Mandatory
Joint
Joint invoice
invoice
Mandatory
Mandatory

Contract
Contract 22
Mandatory
Mandatory
Joint
Joint invoice
invoice

Contract
Contract 33 Document
Document 33
Mandatory
Mandatory
Joint
Joint invoice
invoice Mandatory
Mandatory
ll
Bi
Contract
Contract 44 Document
Document 44 Document
Document
Optional
Optional
Joint
Joint invoice
invoice
Optional
Optional Optional
Optional

Contract Document
Document 55 Document
Document
Contract 55 Bi
ll
Exclusive
Exclusive invoice
invoice Exclusive
Exclusive Exclusive
Exclusive

SAP AG 2003

Contracts 1-3 have a joint invoicing ID This means that a bill is only created when documents are
available for all three contracts.
Contract 4 can - but does not have to be - invoiced with the other contracts.
Contract 5 is always invoiced separately

SAP AG IUT110 9-35

1.5
Mandatory and Optional Contracts: 2

Contract Billing Invoicing

account
Contract
Contract 11 Document
Document 11
Mandatory
Mandatory
Joint
Joint invoice
invoice Mandatory
Mandatory

Contract
Contract 22 Document
Document 22 ll
Mandatory
Mandatory Document
Document Bi
Joint
Joint invoice
invoice Mandatory
Mandatory

Contract
Contract 33 Document
Mandatory
Mandatory
Document 33
Joint
Joint invoice
invoice Mandatory
Mandatory

Contract
Contract 44 Document
Document 44
Optional
Optional
Joint
Joint invoice
invoice
Optional
Optional

Contract
Contract 55 Document
Document 55 Document
Document ll
Bi
Exclusive
Exclusive invoice
invoice Exclusive
Exclusive Exclusive
Exclusive

SAP AG 2003

SAP AG IUT110 9-36

1.6
Invoicing Options

Date for Enter selection Choose

invoicing cr iter ia invoicing type
reached

SAP billing documents

Invoicing
Invoicing chosen simulation
chosen

StartStart invoicing Start invoicing

simulation

IS-U billing documents invoicing

Check the FI-CA
Check bill
printout
Check
simulation
document
document documents

Invoicing Invoicing Invoicing Simulate bill

SD billing documents
documents documents documents printout

implausible correct incor rect

Outsort Start bill Reverse

documents printout invoicing

PM / SM billing documents
Company code allocation
Invoicing within a company code
Cross-company code invoicing

SAP AG 2003

SAP AG IUT110 9-37

1.7
Source of Billing Documents

SAP systems: External systems:

Central invoicing of all Using standard billing
processes from consumption documents, billing results from
billing, sales and distribution external systems can be invoiced
and service management and monitored together with
simplify the transactions. consumption billing results.

Invoice-relevant transactions SD Ext. Invoice-relevant transactions

IS-U consumption billing IS-
IS-U Telecommunications

SD Sales and Distribution Heating costs billing

CS
CS Customer Service Other unbundling services

Bill
Jane Smith
....
. 600
Electricity . . . 1.500
Ma in ten ance . .
. 700
Tel. com. . . . .
.2.800
Total . . . . . .

SAP AG 2003

SAP AG IUT110 9-38

1.8
Invoicing Various Services

Disposal service #1 Supply service #2 Energy feeding #3 Other services #4

Waste
Waste water
water $$ 50
50 Electricity
Electricity $15
$15 Electricity
Electricity Cable
Cable TV
TV $$ 30
30
Waste
Waste $$ 40
40 Water
Water $$ 60
60 connection
connection $$ 85
85
Gas
Gas $$ 80
80

Sale #5 Total charges #4711 External billing

Billing (#1-#7) $ 510 document #7
Radiator
Radiator $$ 35
35
- Paid budget billing Service xy $ 70
amounts(#1-#3) $ 330
Maintenance fee #6 Bill sum total $ 180
Gas
Gas pipe
pipe $$ 45
45 due on 01/15/2000 Billing
summary
Account: A. Smith IS-U
- one division for several contracts
Billing #4711 $ 180
("unbundling" electricity rate)
Single items per - various divisions
Simplified receivable: (electricity, gas, water)
Example Billing #1 ... SAP applications
without tax Billing #2 ... - SD/CS and IS-U invoices
................
Also billing from external systems

SAP AG 2003

SAP AG IUT110 9-39

1.9
Cross-company code invoicing

Total Charges #4711 Account Smith (xy) General ledger 01

Re. #4711 380,-
380,- $ Municipal utility
Dep. of works xy: co. xy
Contracts Consumption bill. #1 Single items per
Electricity 1000 $ receivable: req. requirement
for xy
CoCd. 01 Gas 1500 $
Water 600 $ Billing #1 (xy) ... Gas requirement
Billing #2 (zz) ...
Cross-company code billing for Water Water
Billing #3 (rs) ...
Contracts local authority zz:
for "zz" Other services #2
Waste water 500 $
FI-CA
CoCd. 02
Waste disposal 200 $
General ledger 03
Cross-company code billing General ledger (not relevant for fin.
Contracts for TV company rs: 02Authority "zz" statements)
for "rs" Other Services #3 TV company "rs"
CoCd. 03 Cable TV 180 $
req. req. req. Cable TV
Total charges #4711: Waste disposal
Waste disposal
Billing (#1-
(#1-#3) 3980 $ Third Party
Cross-company
- Amount paid (#1-
(#1-#3) -3600 $ Billing
code billing
IS-
IS-U Amount outstanding: 380 $ FI
Due on 01.15.04

SAP AG 2003

This is an example of invoicing for different company codes.

The department of works XY supplies their customers with electricity, gas and water.
However, XY performs billing on behalf of local authority ZZ for waste water and waste disposal.
XY also performs billing on behalf of cable company RS for cable TV charges.
This whole process occurs in the same SAP system, although it involves different companies.

SAP AG IUT110 9-40

1.10
Bill Due Date

Date for Enter selection Choose

invoicing cr iter ia invoicing type
reached

The bill due date is determined from the

Invoicing
Invoicing chosen simulation
chosen

Start
following attributes:
Start invoicing Start invoicing
simulation

invoicing
Check the FI-CA
Check bill
printout
Check
simulation
document
document documents

Terms of payment Invoicing

documents
Invoicing
documents
Invoicing
documents
Simulate bill
printout

These determine the source of the baseline date

implausible correct incor rect

Outsort Start bill Reverse

documents printout invoicing

Baseline date:
Posting date, document date, or system date
Terms of payment
Allocated to the contract account centrally
Can be differentiated for incoming and outgoing payment
If a bill falls due on a holiday, the bill due date can be
corrected to fall on a working day.
Can be specified for each company in Customizing

Baseline date + terms of payment = bill due date

SAP AG 2003

The bill due date can also be combined with the first budget billing.
Posting date: Date when a business transaction is transferred to one or more accounting ledgers on
document entry.
Document date: Creation date of original document (for example, a vendor invoice).
System date: Date when a document is created in the system. This date is automatically specified by
the system.

SAP AG IUT110 9-41

1.11
Document Flow in Invoicing

Date for Enter selection Choose

invoicing cr iter ia invoicing type
reached

Invoicing
Invoicing chosen simulation
chosen

StartStart invoicing Start invoicing

simulation

invoicing
Check the FI-CA
Check bill
printout
Check
simulation
document
document documents

Invoicing Invoicing Invoicing Simulate bill

documents documents documents printout
implausible correct incor rect

Billing Credit memos/ Outsort

documents
Start bill
printout
Reverse
invoicing

documents backbillings

Print
documents
Start
invoicing

Posting documents FI-CA

Budget billing plans FI-CA documents

SAP AG 2003

SAP AG IUT110 9-42

1.12
Clearing Overview

Date for Enter selection Choose

invoicing cr iter ia invoicing type
reached

The IS-U clearing concept defines the

Invoicing
Invoicing chosen simulation
chosen

Start
following in IS-U clearing processing:
Start invoicing Start invoicing
simulation

invoicing
Check the FI-CA
Check bill
printout
Check
simulation
document
document documents

Automatic determination of the purpose of a Invoicing

documents
implausible
Invoicing
documents
correct
Invoicing
documents
incor rect
Simulate bill
printout

payment amount when a payment Outsort

documents
Start bill
printout
Reverse
invoicing

transaction is entered.
Automatic allocation of posted open items to each other in
account maintenance

The selected items are cleared or partially cleared on the basis of

these allocations.

Clearing control is flexible and enables you to model your own

clearing strategy in Customizing.

SAP AG 2003

SAP AG IUT110 9-43

1.13
Bill Printout Procedure

Date for Enter selection Choose

invoicing criteria invoicing type
reached

Print
Invoicing
Invoicing chosen simulation
chosen

document Select print Choose Start Start invoicing Start invoicing

simulation

ready for document output type output Check the FI-CA

Check bill Check

output
printout simulation
document document documents

Invoicing Invoicing Invoicing Simulate bill

Start bill
documents documents documents printout
implausible correct incorrect

Outsort
documents printout Start bill
printout
Reverse
invoicing

SAP spool
Output

Print
documents Raw data
interface
Dear Mad
Dear am/S ir:
Dear Mad Mad am/
am/SInir:refeSir:
In refe rence to you
In referenc renc e to y our
9/27. r letter of
9/27. .. .. to you..r lette letter of
9/27. e
r of

Mail processing

Bill date

Archive

SAP AG 2003

SAP AG IUT110 9-44

1.14
Invoicing Reversal

Date for Enter selection Choose

invoicing criteria invoicing type
reached

Invoicing
Invoicing chosen simulation
chosen

Start invoicing Start invoicing

simulation

Check bill Check

Check the FI-CA
printout simulation

Invoicing Reversal
document document documents

Invoicing Invoicing Invoicing Simulate bill

documents documents documents printout

Mass reversal implausible correct

Reverse
incorrect

Outsort Start bill Reverse

or documents printout invoicing

invoicing
Single reversal
Bill reversal: Full reversal:
Bill printout and FI-CA documents In addition to the bill, billing
IS-
IS-U
for bills or partial bills are reversed documents are also reversed by
by selecting a reconciliation key or selecting using a document
document number. number. Full reversal does not
include reversal of partial billing
Bill Full documents.
reversal reversal
Transactions Transactions
Reversal of FI-CA document Reversal of FI-CA document
Reversal of bill printout Reversal of bill printout
document document
Possible reasons: Reversal of billing document
Incorrect layout Possible reasons:
Printing problems Incorrect billing
SAP AG 2003

SAP AG IUT110 9-45

1.15
Procedure for Bill Reversal

Document Billing date

reached
Enter selection
criteria
Choose billing
type

outsorted
Restart Billing
chosen
Simulation
chosen

Reverse Correct data

invoicing Start Start simulation

invoice billing

Check billing Check

documents simulation
documents

Document Billing documents

implausible
Billing documents
correct Reverse
Billing documents
incor rect
Start invoicing
simulation

implausible Outsort Start invoicing

documents
Reverse billing
documents

Billing
document

Bill Reversed bill New bill

Jane Smith Jane Smith Jane Smith
.... .... ....
. 900 . 900 . 900
Electricity . . .. 1.000 Electricity . . .. 1.000 Electricity . . .. . 1.000
Gas . . . . . . 700 Gas . . . . . . . 700 Gas . . . . . . . 700
Water . . . . . . Water . . . . . Water . . . .
2.900 2.900
Bud. billings . Bud. billings . . Bud. billings . .
2.500
. 300 . 300
Credit memo . Credit memo. . Receivable . .
. 100

Reversal indicator set

SAP AG 2003

Accounting documents from Contract Accounts Receivable and Payable (FI-CA) and that were
created by the IS-U invoice processing are reversed. Billing documents from contract billing (IS-U-
BI) and budget billing amounts from the budget billing plan component can be re-used for invoicing
after bill reversal.

SAP AG IUT110 9-46

1.16
Procedure for Full Reversal

Document
outsorted
Reverse Reverse Restart Restart
Correct data
invoice billing billing invoicing
Document
implausible

Billing order

Incorrect 16.2.03 Reversed 23.2.03 Corrected 24.2.03

billing document billing document billing document

Jane Smith Jane Smith Jane Smith

Electricity . . Bill
. . . . 900 Electricity . . Rev
. . 900
ersed bill Electricity . . New
. . . .bil600
l
Gas . . . . . . 1.000 Gas . . . . . 1.000Smith Gas . . . . . . 1.000
Jane Smith Jane Jan e Smith
Water . . . . . . 700.... Water . . . . - ....700 Water . . . . . . 700
....
. . 900 . 900
Electricity . . .. 1.000
Total . . . . . 2.600 Electricity . . . . 1.000
Total . . . . - 2.600 900
Electricity . . . . .1.000
Total . . . . . 2.300
Gas . . . . . . . .700 Gas . . . . . . . 700 Gas . . . . . . . 700
Water . . . . . Water . . . . . .
Water . . .
00 2.900
Bud. billings . .2.9 Bud. billings . . Bud. billings .
2.500
mo . . . 300 mo . . . 300 . 100
Credit me Credit me Total . . . . . .

SAP AG 2003

This function is a mixture of the bill reversal and billing reversal functions. It enables you to
reverse different types of documents in one step.

SAP AG IUT110 9-47

1.17
Invoicing: Unit Summary

The invoicing procedure includes:

Invoicing and printing of the bill
Requests for budget billings or creation of partial bills
Different reversal procedures
Flexible clearing control
Budget billing procedure
Budget billing: statistical posting or debit entry
Payment plan: fixed amounts or variable amounts
Output
Printout on R/3 printer using spool
Raw data interface for external mail processing
Archiving
SAP AG 2003

SAP AG IUT110 9-48

 Exercises

Unit: Billing and Invoicing

Topic: Billing a Business Partner

At the conclusion of these exercises, you will be able to:

Describe the billing process and tasks.
Use the billing and simulation functions.

Various business processes require the billing of an individual customer.

This may be necessary due to the move-out of a customer, by the express
wish of a customer or to advise a customer, for example.
Carrying out a simulation for any billing period, or for an actual billing
period, allows you to provide specific information, without altering data.

1-1 Business partner TB100120## with contract account TB100120## comes in to the
customer center to report his/her move-out. You process the move-out and create the
final billing. Check the move-out date and the bill sum total in the customer overview.
1-1-1 Call up the move-out process. How would you proceed?
______________________________________________________
______________________________________________________
1-1-2 Create move-out: Initial screen
Enter the last day of the previous month as the move-out date and choose the
call.
How would you proceed?
___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________

SAP AG IUT110 9-49

 1-1-3 Execute move-out processing: Enter meter readings
Meter reading by customer.
Enter a plausible meter reading for each device and each register. How do
you proceed?
___________________________________________________
___________________________________________________
___________________________________________________
What values would you enter?
Electricity register 1
___________________________________________________
Gas register 1
___________________________________________________
Water register 1
___________________________________________________
Trigger final billing. Use printer LT0Q.
How would you proceed?
___________________________________________________
___________________________________________________
How would you proceed?
___________________________________________________
___________________________________________________
1-1-4 Check the move-out in the customer overview.
What was the bill sum total?
___________________________________________________
Display the bill.
___________________________________________________
Where can you read the move-out date? On which date did the move-out
take place?
___________________________________________________
End the contact.

SAP AG IUT110 9-50

1-2 Business partner TB100110## comes to the customer center and asks for an interim
billing. From the CIC, enter the meter readings supplied by the customer. Display the
individual simulation of the bill. First, check the meter reading results and then request
the actual billing.
1-2-1 Enter the meter readings for business partner TB100110## using the CIC.
How would you proceed?
___________________________________________________
___________________________________________________
___________________________________________________
Which meter readings have you entered?
___________________________________________________
___________________________________________________
___________________________________________________
1-2-2 Carry out the individual simulation and display the bill for business partner
TB100110##.

For the bill simulation, go to the SAP Easy Access menu and
choose Utilities Industry Billing Billing Execution
Individual Processing Individual Simulation Billing.
The most useful means of selection is via the contract
account.
Choose the Display bill level of processing.
How would you proceed?
___________________________________________________
___________________________________________________
___________________________________________________
1-2-3 Process and display the individual bill for business partner TB100110##.

For the individual bill, go to the SAP Easy Access menu and
choose Utilities Industry Billing Billing Execution
Individual Processing Individual Bill.
The most useful means of selection is via the contract
account.
Choose the Bill level of processing.
How would you proceed?
___________________________________________________
___________________________________________________
___________________________________________________

SAP AG IUT110 9-51

1-3 Display the billing document for the water contract of business partner TB100110## and
answer the following questions.
1-3-1 Display the billing document.
How would you proceed?
______________________________________________________
______________________________________________________
1-3-2 What was the scheduled billing period?
______________________________________________________
1-3-3 How many line items does the billing document contain?
______________________________________________________
1-3-4 Which line categories are available and what do they mean?

Line category Meaning

1-3-5 What was the total billing quantity determined?

______________________________________________________

1-4 True or false?

1-4-1 Billing is only carried out after meter reading and before invoicing.
______________________________________________________
1-4-2 Billing simulation must be carried out before billing.
______________________________________________________
1-4-3 After billing, the billable orders are produced.
_____________________________________________________
1-4-4 The billing documents are processed further during invoicing.
_____________________________________________________
1-4-5 Individual billing items can be entered manually as backbilling or as a credit
memo.
_____________________________________________________

SAP AG IUT110 9-52

 Exercises

Unit: Billing and Invoicing

Topic: Invoicing a business partner

At the conclusion of these exercises, you will be able to:

Describe the invoicing process and tasks.
Use the invoicing and simulation functions.
Explain the budget billing procedure.
Provide information on the budget billing plan.
The billing results are compared with the transactions in open item
accounting. The bill sum total is determined in this way.
After calculating the budget billing plan for the next period, the bill can be
printed with details of the bill due date and the new budget billing amount
due date.

2-1 Simulate invoicing documents for business partner TB100110##. Carry out the following
steps:
2-1-1 Invoicing simulation
How would you proceed?
______________________________________________________
______________________________________________________
2-1-2 Check the log
How would you proceed?
______________________________________________________
______________________________________________________
2-1-3 Display the print document.
How would you proceed?
______________________________________________________
______________________________________________________
2-1-4 Simulate the bill.
How would you proceed?
______________________________________________________
______________________________________________________

SAP AG IUT110 9-53

2-2 Process the actual invoice for business partner TB100110##.
2-2-1 Invoice the business partner
How would you proceed?
______________________________________________________
______________________________________________________
2-2-2 Check the log
______________________________________________________
______________________________________________________
2-2-3 Display the bill in customer overview
How would you proceed?
______________________________________________________
______________________________________________________

2-3 Provide information on the print document.

2-3-1 From the customer overview, display the print document for business partner
TB100110##.
How would you proceed?
______________________________________________________
______________________________________________________
2-3-2 How many line items does the print document contain?
How would you proceed?
______________________________________________________
______________________________________________________
2-3-3 What is the bill sum total?
How would you proceed?
______________________________________________________
______________________________________________________
2-3-4 Which rate was used in the calculation?
______________________________________________________
______________________________________________________
2-3-5 Enter the bill due date.
______________________________________________________
______________________________________________________

SAP AG IUT110 9-54

2-4 True or false?
2-4-1 Invoicing is only carried out after billing.
______________________________________________________
______________________________________________________
2-4-2 Only one invoice is ever generated for all contracts of the contract account.
______________________________________________________
______________________________________________________
2-4-3 The invoice takes into account billing documents from other company codes.
______________________________________________________
______________________________________________________
2-4-4 The bill due date is always derived from the posting date and the terms of
payment.
______________________________________________________
______________________________________________________
2-4-5 The invoice generates the print documents.
______________________________________________________
______________________________________________________
2-4-6 The bill can be reversed separately or reversed along with billing.
______________________________________________________
______________________________________________________
2-4-7 The billing document only takes into account statistically posted documents
______________________________________________________
______________________________________________________

SAP AG IUT110 9-55

 SAP AG IUT110 9-56
 Solutions

Unit: Billing and Invoicing

Topic: Billing a business partner

1-1 From the SAP Easy Access menu, choose:

Choose Utilities industry Customer Service Front Office/Customer Interaction
Center Customer Interaction Center.
Identify the business partner by entering the number TB100120## in the Business
partner field and choose Enter twice. The business partner is stored on the clipboard.
1-1-1 Choose the Move-out partner call that is found under the Move I/O call group.
1-1-2 Enter the move-out date. You are now in the move-out processing screen.
1-1-3 Choose the MR data tab and enter plausible meter readings. Check the Meter
reading status column (RS). This must contain the value 1. If the value is
different, you have entered an implausible meter reading result and you can use
the Correct button to enter a plausible result.
Choose the Final bill button. You must enter a reconciliation key. Enter
IUT110-01 and save the data.
Confirm the data for printing.
Save the move-out.
1-1-4 You return to the CIC. Refresh your data in the navigation area. Go to Info and
choose Customer overview. Double click on the current bill to display it. Now
choose the Simulate bill pushbutton. Check that the tabs for the contracts have
been deactivated. In the MvOut date field, you can see the date on which the
customer moved out. Double-click on the invoice sum total to display the print
document.
Choose the End contact button.

SAP AG IUT110 9-57

1-2 From the SAP Easy Access menu, choose:
Choose Utilities industry Customer Service Front Office/Customer Interaction
Center Customer Interaction Center.
Identify the customer.
1-2-1 Choose the action Enter customer meter reading. Enter the meter reading
results for each contract individually and save the entries (you will have to carry
out this process three times).
1-2-2 From the SAP Easy Access menu, choose:
Utilities industry Billing Billing Execution Individual Processing
Individual Simulation Billing
1-2-3 From the SAP Easy Access menu, choose:
Utilities Industry Billing Billing Execution Individual Processing
Individual Bill

1-3 From the SAP Easy Access menu, choose Utilities Industry Billing Billing
Execution Display Document
1-3-1 Choose F4 for help in the Document no. field. Enter your business partner
number. You will receive a list of all the billing documents of the customer to
choose from.
1-3-2 The header data of the billing document provides the most important data for
billing.
1-3-3 The Document overview tab provides an overview of the billing lines.
1-3-4 ZWATER Energy price
000004 Rental price
IQUANT Quantities (meter readings)
1-3-5 The billing quantity is visible in the table overview or in the individual
documents.

SAP AG IUT110 9-58

1-4
1-4-1 True, since billing processes the meter reading results and provides prices of
valuated quantities for invoicing.
1-4-2 False. The billing simulation is only a demonstration of how the real billing
would be carried out. The billing simulation produces simulation documents that
can be used only for invoice simulation purposes.
1-4-3 False. The billing order results from the creation of the meter reading order.
Billable status is granted when a billing-relevant meter reading becomes
available. Invoice orders are the result of billing.
1-4-4 True. Contrary to the billing documents, the billing simulation documents can
only be processed further by invoicing simulation.
1-4-5 True.

SAP AG IUT110 9-59

 SAP AG IUT110 9-60
 Solutions

Unit: Billing and Invoicing

Topic: Invoicing a business partner

2-1 From the SAP Easy Access menu, choose:

Utilities Industry Invoicing Execute Invoicing Individual Processing
Create Bill
2-1-1 Select the Document Simulated dialog box.
2-1-2 Begin the simulation with all the billing documents.
2-1-3 Once the simulation is complete, select Display Document. You can also call
up the print document using the following menu path:
Utilities industry Invoicing Execute Invoicing Display Print
Document
2-1-4 Choose the Simulate bill button.

2-2 From the SAP Easy Access menu, choose:

Utilities Industry Invoicing Execute Invoicing Individual Processing
Create Bill
2-2-1 Identify the business partner. Enter a reconciliation key.
2-2-2 Once the invoicing has been completed successfully, you can display the log.
2-2-3 From the SAP Easy Access menu, choose:
Choose Utilities industry Customer Service Front Office/Customer
Interaction Center Customer Interaction Center.
Identify the business partner by entering their number in the Business partner
field. Choose Customer overview from the Information call group. Do not leave
this display.

SAP AG IUT110 9-61

2-3
2-3-1 Double click on the total amount of the bill. You will automatically branch to the
print document display.
2-3-2 The number of document line items is displayed under Document overview.
2-3-3 Go to Header data and view the bill amount.
2-3-4 Choose Document overview.
In the Rate field, you can read the various rates used in the calculation. Choose
Doc. lines.
If necessary, leaf through the various line items with different line categories
using F6 or F7 or
2-3-5 Choose Header data.
The Net due date field contains the bill due date.

2-4
2-4-1 True. Invoicing processes the meter reading results and the open item
accounting data and, using this information, generates the bill and the new
budget billing plan.
2-4-2 False. A contract account can be specified for each account, regardless of
whether they are to be billed together with other contracts or separately.
2-4-3 True.
2-4-4 False. The posting date, document date or system date may be used as the
baseline date for calculating when the bill falls due.
2-4-5 True.
2-4-6 True.
2-4-7 False. Depending on the budget billing procedure, the bill sum total is
determined by calculating the statistically posted budget billings or including the
outstanding partial bills.

SAP AG IUT110 9-62