Section 4 of 10

Shipping and Billing

What the delivery document does, why goods issue is the moment stock and accounting move, and how billing reaches FI.

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Once an order is confirmed, goods have to be delivered and money invoiced. These are two separate stages carried by two separate documents.

The delivery document

A delivery is the instruction to the warehouse. Create it from an order with VL01N, or in bulk for everything due with the VL10 family.

Creating it moves the reservation from the order to the delivery. The warehouse then picks and packs against it.

Stages of shipping
StageWhat happensEffect on stock
Create deliveryFix what is to be shippedReservation moves from order to delivery
PickingTake goods from the warehouse; enter picked quantityStock is not yet reduced
Packing (optional)Group into handling unitsNo change
Post goods issueIssue from stockStock falls; an accounting document is created

The entry posted at goods issue

At goods issue
Dr Cost of sales   xxx
     Cr Inventory        xxx

The amount is the inventory valuation from the material master โ€” standard price or moving average. No revenue is recognised yet; that happens when the billing document posts.

The billing document

Create billing with VF01, normally referencing the delivery, though services with no delivery can be billed directly from the order.

What billing references
ReferenceWhen used
DeliveryPhysical goods; bill what was issued
Sales orderServices and maintenance contracts with no delivery
Down payment requestBilling a prepayment
At billing
Dr Accounts receivable   xxx
     Cr Revenue                xxx
     Cr Output tax             xxx

Profitability data flows to CO-PA at the same time: revenue and discounts into value fields, product and customer as characteristics, enabling margin analysis by product and account.

Combining and splitting invoices

  • Collective billing combines documents that agree on bill-to party, payment terms, currency and billing date into one invoice, which suits monthly consolidated billing.
  • Billing split happens automatically when any of those differ. When an unexpected split occurs, the analysis log identifies the field responsible.

Billing dates and the worklist

Billing timing can be governed by a billing calendar on the customer master, which is how conventions such as a cut-off on the twentieth of each month are expressed.

VF04 lists everything due to be billed and creates the documents in bulk. It is the centre of the monthly billing routine.

๐Ÿ“– Unfamiliar term? Look it up in the SAP glossary.

Check your understanding

Test what you just read.

Quiz 1

What happens when PGI (Post Goods Issue) is executed?

Quiz 2

The transaction for creating a delivery document is VF01.

Quiz 3

Which transaction is used for batch invoice creation?

Quiz 4

Picking occurs after delivery document creation but before PGI.

Quiz 5

Which billing type is used for standard invoice posting to FI?

Quiz 6

Arrange the steps from shipping to billing in the correct order.

Click items in the correct order