SAP Billing Process an Overview

SAP Billing Process: The purpose of SAP Billing represents the final processing stage for a business transaction in Sales and Distribution. Information on billing is available at every stage of Order processing and delivery processing.

This component includes the following functions,

1), Creation of

  • Invoices based on deliveries or Services
  • Issue Credit and debit memos
  • Proforma Invoices

2), Cancel SAP Billing transactions

3), Comprehensive pricing functions

4), Issue rebates

5), Transfer SAP billing data to Financial Accounting (F1)

Billing Document:

Definition : Umberla term of Invoices, credit memos, debit memos, pro forma invoices and cancellation documents.

Use : The SAP Billing document is created with reference to a proceeding document, in order to create an invoice or credit memo, for example

The SAP Billing document contains the following data:


All SAP billing documents have the same structure. The are made up of a document header and any number of items. The following figure shows how billing documents are structured.


    Item 1

    Item 2

    Item 3


In the header, you find general data valid for the entire SAP billing document,

For example

1), Identification number of the payer

2), Billing data

3), Net value of the entire billing document

4), Document Currency

5), Terms of payment and Incoterms

6), Partner numbers, such as the identification number of the sold-to party

7), Pricing elements


Also See: Display Billing Document VF03

SAP Billing Process


In the terms you find data that applies to one particular item,

For example

2), Material Number

2), SAP Billing Quantity

3), Net value of the individual items

4), Weight and volume

5), Number of the reference document for the billing document (for example  the number of the delivery on which the billing document is based)

6), Pricing elements relevant for the individual items

The SAP billing document is controlled via the Billing type


When you create SAP billing document, the billing data is forwarded to financial Accounting

SAP Billing Document Type

Definition : Controls processing of billing documents such as invoices, credit and debit memos as well as cancellation documents.

Use: SAP Billing document types to deal with the different business transactions carried out during billing processing.

The different SAP billing document types available are listed in the following table

Billing Document TypeName
F1Delivery-related invoice
F2Delivery-related invoice
F5Pro forma invoice for sales order
F8Pro forma invoice for delivery
G2Billing – POS system
CRCredit memo
L2Debit memo
RECredit memo for returns
S1Cancellation invoice
S2Cancellation credit memo

Also See:  Change SAP Billing Document using VF02

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