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Process 161

Figure 5-39: Data in a billing document

Tasks
The key task in the billing step is to generate a billing document, typically an
invoice for materials or services. As previously mentioned, the invoice can be
created on the basis of either a delivery or a sales order. Figure 5-19 depicts
a scenario in which shipment is sent prior to billing. However, if the company
wishes to be paid before it ships the materials—which is frequently the case
when the customer is new or has a poor payment history—then the process
can be modifi ed so that billing will take place prior to shipment. Our discussion
focuses on billing that is based on deliveries.
Other billing documents that are sometimes created are credit and debit
memos. A credit memo is a refund the company issues if the customer returns
the materials or if the initial invoice overcharged the customer. The company
uses a debit memo when the customer was undercharged in the original invoice.
A debit memo increases the amount owed by the customer.
As you can see in Figure 5-40, multiple deliveries can be combined to cre-
ate one billing document. This process can be employed only when the deliv-
eries share the same characteristics with respect to payer (partner function),

Figure 5-40: Relationship between deliveries and billing

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