What is Billing in SAP SD?
Billing is the final step in the Order-to-Cash (O2C) cycle. It involves generating invoices,
credit/debit memos, and transferring data to FI (Financial Accounting) and CO
(Controlling).
Billing Process Flow in SAP SD (S/4HANA)
End-to-End Steps:
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1. Sales Order (VA01) – Customer places an order.
2. Delivery (VL01N) – Goods are picked and delivered.
3. Goods Issue (VL02N → PGI) – Inventory is reduced, COGS posted.
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4. Billing (VF01) – Invoice is created.
5. Accounting Entry (FI) – Accounting document generated.
6. Output (Email/Print/EDI) – Sent to the customer.
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7. Payment (F-28) – Incoming payment posted.
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Types of Billing Documents
Typ Name Purpose
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F2 Invoice Based on delivery
F1 Pro Forma Invoice No accounting, for
customs/export
G2 Credit Memo Return/refund
L2 Debit Memo Additional charges
RE Return Invoice For return sales
S1 Cancellation Reverses a billing doc (e.g., F2)
Invoice
Key T-Codes for Billing
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T-Cod Description
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VF01
VF02
Create Billing Document
Change Billing Document
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VF03 Display Billing Document
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VF04 Billing Due List
VF11 Cancel Billing Document
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VF21 Create Pro Forma Invoice
VTFL Copy Control: Delivery to Billing
VTFA Copy Control: Order to Billing
VBRK Billing Header Table
VBRP Billing Item Table
Configuration Steps – Billing in SAP SD
1. Define Billing Types
● Path: SPRO → SD → Billing → Billing Documents → Define Billing Types
● Example: F2 for Standard Invoice
● Control settings include:
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○ Number ranges
○ Reference mandatory
○ Posting block
○ Cancellation rules
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2. Define Number Ranges for Billing
● T-Code: VN01
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● Assign number ranges to billing types.
3. Maintain Copy Control
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Used to control how data flows from delivery/order to billing.
● VTFL (Delivery → Billing)
● VTFA (Sales Order → Billing)
Key settings:
● Data transfer routines
● Pricing type (carry over or re-determine)
4. Assign Account Determination
● Controls G/L accounts for revenue, discounts, etc.
● Path: SPRO → SD → Basic Functions → Account Assignment → Revenue Account
Determination
● Involves:
○ Access Sequences (e.g., 001)
○ Condition Types (e.g., KOFI)
○ Account Determination Procedure (e.g., KOFI00)
○ Assign to billing types
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5. Output Determination (BRF+ or NACE)
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Used to send the invoice to customer via email, print, EDI.
● In S/4HANA, use BRF+ (T-Code: OPD)
● Assign output type to billing document (e.g., BILLING_OUTPUT)
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6. Integration with FI
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When billing is created:
● A corresponding FI accounting document is posted.
● Typical entries:
○ Customer A/c Dr
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○ Revenue A/c Cr
○ Tax A/c Cr (if applicable)
🔹 Real-Time Scenario
Scenario: Create Invoice for a Standard Delivery
Customer places an order (VA01)
→ Delivery is created and PGI done (VL01N + VL02N)
→ Billing created using VF01
→ System posts invoice and accounting doc
→ Output sent to customer via email (BRF+)
→ Payment received and posted via F-28.
🔹 Tables for Billing
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Table Description
VBRK Billing Header
VBRP
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Billing Item
BKPF FI Document Header
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BSEG FI Document Line Items
NAST / SD_DOCUMENT_FLOW Output History & Doc Flow
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🔹 Common Interview Questions on Billing
1. How is billing related to FI?
2. What is copy control and why is it important?
3. What are billing due lists?
4. How to configure output in S/4HANA billing?
5. What’s the difference between pro forma and standard invoice?
