SAP FI AR Invoice Processes - SAP FICO

What is AR Invoice Processes in SAP FI?

SAP FI facilitates in defining the AR invoicing processes. It enables to customize the behaviour of the invoicing program as per the desired requirements under the consideration of the individual settings of the functions.

For some of the mass activities like "Invoicing in Contract Accounts Receivable and Payable", Invoice processes represent the selection parameters.

Number ranges for invoicing documents are defined dependent on the invoicing processes. Invoicing processes are a differentiation characteristic for the activation of optional invoicing functions.

Explain the Process Steps involved in SAP FI AR Invoice Processes

The steps involved in the Invoice processes of the SAP FI AR are as follows:

  • Data Selection − In data selection, the invoicing orders are selected for the invoicing process. The selection criteria is defined as required for invoicing process.
  • Creation of Invoicing Units – For each of the contract account, the invoicing orders are grouped into invoicing units. For each contract account, several invoicing units can be created. For each invoicing unit, "Invoicing in Contract Accounts Receivable and Payable" one invoicing document is created.
  • Processing of Billing Documents − The billing documents selected for an invoicing unit are included in the invoicing document. The billing document items are linked with the items of the invoicing document, and the derivations required for the posting in "Contract Accounts Receivable and Payable" (FI-CA) are performed.
  • Performance of Additional Functions − In addition to processing billing documents, in "Invoicing in Contract Accounts Receivable and Payable" , further functions of FI-CA can be integrated. For instance, interest calculation, creation of dunning proposals, or the calculation of charges and discounts. The desired additional functions to be performed for each of the invoicing process need to be defined desperately.
  • Account Maintenance − Using the account maintenance integrated in "Invoicing in Contract Accounts Receivable and Payable", perform clearing between the posting documents entered in Invoicing and the open items of the contract account posted before invoicing. The criteria for clearing control can be defined as required.
  • Update – The invoicing document created and the posting document are written on the database and the invoicing orders processed are deleted. The invoicing unit, a container for the invoice printing and extraction order are also created.

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