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pls answer my questions

Former Member
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HI gurus

my questions are

1.Difference between billing and invoice?

2.How to stop PGI?

3.What do you mean by drop shipment?

if any one can help me out

thanks and regards

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Hello,

1. Billing is the document which is normally a Pro forma invoice, trade invoice, credit memo, debit memo. , so Billing document is a process where as Invoice is the document used to Bill the customer to get the Payment for the Goods or services rendered. in Summary Billing is the document created after the delivery and Invoice is the OUTPUT generated for Billing.

2. For your second Question, If i uderstood correctly you are asking to cancel the PGI process right

If so then There is one transaction code VL09N which is used to cancel the PGI document

3 .DROP SHIPMENT process, customer places the order to the company and if company does not have the stock, it will raise the places the order for the vendor to delivery goods directly to the Business/company and Vendor will bill customer for the goods delivered.

Generally the Drop ship ment will happen between the two sales organisations/plants which were operating nder same bsiness.

Please let me inow if u need further detail

former_member550050
Active Contributor
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Hi

Drop shipment (also known as dropship) is a type of order fulfillment in which the seller does not keep goods in stock. Instead, it passes the customer's order and shipment details to the manufacturer or a vendor, who then dispatches the goods to the customer directly. The retailer makes a profit on the difference between the vendor wholesale price and retail price. The drop shipment method of offering goods allows anyone to sell products without buying and stocking an inventory of those products.

Drop shipment allows users to minimize inventory-carrying cost, mitigate risk on goods that aren't saleable, eliminate packing and shipping operations, and complement the range of merchandise they offer.

Although the drop shipment concept has existed for quite some time, a growing trend toward outsourced manufacturing, specifically in the high-tech industry, has sparked a recent increase in its practice. Drop shipment is facilitated by all versions of R/3, beginning with 3.1I. In the SAP ERP Central Component, drop shipment is available in a preconfigured business scenario as "third party with shipping notification" and "third party without shipping notification."

Drop shipment is nothing but third party sales processing

How to stop PGI Dont click the button PGI in VL01N or VL02N

To reverse already done PGI do it in VL09

Billing document and invoice are the same

Billing document is SD terminology and Invoice is FI terminology of a same document Eventhough i am not sure of this answer whether it is perfectly right or this is basically a time pass interview qn and this qn will not help any business processes

What i mean is a consultants SAP knowledge or functional knowledge cannot be estimated or valued by this qn and

answer which he gives for this qn

Note Avoid giving such subject to your questions

Regards

Raja

former_member188076
Active Contributor
0 Kudos

Hi

You must give a proper subject line.

Difference between billing and invoice?

Billing is a process whereas Invoice is akind of Documnet which we create when we sell the product to customer like F2.

How to stop PGI?

The question is not very clear. You can stop PGI by not giving authorisation to user or using SHD0 you may deactivate the PGI tab.

I am not sure about your third querry.

Regards

Amitesh