Billing Type Difference

[Former Member]

Dear Friends

I want to know what is different between "Delivery-Related Billing Type" and "Order Related Billing Type"? in VOV8 and What is the effects in business process.

Regards

Arun

[Former Member · Accepted solution]

Hi Arun,

Let me give 2 scenarios here:

Scenario 1 - Cash sales

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In cash sales scenario, customer will take the goods from you and pay you at the same time. In this case, you do not have to deliver the goods to your customer at a later date.

For this case, in the standard system, we bill the customer based on the sales order document and not the delivery document. We call it order-related billing.

Scenario 2 - Standard sales

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This is the normal sales scenario. Customer order goods from you. Later you deliver the goods to your customer and then bill your customer according to the delivery document. This is what we call delivery-related billing.

When you are configuring the sales document type in VOV8, you can set the "default billing type" for order-related and/or delivery-related billing for a specific sales document type.

For example, for scenario 2, let's say you have set "F2" as the default delivery-related billing type in VOV8 for sales document type, "OR".

When you are creating a billing document with reference to sales document type, "OR" the system will use "F2" as the default billing type. However, you can still change the billing type if you want during billing document creation.

Hope this helps

Appreciate if points are rewarded if you find this useful

Regards,

Nicole

[Former Member]

Hi Arun,

Both have their own relevance:

1) For e.g if you are creating a delivery for your customer or getting the return goods for your customer then you require delivery related billing types.

2) In some cases,you do not require to create a delivery but just want to give or receive some money from your cutsomer then the you create billing document w.r.t your sales order.The best example in this case are credit and debit memos.

Reward points if it helps.

Regards

Karan

[Lakshmipathi]

Dear Arun

At the time of generating enquiries for your company, you need to define what are all your conditions to supply the material. At the same time, your customer will also list out some conditions like Payment Terms, Place of Delivery, Validity of order etc.

While doing so, for some new customers, you can demand payment before despatching the goods to avoid any risk in getting the payment at a later date. In such cases, customer will ask for some document against which, they can release payment. So instead of raising a commercial invoice, you can create a proforma against the sale order and submit to customer to enable him make payment. By this way, you not only comply with customer's requirement but also you can maintain your inventory under control.

Once you receive the payment, you can reduce your inventory by doing delivery and commercial invoice.

So in this case, you need to have a copy control from sale order to billing and delivery to billing as well.

Hope to have explained clearly and if you feel so, reward points please.

Thanks

G. Lakshmipathi

[Former Member]

hi

when u create a invoice billing with reference to delivery document then it is delivery related billing

order related billing is creating a billing document with reference to an sales order