EDR Management, EDR Billing and Convergent Invoicing - Convergent Invoicing

1EDR Management, EDR Billing & Convergent Invoicingin SAP Enhancement Package 4 for ERP6.0

- Convergent Invoicing -

2 SAP 2008 / Page 2

Convergent Invoicing Introduction

At the end of this unit you will be able to explain and demonstrate the Convergent Invoicing solution in FI-CA.

Therefore, you will get an overview on:

The concept of Convergent Invoicing

Basic Terminology in Convergent Invoicing

Process flow in Convergent Invoicing by executing invoicing processes (including invoice reversal)

Documents during the invoicing process

3Solution Overview

Invoicing Process flow & Basic terms

Invoicing Functions

Invoicing Execution

EDR Management, EDR Billing & Convergent Invoicingin SAP Enhancement Package 4 for ERP6.0

- Convergent Invoicing

Invoicing Documents & FI-CA Posting Documents

Invoicing Reversal

4 SAP 2008 / Page 4

Convergent Invoicing Introduction

Convergent Invoicing creates invoices by: including structured bill information from billing system(s) for one or

many services including additional information out of Accounts Receivables (FI-CA) applying discounts (e.g. cross service discounts or discounts on invoice

sub-totals)Executing various invoicing functions but in the standard, there is:

NO application of pricing or (re-) rating rules NO transaction on individual events in invoicing (e.g. calls, downloads)

Accounts Receivables

ConvergentInvoicing

BillingRatingMediation

BillingRatingMediation

Within Convergent Invoicing, the following processes and functions are performed:

Posting documents for invoice receivables or credit memos are created from billing documents

Posting documents are cleared with credits (e.g. down payments made)

The determination and levying of additional charges, interest, and discounts is supported

Data for invoice printing is prepared and print documents are created

Posting documents in RM-CA are created: RM-CA documents can also be processed by invoicing as part of clearing control (for example, clearing payments on account with receivables from invoicing)

Convergent Invoicing includes:

Items for used service(s) in the current billing period: provided by ONE billing system, for one or more services, or provided by a NUMBER of billing systems created in Convergent Invoicing (e.g. discount items)

Additional items (e.g. late payment charges, credits or interest) out of contract accounts receivables.

Historical items (e.g. open items from previous invoices, payments made since last invoice run) out of contract accounts receivables.

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FI-CA

Convergent Invoicing Component Overview

ExternalBilling

CRMBilling

SDBilling

EDRBilling

ConvergentInvoicing

ContractAccounting

FI-GLAccounting

COAccounting

BWBill

Convergent Invoicing is build to create invoices by including structured bill information from multiple billing systems.

This bill information can be provided either by FI-CA based EDR-Billing, SD Billing, CRM Billing or rather by integrating External Billing Systems. External Billing Systems: Import of billing documents from external billing systems using a BAPI or IDoc interface. SD Billing: Creates SD billing documents out of the SAP Sales and Distribution module, e.g. for hardware sales. CRM Billing: Creates invoices or credit notes out of the SAP CRM System, e.g. for hardware sales or credits notes triggered by the SAP Dispute Management.

In addition, the Accounts Receivable Subledger FI-CA will be integrated by using FI-CA functionality as well as FI-CA data (e.g. payment information, open item information) duringthe invoicing process.

When updating the Accounts Receivables Subledger, the General Ledger as well as the CO Accounting is updated simultaneously

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Runtime

Designtime

Convergent Invoicing Process Overview

BillingDocument

ExternalBilling

Document

Bill

InvoicingDocument

FI-CADocument

InvoicingOrder

InboundProcess

SDBilling

EDRBilling

InvoicingProcess

PrintProcess

ContractAccount

InboundMapping

InvoicingProcess

PrintFormular

Corresp.Container

MasterData

12 3

Convergent Invoicing Process Overview

Inbound Process - Transfer of (external) Billing Documents Integration of different billing systems (SD Billing/CRM Billing/EBS) via BAPI / IDOC -Interface Mapping of external billing-information to SAP-internal billing-information When saving the billing document, an invoicing order (Invoicing trigger) will be created

2. Invoicing Process - Execution of Invoicing Functions Based on the Invoicing Process, the real invoicing will be executed by performing invoicing functions Within the execution of the Invoicing Program, Invoicing Orders will be selected to create Invoicing Documents Invoicing Processes can be defined in Customizing

3. Invoice Printing Correspondence will be created based on the Print-Workbench (Invoice Printing / Row Data Interface) An apllication formular / print formular is defined for the invoicing process To create the invoice, all data from the invoicing / billing document (as well as customer master data) can be used.

7Solution Overview


Invoicing Functions

Invoicing Execution




Invoicing Reversal

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Convergent Invoicing- Overview on Basic Terminology

ConvergentInvoicing

Process Flow Control

Invoicing ProcessSource Document Category

Invoicing FunctionInvoicing Unit

Grouping VariantInvoicing Item Types

Business Transaction

Invoicing Type

Master Data

Invoicing CategoryScheduling for Invoicing NEW !

Invoicing Lock

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Invoicing Process

An Invoicing Process has to be specified to perform invoicing.

The Invoicing Process describes the business transaction that processes billing documents creates and posts the invoice synchronously updates additional data for other components

Therefore, the Invoicing Process have to define which source document category should be selected for invoicing. which invoicing functions should be performed during invoicing.

Within Convergent Invoicing, Invoicing Processes are also used As selection criteria in mass runs For the definition of invoicing documents number ranges To distinguish between the activation / deactivation of optional Invoicing Functions

The invoicing program defines the order in which the invoicing functions are performed within an Invoicing Process. This cannot be changed. The advantages of this approach are

The invoicing program recognizes invoicing functions that are not required and does not perform them (without any negative effect on runtime).

Multilevel control can be used to activate or deactivate invoicing functions that are not required in all cases.

The invoicing processes are the subcomponents of Invoicing in FI-CA that ensure the integration of billing documents in FI-CA and generally describe the business transaction that processes the billing documents, creates and synchronously post the invoice.

In detail, Invoicing Processes perform the following tasks: Select, group and display billing documents from different billing systems together on one invoice. Display current information for the customer account, such as open invoice receivables, on the invoice. Integrate further FI-CA business transactions (additional functions of invoicing) such that you can make changes to the customer account without follow-on processes and notify the customer of these changes with the invoice. Create invoicing documents that form the basis for the physical invoice printing and convert the billing documents into posting documents of FI-CA. Update additional data for other components (BW, CO-PA).

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Source Document Category

Documents that can be processed by Invoicing in FI-CA have known values for the characteristic Source Document Category.

The following source document categories are permitted: Billing documents (INVBI) SD documents (SD) Collective bill documents (COLBI) Single Invoicing Document for Invoicing List (SUBIN) Reference document for individual contract accounting invoicing (ACCIN) Individual Contract Accounting Invoicing without reference document (ACCIX) Open posting item to be activated (ACTIT)

The Source Document Category describes a category of source documents to be invoiced. Documents that can be processed by Invoicing in Contract Accounts Receivable and Payable (FI-CA) are indicated by known values for the Source Document Category characteristic. Among others, the following source document categories are permitted:INVBI - Billing documentDocument that is created by any SAP systems or systems from other providers and that are transferred to Invoicing in FI-CA by means of a defined interfaceSD - SD documentSD billing document created by the component Sales and Distribution (SD) and which should be posted or invoiced in Invoicing.COLBI - Collective billCollective bill created by the invoicing of the individual accounts of a collective bill accountand which is to be processed for a collective invoicing printout during invoicing of the collective bill account.ACTIT - Open posting item to be activatedOpen item posted before invoicing and that has a special clearing restriction and that is to be requested by invoicing.SUBIN - Single invoicing document of an invoicing listInvoicing document that is to be entered in an invoicing list.During the configuration of the invoicing process, it has to be designed which source document categories shall be processed. You can also set-up if a specific source document category triggers invoicing within the mass invoicing processes. A contract account only qualifies for invoicing if, among the invoicing orders, there is at least one source document of the source document category with the indicator Main Selection.

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Invoicing Function(s)

The invoicing function describes a task that is supported in invoicing.

The following are some of the existing, possible invoicing functions: Core Invoicing Functions to perform invoicing (Mandatory)

Invoicing of Billing Documents (INV_BILL_DOC) Invoicing of SD Documents (INV_SD_DOC) Creation of Collective Invoicing Document (INV_COLLBILL)

Additional Invoicing Functions (Optional) Automatic Account Maintenance (ACCT_MAINT) Invoicing Reversal (REVERSAL) Subitems (HIST_ITEMS) Card Payment (Payment Method) (PCARD_PAYMET) NEW IN EhP4 ! Card Payment with Immediate Clearing (PCARD_PAYMNT) NEW IN EhP4 ! Deferred Revenues (DEF_REVENUES) NEW IN EhP4 ! Deferred Revenues - Event-Based (DEF_REV_BY_E) NEW IN EhP4 !

Invoicing consists of numerous processing steps. From a business point of view, some of these processing steps form complete business transactions and are known as invoicing functions. In the definition of an invoicing process, you define which invoicing functions are to be performed. This offers several advantages:

The invoicing functions selected make clear which invoicing processing steps are performed in an invoicing process.

At least one mandatory invoicing function has to be assigned to an invoicing process. Otherwise, the corectness and data consistency of the invoicing program cannot beguaranteed.

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Invoicing Unit and Grouping Options

Invoicing orders or billing documents are summarized in invoicing units to be invoiced together and displayed on an

invoice together. The invoicing unit is the basis for the invoicing.

In a first step, the system groups all source documents that have the same contract account, business partner, and currency.

Dependent on the grouping variant, the billing documents can be further grouped into invoicing units.

The grouping proposal can be processed on a customer-specific basis in event 2601.

For invoicing in dialog in expert mode, the invoicing units created are offered for selection in a dialog box.

The source documents selected for a contract account are grouped into invoicing units so that they can be invoiced together and displayed on an invoice together. The invoicing unit is the basis for invoicing; it can contain the source documents of a maximum of one contract account.

The source documents to be invoiced determined for a contract account are processed as standard together in one invoicing unit. However, the user can control the grouping of the invoicing orders and create the grouping strategy for making up the invoicing unit.

For example, in Customizing, you can define whether billing documents from different company codes are to be invoiced separately. You can also define that specific company codes can be invoiced together, or excluded from the current invoicing.

In addition, the user can process the grouping proposal to meet his companys requirements in event 2601.

If you run invoicing in dialog, and use the expert mode, in a fourth step, the invoicing units created so far appear in a dialog box for selection. There you can change the assignment of source documents to invoicing units manually.

The system creates one invoicing document per invoicing unit. The invoicing document documents the posting transactions performed in FI-CA by invoicing. The invoicing document is the basis for invoice printing.

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Grouping Characteristics

Grouping characteristics describe specific properties of a billing document (for example, company code, contract)

z Grouping characteristics are used to group billing documents into invoicing units.

z Billing documents that have identical values for grouping characteristics in a clearing step are considered as a unit in this invoicing step (for example, all billing documents that belong to the same company code).

z Grouping characteristics are used in the configuration of grouping variants. The following fields can be used:

Any fields from the structure FKKINV_TRIG for invoicing orders Own fields with value derivation using a function module defined in

the characteristic definition

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Grouping

Example: Grouping of source documents that have the same company code and division.

B000310005

A000110001

A000210003

B000310004

B

Division

000110002

Company CodeBilling Document

A0001

B

A

B

GRU2

0002

0003

0001

GRU1

Grouping

GRU

10001

10003

10002

Billing Doc.

Invoicing Unit

GROUP1

Creation of Groups

Grouping variant 001

B0003

GROUP3

GROUP2

GROUP4

GROUP4

10004

10005

V_TFK2615

Example 1: You only want to group source documents in one invoice if the company code and division agree.

Maintenance of Grouping Variants In Maintain Grouping Characteristics, select the following fields:Grouping Characteristic Description Function ModuleBUKRS Company codeSPART DivisionIn the subdialog Assign Grouping Characteristics, maintain the following entries: Grouping Characteristic Rank Use

BUKRS 0 Use original field value

SPART 0 Use original field value No maintenance is necessary in the subdialog Assign Alternative Grouping Values.

Invoicing You want to invoice a contract account where five billing documents with different company codes and divisions. Four invoicing units are created (as shown above), whereby two billing documents for company code 0003 and division B are grouped.

Reason: With this grouping variant, billing documents are only grouped in one invoicing unit if they use the same company code and the same division. In the example, this is only the case for billing documents 100004 and 100005.

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Alternative Grouping

Example: Grouping of source documents only if they have the same company code and division. Exception: Documents with company code 0002 are to be grouped with documents from company code 0001 on one invoice.

B000310005

A000110001

A000210003

B000310004

B

Division

000110002

Company CodeBilling Document

A0001

B

A

B

GRU2

0001

0003

0001

GRU1

Grouping

GROUP

10001

10003

10002

Billing Doc.

Invoicing Unit

GROUP1

Creation of Groups

Grouping Variant 001

B0003

GROUP1

GROUP2

GROUP3

GROUP3

10004

10005

AlternativeGrouping

Example 2: You only want to group source documents in one invoice if the company code and division agree. Nevertheless, there is one exception: Documents with company code 0002 are to be grouped with documents from company code 0001 in one invoice.

Maintenance of Grouping Variants You maintain the grouping variants as in example 1. In addition, in the subdialogAlternative Grouping Values for Grouping Characteristic Company Code, maintain the following entry:

Characteristic value Alternative Use Alternative Value0002 Characteristic value is alternative

0001 characteristic value

Invoicing: If you invoice the same billing documents as in example 1, 3 invoicing units are created (as shown above).

Reason: With this grouping variant, billing documents 100001 and 100003 are grouped in one invoicing unit since in billing document 100003, company code 0002 is replaced with company code 0001. (This only applies for the creation of the invoicing units and not for the subsequent processing of document 100003.)

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Invoicing Item Types

Invoice 4711 Date: 01/02/2005

Services +_________+_________+_________

Credit Memos/Backbilling +/-________

Invoice Amount =========

Advance Payments -__________

Above Items +/-________

1. Budget billing +_________

Final Invoice Amount =========

Subitems +/- 343.58

Amount to be Paid =========

Note that your invoice from 01/04/2005 for 343.58has not been paid yet.

Invoice

The invoicing item type describes the business meaning of the line items of an invoicing document.

Use An invoicing document usually contains a number of line items that were created by different invoicing functions integrated in invoicing processes. These invoicing functions use this field to indicate the items create by them. This indication is to improve the legibility of the invoicing document and for use in invoice printing.

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Invoicing Type

Characterizes the composition of the invoicing unit and used to name the invoicing documentControls the invoicing functions within an Invoicing ProcessOne or more invoicing types must be defined for each Invoicing ProcessStandard value defined in the configuration of the Invoicing ProcessEvent 2603 : Determine Invoicing Type dynamically in the invoicing run

(dependent on the composition of the Invoicing Unit)ExamplesPeriodic Billing Final Billing

In combination with the Invoicing Category and the Invoicing Process, the Invoicing Type enables fine control of the invoicing functions

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Invoicing Category

In invoicing, you enter the invoicing category in the master record of the contract account. In combination with the Invoicing Type and the Invoicing Process, the

Invoicing Category enables fine control of the invoicing functions Invoicing categories are optional. SAP recommends that you maintain invoicing categories if you want to

control the invoicing process flow dependent on the properties of the contract account. ExamplesBusiness Partner with special conditions

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Invoicing & Master Data

Customer-Specific Billing-Relevant Data

Clearing CategoryPayment MethodsTransaction CurrencyInterest KeysDunning Procedures

Invoicing CategoryScheduling for Invoicing NEW IN EhP4 !Invoicing LockLock ValidityAlternative Invoice Recipient

Bus

ines

s Pa

rtne

r

Con

trac

t Acc

ount

Convergent Invoicing Reads the business partner Uses the contract account of RM-CA; this can contain billing-relevant data, and

agreements for processing business transactions with the business partner are defined here.

Based on the data of the contract account (table FKKVKP): Correspondence and invoice printing are controlled Invoices are locked Invoicing categories are defined that reference the contract account reference in

invoicing Together with the invoicing type and invoicing process, it controls the invoicing functions.

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Invoicing & Master Data- Scheduling for Invoicing

The Scheduling for Invoicing is used to determine the earliest invoicing date of a source document

ScheduleDefinition

RuleDefinition

RuleAllocation

The Scheduling for invoicing can be assigned to the contract accounts of your business partners.

First, the key for scheduling has to be defined.

In a second step, the rule for determining the invoicing date and its validity has to be defined. The calculation rule can be defined by entering additional days, additional months, or a fixed date as a fixed part of the invoicing date.

Finally, the calculation rule to scheduling (optionally dependent on source document category and source document type) has to be assigned to the scheduling key (defined in step 1).

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Invoicing & Master Data- Invoicing Lock

You can define an invoicing lock in the contract account by specifying a validity period and the lock reason.

No invoices can be created in the period specified. The control takes place using the field Locks (INV_REASON) in the

contract account.

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Process Flow Control

Invoicing Function

Invoicing Process

Invoicing Process

Invoicing TypeInvoicing Category

Event 2603

Contract Account

Billing Document

InvoicingDocument

Invoicing UnitInvoicing Unit

Grouping VariantDocumentSelection

Invoicing Function Invoicing Function

Invoicing Order

FI-CADocument

SelektionOffenePosten

SelektionOffenePosten

Selection of

Open Items

The invoicing process flow depends on the following parameters: Invoicing process Invoicing type Invoicing category

This multi-level control enables you to run invoicing according to your requirements. The criteria specified above are determined as follows during the processing of each contract account: The user specifies the invoicing process explicitly when starting invoicing. The main

task of the process is to define which categories of source documents are to be processed. It also defines the process flow for the invoicing functions. There is a differentiation between mandatory and optional invoicing functions.

Each invoicing process proposes an invoicing type. You can override the invoicing type in event 2603. The invoicing type enables you to react individually to the composition and the properties of the invoicing unit. It also defines, for each invoicing unit, which optional invoicing functions are performed.

At master data level, you can influence the invoicing process flow using the invoicing category; this is transferred from the contract account.

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Solution Overview


Invoicing Functions

Invoicing Execution




Invoicing Reversal

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Invoicing of Billing Documents(Invoicing Function INVBI)

Customizing

Invoicing Process

Invoicing

Invoicing Process

FI-CADocument

Contract Account

Billing Document

InvoicingDocument

Print Order

Invoicing Order

BWOrder

You can use the invoicing function Invoicing of Billing Documents to process documents that were created by SAP systems or systems of other providers and that are transferred to Invoicing in FI-CA by means of a defined interface.

The invoicing function Invoicing of Billing Documents processes documents to be invoiced that have the value INVBI Billing Document in the characteristic Source Document Category.

A billing document is processed when there is an invoicing order for it and it is included in the invoicing orders of the contract account to be invoiced. In mass invoicing the billing document can also trigger the invoicing of the related contract account if for the invoicing process the source document category INVBI Billing Document has the indicator Main Selection.

When the billing document is invoiced, it is included in an invoicing unit. One invoicing document is created per invoicing unit.

The billing document is posted in FI-CA and displayed in the invoice. You can create a separate posting document for each billing document in the invoicing, or you can create one posting document for all billing documents together.

If several billing documents are processed in an invoicing document, you can decide in event 2610: in what sequence the documents shall be processed and displayed in the invoice which billing documents shall be grouped in one posting document.

For the posting documents, the reference document type 0BIL is used in the invoicing document. Tax items are posted for the billing document items.

The items are indicated in the invoicing document as items with type of invoicing item 0INVBILL. The items are considered in the final invoice amount.

The system updates an invoicing/reversal history for the billing document.

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Event 2613

Handling of Different Currencies EhP4

Bill.Doc.

Inv.Doc.

DFKKOP

FICA- Doc.Billing Invoicing Posting

EDR0,27$

EDR0,95

Billdoc_Item

Billdoc_Item

BILL_CURR INV_CURR

BILL_CURR $

BILL_CURR

Event 8017

The EDR transfers its currency into the billing process split criteria for aggregation The header of the billing document contains billing and target (invoicing) currency INV_CURR,

which is determined using event 8017 In the Invoicing process the target currency of the invoicing can be influenced using event 2603 Event 2613 allows the grouping of the invoice items to achieve a currency conversion per group.

Event 2603

INvdoc_Item

Invdoc_Item

WAERS

WAERS

Procedure to determine the invocing currency in cases of different billing currencies

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Invdoc_Item

Handling of Gross Amounts EhP4

Bill.Doc. Inv.Doc.

DFKKOP

FICA- Doc.Billing Invoicing Posting

EDR0,27 incl. taxws

Billdoc_Item

Event 8006

The EDR contains the information Gross amount and transfers this information into the billing process

Event 8006 takes over and process the information. Dependent on TAX_INCLUDED the invoicing calculates taxes on top or

recalculates the taxes based on the gross amount.

TAX_INCLUDED TAX_INCLUDED

Gross amount EDR amount includes taxes

Event 8006 controls the gross amount handling in billing.

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Event: 5010Subitems

Additional Invoicing Functions (Selection)

AdditionalFunctions

Event: 5010Account

Maintenance

Event: 5010Debit Entry of

Statistical ItemsEvent: 5010Dunning Proposal

Event: 5010Calc. Of Int. On

Cash Sec. Deposits

Event: 5010Calc. of Int.

on Receivables

% exp % exp

Open Items :

Clearing

10.03.99 150,00 150,00

08.03.99 70,00 50,00

22.03.99 200,00 - 200,00 -

19.03.99 123,00 -

Difference: 0,00

Event: 5010Charges and

Discounts

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Invoicing Functions for Credit Card Handling

Invoicing function PCARD_PAYMET

create payment card supplements for open items, as a basis for card payments in the payment run.

Invoicing function PCARD_PAYMNTDefinition enter payments with payment cards (for example, credit cards) for open receivables, and thereby clear these receivables within the invoicing run.

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Customer Service

Credit Card Information and Payment Handling

DFKKOP

Paym.EDR Bill.Doc. Inv.Doc.

FICA- Doc.

Billing Invoicing

Posting

ClearingRun

Calls toClearingHouse

PointerCC table

DFKKOPKC

Posting

Credit CardDFKK_PCARDincluding re-auth

PointerCC table

EDRs +credit card data+ authorization

DFKKOPKPaym. Doc.

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Invoicing Functions Deferred Revenues- What are Deferred Revenues?

Deferred Revenues:Time of invoice Time of revenue realization

Time based deferred revenuesRevenue recognition...

...dates are known

...amounts are knownExample: Rent for one year is to be paid in advance and revenuesare distributed over 12 months.

Event based deferred revenues Revenue recognition...

dates are unknown...amounts are unknown

Example: Purchase of a voucher and redemption in partial amounts at various dates.

Revenues that have not yet been realized are posted to a separate revenue account, from which they are then posted to the actual revenue account at the time they affect revenue (at a predefined time or when the services are performed).

Until now: Time based deferred revenuesWhen the receivable document is posted, it is already clear on which dates the corresponding partial revenues from the deferred revenue account will be transfer posted to the revenue account. Example: Rent for one year is to be paid in advance and revenues are distributed over 12 months.

With EhP4: Event based deferred revenues When the receivable document is posted, it is not already clear on which dates and with which amounts the corresponding partial revenues from the deferred revenue account will be transfer posted to the revenue account. Example: Purchase of a voucher and redemption in partial amounts at various dates.

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Invoicing Function Deferred Revenues

By activating the Invoicing Function DEF_REVENUES (Deferred Revenues)

you can post invoiced services that only have an effect on revenues in the future to a separate revenue account.

At the point when they have an effect on revenue, they are posted back to theusual revenue account.

To trigger a deferred revenue posting for invoiced services, you have to trigger an update of additional data in invoicing for the delayed revenue realization. You havethe following options:

Transfer posting dates for posting the deferred revenue category time-baseddelayed revenues is contained in billing items, the invoicing program uses thesetransfer posting dates.

In addition (or as an alternative), event 2615 can be used to change or redeterminethe transfer posting dates and the amounts for delayed revenue postings for eachtransferred revenue item.

The invoicing function Deferred Revenues integrates the function from Contract AccountsReceivable and Payable (FI-CA) with the same name in invoicing. This ensures thatinvoiced services can have an effect on revenues at a later date, rather than immediately.

Use

By activating the Deferred Revenues function, you can post invoiced services that onlyhave an effect on revenues in the future to a separate revenue account. At the point whenthey have an effect on revenue, they are posted back to the usual revenue account.

To trigger a deferred revenue posting for invoiced services, you have to trigger an update of additional data in invoicing for the delayed revenue realization. You have the followingoptions:

As long as the controlling information for posting the delayed revenues is explicitlycontained in the billing items, especially if the transfer posting dates are included in theitems (for category of deferred revenues = "time-based delayed revenues"), the invoicingprogram uses these transfer posting dates.

In addition, or as an alternative, you can use event 2615 to change or redetermine thetransfer posting dates and the amounts for delayed revenue postings for each transferredrevenue item.

Dependencies

To be able to use the function, you must already use deferred revenue postings in Contract Accounts Receivable and Payable. The corresponding Customizing settings mustbe maintained.

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Invoicing Function Event-Based DeferredRevenues

With the Invoicing Function DEF_REV_BY_E (Event-Based Deferred Revenues)

invoiced services only become revenue-effective when a certain event is triggered (event-based deferred revenues).

until the event is triggered, the revenues are posted to a special account for delayedrevenues.

When the event is triggered, the revenues are posted to the actual revenue account.

Invoicing function is used, when invoicing billing documents items contain controllinginformation about posting and activating event-based deferred revenues.

Billing document items must reference the deferred revenue category "Event-BasedDeferred Revenues".

In addition, the Action Code for Deferred Revenues field must contain, specifying whether deferred revenues are set up for this item, or whether already set up deferred revenues are activated - that is, posted to the actual revenue account.

When processing the event-based deferred revenues, additional data for the deferredrevenue recognition is written in invoicing. This data can be enhanced for specific customerrequirements in event 2616.

With the invoicing function Event-Based Deferred Revenues, invoiced services that only becomerevenue-effective when a certain event is triggered are posted to a special account for delayedrevenues. They are then posted to the actual revenue account when the event is triggered.UseDelayed revenues are used for services that are not revenue-effective when they are invoiced. Thepoint when the services have an effect on revenue is either known at the time the service isinvoiced (time-based deferred revenues), or it is determined at a later point when a certain event istriggered (event-based deferred revenues). This invoicing function deals with event-based deferredrevenues.The function includes the following process steps:1. Post invoiced service to account for deferred revenues2. Process event for posting deferred revenues to revenue accountThis invoicing function is used when invoicing billing documents whose items contain controllinginformation about posting and activating event-based deferred revenues. These billing documentitems must reference the deferred revenue category "Event-Based Deferred Revenues". In addition, the Action Code for Deferred Revenues field must contain an entry specifying whetherdeferred revenues are set up for this item, or whether already set up deferred revenues areactivated - that is, posted to the actual revenue account.When processing the event-based deferred revenues, additional data for the deferred revenuerecognition is written in invoicing. This data can be enhanced for specific customer requirements in event 2616.DependenciesTo be able to use the function, you must already use deferred revenue postings in ContractAccounts Receivable and Payable. The corresponding Customizing settings must be maintained.

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Event-Based Deferred Revenues Example:Purchase of a Gift and Accrual of Revenue / Costs

Example: When the gifting of content in an online store is sold the deferred revenue processing shall get started. As the content is already sold and paid but will be downloaded later (this is the Event), the revenue posting has to be deferred.The information regarding the first transfer posting has to be stored for the posting: Revenue Account to Deferred Revenue Account.Two table entries are created: DFKKDEFREV_HEAD Header entry for the entire accrual and redemption process DFKKDEFREV_POS Position entry that is responsible for the transfer posting of the amount from the revenue account to the deferred revenue account.The functionality for the initiating entry is in function moduleFKK_DEFREV_BY_EVENT_CREATE. Here one import parameter is important:I_NO_UPDATE = space: This function module writes entries into tables DFKKDEFREV_HEAD and DFKKDEFREV_POS directly. It shall be used as interface function module. I_NO_UPDATE = X: This function module prepares entries that shall be written after cumulating and checking incoming posting information in function module FKK_DEFREV_BY_EVENT_CREATE_UPD into tables DFKKDEFREV_HEAD and DFKKDEFREV_POS. If the function module FKK_DEFREV_BY_EVENT_CREATE is called from High Volume Billing and Invoicing, the invoicing process needs information from the incoming EDRs and the billing documents regarding the activity type 01 = initiate accruals. In order to keep together all items and table entries of one accrual sequence, an identifier can be used in the field Assignment Key.

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Invoicing FunctionsEnhanced Automatic Account Maintenance

The new Invoicing Functions:

ACCT_MAINTX Enhanced Automatic Account Maintenance

ACCT_MAINTXD Enhanced Manual Account Maintenance

are comparable to Invoicing Function Automatic Account Maintenance(ACCT_MAINT or rather ACCT_MAINT_D), except

cross-business partner and cross-contract account clearing postings are supported

You can use this invoicing function to clear the bill receivable against credit from other contract accounts, or you can use the credit to be posted to clear receivables from other contract accounts.

The standard invoicing program only selects open items of the contract account or business partner to be invoiced. In event 2630, you can select open items from alternative contract accounts or business partners participating in the clearing analysis.

The alternative contract account items or business partner items to be take into account for clearing are selected as items in the invoicing document with type of invoicing item0ACCTMTX. The alternative master data reference is stored in the Alternative Contract Account and Alternative Business Partner fields.

35

Solution Overview


Invoicing Functions

Invoicing Execution




Invoicing Reversal

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Individual processing transactions that create invoices for a business partner or contract account:

Mass processing transactions that create invoices for a business partner interval or contract account interval:

Invoicing in FI-CA Individual Creation (FKKINV_S)

Invoicing Execution - Transactions

Invoicing in FI-CA - Mass Creation (FKKINV_M) Create Collective Bill - Mass Creation (FKKINV_COL_M)

Invoicing mass processing transactions that can be carried out in parallel:

Invoicing (FKKINV_MA; 2600)

You can access the invoicing transactions from the SAP menu under Contract Accounts Receivable and Payable Invoicing.The invoicing transactions for parallel processing use the function for the mass activity of FI-CA.

The mass activity is the key under which the type of mass activity is defined with the related tax attributes. In the IMG, you can access the settings for the different mass activities under the technical settings for Contract Accounts Receivable and Payable.

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Invoicing transactions require the specification of posting parameters: Posting date Document date Reconciliation key (specification only required for individual run, otherwise assigned

by system)

Invoicing transactions can be started as simulation run The individual creation can be run in expert mode

For mass and parallel processing, a reconciliation key is created automatically and closed after processing is completed

For mass and parallel processing you can define the runtime end (time and date) and control the log output. You can suppress success messages.

Overview of Invoicing Transactions

Invoicing transactions can be performed as individual processing, mass processing, and parallel processing.

In expert mode for the individual creation of invoices, the invoicing functions can be activated individually, provided this is permitted in Customizing.

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Invoicing in FI-CA Individual Creation - Activation of Invoicing Functions in Expert Mode

Step 1:Function can beactivated

Step 2:Function activated/deactivated

Step 3:Expert Function

Step 1: In the definition of an invoicing process, in the subdialog Invoicing Functions, you have to assign one or more invoicing functions to the invoicing process. If you start invoicing with an invoicing process, the assignment of the invoicing functions has the following effect: Invoicing functions assigned where the indicator Function Can Be Activated is not

selected are performed. The run cannot be prevented in step 2 or 3. Invoicing does not perform invoicing functions that are not explicitly listed in the

assignment. This decision also cannot be changed by step 2 and 3. For invoicing functions where the indicator Function Can Be Activated, step 2 or 3

defines whether they are performed.Step 2: In the definition of the invoicing types, in the subdialog Invoicing Functions, you can assign all invoicing functions that are designated as can be activated/deactivated to the combination of invoicing type and invoicing category. In the assignment you must also assign the activation status. Invoicing interprets this assignment as follows: Functions that can be activated and that are not assigned to the invoicing type are not

performed. This decision cannot be changed by step 3. Functions that can be activated that have been assigned to the invoicing type with

activation status 1 Function active, cannot be deactivated in dialog, are performed. This decision cannot be changed by step 3.

Functions that can be activated that have been assigned to the invoicing type with activation status 2 Function active, can be deactivated in dialog, are performed. This decision can be changed by step 3.

Functions that can be activated that have been assigned to the invoicing type with activation status 3 Function not active, can be activated in dialog, are not performed. This decision can be changed by step 3.

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Selection Control During Invoicing Execution

Selection of Invoicing Orders

Data Selection

Creation of Invoicing Units

Invoicing Orders

Master Data To Be Billed

Billing Documents

External Billing Systems

The invoicing order is the trigger for invoicing. An invoicing order is a temporary entry in table DFKKINV_TRIG that represents a source document to be invoiced. It is used to select the source documents to be invoiced and is deleted once the source document has been successfully processed in invoicing. The invoicing order is created if: A billing document is created for invoicing (document type INVBI) Individual invoices of a collective bill are created (document type COLBI) An SD billing request for integration in Convergent Invoicing is created (document type SD)The user starts the invoicing transactions required with this invoicing process, specifying his selection conditions.The invoicing report determines the contract accounts for which invoicing is to be carried out by reading the selection specifications of the invoicing trigger DFKKINV_TRIG with the source document types appropriate for the invoicing process and that can trigger invoicing. You can use the Analyze Invoicing Orders report to select invoicing orders for invoicing. You can start the program as an update run or a simulation.You can process the invoicing orders selected by the system as follows: Invoice one or more invoicing orders You select one or more invoicing orders for the same contract account and invoice them. Invoice invoicing orders for a specific contract account

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Solution Overview


Invoicing Functions

Invoicing Execution




Invoicing Reversal

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Billing & Invoicing in FI-CA- Data Model

Billing Documents Invoicing in FI-CA FI-CA

Billing Document Header

Billing Document

Items

Additional Items

Invoicing Order Invoicing Document Header

Invoicing Document

Items

BW Extraction Orders Charges and

Discounts

Charges and Discounts

History

Posting Doc. Reference Table

FI-CADocument

In billing and invoicing, the following documents are updated:

Billing: Invoicing order (DFFKINV_TRIG): In this table, temporary invoicing orders that each represent a source document to be invoiced are stored.Billing document header (DFKKINVBILL_H): From the invoicing orders, billing documents with a document header and line items are created. Items of the billing document (DFKKINVBILL_I) Additional items of the billing document (DFKKINVBILL_A): In addition to the line items you can enter additional items that, for example, can contain special information relevant for invoice printing (for example, itemization of a telephone bill, and so on).Invoicing: Invoicing document header (DFKKINVDOC_H): From the invoicing orders, invoicing documents with a document header and line items are created. Items of the invoicing document (DFKKINVDOC_I) Invoicing: Posting document reference table (DFKKINVDOC_P): The FI-CA documents and line items posted or processed in invoicing are linked to the invoicing document by means of a special reference table DFKKINVDOC_P. Invoicing/reversal history source document (DFKKINVDOC_S): The source documents processed in invoicing (billing documents, SD documents, and so on) are linked with the invoicing document by means of a special reference table DFKKINVDOC_S. Invoicing document: Charges and documents (DFKKINVDOC_C) Invoicing document: Charges and documents history record (DFKKINVDOC_CH)

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Billing Documents

When billing documents are transferred from external systems, new billing documents with sequential numbers are created in the SAP system.

External number assignment must not be specified. Billing documents can be created with different document types. Billing documents can be created in several processes in parallel. For each

document type, define as many number ranges as you want to use parallel processes.

You can use number range object FKKINVBILL to manage the number range intervals for billing documents.

During the transfer of billing documents from external systems, new billing documents with sequential numbers are created in the SAP system.

You must not specify external number assignment. Internal number assignment is generally always used for the transfer of external documents. The billing document numbers are numerical. Alphanumeric intervals are therefore not permitted.

You can create billing documents with different document types. To provide a better overview, SAP recommends that you use different number ranges for different document types.

You can create billing documents in several processes in parallel. For each document type, define a number range for each parallel process.

You can use the number range object FKKINVBILL to manage the number range intervals for invoicing documents.

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Invoicing Documents

Invoicing documents can be created with different document types. Document types can be assigned to Invoicing Process, Invoicing Type, Invoicing

Category You can use number range object FKKINVDOC to manage the number range

intervals for invoicing documents.

The successful processing of an invoicing unit in an invoicing process leads to the creation of an invoicing document. The invoicing document stores information required for printing an invoice and is therefore the basis for invoicing printing that, due to this data retention, can be decoupled and performed as a downstream process. The invoicing document also documents the invoicingprocess, retains data for subsequent processes, such as invoicing reversal, and saves data fordisplay and evaluation. In particular, the invoicing document provides information about:The invoice data provided to the customer (for example, invoice number, invoice due date, invoiceamount)How the invoice for a contract account arose (for example, invoicing process, invoicing type and category, time of creation)The processing mode in which invoicing was performed (simulated, posted, reversed)Which source documents were processed in an invoicing unit and were therefore grouped to oneinvoiceHow the individual source documents were processed in the invoicing process for the invoicedisplay and in accountingWhich further invoicing items were displayed on the invoice and processed in accounting (forexample, tax items, items from additional information)Which posting documents were created or processed in an invoice and what their businessmeaning is from the view of the invoicing documentYou cannot delete real (not simulated) invoicing documents. If the content of a billing document isnot correct, it can be reversed. During the reversal, a reversal invoicing document is created. Theposting documents created during invoicing are reversed within the program with a documentreversal from FI-CA. You can the invoice the source documents again. Invoicing documents are simulation documents if the invoicing process that creates them was started in simulation mode. Simulation documents have no influence on the subsequent update runof the invoicing process; specifically, when you create simulation documents there are no postingsin FI-CA. Simulations are used for check and test purposes. You cannot reverse the simulationdocuments.

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Contract Accounts Receivable and Payable Documents

The FI-CA documents are documents of the number range object FI-CA Document (FKK_BELEG).

They are classified by the FI-CA document type.

A number range for the creation of individual documents is assigned to each document type.

Further number ranges can be assigned for the automatic creation of a larger number of documents in parallel background processes.

In this activity, you assign document types to the posting documents to be created in invoicing and invoicing reversal. As standard, the assignment is per invoicing process and reference document type. However, you can differentiate further by invoicing type and invoicing category.

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Posting Document Reference TableInvoicing in FI-CA FI-CA

Invoicing Document Header

Invoicing Document

Items

BW Extraction Orders Charges and

Discounts

Charges and Discounts

History


FI-CADocument

Reference Table for Invoicing Documents and FI-CA Document

The FI-CA documents and line items posted or processed in invoicing are linked to the invoicing document by means of a special reference table DFKKINVDOC_P. This reference also receives a reference document type that reflects both the business and invoicing-internal meaning of these posting documents and line items.

The reference document types used are summarized in the value table TFK2605.

Note: The indicator Document Posted in Current Invoicing indicates the reference document types whose FI-CA documents are to be created in invoicing. It is also used in Customizing to assign a document type to these FI-CA documents. The indicator Can Only Be Reversed Together with Invoicing Document indicates the reference document types whose FI-CA documents can only be reversed together with the invoicing document (in contrast to those that can also be reversed with the FI-CA document reversal transaction FP08 independently of the invoicing reversal).

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Solution Overview


Invoicing Functions

Invoicing Execution




Invoicing Reversal

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Reversal Transactions

Individual processing transactions that reverse invoices for a business partner or a contract account:

Mass processing transactions that reverse invoices for a business partner interval or contract account interval:

Reverse Invoices (individual reversal) (FKKINV_REV_S)

Reverse Invoices (mass reversal) (FKKINV_REV_M)

Mass processing reversal of invoicing that can be carried out in parallel:

Invoicing Reversal (FKKINV_REV_MA; 2610)

An invoicing document can be reversed. All posting documents posted during the creation of this invoicing document are reversed and the source documents invoiced are designated as Not Invoiced Yet. These source documents can then be invoiced again.

Invoicing function: The function is reflected with the invoicing function Invoicing Reversal.

To reverse the invoicing documents you can use the individual reversal and mass reversal functions. Selection can take place using the individual invoicing document to be reversed or by means of the reconciliation key. If selection is by means of the reconciliation key, all invoicing documents belonging to the reconciliation key are reversed. In the case of a parallel mass reversal, parallel processing is performed using the reconciliation key.

When you reverse an invoicing document, the following actions are performed (among others): A reversal (invoicing) document is created. This corresponds to an exact copy of the invoicing document to be reversed but has the number of the reversed invoicing document in the document header in the REVERSEDDOC field. The number of the reversal document is defined in the header of the reversed invoicing document in the REVERSALDOC field. The number of the reversal document is defined in the REVERSALDOC field in the reference table DFKKINVDOC_S of the invoicing document to be reversed. The FI-CA posting documents posted during the creation of the invoicing document to be reversed are reversed (with document origin 78). One invoicing order DFKKINV_TRIG is created for a subsequent new invoicing per source document.

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Invoicing and Reversal History

Invoicing in FI-CA FI-CA

Invoicing Document Header

Invoicing Document

Items


FI-CADocumentBilling Document

Header

Invoicing Order

Invoicing and Reversal History Source

Document

Billing Documents

The source documents processed in invoicing (billing documents, SD documents, and so on) are linked with the invoicing document by means of a special reference table DFKKINVDOC_S. This reference also receives a reference document type SRCDOCTYPE (see above) that describes the type of source document.

This enables you to determine which invoices were created for a billing document.

For each source document its invoicing and reversal history can be determined. There can be a maximum of one not reversed invoicing document per source document.

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Reversal Clearing Reset

Clearing Reset

For an individual reversal, the following options exist for resetting clearing:

No clearing reset Automatic clearing reset Automatic clearing reset with partial reset Clearing reset in dialog

For a mass reversal, the following options exist for resetting clearing: No automatic clearing reset Automatic clearing reset Automatic clearing reset with partial reset

With regard to clearing reset, you have the following options: No clearing reset: No reversal of invoicing document. An error message is written to the

reversal log. Automatic clearing reset (without dialog) but no partial reset of clearing: The invoicing

individual reversal only posts the reset of clearing for clearing payments for the invoicing document to be reversed if there are no further documents (receivables) that are simultaneously cleared by these payments. If further documents have been cleared with the invoicing document, the reversal is cancelled and an error message is written to the reversal log.

Automatic clearing reset and partial reset of clearing (without dialog): Clearing is reset for those items of the clearing payment that have cleared the invoicing document to be reversed. The invoicing individual reversal also behaves in this way if the invoicing document has been cleared with further documents (receivables).

Clearing reset in dialog: The individual reversal of invoicing displays a dialog box and prompts the user to confirm that a clearing reset is to be posted.

For collective bills, you can define whether the reversal can be performed even if the collective bill has already been cleared.

For invoicing documents that refer to other documents (individual invoices for collective bills), you can define whether a reversal is permitted if the collective bill has already been created.

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Appendix



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Enterprise Services EhP4

Billing Document

Create Contract Account Invoice Request (synchron)

Invoicing Document

Create Contract Account Statement (synch.) Find Contract Account Statement by Elements Read Contract Account Statement (synchr.)

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