Invoicing Plan 

Use

The invoicing plan is a utility allowing you to specify when and for which amount you wish to create invoices.

The creation of the invoice is independent of the receipt of the goods or the service (service entry).

In agreement with your vendor, you can have invoices created automatically on the basis of invoicing plan data and initiate their payment. In this case, the system employs the Evaluated Receipt Settlement (ERS) process.

Integration

When you save the invoicing plan, data is passed on to purchase order commitments, and to Cash Management and Forecast.

Prerequisites

Before you can work with the invoicing plan, the following conditions must be satisfied:

●     Create the necessary settings in Customizing for Purchasing under Purchase Order à Invoicing Plan. For example:

○     Invoicing plan type

○     Date categories

○     Date descriptions

○     Date proposals

●     The PO item must have an account assignment.

●     You must use Logistics Invoice Verification

If you wish to use automatic settlement for periodic invoicing plans, automatic invoice creation must be agreed with your vendor. Eval. Receipt Sett. Delivery must be selected in the vendor master record.

We recommend working with framework orders.

An extended validity period and a ”reason for cancellation” are defined in the header of this type of purchase order. The specified validity period can be adopted automatically for the invoicing plan. For this purpose, you maintain the start and end dates with the rules “Agreement Start” and “Agreement End” in Customizing for the invoicing plan type.

If you work with standard purchase orders, you must maintain the date rules differently in Customizing, since there is no validity period is available for adoption in the invoicing plan. Alternatively, you can also manually enter the start and end dates directly in the invoicing plan of the purchase order.

Features

You have the following options:

●     Periodic invoicing plan

The total value of the PO item is invoiced on each due date set out in the invoicing plan.

●     Partial Invoicing Plan

The total value of the item to be invoiced is broken down and distributed over the individual dates of the invoicing plan.

Periodic Invoicing Plan

In the case of the periodic invoicing plan, the total value of the PO item is invoiced on each due date.

The periodic invoicing plan can be used for regularly recurring procurement transactions (e.g. rental, leasing, or subscriptions).

A monthly sum of $600 is charged for a leased car (represented by an item of a PO). This sum is invoiced and paid on the last day but one of each month.

In Customizing for Purchasing, you can define whether the dates are to be maintained manually or whether the system is to suggest invoicing dates according to the specified rules.

Partial Invoicing Plan

In the case of the partial invoicing plan, the total value of the PO item is broken down and spread over the individual dates of the invoicing plan.

The partial invoicing plan can be used for the invoicing of high-cost material or projects involving the procurement of external services that are to be subject to stage payments (such as plant construction projects, or the invoicing of individual stages of a building project following completion in each case).

You can also flag due dates in a partial invoicing plan as dates for advance payments.

The amounts corresponding to these dates are then not taken into account in the sum total of the invoice items because advance payments are set off against later invoices.

A purchase order item relates to building project no. 1 with a total value of $900,000. 33.3% ($300,000) of the total value is due to be invoiced and paid on completion of the first phase of construction, a further 33.3% ($300,000) on completion of the second phase, and the rest ($300,000) following completion and acceptance of the 3rd and final phase.

In the partial invoicing plan, you wish to maintain the invoicing dates agreed with the vendor yourself. Therefore there is no system support in the form of date proposals.

However, if you wish to have due dates suggested by the system as an entry aid, you can reference an existing plan when creating a new invoicing plan. Date proposals can then be adopted from the former.