Differential invoices enable you to avoid the more common, but also more complex, procedure of rebilling both in the Billing area of Sales and Distribution (SD) and in Procurement and Logistics.

Billing in Sales and Distribution (SD): The key function of this process is that you can repeatedly bill the full amount for a delivery or an order. The business background of this function lies in commodity trading. The final price and the final billing document for the delivered goods are normally determined weeks or months after the loading process. A long-term average value based on the price quotations for the commodity is created during this period to take into account the price risk of the deal. You can also redefine the quantity and quality of goods. Alternatively, it is common practice to issue early on a provisional invoice shortly after loading that is based on probable values for price, quantity, and quality. Differential invoices can be created at any time between the provisional and the final billing document.

Logistics Invoice Verification (MM): The creation of differential invoices enables you to create and check these kinds of multiple expense invoices for a goods receipt.

In both cases, the relevant items can be priced using standard pricing and using the integrated commodity pricing engine (CPE), which has been enhanced further.

The functions for differential invoices by the following business functions: