The invoicing plan is a facility that allows you to schedule desired invoicing dates for planned procurements independently of the receipt of the relevant goods or performance of the relevant services. It lists the dates on which you wish to create and then pay the invoices in question.

You do not wait each time for the vendor to submit an invoice for goods supplied or services performed, but can have invoices created automatically by the system on the basis of the data available in the purchase order and then release them for payment to the vendor.

To be able to work with invoicing plans:

• You must maintain certain settings in Customizing for Purchasing under Purchase Order à Invoicing Plan, such as the following:

• Invoicing plan type
• Date categories
• Date descriptions
• Date proposals

• The PO item must have 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.

The following two types of invoicing plan are available:

• Periodic invoicing plan
• Partial invoicing plan

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

It facilitates the largely automatic creation and payment of invoices within the framework of the invoice verification process. The periodic invoicing plan uses evaluated receipt settlement (ERS) program functionality.

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

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.

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.

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.

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.