Use

An invoicing plan comprises a list of scheduled dates on which invoices relating to PO items covering materials or services are to be entered in the system and subsequently paid.

The invoicing plan facilitates the largely automated creation and payment of invoices for both recurrent procurement transactions (e.g. rental or leasing) and transactions that are to be invoiced in stages (e.g. following the completion of individual phases of a construction project).

The following two invoicing plan types are available:

Periodic Invoicing Plan

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

For example, a $600 leasing charge for an automobile is invoiced and paid on the 27th of each month.

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.

For example, payment with respect to a certain construction project is to be effected in three stages as follows: 30% of the value of a PO item is to be invoiced and paid following completion of the first construction phase, another 30% after the second phase, and the rest on completion and acceptance of the final phase of the work.

Prerequisites

In order to work with an invoicing plan, you must maintain the following settings (among others) in Customizing:

You can also specify whether the invoicing dates are to be entered/maintained manually or whether the system is to suggest them.