Secure Your Revenue Stream: Ensure That SD Billing Document Invoices Are Posted in FI
- by Rohana Gunawardena, SAP Practice Director, Exium Inc.
- March 15, 2006
It is possible to have an SD billing document without a corresponding FI invoice. This type of error can result in significant under-reporting of revenue. Take these steps to ensure all SD invoices are reflected accurately in FI-AR.
Two R/3 modules, SD and FI, cover the order-to-cash process. Invoicing represents the interface between SD and FI, and there is a high risk if the two teams are not working in cooperation. If the teams are not aware of their actions’ impact on the others, do not understand the end-to-end process, and do not have clearly defined areas of responsibility, or if they simply do not talk to each other, the results may be disastrous.
A critical part of any finance team’s responsibility is securing the corporate revenue stream: making sure customers are invoiced for all amounts owed and that payment is received. This has always been a crucial business requirement, even before Sarbanes-Oxley. Neglecting this process can leave a large amount of clean- up, and it could have dire consequences for your revenue.
The accounts receivable team that chases bad debts for a company only sees what has been posted to FI-AR. If the FI invoice for an SD billing document is not posted, the accounts receivable team does not know about it. Billing may not occur for several reasons: lack of data necessary for completion, improper master data setup, or configuration errors.
I will first explain how billing documents are created and where you can look to detect billing errors. Then I will discuss the major causes of billing errors and how to ensure they do not reoccur. See the sidebar, “How SD Billing and FI Invoice Work Together,” for a detailed explanation of the process.
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