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.
Key Concept

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.

Rohana Gunawardena

Rohana Gunawardena heads the SAP practice division at Exium Inc. Exium is a leading business and technology consulting firm that enables companies to achieve their strategic business goals. Exium specializes in delivering superior IT solutions using ERP systems, with a special focus on SAP products. Rohana has been working with SAP since 1992. During his career he has assisted multiple clients on detailed system correction projects, such as correcting inventory balances, controlling area reorganizations, retrospectively activating group currency, and optimizing inter-company accounting transactions. He has spoken at many SAP conferences and has published more than 20 articles in Financials Expert, SCM Expert, and SAPtips on various aspects of SAP. His presentations have focused on Financials module selection, the order-to-cash process, global rollouts, business segment reporting, cross-module integration, and the financial impact of SCM transactions. Rohana is widely acknowledged as a leading SAP expert. Rohana is a Fellow of the Institute of Chartered Accountants in England & Wales. Previously Rohana has worked with the consulting practices of Accenture, Deloitte, and PwC.

Rohana will be presenting at the upcoming SAPinsider Financials 2018 conference October 16-18 in Prague. For information on the event, click here.

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