SAP FI-AR Sales Invoicing Process Flowchart

Categories: SAP Finance & Controlling (FICO)

Tags: Accounts Receivable (FI-AR), Customer Invoicing, Invoice Process

Ref: https://erp-docs.com/3054/sap-s4hana-fi-ar-business-blueprint-bbp-sample-document/

SAP S4HANA Finance Accounts Receivable Domestic-Export-Service Commercial Sales Invoice Process Flowchart

Picture Description

This flowchart outlines the process for handling commercial sales invoices for domestic, export, and service sales within SAP S/4HANA. The process is divided into several key steps, with specific accounting entries at each stage.

The process starts with Sales Order Creation using transaction code VA01.
The system then determines the type of sale based on the sales order: Domestic Sales, Export Sales, or Service Sale.
For Domestic/ Trading and Export Sales, the system checks if there’s a delivery. If there is a delivery, a delivery document is created. This is followed by a Goods Issue (PGI) using transaction code VL01N , which triggers accounting entries debiting the Cost of Goods Sold (COGS) account and crediting the Inventory account. The amount is determined by multiplying the standard/moving average price by the quantity.
For Service Sales, there’s no delivery or goods issue step. The system directly creates an invoice after determining it’s a service sale.
Customer Invoice (aka billing) is created with reference to the sales order using transaction code VF01, generating an accounting document.