Billing documents have a large variety of purposes. These can be standard invoices, credit or debit memos, invoices for services etc. They are customizable in terms of usage and processing which means that you can choose how the billing document is filled with data, how the pricing is determined â€“ is it re-determined or just inherited from sales order, we can have a billing document reference outbound delivery or sales order. We can have all sorts of different settings for different billing document types to suit our specific needs. In this lesson you will get acquainted with the billing process and find out about the actions that need to be taken in order to be able to create a billing document. Billing documents charge the customer (bill to party defined as partner for this function) with the amount from the billing document. From that point it is waiting to be paid for. Bill to party has the exact amount of time to pay for the billing document as stated in the payment terms in the billing document. So if the billing document states that it is payable 30 days after shipment, the bill to party has that much time to pay or otherwise the billing document will be overdue. It will show up in the reports and then the appropriate actions can be taken. In the accounting, billing document is recorder as accounts receivable, which means that our company is receiving revenue by this document.