Billing and returns overview

- [Instructor] After sales have been made … and orders have been shipped, … the final step is billing the customer, … or if something was not correct in the order, … setting up a return. … Let's take a look at billing and returns in SAP. … First, we'll cover the components of billing. … Invoices in SAP record the amount to be paid … and the details of the material or service … that was provided to the customer. … There are two strategies for invoice creation in SAP. … The first type is order-based billing, … and in this scenario, invoices are created … based directly on the sales orders. … In this case, a company usually wants to receive payment … before the order is shipped. … So the invoice is sent shortly after the order is created. … Billing can also be based on delivery. … In delivery-based billing, invoices are created … after the order has been shipped … and the goods have been issued to the customer. … Invoices are created by copying information … in from the sales order or from the delivery document. …