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We`ve all heard “work smarter, not harder”, and we admit that it makes a lot of sense. Yet sometimes we
of a service from the relevant ven- your checking account will be direct- This variant is typically used with
dor? Since your transactions (such ly debited by the mortgage company projects that involve the procure-
as leasing or renting) are repetitive on the 15th of each month. ment of external services, wherein
in nature and you do not care about you pay a certain percentage based
their delivery or completion, is it pos- What is the Invoicing Plan on the completion of discrete phases
sible for you to schedule invoice gen- Framework? in the project. The gross amount of
eration and payment, instead of han- The Invoicing Plan is part of the contract (or PO, or PO line item)
dling the invoices manually? Does the purchasing and servicing sub- is distributed across the due dates
the procurement of certain goods or modules of Materials Management that you and your vendor (or service
services allow you to make install- (MM). It is also tightly integrated provider) have negotiated. Unlike
ment payments? If the answer to all with Logistics Invoice Verification the periodic Invoicing Plan, the only
these questions is a “yes”, you should (LIV). Since we are talking about option you have with respect to due
be using SAP’s Invoicing Plan func- invoice payments, it is no surprise dates is to enter them manually. The
tionality. You can use Invoicing Plans that the function is tightly integrated only way to avoid manual entry is to
in standard R/3 if you are on release with Financials (FI), and within this create a new plan with reference to
4.0A or higher. module, Cash Management (CM) in an existing plan or template.