Billing Orders

This chapter provides an overview of the billing process, lists prerequisites, and discusses how to:

• Use direct invoicing.

• Populate billing.

• Prepare nonstock products for billing.

Understanding How Orders Are Submitted For Billing

PeopleSoft Billing invoices customers for sales orders. Information is passed to PeopleSoft Billing by using either:

• Direct Invoicing.

• Populate Billing.

Invoices can be generated by either:

• Ship from warehouse from shipment history in PeopleSoft Inventory.

• PeopleSoft Order Management business unit.

Note. Divide sales order transactions among different Billing business units if you are billing by Inventory business unit. Each Inventory business unit can be linked to a separate Billing business unit. A PeopleSoft Order Management business unit can be linked only to a single PeopleSoft Billing business unit.

After the invoice is created, the invoice number, date, and line number appear on shipment history inquiries in PeopleSoft Order Management.

Note. Sales orders that are created from PeopleSoft Contracts are billed from Contracts. Shipment history data for contracts sales orders are not updated with invoice information.

Using Bill-by Criteria

PeopleSoft Billing uses the bill-by concept to group sales activity on invoices. For example, it can generate a separate invoice for each shipping ID or for each sales order number. Define a different bill by for each customer so that one customer is billed by order number and another by shipping ID. Establish bill-by criteria on the Bill By Identifier page in PeopleSoft Billing.

Payment Method, Payment Terms Code, and Address Sequence Number are implicit bill by for PeopleSoft Order Management.

Note. Associate the Bill By Identifier with a Bill To customer on the General Information - Bill To Options page. If sales transactions are liable for value added tax (VAT), these fields are implicitly included in the bill-by fields list for the bill-by identifier: Ship To Country, Ship From Country, Buyer's VAT Registration Country (customer's VAT registration country), Seller's VAT Registration Country (reporting country) and VAT Treatment Group.

See Order Processing in a VAT Environment.

Pricing Considerations for Billing Sales Orders

Sales orders can have pricing UOM's that are different from the ordering UOM. The Populate Billing (OM_BILL) will always invoice order activity in the pricing UOM. The UOM and prices reflected on the invoice will be in the pricing UOM.

If you are using tiered pricing and an order schedule is broken out into more than one pricing schedule, quantities from each pricing schedule will be on individual lines of an invoice. In this example, there are two pricing schedules for an order schedule–the first schedule for 10 units at 10 USD and the second schedule for 10 units at 8 USD. If the pricing schedules shipped before the Populate Billing process was run, there would be two invoice lines, even though there was only one order schedule. If all of the schedules have not shipped before the Populate Billing process is run, the lines would be invoiced in this example. Using the same scenario with two pricing schedules, however only 7 units shipped before the Populate Billing process was run. There would be one on an invoice for 7 units at 10 USD. When the remaining 13 units shipped and the Populate Billing process was run again, there would be two additional invoice lines – one line for 3 units at 10 USD and another line for 10 units at 8 USD.

Billing Considerations When Using Deliveries

When using deliveries, you can control when the demand and the freight for that demand are billed by setting the Commit Freight for Billing flag on each delivery. Many sites want to be able to bill appropriate freight charges on the same bill as the shipment. With third-party freight integration, there are delivery management and freighting activities that may occur after shipments have been created. With this capability, some sites need to be able to prevent shipments from being billed until the freight amount has been calculated and assigned to the delivery. This flag is available on the delivery to help coordinate the timing of shipment and freight billing. The delivery Commit Freight for Billing flag can be set manually in the delivery management workbench while performing delivery management and freight activities; when creating a shipment and manually assigning or calculating freight amounts in shipping/issues; when running the batch delivery management and freight process; or when running various batch fulfillment processes and assigning or calculating freight, including batch shipping.

Delivery assignments may not be required for every shipment (see Use Deliveries setting on the Order Management business unit and the Inventory business unit). Only when a shipment demand line is assigned to a delivery will the system verify that the Commit Freight for Billing flag is set. If a delivery is assigned to the shipped and depleted demand line, OM_Bill will wait until the delivery Commit Freight for Billing flag is set to Yes before passing the demand and the freight amounts for the orders on that delivery to Billing.

The Commit Freight for Billing flag on the delivery is used to indicate to the system that the freight amounts are ready to be billed and costed.

See Also

Committing Freight Charges to PeopleSoft Billing and Cost Management

Using Direct Invoicing

Direct invoicing streamlines the billing process combining several steps in the order-to-invoice cycle. PeopleSoft designed direct invoicing for order management environments that require immediate invoicing for shipped goods, instead of a traditional cycle billing. Direct invoicing is active by default. Leave the option selected for customers who require time-sensitive invoices based on shipment ID. Deactivate the option for customers who prefer summarized billing (perhaps monthly) on the customer General Information - Bill To Options page. The direct invoicing option moves by defaults to the Bill To section of the Order Entry Form page on the sales order. Because you can change the direct invoicing option by order as well as by customer, you can configure customers' billing requirements.

If you do not use the direct invoicing option, you must run individually each of the processes that are included in direct invoicing.

Note. When using the Direct Invoicing, you must specify the Range Selection ID and Direct Invoicing on the Bill-By Identifier page.

Direct invoicing is run from PeopleSoft Inventory or PeopleSoft Order Management. This table discusses each option to run direct invoicing:

Warning! To remove processes from the Direct Invoicing job, you must modify the PeopleCode that controls this job. Because there is more than one Application Engine application being run by this job, only the first application is defined as a process in the job definition. PeopleCode sets up the additional Application Engine request for additional applications, such as PeopleSoft Currency Conversion. You must modify the PeopleCode to disable the creation of this request.

Important! Direct invoicing always runs on a server, never on a client. You must select a server that is appropriate for direct invoicing processes. For example, if you are running a third-party software, you need to select a server that is appropriate for tax module processing in that operating environment.

See Also

Processing Billing Interface Activity

Shipping Inventory

Populating Billing

The section provides an overview of the Populate Billing process, lists prerequisites, and discusses how to run the Populate Billing process (OM_BILL).

Understanding the Populate Billing Process

You can populate PeopleSoft Billing with sales orders data for invoicing using the Direct Invoicing from the Populate Billing run control page. You can select either Direct Invoicing (DIRCTIVC) or Direct Invoicing – No Load (DIRCTIV2).

To populate PeopleSoft Billing without using the Direct Invoicing job, these two processes must be completed:

• Populate Billing (OM_BILL): Populates the interface tables in PeopleSoft Billing with the shipment history that is from PeopleSoft Inventory:

  • INTFC_BI

  • INTFC_BI2

  • INTFC_BI_AEDS

  • INTFC_BI_NOTE

  • INTFC_BI_HDR

  • INTFC_BI_EXSD

  • INTFC_BI_TAX (This table is only used for fully paid counter sales where Order Management passes the tax detail to Billing and Billing does not recalculate taxes.

• Billing Interface (BIIF0001): Moves the data from the interface tables to the PeopleSoft Billing tables in order to finalize and print the invoices.

These processes can be run individually or together with the Populate Billing job (OM_IVC), which combines both processes and runs these processes:

• Populate Billing (OM_BILL)

• Billing Interface (BIIF0001)

• Process VAT Defaults (BIPVAT00)

Note. If you run the Populate Billing process individually, run the Billing Interface to move the data from the interface tables to the Billing tables to create invoices. Use the Populate Billing interface ID from the OM Billing Message Log page to run the Billing Interface.

Note. The Billing Interface table (INTFC_BI) does not store the invoice number. After the Billing Interface is run, it updates the IN_DEMAND_BI table with the Invoice Number and the Invoice line number.

Note. Sales orders that are generated from PeopleSoft Contracts are billed from Contracts, not Order Management.

Prerequisites

Associate a PeopleSoft Billing business unit, distribution codes, a bill type, a bill source, and product IDs for restocking, freight, and miscellaneous charges with the PeopleSoft Order Management business units or PeopleSoft Inventory business units. The Inventory business unit billing options take precedence over the billing options on the Order Management business unit. The bill type field on the sales order defaults from the customer or order group, in that order. If there is not a bill type on the sales order, the Populate Billing process will determine if the bill type field from the Inventory Business Unit or Order Management Business Unit will be used.

Important! The billing interface is structured to work with PeopleSoft Billing. If you use a own or a third-party billing system, you cannot use the Populate Billing process.

Note. Business unit setup also affects returned material authorization (RMA) processing. The RMA Adjustments process (BIRMAADJ) in PeopleSoft Billing requires that you always associate an Order Management business unit with a Billing business unit, even if you are invoicing by Inventory business unit.

As a prerequisite for the Populate Billing process, set up these parameters.

1. Establish business unit options.

   1. If you are billing by billing business unit, select a Billing business unit with an Order Management business unit on the Order Management Definition - Order Management Setup page and Accounting and Billing page.

   2. If you are billing by inventory business unit, select the Billing business on the Inventory Definition - Business Unit Definition page and the Inventory Definition - Business Unit Options: Revenue and Billing Defaults page.

2. Establish distribution codes and required billing options to send information to PeopleSoft General Ledger through PeopleSoft Billing.

   1. If you are billing by billing business unit, use the Accounting and Billing page.

   2. If you are billing by inventory business unit, use the Inventory Definition - Business Unit Options: Revenue and Billing Defaults page.

3. Establish automatic numbering for invoices on the Installation Options - Billing - General Options page.

4. On the Accounting and Billing page:

   • Determine how weight and volume and total order price adjustments are sent to PeopleSoft Billing

   • Determine whether discounts and surcharges pass to PeopleSoft Billing and appear on invoices.

See Also

Defining Your Operational Structure in PeopleSoft Inventory

Defining Billing Installation Options

Setting Up PeopleSoft Order Management Business Units

Page Used to Populate Billing

Populate Billing Page

Access the Populate Billing page (Order Management, Quotes and Orders, Create OM Billing Entries, Process OM Billing).

Set up the EMP_SERVLET for the notifications used with URL Locations prior to running the process.

See Setting Up the URL Location for Notifications.

Preparing Nonstock Products for Billing

This section provides an overview, common elements, and discusses how to :

• Process billing activity automatically.

• Process billing activity manually.

Understanding Billing Nonstock Products

Because non-stock products are not shipped, the system builds shipment history for nonstock products when they are marked for billing.

When an order is saved or Populate Demand (OM_DEMAND) is run, non-stock products and products that are shipped directly from the vendor to the customer, will be inserted as IN_FULFILL_STATE = '10' (Pending) in IN_DEMAND. When Mark Lines for Billing is run, the status in IN_DEMAND will be updated to '70' (Depleted).

A row will be inserted into IN_DEMAND_ADDR with the correct ship to address for the order schedule. If an override exists, that address will be used and the IN_DEMAND.ADDR_OVRD_LEVEL will be set to 'D'. If the quantity is less then the quantity scheduled, a new pending row will be inserted into IN_DEMAND representing the difference between the quantity shipped and the quantity scheduled.

Note. You cannot Mark Lines for Billing if an active hold exists for the schedule and the pass to billing flag for that hold type on the order management business unit definition is turned off.

Note. Sales orders that PeopleSoft Contracts generates that have non-stocked or direct-shipped order schedules must also run any of the options to mark lines for billing to create the shipping history and costing data for Order Management and Inventory. Only non-stock products that are type General Use Including Contracts or General Use Excluding Contracts are processed through Mark Lines for Billing.

The Populate Billing process handles billing for products and product kits differently:

• Products for shipment history are selected, even if the scheduled quantity is only partially shipped.

  For example, if 10 workstations are scheduled and four are shipped today, then four are billable today. If six more ship next week, then they are billable when shipped. In other words, products can be billed even if the order line quantity is partially shipped. A bill line is eventually generated for each shipment after the billing interface is run.

• Product kits, on the other hand, are billable when the required components ship in ratios that form a complete kit. If you have components that are not marked as required, those components are not considered when determining if a full kit has shipped.

  A product kit that has required stock and nonstock items is invoiced when the stock items are shipped.

  For example:

  An order is placed for five of product kit 670001−Standard Desktop System. This table lists the components for each kit and the components that are available to pick and ship:

  Components	Required	Component Per Kit	Component Quantity Available
  10001-Monitor	Yes	1	5
  10002-Keyboard	Yes	1	5
  10003-Hard-drive	Yes	1	4
  10004–Software	No	1	5

  Because only four hard-drives are available, four kits are shipped and PeopleSoft Billing invoices for the four complete kits that are shipped. The non-required component is not included in the calculation.

Billing Product Kits/Configured Kits with Nonstock Components

If a kit contains required nonstock products, the number of these components that are marked for billing must equal the available stocked components to maintain the correct kit completion ratio.

Note. A product/configured kit that has required stock and non-stock items is invoiced when the stock items are shipped. If you select the Mark for Billing at Order Save option on the Order Entry Features page, the non-stock items are marked for billing when the order schedule is saved. If the Populate Billing process is run before the stocked components are shipped, the kit is not invoiced, even though the non-stock items are billable. The kit is invoiced when the stock items are shipped.

Changes to Product Kit Schedules

When an order schedule for a product kit is saved with a status of open, the demand for the stocked components is staged in the PeopleSoft Inventory demand table (IN_DEMAND) as separate demand lines that are tied to the parent product ID. The date for the demand lines is the scheduled shipment date of the order schedule. The system compares the effective date for each of the stocked components to the shipment date to determine the valid components for the kit at the time of shipment.

If you mark a product kit component obsolete after demand for the kit is sent to PeopleSoft Inventory, the demand for the kit is not changed. The fulfillment and invoicing process for the schedule continues. To correct Inventory demand, you must cancel the existing schedule for the kit and add a new schedule.

See Changing Orders.

Common Elements Used in This Section

Pages Used to Process Nonstock Products for Billing

Automatically Process Billing Activity for Nonstock Products

Access the Mark Lines for Billing page (Order Management, Quotes and Orders, Create OM Billing Entries, Mark Lines For Billing).

Manually Process Billing Activity for Non-Stock Products

Access the Mark Lines for Billing page (Order Management, Quotes and Orders, Create OM Billing Entries, Mark Lines For Billing).