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 Understanding How VAT is Used with Sales Orders.

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.