Understanding Work Order Billing and Paying

The typical billing and payment process includes accumulating work orders to bill and pay, creating and printing invoices, and recording journal entries for income and receivables. The typical payment process includes accumulating work orders for payment, creating and printing invoices, and recording journal entries for payables.

Invoices are based on billable work orders, and the first step in the billing process is to accumulate the billable work orders. Vouchers are based on payable work orders, and the first step in the payment process is to accumulate payable orders.

When you perform work order billing, you create accounts receivable entries for customers who you invoice. You also create accounts payable entries for service providers whom you pay. Based on a processing option in the SWM Work Order Workfile Generation program (R1775), you can select whether to process billable and payable records at the same time or perform one process before the other.

When you run Work Order Workfile Generation, the system gathers the work orders that are eligible for billing and payment from the Work Order Parts List table (F3111), the Parts Extension table (F31171), the Work Order Routing table (F3112) and the Routing Instructions - Extension table (F31172) and then creates Billing Detail Workfile records (F4812).

For multicurrency environments, the system retrieves currency information from these sources:

Source	Currency Information
When billing for a part or routing	Domestic: Currency code of the company to which the work order business unit belongs. Foreign: Currency code of the customer within the Customer Master.
When paying for a part or routing	Domestic: Currency code of the company to which the work order business unit belongs. Foreign: Currency code of the service provider within the Supplier Master.