Manage service billing entries

The system creates service billing entries instead of trade accrual when the Accrual Type field value is set to Actual Cost on the associated trade plan for third-party items in the following scenarios:

• When posting document trade lines linked to purchase, sales, or transfer documents.
• When posting periodic cost lines for third-party purchase orders.

These entries represent the service costs, such as co-packing and storage, incurred by third-party customers. You can later create sales invoices with these entries and bill third-party customers for the services provided.

Transport service billing

• When freight trade plans are applied to third-party purchase, transfer, or sales documents, the system automatically creates service billing entries for transport costs when freight costs are posted. Finance users can review these entries in a centralized view and consolidate them into a sales invoice.
• When the invoice is posted, the system automatically reverses the interim general ledger postings and links them back to the original tem ledger entries for audit purposes, with no additional reconciliation required.

Production-type trade plan for service billing

• The system allows you to update the general ledger account number if the Trade Plan Type field value is set to Production on the Trade Plan Card page and supports automatic service billing for production activities when finishing production orders for third-party items with the Service Provisioning Type field value set to Third-Party on the Released Production Order page.
• This functionality applies only when producing third-party items, where production is treated as a billable service. This implies that when a production order with the Service Provisioning Type field value is set to Third-party and the item on the production line with the Service Provisioning Type field value is set to Third-party, the system fetchs only the trade plans that are set to:
  • Type = Production
  • Work center = Blank
  • G/L Account No. and Balance Account No. field values are filled
• Additionally, the system follows these configuration rules on the Trade Plan Card page:
  • If the Work Center field value is specified, general account fields are non-editable.
  • If general account fields are populated, the Work Center field value is editable.

When the service provisioning extension is installed, the production trade plans may be activated without a work center, provided all required general ledger accounts are defined.
When the service provisioning is not installed, a work center remains mandatory for production trade plans.

See also

• View service billing entries
• Invoice service billing entries