Agency Business – Central Billing

Purpose
Central Billing is a type of third-party business for deals between vendors and customers.

The buying group (or payment agent) negotiates prices and conditions when goods are purchased
from a vendor. These prices form the basis for the customer prices. Within Central Billing, the system
will take into account article information and additional surcharges. The vendor is legally bound to
process payment handling via the buying group. The buying group is, therefore, the central point of
payment for all of the debt generated by the members of the buying group for the goods they have
purchased. The buying group charges a fee for the transfer of the payment and for the grouping of the
invoices. The vendor typically pays the commission.

When it comes to payment processing, the buying group:

a) receives invoices or delivery notes directly from the vendor

b) enters them in the system

c) settles the vendor invoices, and

d) bills the buying group periodically.

• The member pays the total amount for periodical settlement to the payment agent.

• The buying group pays all incurred statements minus a central payment fee and, if
necessary, a commission to the vendor.
Central Billing is part of Agency Business component and can be used in all business transactions and
in all industries.

The Customer Settlement document is the main difference between the Central Billing and Pooled
Payments. Customer settlement documents can be used instead of posting lists (used for Pooled
payment). While the posting list represents a group of single settlement requests that are to be settled
by a customer, the customer settlement document is an individual document for the customer.

One or more customer settlement documents are generated based on single settlement documents
that have been created in settlement request lists. The system groups all single settlement requests
that contain the same header data (customer or posting data) for a customer in a single settlement
document. In doing so, the system accepts the items in the single settlement requests.

The system runs price determination for each header in the customer settlement document. When this
is done, the system also includes purchasing condition records from the single settlement request.
Additionally, single settlement requests may contain a different currency than the customer settlement
document.

System Access Information

This paragraph gives you the generic system access information needed to run this process.

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System Landscape
System Landscape, this Process is built in
IDES Demo System DTR, client 760

Please check the currently valid system ids and active clients on the tab strip SYSTEMS of this
process in the IDES Demo Database.

Users
By entering to the system you can create your own user.

Procedure

Creating a Settlement Request Lists

The Settlement Request Lists (SRL) contains several single settlement requests for the same vendor
(invoicing party) but various customers (invoice recipients). The settlement request list is saved in the
system with its own document number. Regardless of how many individual documents the list
contains, only one accounting document is created. The individual documents are assigned the
posting status Posted via settlement request list.
You can use the settlement request list to credit the relevant vendor account. As the list can contain
various customers, you must create a posting list to debit the individual customer accounts. In the
posting list, the individual documents are grouped by customer.

Steps in the Process

• Creating a Settlement Request List (SRL) for several single settlements
o Display Invoice Conditions (MM + SD)
o Display Accounting Document
• Creating Customer Settlements
o Display Accounting Document

Creating a Settlement Request List

...

1. Log on to the IDES Demo System DTR, client 760 and create your own demo user.

System Menu Path Logistics ⇒ Agency Business ⇒ Payment ⇒

Settlement Request Lists

2. Double-click on Create
3. Enter the following data:
Field Data
Payment Type WDR4

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 4. Choose Enter
5. The first time when you enter the system you will be asked for the organizational data.
Enter the following data:

Field Data
Sales Organisation R100
Distribution Channel R1
Division R1
Purchase Organization R100
Purchase Group R10

6. Choose button “Copy”

7. You jump directly into screen Create Invoice: Settlement Request List Item Overview
Enter the following data:
Field Data
Invoicing party RV0001
8. Choose Enter.
9. Enter the following data in tab Invoice overview:
Field Data
Bill-to party RC0001
Input Tax V1
Output Tax A1
Material R30001
Invoiced Quantity 10
Net price 9.80
Bill-to party RC0002
Material R30003
Invoiced Quantity 20
Net price 4.90
10. Choose Enter

Display Invoice Conditions

11. Double click on first Customer
12. Mark first item line and then double click on “Tax amount”
13. Choose folder “Conditons (MM)”
14. Choose folder “Conditions (SD)”

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15. Click on button “Back”
16. Choose button Save for saving the settlement request list.
Notice: The settlement request list can only be posted if the traffic light in field “Difference” is
green.
17. Message: Document xxxx saved (accouting document created) appears.
Please notice the document number.

Display Accounting Document

18. Choose ”Display” from menu “Settlement Request List”
19. Choose button “Overview”
20. Choose button “Accounting”
21. Double click on “Doc. Number”.
The corresponding accounting document will appear.
22. Choose “Back” to return

Creating Customer Settlements

System Menu Path Logistics ⇒ Agency Business ⇒ Payment ⇒

Customer Settlements
23. Choose ”Create”
24. To do:

Field Data
Document Number Clear data
Name of run Test
Check Run Only unflag

25. Choose button “Execute”

26. Choose button “Enter”
27. Message “n documents processed without errors” appears.
Press “Enter” to continue.
28. Double-click on first document number to see details

Display Accounting Document

29. Choose button “Accounting”
30. Double click on “Doc. Number”.
The corresponding accounting document will appear.
31. Choose “Back” to return.

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