Consolidated Invoice case in SAP

1. Maria Yamile Rodriguez
Amsterdam, September 2022
Consolidate invoicing

2. Invoice consolidating project
Project charter - executive summery
PROBLEM STATEMENT
Since NEXT implementation, due
several technical constrains, we
cannot meet customer's
expectations when the customer
requires consolidated invoices.
GOAL STATEMENT
Reduce technical constrains
affecting consolidated invoices in order
to meet customer expectation.
SCOPE-IN
• NEXT ERP
• Western Europe
and Poland
• Invoice
consolidation
process
• SLS
SCOPE-OUT
• Other ERPs
• PS
• Other processes
BUSINESS CASE
CASH FLOW
Capacity to pay within due date is lower for
customers with invoice consolidation than for
customers without. This is caused due to current
issues with the IC process.
CUSTOMER SATISFACTION
 Only 1 out of 100 customers who had invoice
consolidation in the legacy system, has it in NEXT.
 Approx. 26% of the orders will generate at least 2
invoices due to the intrastat logic.
 Complaints: 16% invoices need a correction (C&D)
CAPACITY
 Due to ongoing technical issues, we dedicate 0.1 FTE to
monitor/rework this process. If we onboard all
customers, we will need 31.6 FTE.
 21% of invoices are generated manually.
KPI Target IC
customers
W41
ATB 2025
W41
ATB 2034
W41
ABOVE 30
DAYS
<5% 20.15% 6.83% 17,8%
CURRENT >88% 49.49% 93.2% 71,6%

3. VOC
1.5M EUR sales in 2020
2.355 invoices
Vidrafoc, Spain
Other suppliers like VWR offer this
service.
The number of invoices that we
receive from Merck is higher and it
costs us is approx. 200 EUR
Flamma, Italy
1.5 M EUR sales in 2020
722 invoices
Serviquimia, Spain
We have 1 person fully dedicated
to work on the invoices that they
receive from Merck
Trieste University, Italy
Other competitors can do it. The
number of invoices that we
receive from Merck is costing us
highly.
Dip. Chimica Rome la
sapienza, Italy
We cannot accept more than 1 invoice lower
than 300€ if the order is VAT exempt.
Otherwise, we need to request a new invoice.
Public customers, Italy

5. Invoice consolidating project
Business requirements
Set up at customer level
Single order (Option A) / Multiple orders
(Option B)
Order types
Billing plan
Intrastat criteria
Configuration is at Sold-to level, therefore alignment at LS level is required.
Possibility to consolidate on sales document or across multiple sales document (must be combined with
Billing plan)
Consolidated invoicing is based on a billing plan (weekly, Biweekly, monthly, quarterly)
Consolidation is only occurring for the same order types. Hence, customer will receive one consolidated
invoicing for each order type.
Note:Currently system can only create invoices with max 300 lines. We need a higher limit. (check with IFS)
Sales document should have consolidated invoices not matter where the product is coming from (plant) or if
it’s intrastat relevant or not.
Invoiced items
Invoice contains the lines that have been shipped during the defined invoicing calendar (weekly, Biweekly,
monthly, quarterly)
Invoice generation Consolidated invoices should be generated automatically

6. For CEX:
• Free up approx. 0.1
FTE/month by reducing
service complaints and
efforts caused by
rework/correction.
• Reduce number of
complaints.
For the customer:
• Meet their expectations
• More satisfied with the
process
• Fix perceived degradation
in service after NEXT
implementation
For Business:
• Improve payment
behaviour and operating
cash flow.
• Reduce risk of not meeting
tender contract
requirements, resulting in
contract penalties.
Invoice consolidating project
Expected business outcomes

7. # Challenge Description Region Direct/indirect Impact Requirement
1 Invoice Split criteria • System will generate at least 2 invoices per order when the
order contains intrastat relevant lines and not intrastat
relevant lines
• System will generate at least 3 invoices per order when the
order contains intrastat relevant lines, not intrastat relevant
lines and local stock
Click here for more information.
Split criteria also impacting Credit memos
Global Indirect Low Enhancement
N
E
W
Split criteria by region
(ship-to party)
Impact: Multiple POs consolidation and credit memos
Example: 60190046
Spain Multiple PO
credits
Direct Medium Technical fix
N
E
W
Limit of 300 Lines Order type YOR and ZESC - So far what we know for sure in IFS is
that there’s a limit of 300 lines for a consolidated invoice in PRP
which is a problem for us because of the size of our contracts so we
always get several invoices.
Global Indirect Low Enhancement
2 Billing date not updated Billing date is not updated to the next month end billing date when
the line is partially shipped. Impacting only order drop shipment
model (SO-PO-SO)
We had same issue with Crossbox and it was fixed with NCR-O2C-
SD-121
Global Direct Medium Enhancement
3 E-invoice mapping
limitation
E-invoice failure in Esker when invoice contains: Mixed items
(Covid items and standard items) or partial exemptions
General topic not only impacting consolidated invoicing.
Italy Indirect TBC Technical fix
4 Invoice not created
automatically
INC4153740 (Bala G)
The invoice has to be created manually for consolidation across
multiple sales orders.
Latest feedback from IT: I have updated 2025 sales org in ztable
for creating consolidated invoice.
Global Direct High Technical fix
5 Wrong tax code in
Invoices INC3836409
ITAE-4831
Invoice lines with value 0 and no tax code. Correction is more
complicated than others.
Global Indirect High Technical fix
Invoice consolidating project
Today’s challenges.

8. Split criteria by region (ship-
to party)
The “Plant” needs to be equal in all lines in order to
have 1 single document as outcome of the correction
You can see that a case like the one below… when we
create a credit note it will split in different accounting
documents depending on the plant. Adjusting the
plant in SFDC is not easy and if the product does not
exist in a plant we will not get an error until we save
the correction… in SAP you can see the mistake on
the spot and correct it with no effort.
Split criteria also impacting Credit memos
Examples

9. Example PRP 60190046 –
Customer with consolidation for
multiple PO).
Ticket RITM3549866/TASK35458
00.
Latest update: we will take back
the CD 60011028 to
development and add the Region
code change of invoice
consolidation along with same TR
and confirm you once the change
is done. We will keep you
posted update on the task
RITM3549866/TASK3545800.
Split by region in the ship-to party:

10. Multiple PO consolidation when
POs have different ship-to parties
Currently the consolidated
invoice shows only 1 ship-to
Example: 8250433428
In Italy: electronic invoice only
shows the sold to, not the shipto
(Simona to confirm)
In Spain: PDF invoice: Is this a
problem?
Credit memos are also generated
according to the billing plan.
Do we expect to generate the
credit memo inmediately as soon
as it's process?
To consider

11. During W4 testing we identified that the plant consolidation of invoices is not going as expected.
Expected: multiple lines from the same SO, but from different plants, that are ready to bill at the same time, will be pulled together into a maximum of two invoices.
The only split criterion is intrastat relevance.
Observed: we are actually splitting into three invoices. Example from QRP:
Sales Org 1919, SO 3001205608
Line 10 – crossbox - 8560000965 – intrastat relevant – assignment number equals SO #, customer reference number is blank
Line 20 – dropship – 8560000964 – not intrastat relevant – assignment number equals SO #, customer reference number is blank
Line 30 – local stock – 8560000966 – not intrastat relevant – assignment number equals PO #, customer reference number equals PO#
We would not have seen this in P2 WEU and W2 countries as we don’t have local stock there (minus Israel where it’s all different anyway).
According to my current understanding, we would want to amend the logic for filling the “customer reference” and “assignment number” fields to align with the crossbox
and dropship models. Note that we should also include A2R (Inez Kruk) in any conversations as they have automatic clearing jobs which depend on these fields.

12. 1) Possibility to consolidate:
- on sales document or
- across multiple sales document (must be
combined with Billing plan)
2) Set up done at customer level
Current process
# Challenge
1 Invoice Split criteria
2 Billing date not updated (SO-
PO-SO)
3 E-invoice mapping issues We need an example.
4 Invoice not
created automatically.
Schedule a calll with Bala
5 Wrong tax code
in Invoices INC3836409
add JIRA ticket
Example 8230406890

14. 1. Link to the Meeting Minutes:
2. Consolidated Invoicing - Scoping.xlsx
3. Teams LS ERP NEXT Consolidated Invoicing P.188173 - General - All Documents (sharepoint.com)