What is invoicing plan in SAP MM-PUR - Purchasing?

SAP Term: invoicing plan

• Component: MM-PUR

• Component Name: Purchasing

• Description: A listing of dates on which invoices for purchase order items covering materials or services are to be entered and subsequently paid. The invoicing plan facilitates the largely automatic creation and payment of invoices both for recurring procurement transactions such as rental or leasing payments and transactions involving settlement in stages such as payment for the phases of a building project as they are completed.

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• Key Concepts: 
  Invoicing plans are used in SAP MM-PUR Purchasing to define the payment terms for goods and services. They are used to determine when and how much of an invoice should be paid. The invoicing plan also defines the payment method, such as cash, check, or credit card. 
  
  How to use it: 
  Invoicing plans are created in the SAP system and assigned to vendors. When a purchase order is created, the invoicing plan is automatically assigned to the vendor. The invoicing plan can then be used to determine when and how much of an invoice should be paid. 
  
  Tips & Tricks: 
  It is important to ensure that the invoicing plan is up-to-date and accurate. This will help ensure that payments are made on time and that vendors are not overpaid or underpaid. 
  
  Related Information: 
  Invoicing plans can be used in conjunction with other SAP MM-PUR Purchasing features, such as payment terms and payment methods. They can also be used in conjunction with other SAP modules, such as FI (Finance) and CO (Controlling).