What is billing plan type in SAP SD - Sales and Distribution?

SAP Term: billing plan type

• Component: SD

• Component Name: Sales and Distribution

• Description: The basic criteria for drawing up the billing plan. For example, you can use billing plan types to determine billing dates. You can use rules or, in CRM, you can use financial mathematics to generate billing request items used mainly for Lease contracts.

Smart SAP Assistant

• Key Concepts: 
  A billing plan type is a component of the SAP Sales and Distribution (SD) module. It is used to define the payment terms for a customer, such as the payment due date, payment method, and payment amount. The billing plan type also determines the frequency of invoicing and the number of installments for a customer. 
  
  How to use it: 
  The billing plan type is set up in the SAP system by an administrator. The administrator can define different billing plan types for different customers or customer groups. The billing plan type is then assigned to a customer in the customer master record. Once the billing plan type is assigned, it will be used to generate invoices for that customer. 
  
  Tips & Tricks: 
  When setting up a billing plan type, it is important to consider the payment terms that are most suitable for the customer. For example, if a customer prefers to pay in installments, then a billing plan type with multiple installments should be set up. 
  
  Related Information: 
  The billing plan type is closely related to other components of the SAP SD module, such as pricing conditions and credit management. It is important to understand how these components interact with each other in order to ensure that customers are billed correctly.