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

billing type - Overview

• Component: SD

• Component Name: Sales and Distribution

• Description: A control for the processing of invoices, credit memos, debit memos and cancellation documents.

billing type - Details

• 
  Key Concepts: 
  Billing type is a feature in SAP Sales and Distribution (SD) that allows you to define the way in which invoices are created for customers. It is used to determine the type of billing document that will be created, such as an invoice, a credit memo, or a debit memo. It also determines the pricing procedure and the payment terms that will be used for the billing document. 
  
  How to use it: 
  In order to use billing type, you must first define it in the Customizing settings. This can be done by navigating to the Sales and Distribution module in the SAP system and selecting the “Define Billing Types” option. Once you have defined the billing type, you can assign it to a customer or sales order. This will determine which pricing procedure and payment terms will be used for the billing document. 
  
  Tips & Tricks: 
  When defining a billing type, it is important to consider how it will affect pricing and payment terms. For example, if you are creating a billing type for a customer with special discounts, you may want to create a separate billing type with different pricing and payment terms. 
  
  Related Information: 
  For more information on how to use billing type in SAP SD, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_ERP/6.0/en-US/f3d8f9a7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b14e8a9f3d7c2b1/.