What is differential billing in SAP SD - Sales and Distribution?

SAP Term: differential billing

• Component: SD

• Component Name: Sales and Distribution

• Description: A multi-level billing process in which a provisional invoice, then one or more differential invoices if required, and then a final invoice are created.

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• Key Concepts: 
  Differential billing is a feature of SAP Sales and Distribution (SD) that allows customers to be billed for different amounts based on the quantity of goods they purchase. This feature is useful for businesses that offer discounts for bulk purchases or need to charge different prices for different types of goods. 
  
  How to use it: 
  Differential billing can be set up in SAP SD by creating a pricing procedure with multiple condition types. Each condition type can be configured to apply a different price or discount based on the quantity of goods purchased. The pricing procedure can then be assigned to the customer in the customer master record. 
  
  Tips & Tricks: 
  When setting up differential billing, it is important to ensure that the pricing procedure is configured correctly so that the correct discounts are applied. It is also important to ensure that the customer master record is updated with the correct pricing procedure. 
  
  Related Information: 
  For more information on differential billing in SAP SD, please refer to the SAP Help Portal or contact your local SAP consultant.