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Author's profile photo Ravindra Devarapalli

Concept of Invoicing plan in SAP

The below i explained the concept of Invoicing plan and advantages of this.

Invoicing Plan : The concept of invoicing plan is preplanned or schedule the desire dates for planned procurement invoices without receiving invoices from vendor.

So, In invoicing plan you don’t wait for invoices from vendor’s ,the system will generates invoices automatically for scheduled dates.

In Po, system will creates the  desired dates for the invoices with amount based on Valid from and Valid To and invoicing plan type. For these Po’s there is NO GR. So, we also called as  special type of planned procurement for non- stock materials because the materials are non stock materials. System will generates the invoices for Po scheduled dates automatically and Once release the invoices payment will be done. It is also possible to enter the invoice for an invoicing plan manually.

Based On PO data system will creates invoices  automatically. Invoicing plan is help ful to users, do not wait each time for the vendor to submit an  invoice for goods or services performed.

Invoicing plan is helpful for the  regularly repeated Procurement  transactions  like Rental, leasing and also for invoicing of highly invested  material or projects involving the procurement of external services that are to be subject to stage payments such as construction projects and building projects.

There are two kinds of invoicing plan 1) Periodic invoicing plans

                                                     2)Partial invoicing plans.

Simple explanation, For Periodic invoicing plan – Payment of total amount effected at regular intervals. Ex : Vehicle leasing ( payments monthly) , Ground lease

                              For Partial   invoicing plan – Total amount paid in installments. Ex : Market Survey total budget 2 lacs , 50000 is to paid upon completion of the initial analysis, 40000 after the survey has been carried out, and the rest, amounting  to 1,10,000,upon submission of the final report.

Pre Requisites :

1) AutoEvalGRSetmt Del. indicator must be set in vendor master record.

2) Tax code and Terms of payment must in PO

3) IR indicator and ERS Indicator must be set in PO.

4) Both GR indicator and GR Non valuated Indicator should be set or not set

5) Account assignment is must.

6) SAP recommends the Frame work order type (FO document type) in PO.

Main advantage of invoicing plan is Automatic Settlement Option to generate invoices in background on the relevant dates.




It is necessary to enter the valid start date, but it is not necessary to enter validity end date you can enter later also.






The automatic settlement happens using transaction MRIS

Path : Material Management —-> LIV —-> automatic settlement —-> MRIS -invoicing plan settlement.

Important Configuration steps For Invoicing plans :

1) Number Range should be maintain for document type RD and RS in OMRJ

2) Number range interval assign to Transaction RD and RS.

SPRO –> Material Management –> Logistics Invoice Verification –> Incoming Invoice –> Number Assignment –> Maintain Number Assignment for Logistics Documents –> Transaction – Assign Number Range

3)Once the Invoice is posted, the settlement documents are sent to vendor automatically in print, email or fax form. The below mentioned Message Determination configuration is required for this action.

  SPRO –> Material Management –> Logistics – Invoice Verification –> Message Determination –> Maintain Message Types

Out put type INS, you should configure for this output type.

You should maintain condition record

               For out put type INS

For assigning smart form to out put type INS, SPRO –> Material Management –> Logistics – Invoice Verification –> Message Determination –> Maintain Message Types

select INS and click on Processing routines in left side

assign Program RM08NAST to smart form .

Important points :

1) The account assignment category cannot be changed once you have created the item. Only the detailed data dependent on the account assignment category, such as the specification of the cost center in the case of account assignment category K, can be changed at any time.

2) The invoicing plan settlement run can be carried out either online or in the back ground.

3) Further information on Problem with invoicing plans can be found in Note 499523.

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      Author's profile photo Mohsin Abbasi
      Mohsin Abbasi

      Hi Ravindra,

      Great Job, you have explained beautifully about invoicing plan.....



      Best Regards

      Mohsin Abbasi

      Author's profile photo Ravindra Devarapalli
      Ravindra Devarapalli
      Blog Post Author

      Thank U ......................

      Author's profile photo Former Member
      Former Member

      Nice Explanation ............

      Author's profile photo Ashok Kumar Telugu
      Ashok Kumar Telugu

      Hi Ravindra, Good effort. Keep Posting...



      Ashok Kumar Telugu

      Author's profile photo Ravindra Devarapalli
      Ravindra Devarapalli
      Blog Post Author

      Thank u., Nice reply...........................

      Author's profile photo Pramod Kanakapura Balanagendra
      Pramod Kanakapura Balanagendra

      Great effort. Keep Posting more documents...

      Author's profile photo Former Member
      Former Member

      very good nice document..

      Author's profile photo Ragini sap
      Ragini sap

      Good job.............

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal

      Hi Ravindra ;


      Nice to meet you ...




      M.Ozgur Unal

      Author's profile photo Mithun Kukke
      Mithun Kukke

      Very Useful compilation. Thank You

      Author's profile photo Former Member
      Former Member

      Thanks U.



      Author's profile photo DHARMESH KUMAR VDLAPATLA

      Hi Thanks for Sharing the Document REgards Kumar

      Author's profile photo Former Member
      Former Member

      Hi Mr.Devarapalli 
      Appreicated for sharing.

      For service items, can invoice plan work with service entry sheet?

      Author's profile photo Ravindra Devarapalli
      Ravindra Devarapalli
      Blog Post Author

      Hope it will not work for service entry sheet. why because invoicing plan will be work for periodically paying amount to particular vendor with our GR. In service entry sheet we have to do Service entry acceptance that means you was received service from vendor.

      With out GR we can't close Service entry sheet.


      For invoicing plan ---> there is no Goods receipt.


      Any body can answered if I am saying wrong.

      Author's profile photo pawan Gupta
      pawan Gupta

      Hi Mr.Devarapalli 

      Appreicated for sharing


      Can you please guide on following point: at the time of posting in MIRO, how refernce field is filled in MIRO.

      Author's profile photo Saranya S
      Saranya S

      Hi Pawan ,


      Settlement is done through MRIS .

      Author's profile photo Zeljko Vrbovcan
      Zeljko Vrbovcan

      Thanks a lot for these explanation.


      Author's profile photo Bohdan Petrushchak
      Bohdan Petrushchak

      Hello Ravindra!

      Thank you for the explanation on this topic.

      P.S. Please pay more attention to grammar part of your documents.

      Best regards,

      The Wirtschaftsmann

      Author's profile photo Former Member
      Former Member

      Hi Ravindra,


      Thanks a ton, i have been searching for the document regarding Invoicing plan in SAP.


      I got it clearly now





      Author's profile photo Former Member
      Former Member

      We have started using the invoicing plan but I can not find a good report to run.  I need one that will show the upcoming dates and amounts of the planned invoices without having to go into each line like in MRIS.




      Author's profile photo Former Member
      Former Member

      Hi Ravindra,

      Great Job... well done...

      Author's profile photo Stalin Etay
      Stalin Etay

      Hi Ravindra,


      Appreciate your efforts. Good job!!

      Author's profile photo Anubandh Patil
      Anubandh Patil

      Very Nice documentation...

      I have one question regarding invoice Plan. if I created PO with document type FO and my client requirement is that every quarter 10% increment in invoice amount. for ex. my client leased a land for 10000rs per month and it start from 1st of march. Now after 3 months 11000Rs. again after 3 month by 10% invoice amount should be 12100 (11000*1.10). so how it is possible in invoice plan FO po

      Thanks in Advance,