Final answer:
Billing documents are created in the Sales and Distribution module of an ERP system and are related to sales order processing, encompassing activities like invoicing and delivery. These documents are then used in Financial Accounting for further processing.
Step-by-step explanation:
The billing document is created in the Sales and Distribution (SD) module of an Enterprise Resource Planning (ERP) system, which is often part of the overall financial management and accounting processes in a business. Despite being closely related to financial transactions,
the generation of billing documents originates from operations managed by sales and distribution rather than the Financial Accounting (FI) directly. Sales and Distribution deals with all aspects of the sales order processing, which includes the creation of sales orders, delivery, invoicing, and the billing document creation.
Once the billing document is created, data can be transferred to Financial Accounting for revenue recognition and accounts receivable management.