Explaining the Difference Between Delivery Document and Billing Document in SAP SD

Delivery document in SAP SD represents the goods being shipped to the customer, detailing the products, quantities, and shipping details. It is created when the goods are picked and packed for delivery.

Billing document, on the other hand, is generated once the goods are delivered and is used for invoicing the customer. It includes the billing details such as pricing, payment terms, and taxes.

Understanding the distinction between delivery document and billing document is crucial in SAP SD as it ensures accurate and efficient processing of orders and invoices.