What is the difference between a billing document and an accounting document in SAP SD?

In SAP SD (Sales and Distribution), a billing document and an accounting document play different roles in the sales process.

Billing Document:

A billing document in SAP SD is generated to bill the customer for the products or services sold. It contains information such as the quantities, prices, taxes, and discounts related to the sales order. Billing documents are important for the financial aspect of the transaction as they provide a record of the customer's obligation to pay for the goods or services received.

Accounting Document:

On the other hand, an accounting document in SAP SD is created to update the financial accounting records of the company. It is generated when the billing document is posted to the accounting system. The accounting document records the financial impact of the sales transaction on the company's balance sheet and profit and loss statement. It includes information such as revenue recognition, accounts receivable, and tax implications of the transaction.

Overall, while the billing document is focused on billing the customer, the accounting document is concerned with updating the company's financial records. Both documents are essential in ensuring proper financial management and compliance with accounting standards in SAP SD.