What The Bill-to-Customer Field is For

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Posted on by ADIGA88

Hi Dears,

I want to ask about the real-world application for the field Bill-to-customer, while we understand how the system will handle the invoice if I choose a different customer. but what is the scenario that we will use it for?

We have two opinions in my company:

The first is could be used to make a hierarchy of Parent/child relationships between two customers, one the main company and the other is a subdivision of the company (may the two customers are the same legal entities but have branches).

The seocond opinion is used in case we do the service for a charity for example but another customer is paying the bill, or both customers have some arrangement with each other.

While the two cases may look alike but we like to understand in terms if the customers should be separate legal entities and how the function can affect the relationship between those entities.

Regards,

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Inge M. Bruvik 32,748 Super User 2024 Season 1 on at

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RE: What The Bill-to-Customer Field is For

The general system design is that sell-to customer will hold the statistics on item / resource level and bill-to will hold the accounts receivables.

But it can variate a little bit depending on what data is the source of the report.

So most item based statistics will be on sell-to customer level. Reports based on financial data will often be on bill-to customer level.
ADIGA88 47 on at

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RE: What The Bill-to-Customer Field is For

So, The next question that comes to mind is, if I used to model customer Parent/child relationship how this will affect the sales reports, like the top 10 customers report?
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YUN ZHU 74,115 Super User 2024 Season 2 on at

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RE: What The Bill-to-Customer Field is For

Hi, For the difference on the system, I hope the link below can give you some hints.

Thanks.

ZHU
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Inge M. Bruvik 32,748 Super User 2024 Season 1 on at

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RE: What The Bill-to-Customer Field is For

Both of your examples are valid use of the different customer sell-to and bill-to.

How I usually explain it is that if you have sub division where you want to keep track of statistics for sales to each sub division but have a common invoice recipient then you use sell-to as where you want to keep your statistics and bill-to where you want to have the invoice sent.

So it can both be two different legal entities and divisions of the same legal entity.