Logic in Creation of Document Types

[former_member857785]

Good Morning Folks-

Is there documentation on when to create a new document type? I am on an AR project and I have a client that has (in my opinion) duplicate document types. For example, they have 2 document types for incoming payments and they are different because cash comes via lockbox(FLB2) and the other comes from a wire. I have 4 document types to identify invoices and they are different because they come from the legacy system or created in SAP, etc. They have a document type for credit memos and typically I have seen it is the same as an invoice but differentiated by posting key. For credit memo, would be posting key 11.

I am trying to find some documentation that gives advice and warnings about this. I have worked with 9 US A/R projects and at most had to be concerned with was only 4 document types. I know what the definition of a document type is but they think it is to have them by source. I see warning flags here. I don't even know how to create clearing rules because it is so complex. In addition, they are unable to balance from their legacy system to SAP.

Points promised

[Former Member · Accepted solution]

In my previous project we had 8 income document types (cash/cheque/credit card/BACS/Cash Journal) and about 8 invoice types.

I don't think there are any hard and fast rules on this - no that I have found!

I guess from a maintenance point of view, the fewer the better, but at the end of the day, we can steer the Clients requirements, but they get the final say.

It also comes down to the reporting requirements and the level of detail required, for both subjective and objective analysis.

[former_member857785]

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[Former Member]

Hi,

This looks to be a Business Process question or as per the requirements of the client. You can find documentation on document types and how to configure, but not on how many document types to be set up. This purely depends upon Business practice adopted by the client.

If a client has moved from a legacy system to SAP, the document types used in legacy system also influences this decision. There will be some reluctance to reduce or increase number of document types vis a vis legacy system.

There should be too many or too less number of document types. Basically, document types will be helpful for reporting and analytical decision making.

Thanks

Murali.