Self-billing
Quick answer
The model where the buyer issues the invoice on the supplier's behalf, based on confirmed receipt.
Key takeaways
- A self-billing agreement is signed between the parties
- At receipt, the buyer knows the quantity and price
- The system automatically generates the invoice (auto-invoice)
- The supplier validates it; payment follows
What self-billing is
Self-billing is an arrangement where the buyer generates the invoice on the supplier's behalf, based on quantities actually received and contract prices. The supplier no longer issues the classic invoice.
How it works
- A self-billing agreement is signed between the parties
- At receipt, the buyer knows the quantity and price
- The system automatically generates the invoice (auto-invoice)
- The supplier validates it; payment follows
Advantages
- Eliminates PO-invoice discrepancies (the invoice reflects the receipt)
- Speeds up the procure-to-pay cycle
- Reduces admin work on both sides
How CRMconnect helps
CRMconnect can generate self-billing invoices from confirmed WMS receipts and contract prices, transmitting to the supplier via portal or EDI - while respecting fiscal requirements.
Real-world example
A retailer with VMI at a beverage supplier adopted self-billing: the invoice is generated automatically from confirmed consumption, removing invoicing disputes and cutting the payment cycle by several days.
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Frequently asked
Is self-billing legally valid for tax?+
Yes, within a formal agreement between the parties and complying with local tax rules (including e-invoicing where applicable). The auto-generated invoice has the same value as one issued by the supplier.
When does self-billing make sense?+
When the buyer knows quantity and price with certainty at receipt - typically in VMI, consignment or stable contract-price relationships - removing the supplier's manual invoicing.
Where CRMconnect fits
Related terms
3-way match
The control that compares the purchase order, the receipt and the invoice before approving payment.
B2B commercePurchase Order (PO)
The official document by which you buy from a supplier: agreed products, quantities, prices and terms.
B2B commerceINVOIC
The EDIFACT commercial invoice message - exchanged directly between supplier and customer (different from the fiscal e-Invoice).
FinanceProcure-to-Pay (P2P)
The end-to-end procurement cycle: request → order → receipt → invoice → payment → reconciliation.