3730590 - Unable to Perform Delivery-Related Billing for Sales Order with Item Category NLAG - S/4HANA Cloud Public Edition

• When creating a sales order for a material with Item Category Group = NLAG (Non‑stock), the system automatically determines Item Category = CTAX. When creating the billing document, the error "The document is not relevant for billing" is displayed.
• There is a need to enable billing plan (down payment request) for non-stock items while retaining delivery-related billing using 2ET scope item.

SAP S/4HANA Cloud Public Edition

1. Create a material with Item Category Group = NLAG.  
2. Create a sales order → system determines Item Category = CTAX.  
3. Create a down payment request.  
4. Receive customer down payment.  
5. Create delivery and post goods issue.  
6. Try to create an invoice with reference to the delivery.  
7. System gives error: "The document is not relevant for billing"

Based on the standard design in SAP S/4HANA Cloud Public Edition, billing plan (down payment) and delivery-related billing follow two different processing logics. Billing plans are inherently tied to order-related billing, while delivery-related billing is based on the delivery document. Because of this, it is not possible to combine both behaviors within the same item category in standard. 

The behavior you observed with CTAX is expected, as it enforces order-related billing, which is why the final invoice (F2) is generated together with the down payment request (FAZ). 

From a process perspective, the most feasible approach would be to handle the down payment outside of the sales order billing plan (e.g., via FI), while keeping the sales order with TAX/CNLA for delivery-related billing. 

Alternatively, a split-item workaround could be considered, but it introduces financial reconciliation challenges and may not meet the requirement for a controlled process. 

• Billing Plan Functions
• Sales Order Processing for Non-Stock Material (2ET) - Solution Process
• 3544239 - Unable to create Billing Document due to error "The document is not relevant for billing"

 SAP S/4HANA Cloud Public Edition, billing plan, down payment, delivery-related billing, order-related billing, NLAG, CTAX, Non‑Stock, 2ET,  , KBA , SD-BIL-IV-2CL , Processing Billing Documents (Public Cloud) , Bug Filed