The legation/billing procedure is the opposite of classic billing, in which a supplier or freight forwarder issues a bill for services rendered.
Brief description
In this procedure, an entry for the delivered goods is sent from the consignee to the supplier after the receipt of the goods is posted. The benefit of this option is full cost control while reducing administrative effort. The task of checking accounts is thus transferred to the supplier, and the internal administrative effort is reduced.
The prerequisite for this procedure is close cooperation between the participating parties as well as often framework agreements that regulate the legal basis. This procedure often occurs during EDI (Electronical Data Interchange), as it standardizes, simplifies and speeds up communication between companies.
