Bill-to and ship-to
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is bill-to and ship-to?
Bill-to and ship-to are the two addresses on a customer order: the bill-to is where the invoice goes, and the ship-to is where the goods are delivered. One bill-to account can have many ship-tos, such as each job site or plant of a single company.
How it works
Depending on the ERP, pricing and sales tax can follow the ship-to, while credit limits and payment terms follow the bill-to. Construction customers often get a separate job account for each project.
Bill-to and ship-to example
A mechanical contractor has one bill-to at its head office and 14 ship-tos, one for each active job. The CSR picks the right ship-to on every order so material reaches the right crew.
Related terms
- Sales orderA sales order is the distributor’s own record of a customer order in its ERP, listing the items, quantities, prices, ship-to address and delivery terms.
- Job accountA job account is a separate account a distributor opens for one construction project, so material for that job is tracked, billed and secured on its own.
- InvoiceAn invoice is the seller’s bill for goods or services delivered, listing the items, quantities, prices, freight, tax, payment terms and amount due.
- Sales tax exemption certificateA sales tax exemption certificate is a form a customer gives a seller to show that a purchase isn’t subject to sales tax, so tax is left off the invoice.
- Credit limitA credit limit is the maximum unpaid balance a distributor allows a customer to carry on its account.
