Payment Term - Installment

[Former Member]

Hi Guru,

I config OBB8 & OBB9 for the installment.

Payment Term 0009

1st. 40 % -- GR

2nd. 30% -- Inspection

3rd 10%. -- Completion of testing

In PO, we purchase 1 Machine with USD1,000. (Payment Term 0009)

When doing MIRO for the GR, USD400, the system breaks down USD400 in 40%, 30% & 10% which is not what I am expecting. Wonder anyone comes across this issue before? Thanks in advance.

CT

[Former Member]

I think you should enter MIRO for USD 1000, not USD 400. Put a default payment block in OBB8 for 2nd and 3rd installment. By the way, where is the 4th installment (for the remaining 20%)?

When you do all the above, MIRO's follow-on accounting document automatically splits the vendor liability line item into four line items, where the 1st installment will be with due date as per the term you have in your 1st installment payment term (in OBB8) and the rest would be blocked for payment. As and when further milestones (inspection, testing, etc.) are complete, you need to manually remove payment block on the corresponding vendor liability line items.

Also consider Partial Invoicing Plan under SPRO -> MM -> Purchasing -> PO -> Invoicing Plan (I can't elaborate much on this, as I never worked on this).

Good luck!