Bill and Hold

[Former Member]

Hi Gurus,

please help me or suggest me how to handle the below mentioned requirment.

We have a requirement from one of client's customers to do a u201CBill and Holdu201D orders. In other words they want to pay for the product when it is produced. Then for the next several months they will send us orders to ship the product to various locations. These shipment orders will have to be no charge because they have already paid for the product.

How can these u201CBill and Holdu201D orders be handled within our SAP system?

Thanks & Regards,

Jayalakshmi

[Former Member]

Hi

Initially here you can create a single Individual Purchase Order (IPO) against the total quantity, get it produced & will be stored under special stock.

Whenever some part quantity is requested, you can create a partial delivery against the same sale order.

Since you are producing complete quantity & receiving the payment for the same initially, the question only is to stock the same quantity against this customer & create a delivery as and when requested.

thank you

[Former Member]

Hi Anirudh,

Thanks for the response.

Main thing is related to billing. As per the client requirment customer will pay the certain amount for the product when it is in production stage only.

After that he will raise a order for the same product and we have send the product to different parties through delivery creation.

we have to bill the delivery document now. how to handle this will it be simply proforma or we need to adjust the downpayment amount.

How to configuire the scenario in the system ?

Regards,

Jayalakshmi

[Lakshmipathi]

You can go with downpayment process since you have indicated that payment would be received before commencing production. Alternatively, you can have a seperate pricing procedure where you have a condition type with 100% discount for PR00 so that even if you generate a commercial invoice, amount to that extent will not get debited to customer account.

thanks

G. Lakshmipathi

[Former Member]

Hi Lakshmipathi,

Thanks for the response and suggesion.

Let me clarify my self. can we handle this requirment in standard flow.

step 1 - creation of sales order for customer for certain quantity and value of the oder will be determined based on the price of the material.

step 2 - creating the invoioce document for the total sales order value and complwting the financial entries.

step 3 - creating the delivery document and shipments when and where ever required.

step 4 - Finally creation of proforma invoice (which will not debit the customer account agian as he done the payment for invoice created in step 2 ) in order to get the flow to be completed.

please let me know whether we can handle in this way.

if yes how to manage the stock to that particular customer? which document type we can use?

If no, please suggest me how to configure the flow for downpayment.

if i understood correctly, downpayment document is the billing document which we can create wrf to sales oder.

and as you suggested 100% discount for the price condition - are we suppose to maintain a condition records for the relevent access.

request you to explain me the process as soon as possible, as we have a call with user to explain the process.

Thanks & Regards,

Jayalakshmi.

[Lakshmipathi]

If down payment process not suits you, you can try this option

1) Create a sale order for 100 nos. of material ABC

2) Create a delivery and save without doing PGI for 100 nos. since you dont have stock

3) Create a delivery related proforma and submit to customer

4) Do PGI once production is over and stock is made ready

5) Generate commercial invoice now. Here since your requirement is customer should not be debited,do the following:-

5a) Create a condition type in V/06

5b) Maintain access sequence in V/07

5c) Maintain 100% discount in VK11

5d) Assign this condition type in your pricing procedure next to PR00

Please test this in development and post the feedback

thanks

G. Lakshmipathi

[Former Member]

Hi lakshmipathi,

Thanks for the suggestion.

I think my requirment is not clear in my postings.

Actual requirment of "Bill and Hold" is - customer will pay inadvance certain amount for MTO product, which is on production stage.

In near future he may order on different dates and to different locations. At the same time client wants to track the stock against that customer. He don't want to bill the customer for each delivery/shipment.

As per my understanding for MTO products the stock will be produced and assigned to particular customer and order through we are raising a production order - so stock will always customer owned. but i am not sure in the system it will shown as plant inventory or customer owned stock.

As per sales flow concerned, how we will map for the inadvance payment.

As you suggested, downpayment option would preferable.

Please let me know how we will configure this flow.

Thanks & Regards

Jayalakshmi

[Former Member]

Hi

As per your expanantion, i understand you bill the customer confirming completer order quantity will be shipped in multiple delivery,

So as already suggested

1 Do order related billing with down payment option with pricing procedure at order level

2 do billing block at order level after that

3 then as and when you ship to various customer locations do multiple delviery, you can also have pricing with proedure at delivery level to redertemine shecule line with statistical condition type

Please let me know if this logic wil help if not let me know the cons of it to suggest further.

Regards,

Siva