on 02-19-2010 7:07 AM
Hello Friends,
I have an typical scenario in milestone billing in my current project where our client are the alumunium extrusion industry and they manufacture the alumunium doors and windows as per the project they haven been awarded in bidding and the same as to be achieved in the given payment terms in the tenders policy. Here the material cost includes all the cost service and material Its as below
60% of the payment will be done when the materials (Alumunium doors, windows) will reach the project site
20% of the payment will be done for erection of these windows
10% of the payment on Glass fixing for windows and doors
5% on hardware fixing
5% on Handover of the project site
Here we are using the milestone billing thinking that this will meet our requirement where i have defined the 5 milestone as above for each activity and the problem is
When ever the material is not reached in full but partial then the percentage has to be based on the actual while confirming tat should be on the calculation on the milestone percentage if full it will be 60% or else we have to give the actual percentage where the invoice has to be done only on the basis of this actual one.
This is the same for all activity mentioned above
Now how to go with this how to capture the actual one in milestone on which the billing has to be raised and how to accommodate the remaining percentage for next billing in the same activity and can we go for project delivery
Kindly do the needful
Thanks and Regards,
Praveen B M
Hi Praveen,
The same question has been asked by some other guy i think you guys are working on the same project.
You have two options and decide which one to use in your project.
1.Milestone Billing
2.Resource Related Billing
In case of milestone billing you will invoice your customer based on the % of the contract value and in case of RRB you will invoice your customer based on the Actual cost spent on the project.
So decide and implement the solution.
Muzamil
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Hello Muzamil,
Thanks for your valuable feedback. Here the problem is that the cost of material includes all the prices like service (Erection, fixing etc) and there is no any differentiation of the cost and also we cannot maintain the service and material in one sales order.
Here the resources differ project on going also.
Thanks and Regards
Praveen B M
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