Service PO Payment terms

[Former Member]

Hi Experts,

Please guide me how to maintain the below payment terms for the service.

Service = Pest control

Payment terms will be 20 % payment on first service 30 % payment on second service and 50 % payment on third service.

In the above scenario how system will come to know to charge 20% of the total amount (Invoice booking) one first service and so on.

Also Kindly tell me what is the use of limits and functionality.

Regards,

Sri............

[Former Member · Accepted solution]

HI,

In the scenario explained by you there service qty. is not planned, so i would like to suggest you to go through 2 methods.

One is - maintain service specification there put qty. as 1 and uom AU Gross price - 20% of total work amount, also in short text specify about 20% work. and follow the same for 30% and 50%. so you can post service entry and invoice as per % wise work.

Next go through Invoice plan work order there instead of service specification specify limit value and maintain invoice plan simple partial invoice and only maintain next invoicing date. The benefit is no need to post service entry sheet and as per invoice amount FI Guy directly can post Invoice document.

[Former Member]

Hi All,

If I Maintain three service item lines specifying the amount by % wise and do the service entry sheet , is there any issue will arise.

Regards,

Sri..........

[Former Member]

Hi,

No issue will raise when purpose get fullfiled successfully till payment.

[Former Member]

Hi,

You can meet your requirement in other way also, try the below.

While creating the PO you enter order unit as 1, and while accepting the SES you accept only 0.2 unit after first service, so system will allow you to post the invoice only for 20% of your PO Value. And follow the same for your second service as 0.3 unit & finally as 0.5 unit, and post the invoices.

Whenever you are going to get the service you accept the service entry sheet accordingly.

B/regds,

CB

[Former Member]

Hi Kallumama,

Your solution seems to be use full but how a user can remember the % of the services since he will be having n . no of PO, services and terms. Is there any automatic process which will defaulty proposes the qyt and amount in specified percentage.

Even Im maintaining the base unit as EA for the services, when entering the SES will sys accept in points like 0.20 % and splits the value accordingly...

Also please tell me the functionality of limits in services....

Regards,

sri............

[vijaykumar_gadhe]

hi

you are maintaing each

you maintain service sheet like 0.20 ,0.30.0.50 ea

regards

vijay

[Former Member]

Limts:

In some scenarios While creating PO ,we won't know actuall service cost .There would be some additional costs.In this you can give some allowable values in the Overall limiit so that you can enter unplanned service costs at SES .

1.if you are not maintianing any limit you cant enter any unplanned service values in SES

2.Expected value means

The value upto which unplanned services are likely to be performed

used for account assignment and commitment

used for release strategy

[vijaykumar_gadhe]

hi

you can maintain service like

main service -1 ea -100

service below level

1 st sevice 1 ea -20(20%of maincost)

2nd service 1 ea-30(30of main cost)

3 rd service 1 ea-50(50% of main cost)

regards

vijay

[vijaykumar_gadhe]

hi

as of my knowledge

total vaue of service 100 %

after completion of first service make service entry sheet for 20% total amount

after completion of second service make service entry sheet for 30% total amount

after completion of third service make service entry sheet for 50% total amount

against that service entry sheet u cam pay the money

regards

vijay