Advance Payment & POD

[Former Member]

Hi all,

I have gone through the forums for advance payment, but it seems they are mainly for downpayment process using billing type FAZ - which is okay.

Well, I have a scenario where the sales is negotiated through a contract based on agreed quantity, material and price..

The process is basically as below:

Negotiate contract --> Agreed/confirmed --> Payment received in FULL --> Create Contract --> Create Sales Order --> Create Delivery (multiple deliveries are referenced to the Sales Order until is fully referenced) --> POD?? --> Billing

My questions based on the above process for mapping into SAP are:

1. Downpayment usually caters for partial payment in advance prior to delivery, but since the amount has been fully paid, what are the best process/sequence as above to map to?

2. And since multiple deliveries are carried out with referenced to Sales Order until fully referenced, the quantity delivered may sometimes have a small variance (hence POD is actually suitable to be used), but how should we map to this process since amount is paid in full and billing will be based on quantity agreed in contract.

Example:

Contract agreed = 3000KL

Delivered qty = 2999KL

Variance = 1KL

Billed quantity = 3000KL

And another concern here is, there will be multiple of hundreds of deliveries that will be carried out to fulfill the SO quantity.. and POD is suggested to be carried out only in the last quantity.

Reason being, each deliveries are carried out using 20KL capacity truck to load to a vessel of 5000KL capacity for example. Hence, it may take up to 150 deliveries to completely deliver 3000KL. POD is hence only done at the final delivery to take an actual count if 3000KL is received.. hence a variance of 2999KL may happen for example.

Billed quantity will be 3000KL (is paid in full).

3. Finally, Billing is done.. the questions here again are, when will the clearing process take place?? The amount has been paid and received at bank (on Day 1). This billing document will be created only at month end once AFTER all the deliveries are completed.

On another note, the actual business scenario runs like this:

Negotiate contract --> Agreed on contract --> Payment received --> Delivery to customer (multiple DOs) --> Determine if there are variances (via POD at final delivery) --> Issue Debit note / Credit note to customer on the differences.

Appreciate your feedback on the above and how this sequences used in the business can be mapped to SAP..? Appreciate some details explaination...

Thanks.

[Former Member]

Not answered