Milestone billing - final invoice for every milestone

[Former Member]

Hi, friends!

In a real estate implementation project: On confirmation of every milestone from PS, the billing block will be released. Suppose the unit costs 20,00,000 and there are 10 instalments with 10% of the value for billing each time. Each instalment will be 200,000. Since service tax is to be paid on accrual basis, each invoice needs to have a breakup into various components like basic sale price, preferred locatioon charges, floor rise etc. Each component attracts a different rate of service tax. The invoice for every instalment needs to show this breakup. This means that I have to back-calculate this amount of 200,000 into the various heads: basic sale price, service tax on the same, preferential location charges, service tax on the same etc.

Please guide on a method to achieve the same.

Thanks,

Kasturi

[Former Member]

Hi,

One of the way is to create each charge as Material and then have a pricing for the same in the sales order. But in this you will have to attach billing plan for each material.

Another way would be to keep the charges as condition type. in this u will have to create routines to calculate the exact value for each charge as u have suggested. for service tax u can create 2 condition types one for 10% and another for 2.5% as these are the only two percentages applicable for service tax.

Regards,

Deepak

[Former Member]

Hi, Deepak.

Cannot have each charge as a material. The material will be a unit from Real Estate Sales.

There have to be two condition tyoes for service tax in the sales order to get the total amount of 20,00,000 in the example. For each billing document, will try using routines to back-calculate each component.

Was wondering if there is any standard mechanism to perform this back-calculation for every instalment.

Thanks,

Kasturi