payment terms

[ajith_kumar10]

Dear experts

how do we configure the following payment terms for single sales order for a customer

20% advance payment

10% on purchase of raw material

10% on purchase of bought out material

20%on proforma invoice

40% after delivery

we are not using milestones. billing will be based on delivery.

pl help

regards

Ajith

[jpfriends079]

Ajith

In my opinion, handling your requirement through payment terms is not feasible solution.

If you check Suman's doc accounting doc section, accounting entries generated in one go and the payment terms are fixed period.

Say,

Milestone	Payment Terms
20% advance payment	Within 15 days net due
10% on purchase of raw material	Within 30 days net due
10% on purchase of bought out material	Within 45 days net due
20%on proforma invoice	Within 60 days net due
40% after delivery	Within 90 days net due

As I understand, when delivery is involved, I don't think you will have time frame for sales fixed. Thus, payment terms will not provide you that flexibility.

Further, I believe you are aware of milestone billing plan limitation for your requirement. Which is quiet evident from you statement.

we are not using milestones. billing will be based on delivery

Similarly, when you are opting for payment terms. Then that limitation applies to this approach also.

My suggestion would be for Values Contract. Which would take care of delivery also.

You can analysis the same and share the same.

I assumed you are not using SAP PS for this requirement. Otherwise, milestones placed project to take care of your requirement.

Thanks, JP

[suman_sardar2]

Hi,

I am also agree with Kesari that it seems like Installment payment.

You can also take help from the below document for the step by step configuration guide.

INSTALLMENTS PAYMENT - Payment Terms & Document Split

Thanks,

Suman

[former_member184080]

Hi,

Ask your FI consultant to create Installment payment terms. Basically they will create 5 installment payment terms (as per your requirment) and will assign to one payment term. Now, you this payment term in your payer customer master or sales order.

You can check the below thread.

http://scn.sap.com/thread/1729600

Let me know if you need any further help,

Regards,Sai Krishna.