Milestone Billing with partial cost booking during goods issue

[Former Member]

Dear Experts,

I have been asked to take an issue related to PS module , i am a SD consultant working in a project, implementing SD - PS modules.

client is participating an open tender and got the project. the project is just refurbishing posh apartments. measure the whole area and worked out the total material requirements . they are planning to purchase all the material to the particular project

then delivering those ordered goods to the site and work will start installing the materials

The milestones are planned in the invoice

60% Upon delivery of all materials

20% After Installation

20 % Final Completion

Now the challenging part of this implementation  on this process

1. In Milestone billing -(order related billing) how do we delivered the materials (PGI) to the project site ?

2. client wants book the % of cost of material based on the % of invoice booking  , though materials will be fully delivered at site

please guide me how to configure this requirement

Regards,

Pratheep

[kenmelching · Accepted solution]

You can use Results Analysis with a milestone based POC to hold the cost and revenue at a %.

You would perform goods issue for the full material value and confirm the "material delivered" milestone.  RA would then move some of the cost from the P&L to WIP based on the POC.

[Former Member · Accepted solution]

Thanks for the reply Ken

Could you please explain in details about the process flow like...

sales order - attaching the WBS element - Billing plan with break up of invoice - invoice

what else i have missed in this steps , where do i see the RA , that is DIP profile assignment

Please explain me the overview of the process to achieve

Regards,

Pratheep

[Former Member]

Hi,

Will try to answer this with my knowledge level - regarding the milestone 60% on delivery

Assume these are purchased materials, these materials are assigned to the Network activities on the project and a mile stone assigned to the NWA.

Once all the materials are delivered, we can confirm the milestone on the NWA which will open the billing on the sales order.

Similarly - there would NWA's for installation and a milestone assigned to the the NWA. once the installation work is completed and mile stone confirmed this will allow billing on the sales order for the rest 20%

hope this helps -