RFQ and Service PO for Building Construction

[former_member218049]

Hi Experts,

As I am very new to MM module, I would like to seek your advice on how to do the ff:

A ) A service PO for building of contruction worth $1,000,000. Now the client wants the system to work such that 30% of this amount can be issued for downpayment (percentage varies). Then on certain dates, certain percentages will be paid for the service. Let's say on Oct 31 20% will be paid, on Nov 30 40% will be paid and on Dec  31 10% will be paid.

A.1) Is it possible that the system prevent payment of 30% on October 31 since it is agreed that 20% will be paid?

B) Let's say there is no final price of the construction of building but would still like payment terms like 30% DP and succeeding payments in certain dates and certain percentage?

B) For the RFQ, does it support bidding for construction building?

Your inputs are very much appreciated!!!

[former_member218049 · Accepted solution]

There's also retention to consider.. So let's say 30% of total price less retention..

[jagdeepsingh83 · Accepted solution]

Advance payment and retention have standard functionality after ECC EHP4 using a business function. I would recommend you to explore invoicing plan as well business function activation for down payment and retention - LOG_MMFI_P2P

Also read -Down Payments - ERP SCM - SCN Wiki and Retention - ERP SCM - SCN Wiki

[former_member218049 · Accepted solution]

Unfortunately, the client (they are a land developer company) didn't include the PS system in the package - only MM, RE and FI. I will try your suggestion and see if it works. Thank you!

[Former Member]

Hi Marie,

Have you checked the condition type in Pricing?

Let say you create 1 new condition type for "Retention" and create validation in Invoice, this condition type will exclude from LIV calculation.

Also, you can utilize date in RFQ as a validation from - to retention period.

For term, 20%, 40%, 10%, is it ok for your client to create in line items?

let say, line item 10: Desc: 20% Construction, line item 20: 40% Construction and line item 30: 10% construction. But still, you have to calculate the amount manually.

Hope it helps. Lets the others share solutions if any.

Regards,

Agnes

[former_member218049]

They wanted to enter percentage for each phase/line item and the amount to be calculated manually based on the entire construction price. I'll try to work around the PO pricing and see if the requirements can be accomodated. Thank you!

[jagdeepsingh83]

I would recommend again explore invoicing plan option for your requirement. You can build different invoicing plans and system can calculate price based on invoicing plan

I request you to go through the documents MM-SRV The Invoicing Plan - ERP SCM - SCN Wiki

and take advantage of Partial invoicing plan. You can refer below document as well for your reference

Invoicing Plan in SAP - Wiki - SCN Wiki

[jagdeepsingh83]

have you looked at invoice plan option or building this dependency on project system ? RFQ can support at high level but activity level the way you may be looking for may not be feasible