Amortization process in purchase order

[Former Member]

Hi folks,

Our client have a requirement for Amortization process in PO (Automatically).

Could you pls share the process.

Thanks in advance,

Renjith

[JL23]

Can you explain what your client understands under amortization process in PO?

[Former Member]

We are looking forward with amortization according to LAC.

I don't have an idea about the same,where to start... pls guide me

[BijayKumarBarik]

Hi,

You can go for following steps:

Create Contract for intangible material that lacks a physical substance

Create Release Order or Call Off  with respect to  Contract

Create SES with respect to Release Order or Call Off

Create Invoice with respect to Release Order or Call Off

Pay to your Vendor for Invoice Amount for the Release Order or Call Off

Regards,

Biju K

[JL23]

if you have no idea, then you should ask your business to explain their requirement in more detail. For yourself you can start with checking wikipedia: https://en.wikipedia.org/wiki/Amortization

I  have no  idea how this fits into the purchasing process.

You may try your luck by looking up help.sap.com just paste this into Google:

amortization lac site:help.sap.com

There is a lot to find, but I didn't see something from MM