Payment in Advance Typical Scenario

[Former Member]

Hello All,

I have business scenario I would like to take this opportunity to share with you and please give me some suggestions how I can achieve this.

For my client, if any customer want to place an order the customer has to make some advance payment. So once the customer is paid let say 10% of the value of the sales order, it is a legal obligation that he should be given an invoice immediately but the delivery will not take place at that time.

So that is the first requirement and also the document flow has to be updated with the status of the invoice and an accounting document has to be created for the amount paid by the customer.

After this when customer receives the delivery let say after a week from the date of placed order, delivery has to be created and normal invoice has to be created.

But when we creating this invoice we have to refer to the initial amount made by the customer and that has to be deducted and for the rest of the amount it has to create invoice.

And appropriate accounting document has to be created here.

So once customer makes the payment he has to be given clearing document.

And the main issue is here in ever stage DOCUMENT FLOW has to be updated.

If you make this simple the moment he places order an invoice has to be created and accounting document has to be crated and cleared.

Once the delivery is made, invoice has to be created and accounting documents also. And once it is cleared by the customer appropriately the document flow has to be updated.

Means there will be 2 invoices and two accounting documents and one sales order and one delivery.

SO PLEASE SUGGEST ME THE BEST APPROCH WE CAN DO FOR THIS.

And also here the credit check is involved.

Thanks in Advance.

Regards,

Rani

[Former Member · Accepted solution]

You can use milestone billing or progress billing to accomplish this.

[Former Member]

Hi Rani,

you can use milestone billing for you scenario. Suppose the customer is making a downpayment of 10%, ceate a condition type for down payment in your priciing procedure for the same and you can use billing type FAZ for invoicing this downpayment. In you milestomne you can maintain this billing type for invoicing the downpayments.

Thanks

[Former Member]

Hello Akk,

As you suggested i can use the down payment process but i am working on it but i have one more doubt that , in this case the item cat suppose to be TAO but the company got different types of materials (like more than 2000 products) so that how it is possible i mean all these item got different item cat. So the customer can order for any item and can pay some money as advance so how can i solve this.

[Former Member]

please use the ITEM CATEGORY GROUP 0005 - partial billing the material master fo those products.

Then the billing plan can be used with FAZ for down payment request.

Regards,

anbu