Procurement of material for projects
We have got the following requirement,
SAP is implimented but the materials are procuring for the monor projects through SAP.But for major projects procurement is through the manual process.
Manual process is:
1) award the contract and manual approval process
2) During awarding 10% advance amount is given to vendor
3) After one month of the contract award,remaining vendor sends invoice for 10% of the remaining amount and the customer pays the same
4) When the vendor procures the raw material for fabrication of the material which are ordered in the contract,then he sends the invoice.
5) Customer pays the 45% of the value to the vendor
during the above three times there is no material recieved at customer site.
6) when the ordered material is fabricated them vendor sends the remaining invoice and customer recieves the ordered material in the contract and will pay the remaining invoice amount.
For procuring this type of project material through progressive payment,how it is to be done in SAP Material Management module.
What is the solution for this process in SAP
Kindly give the solution.Advance thaks for the reply.
You can map all the business requirements in SAP MM through Sub-Contractrating process, Services and You can define these payment terms in Vendor. Through MM you can achive all the business processes which you defined below.
For further clarifications you can go through First thread.